The chief executive of Ecobank Transnational Incorporated, Mr. Jeremy Awori, has called for an increase in intra-trade among African countries in response to recent tariff announcements by the US President, Mr Donald Trump.
Speaking in an interview with Bloomberg TV, Mr Awori noted that Mr Trump’s tariffs would replace the African Growth and Opportunity Act (AGOA), which about 30 African nations have relied on to develop export-driven industries, including textiles and apparel.
“Now more than ever we should be focusing as African countries on how do we trade more together, how do we create an easier framework for us to trade,” he said.
In 2023, sub-Saharan Africa exported $29 billion worth of goods to the U.S., making it the region’s fourth-largest market after China, the United Arab Emirates, and India.
According to him, while the US is not Africa’s biggest trading partner, the continent’s economies could still face indirect repercussions if the tariffs lead major partners like China to reduce demand for African exports.
The tariffs imposed on African nations vary widely, ranging from 10 per cent for countries like Benin, Kenya, and Cape Verde to as high as 50 per cent for Lesotho—the highest rate applied to any sovereign nation. Nigeria was hit with 14 per cent.
Mr Awori pointed out that the trade tensions reinforced the urgency for African nations to fast-track the implementation of the African Continental Free Trade Area (AfCFTA), which came into effect in October 2022.
He added that fully implementing the free trade accord and adding value to raw materials will ensure that the continent keeps “more of the benefits, creates more jobs and uplifts the lives and livelihoods of Africans.”
He emphasised that beyond tariff reductions, Africa must address non-tariff barriers such as restrictive visa policies and logistical challenges faced by landlocked countries.
The lender’s CEO noted that the new tariffs follow President Trump’s earlier decision to freeze aid to Africa, which Ecobank research suggests could push an additional six million people into extreme poverty.