AfCFTA launches $3.1bn customs reform project to ease cross-border trade

The African Continental Free Trade Area (AfCFTA) Secretariat has entered into a 20-year concession agreement worth $3.1 billion with Bergmans Security Consultants and Supplies Limited to modernise customs systems across Africa as part of efforts to boost intra-African trade and improve border efficiency.

The agreement, signed in Abuja on Thursday, will see the implementation of the AfCFTA Customs Modernisation Project, an initiative designed to deploy digital technologies and modern customs infrastructure to facilitate trade, enhance revenue collection and reduce delays at border posts.

The deal comes shortly after the two organisations signed a Memorandum of Understanding (MoU) to collaborate on the transformation of customs administration across the continent.

AfCFTA Secretary-General, Wamkele Mene, signed the agreement on behalf of the Secretariat, while Chairman of Bergmans Security Consultants and Supplies Limited, Saleh Ahmadu, signed for the company.

Speaking at the signing ceremony, Mene described the project as a landmark initiative that would strengthen Africa's trade integration through technology-driven customs operations.

He said the project would provide the digital architecture needed to implement AfCFTA protocols on customs harmonisation and trade facilitation, enabling member states to improve border management, increase customs efficiency and strengthen revenue generation without placing additional financial burdens on participating countries.

According to him, nearly 50 African countries have already indicated their commitment to the initiative.

Mene said the project supports AfCFTA's broader objective of creating a single African market comprising about 1.3 billion people with a combined Gross Domestic Product (GDP) of approximately $3.4 trillion.

He noted that the initiative was inspired by the successful customs modernisation programme implemented by the Nigeria Customs Service through Bergmans' technology solutions.

"The Nigerian experience has shown that technology can significantly improve customs administration. The progress achieved there convinced the AfCFTA Secretariat that the model can be successfully replicated across the continent," he said.

Mene added that the reforms implemented in Nigeria had improved cargo processing, enhanced transparency and increased government revenue, making them a suitable template for wider continental adoption.

In his remarks, Ahmadu said the concession represents a long-term investment in Africa's trade infrastructure, with Bergmans providing the full $3.1 billion financing required for the project.

He said the company would deploy advanced customs technologies, including non-intrusive cargo inspection equipment, integrated data centres and multilingual digital customs platforms to improve border operations and facilitate trade among African countries.

According to him, the initiative is expected to simplify customs procedures, strengthen trade corridors and promote seamless movement of goods across national borders.

"Our experience in Nigeria has received global recognition and demonstrated the value of digital customs solutions. We are committed to building a modern customs ecosystem that supports Africa's economic integration and trade competitiveness," Ahmadu said.

The AfCFTA, which officially commenced trading in January 2021, is recognised as the world's largest free trade area by the number of participating countries, bringing together 54 African nations under one trading framework.

The agreement aims to eliminate tariffs gradually, remove non-tariff barriers and promote the free movement of goods, services and investment throughout the continent.

Despite progress recorded under the trade pact, stakeholders have continued to identify inefficient customs procedures, fragmented border management systems and lengthy cargo clearance processes as major obstacles to expanding intra-African trade.

The Customs Modernisation Project is expected to address these challenges by harmonising customs operations, improving information sharing, strengthening risk management systems, accelerating cargo clearance and increasing government revenues, while lowering the cost of doing business across Africa.

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