FedEx Executive Warns Operational Friction Hampers AfCFTA Benefits For SMEs

"We’ve made important progress at a policy level with initiatives like AfCFTA, but the benefits are often diluted by operational friction," says Nelson Teixeira, managing director of operations for Sub-Saharan Africa at FedEx.

"For many companies, particularly small and medium enterprises (SMEs), the reality is that cross-border trade can still be more complex than it needs to be. Different customs requirements, inconsistent documentation processes, and lengthy border procedures continue to add cost and delay shipments."

For South African SMEs seeking to expand into regional markets, customs compliance and lengthy border procedures can become significant barriers to growth, despite growing demand beyond domestic markets.

Teixeira says logistics remains one of the key enablers of intra-African trade, with efficient supply chains, transport corridors and border operations determining whether businesses can fully benefit from trade agreements.

E-commerce raises expectations

Growing cross-border e-commerce has increased expectations around delivery speed, visibility and reliability, making efficient customs processes even more important.

"The customer experience doesn't end when someone clicks 'buy'," says Teixeira. "It extends all the way to delivery. Businesses need logistics solutions that give them the confidence to reach customers wherever they are, without creating additional complexity."

He says shipment delays can have a direct impact on smaller businesses by delaying revenue, increasing costs and affecting customer retention.

Harmonising customs procedures

According to Teixeira, greater alignment between customs procedures, regulatory requirements and digital systems across Africa would help businesses spend less time on administration and more time growing their operations.

"Standardisation may sound like a policy discussion, but its impact is very practical," he explains. "When customs procedures are simpler and more consistent, businesses spend less time navigating paperwork and more time focusing on growth."

He adds that simplified customs processes are particularly important for SMEs, many of which lack dedicated compliance teams or specialist trade resources.

"Large organisations can invest heavily in trade compliance capabilities. Smaller businesses often don't have that luxury. That's why simplifying processes and providing the right kind of support is so important."

Technology and collaboration remain key

Teixeira says customs authorities across Africa are increasingly investing in automation, digital platforms and intelligence-driven processes to improve compliance, visibility and border efficiency.

He believes closer collaboration between governments, regulators and the private sector will also be essential to reducing inefficiencies caused by duplicated inspections, fragmented systems and limited coordination across supply chains.

"No single organisation will unlock Africa's trade potential on its own," he says. "It takes governments modernising customs, businesses investing in digital readiness and logistics providers helping connect markets more seamlessly. When those pieces come together, trade becomes faster, simpler, and far more accessible."

As African economies become increasingly interconnected, Teixeira says simplifying cross-border trade will be critical to helping more businesses expand into regional and international markets.