By Kenneth Bukenya
The East African Community (EAC) has launched the pilot phase of a single customs bond, a regional customs guarantee instrument designed to streamline cargo movement across borders of member states.
Launched at the Sheraton Hotel, Kampala on August 4, 2025, the customs bond replaces multiple national customs bonds with one unified system to allow traders to secure their cargo journey under a single guarantee.
This is expected to simplify cargo movement across Partner States, reduce trade costs, and boost regional integration. Additionally, it will eliminateborder delays, unlock working capital for traders, and lower the cost of goods.
Speaking at the launch, EAC Secretary General Hon. Veronica Nduva emphasized the economic significance of the bond, noting that it will free up traders’ money that was tied up in deposits, allowing businesses to reinvest in expansion and create more jobs.
“Each year, over USD35 billion (about Ugx.124.5 trillion) worth of goods move through our regional corridors, yet much of this trade has been constrained by high financial guarantees and complex border procedures.
“The EAC Customs bond will ease compliance, reduce operational costs will also improve trade transparency through real-time tracking, reducing fraud and cargo diversion,” she said.
The EAC Deputy Secretary General for Customs, Trade and Monetary Affairs, Ms. Annette Ssemuwemba Mutaawe, , said the bond was developed through a phased consultative process and it reflects the collective resolve of governments and private sector partners to ease trade and unlock economic opportunities across East Africa.
In a speech read for her by the Minister of State for East African Community Affairs, Hon. James Magonde Ikuya, the Minister for EAC Affairs, Hon. Rebecca Kadaga hailed the initiative as a game changer for regional trade.
“By eliminating multiple bond requirements, we are cutting unnecessary costs and speeding up trade across our borders. This will empower our business community, boost Uganda’s exports, and strengthen our participation in the regional economy,” she said.
The Insurance Regulatory Authority of Uganda (IRA) Chief Executive Officer, Alhaj Kaddunabbi Ibrahim Lubega underscored the insurance sector’s role in the success of the initiative. He noted that during the pilot phase, regional insurance regulators will among others, conduct actuarial studies to refine the bond’s structure to pave way for final approval and full rollout.
He noted that the bond is a transformative step that will enhance trade efficiency while reinforcing the insurance sector’s involvement in regional integration.
Additionally, he said that the East African Insurance Supervisors Association (EAISA) will conduct a comprehensive stakeholder sensitization program to equip stakeholders with the needed knowledge and skills to ensure successful implementation. Alhaj Kaddunabbi also doubles as the EAISA Chairman.
He urged all stakeholders to actively participate and provide feedback during this pilot phase to help in building a framework that not only supports trade but also strengthens the insurance sector’s role in regional integration.
The system integrates seamlessly with the Regional Electronic Cargo Tracking System (RECTS), enabling real-time monitoring of cargo and automated compliance checks. The bond is also anchored in the EAC’s Single Customs Territory framework, aligning with the regional goal of seamless trade.
The EAC Customs Bond is expected to unlock nearly USD2 billion (Ugx.7.1 trillion) in previously tied-up capital, facilitating investment, innovation, and job creation across the region.