By Baboloki Semele:In a landmark initiative aimed at transforming Africa’s trade landscape, the African Export-Import Bank (Afreximbank) and Zep-Re (PTA Reinsurance Company) have launched the Trans-Africa Bond Alliance (TABA). This new alliance seeks to bridge the insurance capacity gap and empower African contractors to secure more construction and procurement projects while enhancing cross-border trade and investment flows across the continent.

TABA is expected to play a pivotal role in eliminating trade barriers by providing robust transit guarantee mechanisms. This will lower costs, improve efficiency, and facilitate seamless movement of goods across Africa. The initiative is aligned with the African Continental Free Trade Agreement (AfCFTA), which aims to create a single market for goods and services across 54 countries. By strengthening the trade insurance sector, TABA will provide businesses with a more secure and predictable trade environment, reducing financial risks.

Speaking at the launch, H.E. Veronica M. Nduva, CBS, Secretary General of the East African Community (EAC), emphasized the importance of TABA in fostering regional integration. “The East African Community has long been committed to fostering regional integration and economic development. 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,” she said.

Africa’s intricate trade environment comprises around 110 borders, with 16 landlocked countries heavily dependent on costly and complex trade processes. According to the African Development Bank, transport charges sometimes exceed the value of goods being traded. TABA introduces a game-changing solution—traders will be able to transport goods from Cape Town to Cairo using a single transit bond, significantly cutting delays and trade costs. This initiative not only enhances supply chain efficiency but also ensures customs authorities receive guaranteed revenue in the event of procedural breaches.

Building on decades of efforts to bolster intra-African trade, TABA leverages the expertise of Afreximbank, a key player in trade finance and facilitation since 1993, and Zep-Re, a leading reinsurance provider supporting trade insurance solutions across Africa. The alliance aims to standardize trade practices and establish a predictable framework that simplifies cross-border operations.

Denys Denya, Senior Executive Vice President of Afreximbank, highlighted the significance of the partnership, stating, “Today we forge a new alliance to dismantle artificial barriers and tighten the bolts and nuts of the wheels of trade and investment flows across national borders. This couldn’t have come at any other time than now, when the pillars of global cooperation and integration are being disintegrated, and fragmentation, isolationism, and protectionism have taken hold in our world.”

Hope Murera, Managing Director and CEO of Zep-Re, underscored the alliance’s impact on Africa’s trade ecosystem. “Today, we are not just unveiling a new partnership—we are ushering in a new era. One that reimagines how we facilitate trade, manage risk, and support cross-border movement across our continent,” she said.

TABA introduces a streamlined approach to trade facilitation by leveraging Transit Bonds, Performance Bonds, and Standby Letters of Credit (SBLCs) to ensure the secure movement of goods. Key benefits of the initiative include:

• Enhancing trade efficiency by eliminating delays caused by multiple national bond requirements.
• Boosting investor confidence through a structured and transparent customs guarantee system.
• Reducing trade costs, making African exports more competitive on a global scale.
• Ensuring compliance with customs regulations, preventing illicit trade, and securing government revenue.
• Expanding market opportunities for African businesses by enabling smoother cross-border trade.

Following the launch, key stakeholders will participate in business-to-business (B2B) meetings and marketplace interactions to discuss strategies for implementing TABA across Africa. An awareness campaign will also be rolled out to educate businesses and financial institutions on the benefits and operational framework of the new system.

With the establishment of TABA, Afreximbank and Zep-Re have taken a significant step towards unlocking Africa’s trade potential, fostering economic growth, and positioning the continent as a key player in the global economy.

About TABA:

The Trans-Africa Bond Alliance (TABA) is a continental initiative aimed at revolutionizing Africa’s trade facilitation through a unified transit bond system. By fostering economic integration, reducing trade costs, and ensuring compliance with customs regulations, TABA supports the broader goals of AfCFTA in creating a single market for goods and services across Africa.

About Afreximbank

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industralisation and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank’s total assets and contingencies stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”). The Bank is headquartered in Cairo, Egypt.

About ZEP-RE
​ZEP-RE (PTA Reinsurance Company), established in 1990 under the auspices of COMESA, is a leading African reinsurer dedicated to promoting regional trade and economic integration through comprehensive reinsurance services and enhancing financial inclusion across the continent. ZEP-RE is foremost among indigenous regional companies with an annual turnover of over USD 300 million and an asset base of over USD 500 million. As part of
financial inclusion mandate, ZEP-RE has committed to building resilience against climate risk for the underserved and the public sector. The Company’s subsidiary ACRE Africa, an agri-tech that specialises in solutions that protect small-holder farmers against climate-related risks. Additionally, the company implements the DRIVE (De-Risking, Inclusion, and Value Enhancement) program funded by the World Bank on behalf of four Horn of Africa  countries. The project is building resilience for pastoral economies against drought and providing financial literacy for the communities to enhance sustainable livestock practices. ​To address the industry’s need for skilled professionals, ZEP-RE Academy offers high-quality training programs aimed at enhancing the technical competencies of insurance and reinsurance practitioners across Africa. ​Reflecting its robust financial health, ZEP-RE has earned commendable investment grade credit ratings: a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of bbb+ (Good) from AM Best, with a stable outlook. These ratings affirm the company’s strong balance sheet and consistent operating performance.​ Through strategic initiatives and steadfast dedication, ZEP-RE continues to play a pivotal role in advancing Africa’s insurance landscape, bolstering economic resilience, and fostering sustainable development.