In a groundbreaking move towards continental integration and economic prosperity, the African Export-Import Bank (Afreximbank) unveiled the Afreximbank African Collaborative Transit Guarantee Scheme (AACTGS) at the ongoing Intra-Africa Trade Fair (IATF) 2023 in Cairo, Egypt.
The scheme, inaugurated by Afreximbank’s President and Chairman of the Board of Directors, Prof. Benedict Oramah, aims to facilitate seamless movement of goods across multiple national customs borders, realizing the dreams of Africa’s foreleaders from six decades ago.
Oramah highlighted the significance of the AACTGS in improving efficiency and reducing the time required for border clearance.
He stated that this innovative project signifies a monumental achievement in the journey towards continental integration and economic prosperity.
The president announced the historic issuance of the first-ever multi-border transit bond in the continent, marking a significant leap towards the competitiveness of cross-border trade.
This collaborative effort between Afreximbank and the Common Market for Eastern and Southern Africa (COMESA) resulted in a single transit bond that is acceptable across all countries in the region.
Oramah emphasized that the one billion dollar Collaborative Guarantee Scheme is expected to accelerate cross-border trade in Africa, saving the continent approximately 300 million dollars annually in transit costs.
He expressed the bank’s commitment to providing capacity to national sureties, enabling them to issue bonds at affordable rates under the African Continental Free Trade Agreement (AfCFTA).
Afreximbank also signed a 30 million dollar Container Guarantee Facility with BSMART System Solutions, a move aimed at revolutionizing the handling of containers for seamless international trade and commerce.
This facility is expected to ensure the safe and timely transit of containers while minimizing risks and enhancing security measures.
Under the agreement with BSMART System Solutions, Afreximbank will support the establishment of 38 Integrated Customs Designated Stop Areas (ICDSA) across the East African Community (EAC) region.
These ICDSAs will provide various services, including secure truck parking, customs documentation verification, logistics hubs, container yards, vehicle inspection centers, and affordable housing estates.
In his address, Wamkele Mene, Secretary-General of the African Continental AfCFTA Secretariat, acknowledged the critical role played by the AfCFTA adjustment fund in advancing Africa’s economic development.
This monumental initiative signifies a transformative step towards dismantling borders, fostering collaboration, and promoting economic growth across the African continent.
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