Microfinance institutions in East Africa are under pressure to make payments faster, cheaper and easier to track, from disbursing loans and collecting repayments to cross-border remittances. Blockchain-based payment and settlement platforms promise lower costs, real-time settlement and a tamper-proof record of transactions. Some deliver real value. But adopting a new payment technology is a big decision, and the right questions asked early can prevent costly mistakes.
What Blockchain Payments Can Offer
- Faster settlement between institutions, partners and branches.
- Lower costs for some cross-border transfers and remittances.
- A shared, tamper-resistant record of transactions for audit and reconciliation.
- Automation of rules, such as repayment schedules, through smart contracts.
Questions to Ask Before You Adopt
1. Is it allowed by our regulator?
Check the position of your central bank and financial regulator on blockchain, digital assets and payment services. Rules differ between Tanzania, Rwanda, South Sudan and Ethiopia, and some activities need a licence or approval.
2. What problem are we solving?
Be clear about the goal: lower remittance costs, faster settlement or better reconciliation. If an existing system or mobile money integration already solves it, blockchain may add cost without benefit.
3. How does it connect to our core banking system?
The platform must integrate with your core banking, mobile money and accounting systems. Ask for references from institutions using the same core system.
4. How are keys and accounts secured?
Ask how private keys are stored, who can approve transactions, and how access is protected with multi-factor authentication and privileged access controls.
5. How is customer data protected?
Check where data is stored, who can see it, and how the platform meets data protection laws. Personal data should not be written to a public ledger.
6. What are the full costs?
Include licence or subscription fees, transaction fees, integration work, training and ongoing support, not only the price per transfer.
7. Who supports us locally?
Make sure there is support in your time zone, with clear service levels, and a plan for outages.
Before You Sign
- Regulatory position confirmed in writing where needed
- Clear business case with measurable goals
- Integration tested with your core systems
- Security and data protection reviewed
- Total cost of ownership calculated
- Pilot with a small group before full rollout
How Junubia Host Can Help
Junubia Host works with banks and microfinance institutions across Tanzania, Rwanda and South Sudan. We help you assess new platforms, check integration and security, and protect payment systems with Kron privileged access management, Fortinet network security and secure infrastructure.
Get an Independent View
Book a free IT assessment and we will help you review the security and integration side of any new payment platform. You can also reach us on WhatsApp: +211 924 786 666 (South Sudan) or +255 768 404 666 (Tanzania and Rwanda).
Written by Dut Majak, CEO and Founder of Junubia Host Co Ltd. Dut leads Junubia’s work with banks, government institutions, NGOs and businesses across South Sudan, Tanzania and Rwanda.
