AfCFTA presents growth opportunities for logistics operators

The gradual implementation of the African Continental Free Trade Area (AfCFTA) is expected to create new opportunities for logistics operators as businesses expand into regional markets and intra- African cargo volumes increase. According to Easy Clear general manager Michael Henning, South Africa is particularly well positioned to develop as a logistics and e-commerce hub for the southern African region. “Cross-border and intra-African deliveries are becoming increasingly important to the growth of the logistics sector,” he said. “There is an opportunity to transform domestic delivery operations into regional African logistics networks connected to global e-commerce.” However, turning this potential into sustainable growth will require investment in transport infrastructure, customs digitalisation and systems capable of managing increasingly complex cross-border transactions. Henning said customs procedures, rules of origin and documentation were progressing slowly despite the agreement. “AfCFTA processes are not seamless,” he said. “They are affected by the practical application of the agreement at individual borders, as well as by the different stages of digitalisation, automation and implementation across countries.” Countries such as South Africa are at a far more advanced stage, while others still rely heavily on manual declaration processes. “Rules of origin remain stubbornly complex and therefore present a significant barrier,” he said. “This is further complicated by inconsistent customs processes and requirements, as well as the multiple agencies involved in border clearances.” Henning said South Africa’s relatively advanced value and supply chain ecosystems placed it in a strong position to help develop regional value chains, creating opportunities for the country’s logistics sector. “Road and rail infrastructure will form the backbone of intra- African trade and will require significant investment across the continent,” he said. “Constraints at border posts will also have to be addressed to create smoother processes and reduce cargo delays.” Digitalisation will play a significant role in making cross-border trade faster and more predictable. “Governments and regional authorities need to prioritise the digitalisation of processes and documentation, including certificates of origin, while working to simplify rules of origin,” Henning said. He also called for greater adoption of trusted-trader programmes such as Authorised Economic Operator (AEO) schemes, along with automated risk assessment and pre-arrival processing to fast-track customs clearance. “More importantly, a collective and harmonised approach, together with effective use of the AfCFTA mechanism for reporting and resolving non-tariff barriers, will accelerate implementation of the agreement.” Henning advised companies to conduct thorough research before entering new African markets. While they may benefit from preferential tariffs, the total cost of getting products to market could be higher than anticipated. “There is a common perception that reduced duties automatically make a company more competitive,” he said. “However, this should not dissuade businesses from expanding into new African markets. We should be encouraged; the time is now to grow trade on the continent.” LV