In a bold step towards enhancing Africa’s transit trade and investment ecosystem, the African Export-Import Bank (Afreximbank) and ZEP-RE (PTA Reinsurance Company) are set to launch the Trans-Africa Bond Alliance (TABA) on March 28, 2025, in Kenya.

TABA is a transformational initiative designed to bridge the insurance capacity gap, empowering African contractors to secure more construction and procurement projects while boosting cross-border trade and investment flows. By providing robust transit guarantee mechanisms, the alliance is expected to reduce trade barriers, lower costs, and improve efficiency in the movement of goods across Africa.

The launch of TABA aligns seamlessly with the goals 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 minimizing financial risks.

This initiative builds on prior high-impact collaborations between Afreximbank and ZEP-RE. Notably, in November 2023, the two institutions signed a USD300 million African Collaborative Transit Guarantee Scheme (AATGS) agreement, a facility designed to enhance ZEP-RE’s capacity in supporting primary and national sureties issuing transit bonds under the COMESA regional customs transit guarantee scheme. The agreement was a major step in reducing risk exposure and increasing support for businesses engaged in intra-African trade.