• Afreximbank plans a $1 billion continent-wide single transit guarantee to cut customs delays and losses.
• A similar system already operates in COMESA, backed by $300 million from reinsurer ZEP-RE.
• Afreximbank says a continental rollout could save up to $300 million per year in transit costs.

Afreximbank plans to launch a $1 billion single transit-guarantee programme to streamline the movement of goods across African borders. Kanayo Awani, Executive Vice-President in charge of Intra-African Trade, announced the initiative during the first Customs Partnership for African Trade Cooperation (PACT) session in Abuja, held from 17 to 19 November 2025.

Afreximbank aims to secure cargo flows between African countries and reduce losses linked to customs duties and taxes. The bank says the new instrument will replace multiple guarantees with a single one covering the entire journey of a truck travelling through several jurisdictions. This design reduces paperwork, cuts repetitive payments and inspections, and lowers delays and costs for businesses.

A System Already Tested in Eastern and Southern Africa

Awani said a similar guarantee mechanism already operates within the Common Market for Eastern and Southern Africa (COMESA). Reinsurer ZEP-RE, based in Nairobi, finances that system with $300 million. Authorities report that the model reduced administrative formalities, accelerated border checks and lowered transport costs.

Afreximbank believes a continental extension could generate as much as $300 million in annual savings on transit costs. The institution now wants to roll out the model in West and Central Africa and says it is ready to work with the ECOWAS Bank for Investment and Development (EBID) to build a harmonised regional guarantee framework.

Addressing Africa’s Road-Transit Bottlenecks

Several African economies still rely on physical customs escorts to monitor goods in transit. That method consumes significant resources, raises costs and causes delays. AUDA-NEPAD reports that 75% of delays in cargo movement stem from trade-facilitation issues, while only 25% relate to infrastructure gaps.

Afreximbank argues that a single guarantee mechanism, recognised by multiple states and backed by a strong financial institution, can reduce those barriers. The bank says the system will also limit the illegal entry of goods into local markets, a key concern for customs administrations.

This article was initially published in French by Chamberline Moko

Adapted in English by Ange Jason Quenum