AfCFTA’s $3.1 Billion Customs Modernisation Agreement
The secretariat of the African Continental Free Trade Area (AfCFTA) has signed a 20-year concession agreement worth $3.1 billion (€2.7 billion) with Bergmans Security to overhaul the continent’s fragmented customs systems. The deal, inked in Abuja, will see the Nigerian-headquartered firm, through its subsidiary AfriTrade CMP, deploy digital tools to modernise customs administrations across the 50 African Union member states that have already ratified the free trade pact.
Intra-African trade reached $220 billion in 2024, a 12.5% increase on the previous year, but still far short of the AfCFTA’s target to double that figure by 2035. Lengthy manual procedures, incompatible IT systems and limited cross-border data sharing have long been a brake on the bloc’s ambitions. The new project promises to streamline cargo tracking, cut transit delays and improve revenue collection for governments. Bergmans will provide both the financing and technical expertise, tailoring its digital platform to each country’s regulatory and operational environment.
The choice of Bergmans followed its track record in Nigeria, where its customs modernisation work boosted government revenues and slashed processing times. AfCFTA Secretary-General Wamkele Mene stressed that a functional digital customs system is a non-negotiable condition for the continent’s trade integration: “If we fail to guarantee a digital customs system capable of expressing our ambition, I fear we will not succeed in doubling intra-African trade by 2035.” The secretariat also deliberately selected an African company over several international bidders, aligning with the goal of building homegrown technology capacity.
The Bergmans Deal: A Pivot Point for African Trade Integration
Why Digital Customs Are Make-or-Break for AfCFTA
The $220 billion in intra-African trade last year was a record, yet it remains woefully low relative to the continent’s potential. The AfCFTA’s own analysis suggests that non-tariff barriers, led by clunky border procedures, are among the biggest obstacles. Customs delays add days to transit times, inflate costs and discourage cross-border supply chains. By digitising cargo manifests, risk assessments and payments, the Bergmans project directly attacks these bottlenecks. The 12.5% trade growth in 2024 shows momentum exists; removing procedural friction could accelerate that further, making the 2035 doubling target plausible rather than aspirational.
Bergmans’ Nigerian Blueprint and the Replication Challenge
Bergmans’ selection was heavily influenced by its work with Nigeria’s customs service, where digital systems reportedly lifted revenue collection and cut clearance times. The key question is whether that model translates to 49 other countries with different legal frameworks, infrastructure quality and political buy-in. Each national administration must open its systems to the new platform, harmonise data definitions and train personnel. The 20-year concession gives Bergmans a long runway, but execution risk is high. The firm’s ability to adapt its technology to francophone civil-law customs regimes or to ports with patchy internet will be tested early. Success in Nigeria does not automatically guarantee success in Addis Ababa, Lomé or Lubumbashi.
AfCFTA’s Bet on an African Tech Champion
By choosing Bergmans over international bidders, the AfCFTA secretariat is making a strategic statement about African industrial capacity. This aligns with the bloc’s broader ambition to anchor value creation within the continent. It also reduces the risk of external technology dependency and may build goodwill with member states that prefer a local partner. However, it concentrates responsibility in a single, relatively unknown entity. The deal could spur other African technology firms to invest in trade facilitation solutions, but it also means that if Bergmans stumbles, the entire digital customs pillar of the free-trade area could be set back for years.
What Success Would Look Like – and the Risks of Failure
If executed well, the project could trim border clearance from days to hours, boosting just-in-time manufacturing and agricultural exports. Governments would see higher tariff revenues from better compliance, and customs agencies would gain real-time visibility into trade flows. Conversely, failure – whether from technical glitches, political resistance or funding shortfalls – would undermine confidence in the AfCFTA’s ability to deliver its core promise. The reputation risk for the secretariat is considerable, as is the commercial risk for Bergmans, which is effectively betting its future on a continent-wide rollout. The next two years will be critical as the first national rollouts begin.
What the Customs Overhaul Means for Businesses, Governments and Investors
- For traders and logistics firms: Begin reviewing import/export documentation workflows now. The shift to digital customs will require electronic data interchange (EDI) compatibility and standardised invoice formats. Early adopters in Nigeria gained faster clearance times; preparing integrated systems ahead of national rollouts could yield a competitive edge.
- For national customs authorities: Prioritise legislative alignment and staff training. The continent-wide platform will only work if local agencies update their regulations to accept digital signatures and electronic payments, and if officers are skilled in using the new tools. Countries that delay risk becoming a choke point, diverting trade to better-prepared neighbours.
- For investors: Watch for contract-related announcements from Bergmans and its local partners. The $3.1 billion project will create demand for ancillary services – IT consulting, border infrastructure upgrades and logistics tech. Companies along that value chain, from African software developers to logistics park operators, could see new growth opportunities.
- For regional economic communities: Coordinate closely with the AfCFTA secretariat to avoid duplication of existing customs interconnectivity projects, especially in East and West Africa. A patchwork of competing digital systems would defeat the purpose of a single continental window.
Risk & Opportunity Assessment
| Commercial Risk | High | Bergmans must finance a $3.1 billion rollout across 50 countries with varying payment capacities and infrastructure, making revenue streams uncertain despite the long-term concession. |
| Competitive Risk | Low | The exclusive 20-year concession effectively blocks near-term rivals from entering the digital customs space for AfCFTA members, insulating Bergmans from competitive pressure. |
| Regulatory Risk | High | Each member state has its own customs code and data-protection laws; harmonising these to accept a single digital platform will require prolonged political negotiation and legislative changes. |
| Reputation Risk | Medium | If the project encounters delays or technical failures, it would damage the AfCFTA’s credibility as an institution capable of delivering tangible trade facilitation, potentially slowing ratification by remaining AU states. |
| Technology Disruption | High | The shift from manual to fully digital customs processes represents a transformational change for African trade, but integration with legacy systems and internet connectivity gaps poses significant execution risk. |
| Commercial Opportunity | High | A successful digital customs backbone could slash border times from days to hours, unlocking rapid growth in intra-African trade and creating a vast market for Bergmans and related services, as reinforced by the 12.5% trade growth already underway. |
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