Africa Shakes Up Customs, but Trade Problems Persist
To curb revenue and income losses and accelerate trade across 50 member states, the African Continental Free Trade Area (AfCFTA) Secretariat partnered with Nigeria’s Bergmans Security Consultants and Supplies Ltd. in a $3.1 billion deal to roll out a unified continent-wide customs system. The project aims to digitize customs processes, streamline cross-border procedures, and provide ..…
The African Continental Free Trade Area (AfCFTA) launched a $3.1 billion initiative to digitize and streamline customs processes across 50 member states. The project aims to reduce corruption, revenue leakage, and trade misinvoicing, with potential significance in accelerating intra-African trade. However, fundamental trading challenges such as payments persist, and AfCFTA's Pan-African Payments and Settlement System (PAPSS) has slow rollout, connecting only 19 countries as of 2025.
Logistics remains another major headache, with goods frequently routed through South Africa, Europe, or the Middle East, adding significant time and cost. Inconsistent political will and protectionist measures also hinder trade. While modernizing customs creates an essential foundation, it's not a complete solution. Without parallel investments in logistics, payment systems, standardized regulations, and physical infrastructure, the streamlined customs framework will fall short.
As of 2026, Africa's population has grown to around 1.6 billion people, up from 1.2 billion at the agreement's signing. Intra-African trade reached $220.3 billion in 2024 and $213.8 billion in 2025, with Afreximbank projecting it to reach $230 billion in 2026. However, Coetzer argues that getting customs right is only part of the challenge; achieving an integrated continental trading system is the real objective.
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