Cairo, Egypt
African Export-Import Bank has issued a US$29 million guarantee to BSMART Technology Ltd to support the expansion of the East African Community Customs Bond, a digital customs-guarantee system intended to speed the movement of goods across the region.
The facility is expected to strengthen the financial capacity behind the EAC Customs Bond and increase its use by clearing and forwarding agents, customs authorities and guarantors operating across East Africa.
Afreximbank said the guarantee will help BSMART Technology Ltd scale the technology-enabled platform as the East African Community works toward more integrated, paperless and efficient customs procedures.
The EAC Customs Bond allows eligible users to obtain and manage customs guarantees through a digital system, rather than relying on physical bond documents at each border crossing. Under the traditional process, businesses moving goods through several countries may be required to submit separate documents at entry and exit points, adding administrative costs and delays to regional trade.
With the digital bond, a clearing agent transporting cargo across multiple EAC member states can use a single electronic customs guarantee rather than repeatedly processing physical documentation at each border post.
Afreximbank said the initiative is expected to reduce paperwork, improve access to customs-guarantee capacity and support faster clearance and transit of goods across East Africa.
The financial support builds on Afreximbank’s cooperation with the EAC Secretariat, which began during the pilot phase of the customs bond in August 2025.
The EAC first tested the system in Uganda before Rwanda and Burundi joined the platform in January 2026. The Bond was formally launched during the 25th EAC Heads of State Summit in March 2026.
The project is being supported through Afreximbank’s African Collaborative Transit Guarantee Scheme, known as AACTGS. The programme is designed to develop regional customs-guarantee mechanisms and digital trade systems that lower barriers to the movement of goods between African countries.
Afreximbank views the EAC Customs Bond as part of a broader effort to simplify customs procedures, reduce the cost of cross-border trade and strengthen the implementation of the African Continental Free Trade Area.
Kanayo Awani, Afreximbank’s Executive Vice-President for Intra-African Trade and Export Development, said the facility was intended to tackle practical obstacles that continue to slow trade within the continent.
“This facility demonstrates Afreximbank’s commitment to developing practical solutions that break down the barriers to intra-African trade,” Awani said. “With the EAC Customs Bond, we are supporting the digitisation and simplification of access to customs guarantees for businesses moving goods across the region, cutting costs and improving the efficiency of customs procedures.”
She said the Bond complements the bank’s wider transit-guarantee programme and strengthens Afreximbank’s partnership with the EAC Secretariat, regional economic communities and other trade stakeholders.
“The intervention aligns with the Bank’s mandate to support implementation of the AfCFTA and accelerate the integration of African markets,” Awani said.
Customs bonds are financial guarantees that ensure governments can recover duties and taxes if goods moving under transit arrangements fail to reach their intended destination or do not comply with customs requirements.
For traders and logistics operators, however, securing separate bonds and presenting paper documents at every crossing can increase the cost and time required to move goods through multiple jurisdictions.
The EAC Customs Bond is designed to address this challenge through a regional electronic platform. The system aims to allow agents and freight forwarders to process customs guarantees digitally, while giving customs authorities and guarantors access to the same information.
Afreximbank said the $29 million guarantee would support the platform’s growth by strengthening the financial backing needed for customs bonds issued through the system. This is expected to expand the range of transactions that can be supported and encourage greater adoption by businesses moving cargo through the East African region.
The bank said the programme could contribute to a more seamless transit environment by reducing administrative requirements, lowering dependence on physical documentation and improving the predictability of cross-border trade.
Stephen Teang, Managing Director of BSMART Technology Ltd, said the facility would support the company’s plans to expand the EACBond platform.
“This facility provides important support for BSMART’s growth ambitions and reflects strong confidence in EACBond,” Teang said. “We thank Afreximbank for their partnership and support.”
The guarantee comes as African governments and regional economic communities intensify efforts to digitise customs, improve trade corridors and reduce non-tariff barriers that continue to constrain commerce within the continent.
While tariffs have often received the most attention in discussions around the African Continental Free Trade Area, businesses frequently identify border delays, duplicative documentation, inconsistent procedures and high transit costs as some of the most significant barriers to regional trade.
The EAC Customs Bond is intended to address some of these challenges by creating a common digital mechanism for goods in transit. If adopted more widely, the platform could allow transporters to move cargo across several East African countries with fewer procedural interruptions.
Afreximbank said the guarantee would help build the capacity needed to scale the system across the region, supporting a more efficient customs environment and contributing to the long-term objective of increasing intra-African trade.
