Africa's pathway to trade resilience | TheCable
Without proactive measures, these restrictions could decelerate industrialisation, exacerbate trade imbalances, and impede economic growth across Africa. Rather than waiting for policy reversals from foreign governments, African countries must reimagine their trade strategies to build long-term resilience. The answer lies in reducing dependency on Western markets, diversifying trade partnerships, and increasing the value of goods exported from the continent.
At its core, the tariff policy threatens individual economies and the broader momentum of African trade development. The steep hikes in export costs immediately reduce the competitiveness of African products in the U.S. market. The U.S. President, Donald Trump, justified the policy by alleging unfair trade practices from countries that, in his words, “treat us badly”. This move signals rising protectionism among Western powers, which places African economies at a disadvantage.
Beyond political rhetoric, these tariffs directly threaten Africa’s trade stability, economic growth, and industrialisation efforts. The impact on small-scale producers and export-driven industries is severe, with job losses, shrinking foreign reserves, and stunted industrialisation as likely outcomes.
These tariffs come when many African economies strive to diversify exports, reduce reliance on raw materials, and attract foreign direct investment. Without timely and targeted action, the tariffs could deepen existing inequalities in global trade and slow Africa’s economic progress.
This moment presents an opportunity for African governments and institutions to rethink their global trade strategy. African countries can reduce their vulnerability to external shocks by improving trade within the continent, expanding partnerships with other trade blocs, and investing in industries that turn raw materials into finished goods.
Southeast Asian countries like Vietnam and Malaysia have followed a similar strategy. Through the Association of Southeast Asian Nations (ASEAN) framework, Southeast Asian countries strengthened trade within their region and attracted a wider range of foreign investment.
Also, China’s shift from raw material exports to value-added manufacturing helped the country become a dominant force in global trade. Emulating these pathways could reposition Africa as a supplier of goods and a self-sufficient and influential player in global commerce.
African leaders must urgently accelerate the implementation of the African Continental Free Trade Area (AfCFTA). This agreement unites 55 countries into a single market and holds immense potential to reduce dependency on volatile external markets.
To accelerate AfCFTA implementation, parties to the treaty must remove trade barriers that slow cross-border commerce. Key steps include harmonising customs procedures, aligning trade standards, and investing in physical and digital infrastructure to support seamless regional trade.
Delays at border crossings, inconsistent regulations, and repetitive procedures continue to obstruct trade between African countries. Addressing these challenges will unlock seamless trade within the continent, allowing businesses to source inputs and find markets at home rather than abroad.
Also, African economies must broaden their trading horizons by forging deeper partnerships with emerging markets across Asia and Latin America. Countries like China, India, Brazil, and Indonesia offer fast-growing consumer bases, increasing demand for raw and processed African goods.
African policymakers should actively pursue bilateral trade agreements and regional economic agreements with the aforementioned countries, focusing on fair and reciprocal terms. Exploring new trade markets will help African countries reduce dependence on any single partner and avoid disruptions from sudden policy changes.
Furthermore, Africa must focus on transforming the nature of its exports. For decades, African economies have exported raw materials while importing finished goods from those same resources. This model has constrained economic growth and created value chains that benefit foreign manufacturers far more than local economies.
African governments must now prioritise value-added manufacturing through well-designed industrial policies. Tax breaks, dedicated production zones, and affordable loans for small and medium-sized enterprises (SMEs) can speed up the shift to local processing.
Countries like Ethiopia and Rwanda demonstrate the potential of this approach by attracting garment factories and expanding local processing capacity. A manufacturing-driven export economy would withstand external trade shocks more effectively and create millions of jobs for Africa’s growing youth population.
The newly imposed U.S. tariffs are a wake-up call for decisive actions from African countries. A deliberate, continent-led approach will shield Africa from external shocks and unlock its full economic potential. African economies can shape a trade future that is both self-reliant and globally competitive by prioritising regional collaboration, forging new alliances, and building industrial capacity.
Mustapha Lawal is a writing fellow at African Liberty. He tweets at @themuslaw.
Views expressed by contributors are strictly personal and not of TheCable.