East African Community Moves to Cut Dollar Dependence Through Integrated Payments

The East African Community (EAC) is advancing efforts to reduce regional dependence on the United States dollar by developing a comprehensive, integrated payment and settlement system. First Deputy Prime Minister and Minister for East African Community Affairs, Hon. Rebecca Kadaga, outlined these developments during a plenary sitting on Tuesday, 03 November 2026.

According to Kadaga, the initiative aims to lower the cost of doing business, deepen intra-EAC trade, and lay the groundwork for the proposed East African Monetary Union and single currency. The system is designed to allow individuals and businesses to transfer funds securely, instantly, and affordably between partner states using bank accounts, mobile-money wallets, and other digital channels.

The primary mechanism driving this effort is the East African Payment System (EAPS), which currently connects the national Real-Time Gross Settlement systems of Uganda, Kenya, Tanzania, and Rwanda. However, full regional coverage remains a work in progress as Burundi, South Sudan, the Democratic Republic of Congo, and Somalia are not yet fully integrated.

To bridge these gaps, the bloc adopted the Cross-Border Payment System Masterplan in 2025. The framework focuses on expanding and modernizing EAPS, harmonizing payment-service-provider regulations, and increasing the use of local partner state currencies.

Lawmakers have also raised important considerations regarding implementation. Shadow Minister for EAC, Hon. Hakim Kizza, noted that traders often still rely on the US dollar due to liquidity shortages in regional currencies at commercial banks. He urged the government to support a central bank-backed liquidity facility to ease cross-border trade.

Speaker Jacob Marksons Oboth emphasized the need for regular updates on regional integration and public awareness campaigns. Further details can be found on the Parliament of Uganda.