The African Continental Free Trade Area (AfCFTA) has taken one of its most practical steps since trading officially began in 2021. The continental trade body has signed a 20-year, $3.1 billion customs modernisation concession with Bergmans Security Consultants and Supplies Limited to build a digital customs ecosystem across Africa. The initiative seeks to reduce border delays, improve customs efficiency, strengthen revenue collection and accelerate intra-African trade.
For years, African leaders have agreed that tariffs alone would not unlock the full value of the AfCFTA. The biggest challenge has remained inefficient border administration. Trucks spend days at border crossings. Businesses complete the same paperwork multiple times. Customs systems often operate independently without sharing information. These barriers increase business costs and reduce the competitiveness of African products.
The new customs modernisation project directly targets those structural weaknesses. If implemented successfully, it could become one of the most important investments in Africa’s trade infrastructure.
Why The AfCFTA Customs Modernisation Project Matters
The AfCFTA is the world’s largest free trade area by the number of participating countries. It covers 54 African countries, a market of roughly 1.3 billion people and a combined GDP estimated at $3.4 trillion. The agreement aims to remove tariffs, eliminate non-tariff barriers and encourage the free movement of goods, services and investment across the continent.
However, free trade cannot succeed if goods remain trapped at borders.
According to the World Bank, intra-African trade remains well below the level achieved in Europe and Asia because border procedures, weak logistics and poor infrastructure continue to increase trade costs. The institution has repeatedly argued that trade facilitation and digital customs systems are among the fastest ways to improve regional commerce.
That makes this agreement far more than another infrastructure project. It is an attempt to modernise the operating system that supports African trade.
Digital Customs Could Reduce The Cost Of Doing Business
AfCFTA Secretary-General Wamkele Mene described the agreement as “a major milestone” in creating an integrated and technology-driven African trading system.
He said the project would provide the digital infrastructure needed to implement customs harmonisation protocols while helping customs authorities improve efficiency, strengthen revenue collection and allow goods to move across borders without placing additional financial obligations on member states. Around 50 African countries have already signed onto the initiative.
The project will introduce several digital tools, including advanced non-intrusive cargo inspection systems, integrated data centres and multilingual customs platforms capable of serving Africa’s official languages. These technologies are expected to reduce manual processes, improve cargo tracking and shorten clearance times.
For exporters, importers and logistics companies, faster customs processing means lower storage costs, fewer delays and more predictable supply chains.
Nigeria’s Customs Reforms Became The Blueprint
One notable feature of the agreement is that it builds on Nigeria’s experience.Mene said the AfCFTA Secretariat adopted lessons from Nigeria’s customs digitalisation programme after observing improvements in cargo clearance, transparency and government revenue.
“The Nigerian experience demonstrated that technology can transform customs administration. The success recorded gave the AfCFTA Secretariat the confidence to replicate the model across the continent,” he said. Bergmans Chairman Saleh Ahmadu also pointed to Nigeria’s experience.
“Our experience in Nigeria has achieved remarkable success and attracted international recognition. It has become a model for customs modernisation across Africa,” he said while announcing that the company would finance the entire $3.1 billion project under the concession agreement.
The decision to expand an existing African model rather than import a completely new system may reduce implementation risks because the technology has already operated within one of Africa’s busiest trading environments.
Why Border Efficiency Matters More Than Tariffs
Most discussions about AfCFTA focus on tariff reductions. Yet economists increasingly argue that inefficient borders often cost businesses more than tariffs themselves.
Customs delays increase transport expenses, warehouse charges and inventory costs. Manufacturers also struggle to maintain production schedules when raw materials arrive late.
The World Bank recently noted that better digital monitoring, satellite technology and artificial intelligence could allow governments to identify congestion early, improve customs operations and strengthen trade corridors across Africa.
This supports the direction taken by the customs modernisation project.Instead of relying solely on legal agreements, AfCFTA is investing in operational systems that make trade easier.
The Wider Economic Opportunity
The agreement arrives at a time when Africa is searching for stronger internal markets as global trade becomes more uncertain.
According to Reuters, Afreximbank estimates that intra-African trade increased by 12.4 percent in 2024 to about $208 billion, while the World Bank projects that full implementation of the AfCFTA could increase intra-African exports by 81 percent over time.
Those projections depend heavily on reducing border bottlenecks.
Efficient customs systems also improve tax collection by reducing smuggling, strengthening risk management and increasing transparency. Governments therefore benefit from higher revenues while businesses benefit from lower transaction costs.
Small and medium-sized enterprises may gain the most because customs complexity often discourages smaller businesses from entering export markets.
Challenges That Still Require Attention
The customs agreement is ambitious, but implementation will determine its success.
African countries still face uneven digital infrastructure, inconsistent electricity supply, varying legal systems and differences in institutional capacity. Customs officers will require extensive training. Member states must also commit to sharing trade information while maintaining cybersecurity standards.
Infrastructure beyond customs also matters. Better roads, railways, ports and payment systems remain essential if goods are to move efficiently from factories to consumers.
The Road Ahead For African Trade
The AfCFTA $3.1 billion customs modernisation deal addresses one of the biggest weaknesses in African commerce. Rather than focusing only on lowering tariffs, it tackles the administrative barriers that continue to slow trade across the continent.
If participating countries maintain political commitment and execute the project effectively, Africa could build faster trade corridors, improve customs revenue, reduce logistics costs and strengthen regional value chains.
The agreement will not solve every challenge facing African trade. However, it creates the digital foundation required for a genuine continental market. For businesses, investors and governments, that foundation could prove more valuable than tariff reductions alone because efficient borders are the engine that allows free trade to function.
