Intra Africa’s trade ambitions have been boosted with the launch of the Trans-Africa Bond Alliance (TABA) to remove logistical barriers that have long hindered the continent from realizing its vast trade potential.
With the African Continental Free Trade Area (AfCFTA) projected to increase intra-African trade by 45 per cent and adding $275.7 billion (about Sh35.6 trillion) in cross-border trade by 2045, and boost the continent’s income by $450 billion (about Sh58.1 trillion) by 2035, unlocking its full potential remains an urgent priority.
TABA, introduced last week in Nairobi by Afreximbank and ZEP-RE, seeks to unify the transit bond system to cut costs, reduce delays, and streamline goods movement across Africa’s 110 borders.
By leveraging transit bonds, performance bonds, and standby letters of credit (SBLCs), TABA will ensure businesses can transport goods from Cape Town to Cairo using a single guarantee, eliminating the bureaucratic bottlenecks that have long stifled efficiency. It also provides customs authorities with revenue protection in the event of procedural breaches, reinforcing the regulatory framework critical for smooth cross-border trade.
Speaking at the launch, Denys Denya, Senior Executive Vice President of Afreximbank, framed TABA as a pivotal step toward economic integration. “Through this collaboration, we aim to strengthen interstate transit regimes and pave the way for a continental framework under AfCFTA. Our goal is not to displace local operators but to enhance trade efficiency and investment flows across Africa,” Denya said during the launch.
TABA builds on the success of the $300 million (about Sh38.8 billion) African Collaborative Transit Guarantee Scheme (AATGS), which boosted ZEP-RE’s ability to issue transit bonds under the Common Markets for Eastern and Southern Africa (COMESA’s) regional customs framework. The new alliance scales up this model continent-wide, creating standardized trade insurance mechanisms that African businesses can leverage to secure procurement and infrastructure projects without exorbitant costs or regulatory hurdles.
Hope Murera, Managing Director of ZEP-RE said “TABA represents a shared vision—one where Africa is connected by bridges of opportunity, not barriers. This initiative will transform how we facilitate trade, manage risk, and support cross-border movement,” she said, reinforcing the alliance’s ethos of ‘OneBondOneAfrica’, a call for unity in dismantling the systemic fragmentation of Africa’s trade systems.
Murera referred to the ZEP-RE flagship programs, including the Common Markets for Eastern and Southern Africa (COMESA) Regional Customs Transit Guarantee (RCTG) Scheme and the COMESA Yellow Card (CYC) Motor Vehicle Insurance Scheme, which have significantly boosted intra-regional trade by reducing cross-border friction. She said the RCTG underwrites over $1 billion (about Sh129.2 billion) in bonds annually, facilitating goods worth $13 billion (about Sh1.7 trillion) across the Northern Corridor, while the Yellow Card Scheme provides affordable third-party insurance to over 300,000 vehicles annually in 13 member states, primarily benefiting commercial transit.
Veronica Nduva, Secretary General (SG) of the East African Community (EAC), highlighted the challenges faced by Africa’s 16 landlocked nations, where transport costs often exceed the value of traded goods, saying that “The establishment of TABA aligns with our (EAC) program to enhance cross-border trade, reduce costs, and promote economic growth across Africa with simplified trade regimes.”
The speakers said that by harmonizing regulatory environments and reducing trade risks, TABA will increase investor confidence while broadening market access for African enterprises. The framework also strengthens compliance, curbing illicit trade and safeguarding government revenues.
Following its launch, business-to-business discussions are underway to map out implementation strategies, with an awareness campaign set to educate businesses on how to leverage TABA’s offerings.
