The expanded digital customs bond could reduce paperwork, border delays and the cost of moving goods across multiple EAC countries, offering traders and logistics companies a more seamless regional market.
By Business Insider Reporter
Businesses moving goods across East Africa could face fewer border delays, lower administrative costs and simpler customs procedures following a US$29 million guarantee from African Export-Import Bank (Afreximbank) to expand the East African Community Customs Bond.
The guarantee, issued to BSMART Technology Ltd, is intended to strengthen the financial capacity behind the technology-enabled regional customs guarantee system and accelerate its adoption across the East African Community.
For importers, exporters, clearing and forwarding agents and logistics companies, the significance lies in reducing the paperwork traditionally required when goods transit through several countries.
Instead of physically submitting separate bond documents at border points as goods enter and leave different jurisdictions, eligible users can access customs bonds digitally through the EAC Customs Bond platform.
Afreximbank says the system is designed to reduce administrative requirements, improve access to customs guarantee capacity and enable goods to move across borders faster.
The initiative could be particularly important for businesses operating regional supply chains, where delays at borders can increase transport costs and make delivery schedules less predictable.
“Aimed at strengthening the financial capacity underpinning the EAC Customs Bond and supporting the transition to a more seamless digital and integrated customs environment,” Afreximbank said in a statement announcing the facility on September 22.
The guarantee will enable BSMART Technology to strengthen implementation of the platform and increase its uptake in the regional market.
From pilot to regional system
The initiative builds on cooperation between Afreximbank and the EAC Secretariat that began with the pilot phase of the customs bond in August 2025.
The EAC Secretariat initially piloted the system in Uganda before Rwanda and Burundi joined in January 2026. The bond was subsequently officially launched during the 25th EAC Heads of State Summit in March 2026.
Under the digital platform, an agent transporting goods through multiple countries can process the customs bond digitally rather than repeatedly submitting physical documentation at each border.
Afreximbank expects the additional financial backing to support wider adoption of the system across the region.
The bank is supporting the initiative through its African Collaborative Transit Guarantee Scheme (AACTGS), which seeks to develop regional customs guarantee and digital solutions to facilitate trade within Africa.
For the EAC, greater adoption of the system could help advance a longstanding regional objective of making cross-border trade more efficient by simplifying customs procedures.
Cutting the cost of regional trade
Afreximbank Executive Vice President for Intra-African Trade and Export Development, Kanayo Awani, said the facility was intended to address practical barriers confronting businesses trading across African borders.
“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.”
The customs bond provides a guarantee covering customs obligations associated with goods being transported across borders. Digitising that process is intended to reduce dependence on physical documents while creating a more integrated transit environment.
Awani said the initiative also complements Afreximbank’s broader continental transit guarantee programme and strengthens cooperation with the EAC Secretariat and other regional institutions.
“Above all, this intervention aligns with the Bank’s mandate to support the implementation of the AfCFTA and accelerate the integration of African markets,” she said.
Boost for regional integration
The investment comes as African economies seek to remove non-tariff and administrative barriers that continue to complicate trade between neighbouring countries despite regional integration initiatives.
For East African businesses, the benefits of a regional customs guarantee system could become more pronounced for consignments that cross several borders before reaching their final destination.
The new facility is expected to strengthen the financial capacity supporting the digital customs ecosystem, expand access to customs bonds and encourage greater use of the platform.
It is also expected to support further digitisation of customs procedures and contribute to efforts to increase intra-African trade.
BSMART Technology Managing Director Stephen Teang said Afreximbank’s backing would support the company’s expansion plans.
“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.”
For the East African business community, however, the bigger test will be how widely the platform is adopted across the region and whether the digital system translates into measurable reductions in paperwork and delays. If implementation expands as intended, the US$29 million guarantee could help remove one of the less visible but costly obstacles to regional commerce – the administrative burden of moving the same consignment through multiple customs jurisdictions – and bring the EAC closer to a more seamless regional trading environment.
