ADDIS ABABA - The East African Community (EAC) has launched the EAC Bond a unified regional customs guarantee system designed to ease cross-border trade, lower business costs, and improve cargo movement across member states.
Previously, traders moving goods from the Port of Mombasa to inland destinations such as Uganda and Rwanda were required to post separate customs bonds at each border--tying up capital and causing delays. The new EAC Bond replaces this with a single guarantee covering the entire route across EAC partner countries, according to Ugandan national media.
The official launch took place in Kampala, Uganda, during a high-level event attended by government officials, customs agencies, logistics companies, banks, and insurers. The bond will first be piloted in Uganda, Kenya, and Rwanda, with a gradual rollout to other EAC member states.
Uganda's East African Community Affairs State Minister James Magode Ikuya described the EAC Bond as a transformative solution to long-standing trade barriers.
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"The EAC Bond is a game changer for our traders. By eliminating multiple bond requirements, we are cutting unnecessary costs and speeding up trade across our borders. This will empower our business community, boost Uganda's exports, and strengthen our participation in the regional economy," he stated.
EAC Secretary General Veronica Nduva highlighted the economic benefits, noting that the new system would release nearly 2 billion USD in tied-up capital.
"This money can now be reinvested into production, logistics, and job creation. The system also promotes transparency through real-time tracking, reducing fraud and delays," she explained.
The EAC Bond integrates with existing digital platforms such as the Regional Electronic Cargo Tracking System (RECTS), which has already cut transit times by 40% and saved member states over 250 million USD in lost revenue.
EAC Customs and Trade Deputy Secretary General, Annette Ssemuwemba Mutaawe said the bond represents over a decade of collaboration between governments and the private sector.
"It's a cornerstone of our digital trade infrastructure and a testament to our commitment to unlocking East Africa's economic potential," she noted.
The EAC Bond is expected to significantly streamline trade procedures, reduce operational costs, and enhance the region's competitiveness in global markets.
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