Cost of doing business going down

Efforts to reduce the cost of doing business in East Africa are beginning to pay off. In August 2025, the East African Community (EAC) launched the EAC Customs Bond. The bond will cover goods in transit, as well as warehousing, temporary imports and transfers. Traders will be able to obtain a single guarantee at the point of entry, covering the entire transport routes across the multiple EAC countries to the destinations. Speaking at the official launch in Kampala, Uganda’s Minister of State for EAC Affairs, James Magode Ikuya, described the EAC Bond as “a home-grown solution tailored to our region’s realities – a symbol of trust, innovation and partnership”. “Each year, over $35 billion worth of goods moves through our regional corridors. Yet, much of this trade has been constrained by high financial guarantees and complex border procedures,” said EAC Secretary- General Veronica Nduva. “The EAC Bond simplifies compliance, reduces operational costs and unlocks working capital,” she said, adding that the bond was “a strategic enabler of regional economic growth”. It will significantly reduce the value of tied-up capital which was often required as collateral for multiple national guarantees, improve customs clearance timelines and strengthen compliance monitoring through integration with regional systems. Allen Asiimwe, deputy CEO of TradeMark Africa, which provided technical assistance and support for development of the bond through the UK Government, noted: “This is not merely a technical fix. It is a deliberate shift towards efficient trade, private sector growth and deeper integration across the region.” The pilot phase will include Uganda, Kenya and Rwanda. It will cover capacity building of local insurers and freight stakeholders. Already in operation, the Comesa Yellow Card provides cross-border third- party liability cover, protecting transporters against property damage and related losses, reducing financial risk and administrative complexity. It is accepted in 12 countries and issued in 15, including South Africa, through insurance brokers. Another potential cost cutter is insurance against financial losses caused by politically motivated violence, terrorism and sabotage events offered by The African Trade Insurance (ATI) Agency, which protects the insured against damage to property and loss of income or revenues due to business interruption. Mordor Intelligence says East Africa “showcases the continent’s most advanced digital trade facilitation ecosystem”. It points out that Kenya’s National Single Window connects 41 agencies and processed 80% of customs payments electronically by 2022, slashing border queues and boosting predictability. “The Northern Corridor links Mombasa to Uganda, Rwanda and the DRC through synchronised road, rail and electronic tracking, carving out a high-efficiency freight spine. “Harmonised axle-load standards and electronic cargo tracking via RECTS give fleet operators uniform compliance procedures across multiple jurisdictions, further enhancing East Africa’s pull on transit traffic within the Africa Cross-Border Road Freight Transport market.” ER