Afreximbank backs $29m digital system to ease East Africa border trade

The African Export-Import Bank (Afreximbank) has provided a $29m guarantee to support a digital customs system aimed at simplifying the movement of goods across East African borders.

The guarantee, issued to BSMART Technology Ltd., will support the EACBond platform, which allows a single customs guarantee to cover goods transported through multiple participating countries.

The initiative is being implemented under the African Collaborative Transit Guarantee Scheme (AACTGS), a trade facilitation programme designed to strengthen guarantee mechanisms for cross-border commerce across African markets.

EACBond connects customs authorities, customs agents and guarantors on a digital platform, allowing transit guarantees to be processed electronically rather than through separate paper-based arrangements at each border.

For traders and transport operators, the system is intended to reduce repeated documentation and the need to arrange separate customs guarantees when cargo passes through several East African Community (EAC) member states.

The platform was first piloted in Uganda in August 2025 before Rwanda and Burundi joined in January 2026. It was subsequently presented at the EAC Heads of State Summit in March.

Afreximbank announced the $29m guarantee on September 23 as regional trade continues to expand.

Total trade within the EAC reached $52.3bn in the second quarter of 2026, representing a 37 per cent increase from the same period in 2025. Intra-EAC exports also rose by 33.2 per cent year-on-year to $3.2bn during the quarter.

The expansion of regional trade has increased the need for more efficient systems at border crossings, where multiple documentation and guarantee requirements can add time and administrative costs to shipments.

The EAC has also called for greater use of digital technology in border operations as part of efforts to improve cross-border trade.

The Afreximbank-backed guarantee is therefore expected to strengthen the digital infrastructure supporting transit trade across participating East African markets, with the single-guarantee model reducing the need for traders to navigate separate arrangements along regional transport corridors.