The African Export-Import Bank (Afreximbank) has issued a $29 million guarantee to BSMART Technology Ltd to support the expansion of the EAC Customs Bond, a digital regional customs guarantee system designed to ease the movement of goods across East Africa.

The facility is intended to strengthen the financial capacity behind the EAC Customs Bond and support wider adoption by clearing and forwarding agents, guarantors and customs authorities, Afreximbank said in a statement issued on Sept. 22.

The guarantee forms part of Afreximbank’s African Collaborative Transit Guarantee Scheme (AACTGS), which supports regional customs guarantee and digital solutions aimed at facilitating intra-African trade.

A customs bond is a financial guarantee that protects customs authorities against potential unpaid duties, taxes or other obligations when goods are moved under customs control.

Under the EAC Customs Bond, eligible users can access and process customs guarantees through a digital platform instead of relying on physical bond documentation at individual border posts.

Afreximbank Executive Vice President for Intra-African Trade and Export Development Kanayo Awani said the facility would support the digitisation and simplification of access to customs guarantees for businesses moving goods across the region.

The bank said the system is designed to reduce administrative and documentation requirements associated with cross-border transit and improve access to customs guarantee capacity.

BSMART Technology Managing Director Stephen Teang said the guarantee would support the company’s expansion and reflected confidence in the EAC Customs Bond.

The EAC Customs Bond builds on cooperation between Afreximbank and the East African Community (EAC) Secretariat that began with a pilot in Uganda in August 2025.

Rwanda and Burundi subsequently joined the system in January 2026, before the bond was officially launched during the 25th EAC Heads of State Summit in March.

The EAC Secretariat says the regional bond is intended to replace the need for multiple national bonds when goods are transported between partner states. It allows traders to secure a cargo journey through a single regional financial guarantee.

The EAC has described the initiative as part of its efforts to advance the Customs Union and digital trade solutions.

In its 2026/27 budget documents, the regional bloc said the EAC Customs Bond enables the transit of goods across partner states under a single financial security. It also reported that intra-EAC trade increased 28% to $19.3 billion in 2025 from $15.2 billion in 2024.

The EAC Customs Bond is designed to allow a clearing or forwarding agent moving cargo through several countries to process the relevant guarantee digitally.

Traditionally, cross-border transit can require customs documentation and guarantees to be handled at different border points as goods move between jurisdictions.

The digital system seeks to reduce the physical submission of bond documents and streamline the administration of customs guarantees.

Afreximbank said the new guarantee would help BSMART Technology strengthen implementation and market uptake of the system across the region.

The facility follows Afreximbank’s earlier involvement with BSMART Technology. In 2024, the bank signed an agreement with the company to expand its African Collaborative Transit Guarantee Scheme to cover container deposit guarantees and customs bonds in the EAC region.

The customs bond is being developed within the EAC’s broader efforts to reduce barriers to regional trade and strengthen the implementation of its Single Customs Territory.

At the 25th EAC Heads of State Summit, leaders formally launched the EAC Customs Bond and directed partner states to roll it out to facilitate trade.

Kenya’s State Department for Trade has said the regional customs bond is intended to replace multiple national transit bonds with one bond recognised across participating EAC countries.

The EAC’s broader customs programme is aimed at allowing goods to move more efficiently across the region while maintaining financial safeguards for customs authorities.

The regional bloc has also been pursuing measures to address non-tariff barriers, including administrative and procedural obstacles that can slow the movement of goods across borders.

Afreximbank said its support for the customs bond is aligned with its mandate to promote intra-African trade and with implementation of the African Continental Free Trade Area (AfCFTA).

For businesses operating regional supply chains, wider adoption of the system could reduce the number of physical documents required for transit and make customs guarantee processes more integrated.

The effectiveness of the system, however, will depend on its adoption by customs authorities, financial institutions, insurers, clearing agents and traders across the participating markets.

The EAC has identified digital trade infrastructure and customs integration as important components of deeper regional economic integration.

The $29 million guarantee therefore marks another stage in the development of the EAC Customs Bond, moving the system from its initial pilot and launch phases towards broader regional implementation.