Unlocking Seamless Trade in West Africa: Enhancing SIGMAT and ECOWAS Transit Guarantee for Efficient Cross-Border Movement of merchandise

West Africa has taken strides towards easier movement of goods across borders through the implementation of the Interconnected System for the Management of Goods in Transit (SIGMAT) and the ECOWAS Transit Guarantee Mechanism (ECGM).

The system has been successfully deployed and is operational throughout most of West Africa while steps are underway to have it operationalized in the remaining countries of the region. Seeing the success of SIGMAT, other regional economic communities in Africa have expressed interest in the system and would like to explore possibilities of having the solution within the system.

Recently, trade and customs experts from all over Africa gathered in Harare, Zimbabwe, where Mr. Jailson da Luz Costa, specialist of the Secretariat of the African Continental Free Trade Area (AfCFTA), presented the progress and challenges of SIGMAT and ECGM.

SIGMAT (Interconnected System for the Management of Goods in Transit), introduced by the ECOWAS Commission in 2019, is a game-changer for the region. This electronic system simplifies customs procedures, enabling digital customs declarations, improving goods tracking, combating fraud, and slashing transit times. Mr. Costa highlighted progress in Togo, Niger, Côte d'Ivoire, Burkina Faso, Benin, Ghana and Mali, emphasizing the need for further implementation across the region. While the project “Support project on the implementation of the African Continental Free Trade Area (AfCFTA)”on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) has also supported the deployment of SIGMAT in Guinea, Senegal, Nigeria and The Gambia, and provided the relevant technical and operational trainings to their respective customs IT personnel, the system is still in the process of being activated in these Member States.

Moreover, the SIGMAT e-Hub in the Community Computer Center (CCC) in Lomé, Togo, is a pivotal hub for trade efficiency. Equipment deployment was finalised in February 2024 with the support of project “Support project on the implementation of the African Continental Free Trade Area (AfCFTA)" on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and tests have started with Nigeria, Sierra Leone, Cote d’Ivoire, Liberia and The Gambia. In addition to the implementation of SIGMAT, the e-Hub is also crucial for the transmission of the ECOWAS electronic certificate of origin, a critical instrument for a successful operationalization of the ECOWAS Trade Liberalization Scheme (ETLS).

SIGMAT serves as the foundation for the ECOWAS Community Guarantee Mechanism (ECGM). Mr. Jailson da Luz Costa highlighted that a single guarantee “valid throughout the customs territory of the Community” shall be used for the transit of goods. Presently, the ECOWAS Commission is in the process of selecting a suitable company that can provide regional insurance coverage for the operationalisation of the transit guarantee.

Despite advancements, challenges persist, Mr. Jailson da Luz Costa, reminded the participants of the need for a stronger political will, diverse customs systems, funding gaps, and capacity building requirements. The journey continues with upcoming milestones like deploying SIGMAT in Liberia and Sierra Leone, launching the mobile application, and activating the ECGM, paving the way for a seamless trade landscape in West Africa."