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Electronic regional transit systems: the SIGMAT system and the challenge for Africa

Customs administrations in the various regions of the world rely more and more on the latest available technology to track goods in transit and combat fraud. In Africa, many Regional Economic Communities (RECs) have developed automated transit management systems where interconnected customs can exchange among themselves electronic transit messages to confirm the entry and exit of cargo from their territories. Probably the most known regional transit system in Africa is the COMESA RCTG scheme, also known as RCTG Carnet, which according to the COMESA Secretariat has reduced the cost of transit in the region between 10% to 15%, with trucks now spending no more than 30 minutes at border crossing points, in contrast to a previous waiting time up to 2-3 days needed for truckers holding national transit bonds and causing them additional costs of approximately 500 USD per trip. In the Economic Community of West African States (ECOWAS) a project called “ALISA”, was launched by the ECOWAS Commission in 2000, subsequently renamed SIGMAT, to interconnect customs in the region so that they can exchange electronically transit messages as cargo moves through the countries of departure, transit and destination. Therefore, the system avoids traders to submit repetitive declarations to Customs at each border through which the consignment moves. The automation of such formalities and procedures leads to a reduction of the cost and time for goods in transit. Moreover, it makes it easier to track goods, increase transparency and fight fraud.

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Djibouti Council of Ministers gives green light for the DPCS to be designated as the national maritime Single Window system

During its 14th session held on 11 October 2022, the Council of Ministers of the Djibouti government examined a series of bills of imminent adoption, including a draft decree on the establishment of the Djibouti Port Community System (DPCS) platform, i.e. a single portal where traders will have to mandatorily complete all formalities relating to import, export and transit operations channeled through the ports of the nation.

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AfCFTA process on track, but logistics still remains the main hindrance to movement of cargo

Movement of goods within the continent remains the biggest challenge for trade under the African Continental Free Trade Area (AfCFTA). Recently, eight African countries started the Guided Trading Initiative to test procedural and documental requirements to export under the new Free Trade Agreement a series of goods considered “commercially meaningful”. These goods include ceramic tiles, batteries, tea, coffee, processed meat products, corn starch, sugar, pasta, glucose syrup, dried fruit and sisal fiber. It is however expected that new products will be added to the list.

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Trade assessment report analyses constraints to trade integration of South Sudan with other countries in the Horn

The Horn of Africa Secretariat published on its website a trade assessment report that analyses the constraints to trade integration of South Sudan with its neighbouring countries in the region. Among the main challenges, the report highlights the poor road infrastructure and insecurity of roads, which hamper the smooth flow of trade, increase cost of doing business and contribute to the weak market integration of South Sudan in the Horn.

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Nigeria and Ghana conclude first successful transaction through the Pan-African Payment and Settlement System (PAPSS)

The Pan African Payment and Settlement System (PAPSS) is a centralized payment, clearing and settlement system for intra-African trade payments developed by the Africa Export-Import Bank (Afreximbank) which was adopted as the payment and settlement system to support the implementation of the African Continental Free Trade Area (AfCFTA) during the 12th Extraordinary Session of the Assembly of the AU held in Niamey, Niger in July 2018 (Assembly/AU/Dec.1(XII)).

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