The African Export–Import Bank (Afreximbank) has signed on Sunday a term sheet for a $300 million African collaborative transit guarantee (AATGS) with regional reinsurer, Nairobi-based ZEP-RE. The facility aims to boost ZEP-RE's capacity to support primary and national sureties issuing transit bonds to eligible clients under the COMESA regional customs transit guarantee scheme. The partnership is set to enhance the capacity for sureties to reduce their risk exposure and increase their support to clients to facilitate trade, facilitate the participation of African industries in regional and global value chains, mitigate the risk of non-transit imported goods and non-payment of duties and taxes, enhance industry performance and catalyze economic growth, and provide capital relief and reduce volatility in the insurance sector. It will also diversify the Bank's trade facilitation instruments, deepen the Afreximbank African Collaborative Transit Guarantee Scheme (AATGS), and increase revenue for customs authorities in transit countries. Kanayo Awani – Executive Vice President, Intra-African Trade Bank, at Afreximbank, has signed the agreement with Ronald Kasapatu, Director of Government Relations, Partnerships, Agriculture and Micro Insurance at ZEP-RE, at the third edition of Africa's largest trade and investment fair, IATF 2023 taking place in Cairo, Egypt.
