Reinsurer ZEP-RE and Afreximbank partner to enhance cross border trade in Africa

Zep-Re (PTA Reinsurance Company) and African Export-Import Bank (Afreximbank) have launched the Trans-Africa Bond Alliance (TABA), a transformative initiative that aims to bridge the insurance capacity gap and empower African contractors to secure more construction and procurement projects.

By providing robust transit guarantee mechanisms, TABA is expected to boost cross-border trade and enhance the movement of goods and investment across Africa.

Additionally, TABA Moreover, TABA will also promote the growth of trade insurance business within the continent, all within the transformative framework of the African Continental Free Trade Agreement (AfCFTA), which aims to create a single market for goods and services across 54 countries.

TABA, Afreximbank highlighted, will bolster the trade insurance sector by simplifying transit trade, enabling businesses to operate confidently and mitigate financial risks.

Veronica M. Nduva, CBS, Secretary General of the East African Community (EAC) noted: “The East African Community has long been committed to fostering regional integration and economic development. Indeed, our two pillars of the four of establishment are a customs union and a common market.

“The establishment of TABA aligns seamlessly with our regional integration program, which aims to enhance cross border trade, reduce trade costs and promote economic growth across the continent with simplified trade regimes.”

Africa has around 110 borders, with 16 land-locked countries, which have to deal with complex and costly trade processes. TABA has been created to help traders to transport goods from Cape Town to Cairo with a single transit bond, reducing delays and costs, enhancing supply chain efficiency, and ensuring customs revenue.

By leveraging the specialised knowledge and experience of both Afreximbank and ZEP-RE, TABA aims to facilitate smoother trade within the African continent by addressing the challenges businesses face in navigating Africa’s diverse regulatory environments.

The alliance will look to standardise a framework to ensure secure, predictable, and efficient trade movement and harmonize trade practices.

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