The East African Community’s Regional Customs Bond has just sailed, with three EAC partner states aboard.
Launched in Uganda, the EAC Bond is a regional customs guarantee instrument that replaces the need for multiple national bonds when transporting goods across Partner States.
By allowing traders to secure their entire cargo journey with a single bond, the EAC Bond will significantly reduce trade costs, ease border delays and free up business capital.
The bond officially got flagged off in Kampala, during a high-level event attended by government representatives, logistics firms, banks, insurance providers and customs officials.
The bond is launching with Uganda, Kenya, and Rwanda in the pilot phase.
The full rollout will progressively include all EAC Partner States, coordinated through customs authorities.
Compliance will be enforced through automated systems linked with customs and cargo tracking, ensuring that all movements are monitored and risk managed.
A customs bond is a financial guarantee that ensures the government can recover duties or taxes if a trader fails to comply with customs regulations.
Traditionally, traders moving goods from the Port of Mombasa to destinations like Kampala or Kigali are required to post separate bonds or cash deposits at every border crossing, locking up capital at each step and inflating trade costs.
The EAC Bond eliminates these repetitive requirements by providing one bond that secures the entire movement of goods across the East African Community Partner States.
This simplifies customs clearance, reduces operational expenses and allows businesses to reinvest their working capital into expansion and job creation.
Uganda’s Minister of State for East African Community Affairs, James Magonde Ikuya, emphasized that the EAC Bond is a practical solution to long-standing trade barriers that have hindered regional business growth.
He noted that the bond will directly benefit traders by lowering costs, easing cargo movement, and improving competitiveness in regional markets.
“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,” Ikuya stated.
On her part, EAC Secretary General, Veronica Nduva, said the bond is set to lower trade costs by removing multiple bond charges at borders, ultimately making goods more affordable for consumers.
“The EAC Bond frees up traders’ money that was tied up in deposits, allowing businesses to reinvest in expansion and jobs. It also improves trade transparency through real-time tracking, reducing fraud and cargo diversion,” she stated.
The Secretary General further explained that the bond cuts border crossing delays by streamlining customs clearance procedures and strengthens government revenue collection by ensuring compliance and automating risk checks.
“Each year, over USD 35 billion worth of goods move through our regional corridors. Yet, much of this trade has been constrained by high financial guarantees and complex border procedures. The EAC Bond simplifies compliance, reduces operational costs and unlocks your working capital,” she added.
Nduva noted that nearly USD 2 billion in previously tied-up capital will now be released back into the economy through digital guarantees, creating new opportunities in production, logistics, job creation and innovation.
On her part, EAC Deputy Secretary General for Customs, Trade and Monetary Affairs, Annette Ssemuwemba Mutaawe, stated that the EAC Bond is the result of a decade-long effort to establish a unified regional customs guarantee framework aligned with the EAC Customs Union and Single Customs Territory.
“Developed through a phased, consultative process, this bond reflects the collective resolve of governments and private sector partners to ease trade and unlock economic opportunities across East Africa,” she said.
The EAC Bond is described to be a key component of a wider digital trade facilitation infrastructure that connects customs, insurance, banking, ports and cargo tracking systems across the region.
Since its rollout, Regional Electronic Cargo Tracking System (RECTS) has reduced transit times by up to 40 percent and saved Partner States over USD 250 million in revenue losses.
The integration of the bond into this ecosystem enhances transparency, curbs fraud and safeguards government revenues while supporting compliant traders.