African Export-Import Bank (Afreximbank) signed the Instrument of Accession to the Inter-Surety Agreement yesterday for the Implementation of the COMESA Regional Customs Transit bond Agreement.
The Bank is now set to begin the implementation of its US$1billion Continental Transit Guarantee Scheme, of which about US$200 million is earmarked for the COMESA region.
The agreement sets the stage for the implementation of the Afreximbank African Collaborative Transit Guarantee Scheme (AACTGS), a programme designed to facilitate the smooth transit of goods across Africa through a continent-wide single-technology enabled transit guarantee scheme.
In a statement from the bank’s website, Afreximbank will ensure that, when goods do not complete their transit, sums are paid in line with the duties and taxes that would have been required, thereby enhancing tax collection for African nations through the Continental Transit Guarantee Scheme.
“In addition, the transit guarantees provided by the Bank will enable businesses to release working capital otherwise tied up as collateral against transit bonds, while also accelerating the movement of goods across borders,” reads the statement.
Prof. Benedict Oramah, President of Afreximbank, said the launch of the Afreximbank African Collaborative Transit Guarantee Scheme is a milestone in Africa’s journey towards deepening regional integration.
“The launch of the scheme in the COMESA region is a momentous occasion, but is also just the first step in a programme designed to be implemented across the entire continent. With this scheme, the Cape to Cairo road project will become a financially viable cross-continental trade route,” he said.
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