Ikuya (Second-left) and Nduva (left) flagging off the first consignment at the Sheraton Kampala Hotel on Monday
HABARI DAILY I Kampala, Uganda I The East African Community (EAC) has launched the EACBond, a regional customs guarantee instrument that replaces the need for multiple national bonds when transporting goods across Partner States.
Traditionally, traders moving goods from the Port of Mombasa to destinations like Kampala or Kigali were required to post separate bonds or cash deposits at every border crossing, locking up capital at each step and inflating trade costs.
The EACBond eliminates these repetitive requirements by providing one bond that secures the entire movement of goods across EAC partner states.
This bond will act as a financial guarantee that ensures the government can recover duties or taxes if a trader fails to comply with customs regulations.
James Magonde Ikuya, Uganda’s Minister of State for East African Community Affairs who spoke during the launch of the instrument in Kampala recently, said that this facility is aimed at establishing a unified customs transit guarantee mechanism across all seven EAC partner states under a single bond, eliminating the need for multiple national bonds.
“The EACBond, which is a practical solution to long-standing trade barriers that have hindered regional business growth, will directly benefit traders by lowering costs, easing cargo movement, and improving competitiveness in regional markets.,” said
Said Ikuya: “By allowing traders to secure their entire cargo journey with a single bond, the EACBond will significantly reduce trade costs, ease border delays and free up business capital.”
He further said that the bond, which also introduced electronic cargo tracking and seeks to improve transit security and visibility, was officially launched in Kampala, Republic of Uganda, at a high-level event attended by government representatives, logistics firms, banks, insurance providers and customs officials.
Three countries which include Uganda, Kenya, and Rwanda, were onboarded in the pilot phase.
The full rollout will progressively include all EAC Partner States, coordinated through customs authorities.
“Compliance will be enforced through automated systems linked with customs and cargo tracking, ensuring that all movements are monitored and risk managed,” added Ikuya.
He further referred to the EACBond as a game changer for traders who take their goods across borders.
“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.”
Veronica Nduva, EAC Secretary General, said the bond is set to lower trade costs by removing multiple bond charges at borders, ultimately making goods more affordable for consumers.
“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 noted.
Nduva further explained that the bond cuts border crossing delays by streamlining customs clearance procedures and strengthens government revenue collection by ensuring compliance and automating risk checks.
She said that each year, over $35 billion worth of goods move through our regional corridors.
“Yet, much of this trade has been constrained by high financial guarantees and complex border procedures. The EACBond simplifies compliance, reduces operational costs and unlocks your working capital,” she added.
She further noted that nearly $2 billion in previously tied-up capital will now be released back into the economy through digital guarantees, creating new opportunities in production, logistics, job creation and innovation.
Annette Ssemuwemba Mutaawe, the EAC Deputy Secretary General for Customs, Trade and Monetary Affairs, said that the EACBond is the result of a decade-long effort to establish a unified regional customs guarantee framework aligned 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 said.
The EACBond has been described as a key component of a wider digital trade facilitation infrastructure that connects customs, insurance, banking, ports and cargo tracking systems across the region.
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