AfCFTA signs $3.1bn customs modernisation deal to boost intra-African trade

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The African Continental Free Trade Area Secretariat has signed a 20-year, $3.1 billion concession agreement with Bergmans Security Consultants and Supplies Limited to modernise customs administration across Africa in a move aimed at accelerating intra-African trade, reducing border bottlenecks and improving revenue collection.

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The agreement, signed in Abuja on Thursday, will drive the implementation of the AfCFTA Customs Modernisation Project, an initiative designed to deploy advanced digital technologies and customs infrastructure to support the continent’s free trade agenda.

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The deal comes weeks after both parties entered into a Memorandum of Understanding to collaborate on transforming customs operations across Africa.

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

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Speaking at the signing ceremony in Abuja, Mene described the agreement as a major milestone in Africa’s quest to establish an integrated, technology-driven trading system.

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He said the project would provide the digital infrastructure needed to implement AfCFTA protocols on customs harmonisation and trade facilitation, enabling customs administrations across the continent to improve efficiency, strengthen revenue collection and facilitate the seamless movement of goods without imposing additional financial obligations on member states.

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Mene disclosed that about 50 African countries had already signed on to the initiative.

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According to him, the project would support the AfCFTA’s ambition of creating a single continental market of about 1.3 billion people with a combined Gross Domestic Product estimated at $3.4 trillion.

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“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,” Mene said.

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He noted that the initiative was inspired by the success of customs modernisation reforms implemented by the Nigeria Customs Service through Bergmans’ digital solutions, which he said improved cargo clearance, enhanced transparency and boosted government revenue.

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“The achievements recorded in Nigeria convinced us that this initiative can deliver similar results across Africa. This is an achievement that should make Nigerians and Africans proud,” he added.

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On his part, Ahmadu said the agreement marked the beginning of a long-term investment that would reshape customs operations across participating African countries.

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He said Bergmans would finance the entire $3.1 billion project under the concession agreement and deploy digital and physical customs infrastructure across the continent to modernise border operations, improve trade corridors and simplify cross-border movement of goods.

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According to him, the project would introduce advanced non-intrusive inspection technology, integrated data centres and multilingual customs portals capable of supporting Africa’s official languages.

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“Our experience in Nigeria has achieved remarkable success and attracted international recognition. It has become a model for customs modernisation across Africa, and we are committed to delivering a world-class customs ecosystem that supports the continent’s economic integration,” Ahmadu said.

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The AfCFTA, which officially commenced trading in January 2021, is regarded as the world’s largest free trade area by the number of participating countries, bringing together 54 African nations under a single market.

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The agreement seeks to progressively eliminate tariffs, remove non-tariff barriers and facilitate the free movement of goods, services and investments across the continent.

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Despite increased trade since the agreement came into force, experts have continued to identify inefficient customs procedures, fragmented border systems and lengthy cargo clearance processes as major obstacles to achieving the full benefits of the continental free trade pact.

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The Customs Modernisation Project is expected to address these challenges by harmonising customs operations, strengthening information sharing, improving risk management, accelerating cargo clearance and boosting revenue collection across participating countries, while lowering the cost of doing business across Africa.

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