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U.S. Tariffs on Africa Should Spur Intra-Continent Trade - AfCFTA Chief

Posted 08:48 PM, Monday April 21, 2025 3 min(s) read

Emmanuel Onminyi

Photo by: Emmanuel Onminyi

DJIBOUTI, Apr. 21 (AGCNewsNet) – Africa must treat the current global tariff crisis as a catalyst for building economic resilience and boosting trade within the continent, African Continental Free Trade Area (AfCFTA) Secretary General Wamkele Mene said on Monday.

Speaking at the opening of the AfCFTA Regional Conference on Special Economic Zones (SEZ) in Djibouti, Mene acknowledged that tariff hikes imposed by the United States were likely to negatively impact African exporters, particularly those trading under the African Growth and Opportunity Act (AGOA).

“This crisis must be seen as an opportunity,” Mene said. “We must take this as a moment for our continent to deepen and accelerate intra-Africa trade.”

Between January and April, the administration of U.S. President Donald Trump imposed sweeping tariff hikes that touched nearly all imported goods, including those from African nations. Rwanda, excluded from AGOA since 2018, had already faced the consequences of strained trade relations.

Mene said that a recent meeting of AfCFTA’s Council of Ministers agreed on a coordinated continental response to the tariffs and a push for the accelerated implementation of the free trade agreement, which aims to unify the continent’s economies.

“Intra-African liberalisation will be the response to the challenge of the day,” Mene said, citing efforts to enhance industrial integration and leverage SEZs to support production and competitiveness.

Djibouti's Prime Minister Abdoulkader Kamil Mohamed officiated the conference, which brought together stakeholders to discuss strengthening Africa’s industrial base.

“We are indeed navigating a very challenging global landscape,” Mene added. “Strategic responses are needed to double down on economic resilience and diversify our export markets.”

Mene said the ratification of AfCFTA by 49 of 55 African Union member states lays the foundation for a single continental market in goods, services, and the digital economy. The agreement is expected to reduce reliance on external partners, attract investment, and develop Africa-wide value chains.

Africa currently hosts over 200 SEZs with 70 more under development, according to the African Economic Zones Outlook. The AU Assembly has adopted new ministerial regulations ensuring goods produced in SEZs are eligible under AfCFTA’s rules of origin, facilitating their inclusion in the single market.

“This move will drive the competitiveness of SEZs, enabling cost-effective production and contributing to industrial development,” Mene said.

Mahamoud Ali Youssouf, newly appointed chairperson of the African Union Commission, also urged for the removal of non-tariff barriers, the expansion of AfCFTA’s Guided Trade Initiative, and the full operationalisation of AfCFTA mechanisms.

“Difficult times must be expected,” Youssouf said, “but this may also be the time to turn challenges into opportunities. SEZs will be one of the levers needed to adapt to the new global situation.

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