EAC launches regional customs bond to unlock trade efficiency

UGANDA: THE East African Community (EAC) has launched the EACBond, a regional customs guarantee designed to replace multiple national bonds required for transporting goods across partner states.

The new bond allows traders to secure cargo movement across borders with a single regional guarantee, reducing trade costs, cutting delays at border points and freeing up business capital previously tied up in multiple deposits.

According to information posted on the EAC Secretariat website, the official launch took place in Kampala, Uganda, at a high-level event attended by government officials, logistics companies, banks, insurers and customs authorities.

The EACBond is being piloted in Uganda, Kenya and Rwanda, with plans to roll it out across all EAC partner states. Implementation will be coordinated through national customs administrations and supported by automated systems linked to customs and cargo tracking networks, ensuring efficient monitoring and risk management.

A customs bond is a financial guarantee that allows governments to recover duties or taxes if a trader fails to meet customs obligations. Under the current system, traders moving goods from ports like Mombasa to inland destinations such as Kampala or Kigali must post separate bonds or cash deposits at each border, tying up significant working capital and increasing trade costs.

The EACBond replaces these repetitive requirements with a single regional bond covering the entire journey simplifying procedures, cutting operational expenses and enabling businesses to reinvest in growth and job creation.

Uganda’s Minister of State for East African Community Affairs, Mr James Ikuya, hailed the EACBond as a practical solution to longstanding trade challenges.

“The EACBond is a game changer for our traders. By eliminating multiple bond requirements, we’re cutting unnecessary costs and accelerating trade across our borders. This will empower our business community, boost Uganda’s exports and enhance our regional competitiveness,” Mr Ikuya said.

EAC Secretary General, Ms Veronica Nduva, noted that the bond will reduce the cost of goods by eliminating redundant charges and increasing efficiency.

“The EACBond frees up capital that was previously locked in deposits, enabling businesses to invest in expansion and employment. It also enhances transparency through real-time cargo tracking, reducing fraud and diversion,” she said.

She further explained that the bond will cut border delays, streamline customs procedures and strengthen revenue collection through automated compliance and risk checks.

“Each year, over 35 billion US dollars’ worth of goods move through our regional corridors. Yet, this trade has been constrained by high financial guarantees and complex procedures. The EACBond simplifies compliance, reduces costs, and unlocks working capital,” she added.

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According to Ms Nduva, the bond will release nearly 2 billion US dollars in previously immobilised capital back into the economy, supporting production, logistics, job creation and innovation.

EAC Deputy Secretary General for Customs, Trade, and Monetary Affairs, Ms Annette Ssemuwemba Mutaawe, said that the EACBond represents the culmination of a decade-long effort to establish a unified regional customs guarantee framework in line with the EAC Customs Union and Single Customs Territory.