On 5th May, AFI coordinated a virtual Peer Learning Exchange between Central Bank of Lesotho (CBL) and Bank of Tanzania (BoT), exploring how Tanzania’s Instant Payment System (TIPS) has managed to integrate diverse financial services providers, reduce transaction costs, and foster financial inclusion. 

CBL officials involved in implementing Lesotho’s National Payments Switch ‘LeSwitch’ learnt about Bank of Tanzania’s instant payments journey, including functionalities, challenges, and future plans. Discussions covered the regulatory framework, governance structure, technical architecture supporting TIPS, public-private collaboration, and instant payment systems’ role in fostering financial inclusion. Participants also explored interoperability, security measures, operational procedures, and potential areas for collaboration between the two countries’ financial systems.

“Tanzania has made remarkable progress in digital payment systems, particularly in enhancing interoperability between banks, electronic money issuers, and other financial service providers,” said Ira Aprilianti, AFI Senior Policy Analyst, Digital Financial Services. “TIPS has been lauded as a model for its role in integrating diverse financial services providers and reducing transaction costs, generating valuable lessons for countries seeking to develop and operationalize digital payment infrastructure.”

The event formed part of ongoing AFI In-Country Implementation support to Central Bank of Lesotho as it works to modernize and integrate national payment systems, to facilitate more efficient, secure, and inclusive financial transactions.