Africa-Press – Uganda. The East African Community (EAC) has officially launched the EACBond, a regional customs guarantee instrument designed to replace multiple national bonds with a single guarantee for goods in transit across Partner States.
By allowing traders to secure their entire cargo journey with one bond instead of several, the EACBond is expected to significantly cut trade costs, reduce border delays and free up vital working capital for businesses.
The launch took place in Kampala, Uganda, at a high-profile event attended by senior government officials, logistics operators, banks, insurance companies and customs administrators.
The initiative begins with a pilot phase involving Uganda, Kenya and Rwanda, before expanding to cover all EAC Partner States in a phased rollout coordinated by national customs authorities.
Compliance will be enforced through automated systems integrated with both customs and regional cargo tracking platforms, ensuring that every consignment is monitored and potential risks are managed effectively.
A customs bond is a financial guarantee that allows the government to recover duties or taxes if a trader fails to comply with customs regulations.
Under the current system, traders moving goods from the Port of Mombasa to inland destinations such as Kampala or Kigali are often required to post separate bonds or cash deposits at each border crossing.
This practice locks up significant amounts of capital at every stage of the journey, increases administrative work and inflates trade costs.
The EACBond removes these repeated requirements by offering a single bond that covers the entire route through multiple Partner States.
This change simplifies customs clearance procedures, lowers operational expenses and frees up funds for businesses to reinvest in expansion, hiring and improved services.
Uganda’s Minister of State for East African Community Affairs, James Magonde Ikuya, described the new instrument as a practical solution to long-standing barriers that have slowed regional trade.
“The EACBond 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 said during the launch.
EAC Secretary General Veronica Nduva stressed that the bond will reduce the cost of moving goods by removing repetitive charges at each crossing, ultimately making consumer goods more affordable.
“The EACBond 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 explained.
Nduva noted that every year, goods worth over USD 35 billion (Shs 133 trillion) move through the region’s trade corridors, yet much of this trade has been constrained by high financial guarantees and cumbersome border procedures.
She added that nearly USD 2 billion (Shs 7.6 trillion) in previously immobilised capital will now be released into the economy through the adoption of digital guarantees, creating opportunities in production, logistics, employment and innovation.
Annette Ssemuwemba Mutaawe, EAC Deputy Secretary General for Customs, Trade and Monetary Affairs, said the bond is the result of a decade-long effort to build a unified regional customs guarantee framework that aligns 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 remarked.
The EACBond is also a critical part of a wider digital trade facilitation infrastructure that links customs systems, insurers, banks, ports and cargo tracking networks across the region.
The existing Regional Electronic Cargo Tracking System (RECTS) has already reduced average transit times by up to 40 per cent and saved Partner States over USD 250 million (Shs 950 billion) annually in potential revenue losses from fraud or cargo diversion. Integrating the bond into this system will improve compliance monitoring, safeguard tax revenues and reward traders who consistently meet customs obligations.
Traders and industry experts at the launch noted that the single-bond approach will not only lower the direct costs of doing business but also reduce the indirect costs associated with delays and complex paperwork.
Logistics companies expect that faster clearance and more predictable transit schedules will improve delivery reliability, which in turn will help East African exporters build stronger reputations in global markets.
For small and medium-sized enterprises, which often struggle to raise multiple bonds or deposit large sums of cash along their trade routes, the EACBond offers a much-needed relief.
By removing the financial strain and administrative complexity, it creates a more level playing field for businesses of all sizes to participate in regional commerce.
The introduction of the EACBond is being seen as a milestone in the EAC’s push to deepen economic integration and build a competitive common market.
With less capital tied up in customs procedures and fewer delays at border points, the expectation is that goods will move faster, become more affordable and generate stronger trade flows among Partner States.
For traders, the message from Kampala was clear: one bond, one journey, one regional market.
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