A trade facilitation agreement and Interstate Transit Guarantee worth US$10 million has been signed between Zambia’s Innovate General Insurance (IGI) and African Export-Import Bank (Afreximbank) in Cairo, Egypt.
This is expected to provide counter guarantees and boost IGIs capacity to support Zambia’s clearing and forwarding agents.
The deal was signed under the Afreximbank African Collaborative Transit Guarantee Scheme (AATGS) designed by the bank to promote the seamless movement of goods across multiple national customs borders as a means of improving efficiency and shortening the time for border clearance.
The facility to IGI, which is expected to facilitate the transportation of goods across its almost 5,700 km of borders with its eight neighbouring countries, is a realisation of the broader partnership between Afreximbank and COMESA Council of Regional Customs Transit Guarantee (RCTG-Council).
The agreement was signed between Afreximbank Executive Vice President in charge of Intra-African Trade Bank, Kanayo Awani, and Innovate General Insurance Director, Luwa Luwabelwa at the on-going Intra-African Trade Fair (IATF2023).
The bank also signed several facility deals, among them with the Africa Union Commissioner between Bank President and Chairman of Board of Directors prof, Benedict Oramah, and Commissioner Albert Muchanga.
This strategic partnership is set to elevate Burundi’s trade landscape, reinforcing its strategic importation initiatives through the banks’ abilities to issue trade instruments confirmed by Afreximbank.
The AfTRAF facilities stand as a catalyst, complementing Burundi’s endeavors to broaden its trade activities.
By enabling local banks like BANCOBU and BCB to issue instruments confirmed by Afreximbank, it not only expands their correspondent banking relationships but also paves the way for Burundian importers and exporters to tap into new markets.
Rene Awambeng, Global Head for Client Relations at Afreximbank, and Sylvere Bankimbaga, Deputy Chief Executive Officer of BANCOBU, formalized this agreement in the presence of Burundi’s Finance Minister Audace Niyonzima.
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