Afreximbank expands East African trade scheme

The African Export-Import Bank (Afreximbank) and BSMART Technology Ltd have expanded the Afreximbank African Collaborative Transit Guarantee Scheme (AACTGS) to include container deposit guarantees and customs bonds in the East African Community (EAC).

Signed during the Afreximbank Annual Meetings 2024 in Nassau, Bahamas, this agreement allows BSMART to process Bills of Lading and release containers to importers and exporters without requiring security deposits, thus freeing up significant capital for trade.

The facility covers all container-related obligations, usually requiring up to $5,000 in cash deposits per container. Moreover, this initiative aims to release $14 billion tied up annually in container deposits, benefiting small traders and enhancing regional economic activity.

The scheme is expected to impact 2.6 per cent of the region’s container traffic, freeing up approximately $375 million in deposits.

Attribution: Afreximbank.