Afreximbank And Zep-Re Launch The Trans-Africa Bond Alliance (TABA)

African Export-Import Bank (Afreximbank) ( ) and Zep-Re (PTA Reinsurance Company) today launched the Trans-Africa Bond Alliance (TABA), a transformative initiative, designed to bridge the insurance capacity gap and empower African contractors to secure more construction and procurement projects while boosting cross-border trade and enhancing the movement of goods and investment across Africa.

By providing robust transit guarantee mechanisms, the joint venture between Afreximbank and Zep-Re is expected to reduce trade barriers, lower costs, and improve efficiency in the movement of goods across Africa. Moreover, TABA will promote seamless cross-border trade and the growth of trade insurance business within the continent, all within the transformative framework of the African Continental Free Trade Agreement (AfCFTA), which aims to create a single market for goods and services across 54 countries. By facilitating seamless transit trade, TABA will strengthen the trade insurance sector, making it easier for businesses to operate with confidence while minimising financial risks.

Speaking at the launch, H.E Veronica M. Nduva, CBS, Secretary General of the East African Community (EAC) noted,“The East African Community has long been committed to fostering regional integration and economic development. Indeed, our two pillars of the four of establishment are a customs union and a common market. 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.”

Africa has around 110 borders, with 16 land-locked countries relying on complex and costly trade processes. According to African Development Bank ( ), transport charges in some cases exceeding the value of goods being traded. With TABA, traders can transport goods from Cape Town to Cairo using a single transit bond, significantly reducing delays and cutting trade costs. This transformative solution enhances the efficiency of African supply chains while ensuring customs authorities receive guaranteed revenue in the event of procedural breaches.

The establishment of TABA builds on decades of efforts to bolster intra-African trade through key financial and insurance institutions. By leveraging expertise from these institutions; Afreximbank, which is playing a critical role in trade finance and facilitation since its founding in 1993, and ZEP-RE, a leading reinsurance provider supporting trade insurance solutions across Africa, TABA aims to address the challenges businesses face in navigating Africa's diverse regulatory environments. The alliance will harmonize trade practices and introduce a standardised framework that ensures secure, predictable, and efficient trade movement.

Mr Denys Denya, Senior Executive Vice President of Afreximbank, said:

"Today we forge a new alliance to dismantle the 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. Through this collaboration, our goal is not to displace local operators but to boost the capacity and efficiency of interstate transit regimes, paving the way for a continental framework under the AfCFTA."

Ms Hope Murera, Managing Director and CEO of Zep-Re (PTA Reinsurance Company), noted during the launch the impact TABA would make in Africa trade ecosystem. She said,“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. ZEP-RE's experience and impact through flagship regional programs demonstrates what is possible when vision meets action. TABA represents a shared vision-a vision where Africa is connected by bridges of opportunity, not barriers”.

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

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

Following today's launch, key stakeholders will engage in B2B meetings and marketplace interactions to discuss strategies for implementing TABA across Africa. The alliance will also roll out an awareness campaign to educate businesses and financial institutions on the benefits and operational framework of the new system.

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Vincent Musumba
Communications and Events Manager (Media Relations)
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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.

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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's 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 smallholder 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..

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