Multinational - East African Community - Payment and Settlement Systems Integration Project


Project Summary

Approval Date 05 Dec 2012
Signature Date 28 Jan 2013
Planned Completion Date 31 Dec 2021
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 15,000,000
Status Implementation

Project General Description

The East African Community (EAC) Payment and Settlement Systems Integration Project (PSIP) is aimed at creating a robust regional environment of integrated wholesale and retail payment and settlement systems that will improve the efficiency of cross-border remittance transfers, as well as strengthening the regulatory and legislative capacity of the financial sector in EAC partner states. It is based on a set of interventions and measures aimed at ensuring that : (i) the smooth functioning and integration of real-time gross settlement (RTGS) systems, retail payment and settlement systems, central securities depositories and core banking platforms in the region; (ii) the satisfactory functioning of the supporting infrastructure, including business continuity and disaster recovery platforms; (iii) harmonized national legislation, regulations and policies to integrate adequate supporting pillars of payment and settlement systems (PSS) within the EAC to protect payment flows. These include the adoption of common provisions on "failure to settle", the "oversight framework and policy", the on-site inspection scheme in accordance with the Bank for International Settlements (BIS) Core Principles for Systemically Important Payment Systems, the regulatory provisions on payment instruments and collateral levels ; capacity building and support for a useful set of skills in specific areas of SSSs for the EAC project core team, national central banks (NCBs), commercial banks, judges and other stakeholders and regulators. It is expected to be implemented over 4 years at an estimated total cost of UA 15 million.

Project Objectives

The main objective of the project is to support, through an integrated Payment and Settlement System (PSS), the broadening and deepening of the financial sector by establishing a single market for financial services among the partner states of the East African Community (EAC), with a view to making a wide range of financial products and services accessible to all at competitive prices. The project specifically aims to: (i) the convergence and regional integration of Payment and Settlement Systems (PSS) and (ii) the strengthening of harmonized legislative and regulatory capacity of the financial sector in the partner states.

Beneficiaries

The East African Community (EAC) is the main beneficiary. Direct beneficiaries of the project will include the National Central Banks (NCBs) of the EAC Partner States, commercial banks, other financial institutions and the judiciary, including the East African Court of Justice (EACJ) and members of the East African Legislative Assembly (EALA). Another beneficiary will be the Office of the Community Legal Adviser. This is the legal office of the EAC Secretariat.

Participating Organization

Funding
African Development Fund
Implementing
East African Community (EAC) Secretariat

Information

IATI identifier 46002-P-Z1-HZ0-003
Last Update 28 Oct 2020

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Contact Details

Name KYOKUNDA Grace
Email g.kyokunda@afdb.org

Geographic Location

Country Multinational