AfCFTA Signs $3.1bn Deal to Modernise Customs Across Africa

The African Continental Free Trade Area (AfCFTA) Secretariat on Thursday said it has signed “a 20-year, $3.1bn concession agreement with Bergmans Security Consultants and Supplies Limited to modernise customs administration across Africa,” a major step aimed at boosting intra-African trade, reducing border delays and improving revenue collection across the continent.

According to a statement by AfCFTA Secretary General, Wamkele Mene, on Thursday, the concession agreement, signed in Abuja, 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 ambitions.

The agreement was executed weeks after both organisations signed a Memorandum of Understanding to collaborate on transforming customs administration across Africa.

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.

Speaking after the signing ceremony at the Transcorp Hilton Hotel, Abuja, Mene described the agreement “as a significant milestone in Africa’s drive to build an integrated and digitally enabled trading system.”

He said the project would provide the technological backbone required to implement AfCFTA protocols on customs harmonisation and trade facilitation, enabling customs administrations across Africa to improve operational efficiency, protect government revenues and facilitate the seamless movement of goods without placing additional financial burdens on member states.

Mene disclosed that “about 50 African countries had already keyed into the initiative,” adding that it would support the AfCFTA’s objective of creating a single continental market of approximately 1.3bn people with a combined Gross Domestic Product estimated at $3.4tn.

He noted that the project was inspired by the success of customs modernisation initiatives implemented in Nigeria. According to him, Bergmans’ deployment of digital solutions for the Nigeria Customs Service significantly improved cargo clearance processes, reduced processing time, enhanced transparency and boosted 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,” Mene said.

He commended the Federal Government and the Nigeria Customs Service for providing the enabling environment that allowed the company to demonstrate its capacity.

“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.

Speaking on behalf of the company, Ahmadu said the execution of the concession agreement marked the commencement of a long-term investment that would transform customs operations across participating African countries.

He said Bergmans would invest the full $3.1bn required under the concession agreement and deploy continent-wide digital and physical customs infrastructure to modernise customs procedures, improve trade corridors and simplify the cross-border movement of goods.

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.

“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.

The African Continental Free Trade Area, which commenced trading in January 2021, is the world’s largest free trade area by the number of participating countries. The agreement seeks to progressively eliminate tariffs on most goods, remove non-tariff barriers and facilitate the free movement of goods, services and investments across Africa.

Although trade among African countries has grown since AfCFTA came into force, experts say inefficient border procedures, fragmented customs systems and lengthy cargo clearance processes continue to limit the full benefits of the agreement.

The Customs Modernisation Project is expected to address these challenges by harmonising customs operations, improving information sharing, strengthening risk management and accelerating cargo clearance across participating countries.

The initiative is also expected to enhance revenue collection by customs administrations, lower the cost of doing business across borders and strengthen the implementation of the AfCFTA agreement, which is central to Africa’s ambition of deepening regional economic integration and expanding intra-African trade.