By BUUMBA CHIMBULU
THE African Export–Import Bank (Afreximbank) has issued the first-ever multi-border transit bond in Zambia worth US$1 billion under its African Collaborative Transit Guarantee Scheme (AATGS).
The US$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.
Another expectation from the US$1 billion Collaborative Guarantee Scheme is to accelerate cross-border trade in Africa and save the continent about US$300 million annually in transit costs.
Afreximbank President and Chairman Benedict Oramah, in his comment on the development said: “This milestone is a realisation of the aspirations of Africa’s fore leaders about six decades ago at the inaugural meeting of the Organisation of African Unity (OAU).
“We have, through this breakthrough, inched closer to the emergence of a single continental integrated market and dismantling the 110 borders that divided the continent into atomistic countries.”
The Afreximbank AATGS was designed by the Bank 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.
Innovate General Insurance Director, Luwa Luwabelwa, said the capacity provided by Afreximbank was timely.
Mr Luwabelwa said this would allow the issuance of more affordable transit bonds to the firm’s clients, who were Clearing and Freight Forwarding Agents and most of them are Small and Medium Enterprises.
Meanwhile, Trodson Keith Chemu, President of Zambia Freight and Forwarders Association (ZAFFA), thanked the Bank for the first-of-its-kind intervention to support the Customs Brokers and avail affordable transit bonds to facilitate the movement of goods in transit.
Mr Chemu pointed out that the freight forwarder industry in Zambia was 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.
This article is supported with the WAN IFRA Women In News (WIN) Social Impact Reporting Initiative (SIRI) gender equality, diversity and inclusion (GEDI) Information in this article does not reflect the views of WAN IFRA Women In News.
