The African Continental Free Trade Area has committed $3.1 billion to a Nigerian firm to build a unified customs system linking member countries' border operations.
Intra-Africa trade has grown 12.5% to $220 billion in 2024 since the trade area launched in 2021, but analysts say structural challenges still constrain its potential—a streamlined customs process could help unlock further growth.
What happened
The African Continental Free Trade Area (AfCFTA) signed a $3.1 billion contract with Nigerian company Bergmans Security Consultants to build a customs system that will link the customs units of member countries, allowing them to work together seamlessly.
Why it matters
Intra-Africa trade has grown 12.5% since 2023, reaching $220 billion in 2024, but trade analysts say structural and operational challenges still limit the pact's full impact. A unified customs system could remove a major bottleneck by streamlining border processes across the continent's largest free-trade area.
What to watch
The deal was signed last week by AfCFTA Secretary-General Wamkele Mene. The system's success will depend on how smoothly member countries adopt and integrate it into their existing customs operations.
The African Continental Free Trade Area (AfCFTA), the world's largest free-trade area, signed a $3.1 billion contract with Bergmans Security Consultants—a Nigerian company based in Abuja—to deploy a customs system aimed at improving trade across the continent. The deal was announced at a signing ceremony last week by AfCFTA Secretary-General Wamkele Mene. The new system will make the customs units of member countries interoperable, meaning their border operations can communicate and coordinate seamlessly.
Intra-Africa trade has shown growth since the AfCFTA began operations in 2021. Trade volumes rose 12.5% from 2023 to reach $220 billion in 2024. However, African trade analysts have noted that despite this progress, the pact's impact remains constrained by several structural and operational challenges. The customs system is intended to address one such bottleneck by removing friction at borders and enabling faster, more coordinated trade processing across member nations.
The AfCFTA, which launched trading in 2021, is the world's largest free-trade area by membership and geography. Since its inception, measurable trade flows have increased—the 12.5% year-on-year growth and $220 billion figure in 2024 show momentum. However, African trade analysts have identified that customs procedures and interoperability between national border systems are among the structural obstacles preventing the pact from reaching its full potential. By tasking Bergmans Security Consultants with creating a system that makes customs units interoperable, the AfCFTA is targeting one of these known constraints. The $3.1 billion investment signals that policymakers view customs modernization as critical to unlocking further integration and trade flow across the continent.
AI-summarized, only the topics you pick — one digest a day via Email, Slack, or Discord.
Free · takes 30 seconds · unsubscribe anytime
Ask AI anything about this article. Q&As are published on this page for other readers too.
The AI news that matters, in one minute each morning.
Sign up free