In a game changing decision to streamline trade across East Africa, the East African Community (EAC) has unveiled a regional customs bond, dubbed the EAC Bond, designed to ease the movement of goods and reduce the cost of doing business in the region.
Launched in Kampala during a high-level event attended by key stakeholders from government, logistics, finance, and customs, the EAC Bond will allow traders to secure goods in transit across multiple countries using a single bond, replacing the need for separate national guarantees at each border.
Initially piloted in Uganda, Kenya, and Rwanda, the bond will progressively roll out across all EAC Partner States. The digital system links customs, cargo tracking, and insurance systems, providing real-time monitoring of shipments and ensuring compliance through automated risk checks.
Traditionally, businesses moving goods from the Port of Mombasa to inland destinations such as Kampala or Kigali have been required to provide separate customs bonds at each border crossing, locking up working capital and inflating costs. The new unified bond eliminates this requirement, allowing companies to reinvest capital into growth and jobs.
“This is a game-changer for our traders,” said Uganda’s Minister of State for East African Community Affairs, Hon. James Magode Ikuya. “By cutting out multiple bond requirements, we are removing a major bottleneck to cross-border trade. This will empower businesses, reduce costs, and enhance Uganda’s competitiveness in regional markets.”
EAC Secretary General Hon. Veronica Nduva echoed the sentiment, highlighting that the new system improves trade transparency while unlocking billions in previously tied-up capital.
“The EAC Bond allows traders to reinvest their resources into their operations instead of locking them away in deposits. It also strengthens monitoring through real-time tracking, curbing fraud and cargo diversion,” she said.
Nduva estimated that nearly USD 2 billion, previously immobilized under the traditional customs guarantee system, would now be released back into the region’s economies through digital guarantees.
The bond is part of a broader regional push toward a fully digitized trade infrastructure. Its integration with the Regional Electronic Cargo Tracking System (RECTS) is expected to further reduce cargo transit times and prevent revenue leakages. RECTS has already helped Partner States save over USD 250 million, officials noted.
Annette Ssemuwemba Mutaawe, EAC Deputy Secretary General for Customs, Trade and Monetary Affairs, hailed the initiative as the culmination of more than ten years of regional cooperation.
“This bond represents a collective commitment from both governments and the private sector to remove trade barriers and unlock the economic potential of the region,” she said.
With over USD 35 billion in goods moving annually across East Africa’s trade corridors, the EAC Bond marks a significant step toward a more integrated, efficient, and cost-effective trading bloc.