AfCFTA Signs $3.1bn Customs Modernisation Deal

The AfCFTA Secretariat has signed a 20-year, $3.1 billion concession agreement with Bergmans Security to digitise continental customs.

NGN Market

Written by NGN Market

·3 min read
AfCFTA Signs $3.1bn Customs Modernisation Deal

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. The agreement, signed in Abuja, aims to accelerate intra-African trade, reduce border bottlenecks, and improve revenue collection.

The deal drives the implementation of the AfCFTA Customs Modernisation Project. This initiative will deploy advanced digital technologies and customs infrastructure to support the continent’s free trade agenda, following a recent Memorandum of Understanding between both parties.

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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Bergmans to Fully Finance Digital Infrastructure

Saleh Ahmadu stated that the agreement marks the beginning of a long-term investment that will reshape customs operations across participating African countries. Bergmans will finance the entire $3.1 billion project under the concession agreement.

The company will deploy digital and physical customs infrastructure to modernise border operations, improve trade corridors, and simplify cross-border movement of goods. The project will introduce advanced non-intrusive inspection technology, integrated data centres, and multilingual customs portals supporting Africa’s official languages.

Mene disclosed that about 50 African countries have already signed on to the initiative. The project will 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.

Nigeria Customs Success Inspires Continental Rollout

According to Mene, the initiative was inspired by the success of customs modernisation reforms implemented by the Nigeria Customs Service. Bergmans’ digital solutions in Nigeria improved cargo clearance, enhanced transparency, and boosted government revenue.

Mene noted that the Nigerian experience demonstrated how technology can transform customs administration. This success gave the AfCFTA Secretariat the confidence to replicate the model across the continent.

The AfCFTA, which officially commenced trading in January 2021, is the world’s largest free trade area by the number of participating countries, bringing together 54 African nations. Despite increased trade, experts continue to identify inefficient customs procedures and lengthy cargo clearance processes as major obstacles to continental trade.

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