NAIROBI, March 28 (Xinhua) -- The African Export-Import Bank (Afreximbank) and Zep-Re, a specialized institution of the Common Market for Eastern and Southern Africa regional bloc, launched a partnership on Friday to offer insurance products to spur continental trade.

Denys Denya, the senior executive vice president of Afreximbank, told journalists in Nairobi, the capital of Kenya, that the Trans-Africa Bond Alliance (TABA) will provide a single transit bond for traders to transport goods across African countries.

"This transformative solution enhances the efficiency of African supply chains while ensuring customs authorities receive guaranteed revenue in the event of procedural breaches," Denya said.

He noted that the initiative will be rolled out across Africa's 110 borders and 16 landlocked countries to create an African-owned platform for risk underwriting and trade guarantee.

Hope Murera, the managing director and chief executive officer of Zep-Re, said that the initiative enhances trade efficiency by eliminating delays caused by multiple national bond requirements by providing a structured and transparent customs guarantee system.

Murera added that TABA introduces a streamlined approach to trade facilitation by providing transit bonds, performance bonds and Standby Letters of Credit to guarantee the secure movement of goods across African borders.

Veronica Mueni Nduva, secretary general of the East African Community (EAC), said that TABA is a commitment to addressing one of Africa's persistent challenges of inadequate bond underwriting capacity for cross-border trade.

Nduva said that the establishment of TABA aligns seamlessly with EAC's regional integration program, which aims to enhance cross-border trade, reduce trade costs, and promote economic growth across the continent with simplified trade regimes. Enditem

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