Afreximbank Backs EAC Customs Bond With $29mln Guarantee

The African Export-Import Bank has issued a 29 million US dollars guarantee to BSMART Technology to support the expansion of the EAC Customs Bond, a digital customs guarantee system designed to simplify the movement of goods across East Africa.

The guarantee will strengthen BSMART’s financial capacity to implement and expand the technology-enabled customs bond and support its adoption by businesses and other eligible users across the region.

The EAC Customs Bond allows clearing and forwarding agents, guarantors and customs authorities to access customs guarantees through a digital platform, reducing reliance on physical documentation at border posts.

The system is designed to remove the need for physical customs bond documents to be submitted at each border when goods enter and exit different countries, potentially reducing administrative requirements and delays in regional transit.

The facility builds on Afreximbank’s cooperation with the East African Community Secretariat, which began with a pilot of the EAC Customs Bond in Uganda in August 2025. Rwanda and Burundi joined the system in January 2026, before the EAC formally launched the Bond at the 25th Summit of Heads of State in March.

Afreximbank said the new financing is expected to expand the capacity and adoption of the customs guarantee system across East Africa, while supporting the digitisation of customs procedures and facilitating faster cross-border movement of goods.

The Bank is supporting the initiative through its African Collaborative Transit Guarantee Scheme, which provides regional customs guarantee and digital solutions intended to facilitate intra-African trade.

“This facility demonstrates Afreximbank’s commitment to developing practical solutions that break down the barriers to intra-African trade,” said Kanayo Awani, executive vice-president for Intra-African Trade and Export Development at Afreximbank.

Awani said the digital bond would simplify access to customs guarantees for businesses moving goods across the region, while complementing the bank’s wider efforts under the AACTGS programme.

Stephen Teang, managing director of BSMART Technology, said the guarantee would support the company’s expansion and described it as a sign of confidence in the EAC Customs Bond.

The initiative forms part of wider efforts to reduce trade costs and administrative barriers within East Africa and support the implementation of the African Continental Free Trade Area.

Source: FSX Business News