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FedEx|South Africa|North-South Corridor|E-commerce|SMMEs|Nelson Teixeira|East Africa|Southern Africa|Sub-Saharan Africa
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Why customs harmonisation is critical for SME growth

25th June 2026

     

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Africa has no shortage of trade ambition. As the African Continental Free Trade Area (AfCFTA) gains momentum, the bigger question is whether businesses can move goods across borders quickly enough, predictably enough and at a cost that turns that ambition into real growth. While the agreement has laid the foundation for a more connected market, businesses only realise its benefits when goods can move efficiently across borders.

“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, 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 looking to expand into new markets, those challenges have a direct impact on growth. South Africa sits at the base of vital trade routes, such as the North-South Corridor, which connects Southern Africa to East Africa. A business may have demand for its manufactured goods or agricultural products beyond its home market, but navigating customs requirements, compliance obligations and border processes can quickly become a barrier to scaling.

Teixeira also highlights logistics as one of the most important enablers of intra-African trade. Trade agreements can open markets, but they don’t move goods. In practice, it comes down to reliable supply chains, efficient transport corridors and borders that function the way they should. This is especially crucial for South African exporters who are increasingly looking to leverage regional opportunities to manage domestic economic pressures.

The rise of e-commerce has made this even more apparent. As more businesses sell to customers across borders through digital platforms, expectations around delivery speed, visibility, and reliability have shifted significantly.

"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."

A delayed shipment is more than a logistics issue. For many smaller businesses, it can mean delayed revenue, or even lost customers and missed repeat sales opportunities. Improving border efficiency, in that sense, has a very real impact on competitiveness.

According to Teixeira, a large part of the solution lies in greater alignment between customs processes, regulatory requirements, and digital systems across the region.

"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."

This is particularly important for SMEs, many of which do not have dedicated compliance teams or specialist resources.

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

As customs authorities across South Africa and the continent continue to modernise their operations, technology is becoming a bigger part of the solution. Governments are investing more in automation, digital platforms and intelligence-driven processes designed to improve visibility, strengthen compliance, and reduce delays at ports of entry and border crossings.

Across the region, customs authorities are investing in digitisation and automation to improve compliance, visibility, and border efficiency. The private sector is evolving alongside these developments.

Beyond moving goods, logistics providers are increasingly expected to help businesses navigate complex cross-border requirements and manage compliance more effectively. FedEx, for example, continues to invest in digital tools and solutions designed to simplify international trade for businesses of all sizes.

Rather than leaving businesses to figure out the complexities of international shipping on their own, FedEx has focused on integrating digital tools that simplify the entire process. By providing comprehensive support, from preparing shipments and managing documentation to streamlining import clearance, FedEx helps businesses of all sizes overcome the administrative hurdles of cross-border trade. For e-commerce businesses, this means having access to cost effective, reliable international shipping options that take the friction out of reaching global customers. Furthermore, FedEx continues to enhance its delivery networks to support exporters. For instance, enhancements to International Priority services are helping South African exporters reach key global markets within two to three business days.

Teixeira also emphasised the importance of collaboration between governments, regulators, and the private sector to address the challenges that continue to slow trade across the continent. In many cases, delays aren’t caused by a single issue at the border itself, but by inefficiencies elsewhere in the supply chain, including duplicated inspections, fragmented systems, and limited coordination between different authorities.

"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, logistics is playing a far greater role than simply moving goods from one place to another. It’s becoming a critical part of how businesses access new markets, compete more effectively, and grow beyond their home base.

"The opportunity for South African businesses is enormous," Teixeira concludes. "The focus now should be on making trade easier to navigate so that more businesses can take advantage of the opportunities that exist, both within Africa and beyond."

Edited by Creamer Media Reporter

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