Afreximbank issues first-ever multi-border transit bond
Afreximbank announces the historic issuance of the first-ever multi-border transit bond in Zambia.
The $10 million transit bond issued in favour of Innovate General Insurance (IGI) of Zambia is expected to provide counter guarantees and boost IGI’s capacity to issue bonds to Clearing and Forwarding Agents in Zambia.
The scheme was designed to promote the seamless movement of goods across multiple national customs borders, as a means of improving efficiency and shortening the time for border clearances.
The $1 billion Collaborative Guarantee Scheme is expected to accelerate cross-border trade in Africa and save the continent about US$300 million annually in transit costs.
Being one of the AfCFTA-flagship initiatives, the Collaborative Guarantee Scheme is being implemented in partnership with the AfCFTA Secretariat as well as Regional Economic Communities.
The facility to IGI, which is expected to facilitate the transportation of goods across its almost 5,700 km of borders with its eight neighbouring countries, is a realisation of the broader partnership between Afreximbank and COMESA Council of Regional Customs Transit Guarantee (RCTG-Council).
Prof Benedict Oramah of Afreximbank: “This milestone is a realisation of the aspirations of Africa’s foreleaders about six decades ago at the inaugural meeting of the Organisation of African Unity (OAU).”
Luwa Luwabelwa, Innovate General Insurance: “The capacity provided by Afreximbank is timely and will allow the issuance of more affordable transit bonds to its clients, who are Clearing and Freight Forwarding Agents and most of them are Small and Medium Enterprises.”
Trodson Keith Chemu of Zambia Freight and Forwarders Association (ZAFFA): “Freight forwarder industry in Zambia is working tirelessly to implement a Regional Electronic Cargo Tracking System to provide real-time monitoring of goods in transit to ensure the transit bonds issued are protected.”
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