The Chief Executive Officer of Ecobank Transnational Inc., Jeremy Awori, has said African countries can cushion the potential economic fallout from U.S. President Donald Trump’s new tariffs by increasing trade among themselves.
Speaking in an interview with Bloomberg TV, Awori noted that Trump’s tariffs will 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.
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 U.S. 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.
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.
Awori noted that the new tariffs follow Trump’s earlier decision to freeze aid to Africa, which Ecobank research suggests could push an additional six million people into extreme poverty.
Meanwhile, the African Development Bank (AfDB) had projected the continent’s economic growth to accelerate to 4.3% in 2025, up from an estimated 3.7% in 2024.
“Now more than ever, African countries must focus on trading more with each other and creating a seamless framework for intra-continental commerce,” he said.
Afreximbank Research in its impact analysis of the Trump’s tariffs, had stated that the tariffs might have a limited direct impact on African economies, given the continent’s deepening trade ties with China.
It added that the new 10% tariff on key categories may impact the competitiveness of Nigerian goods in the U.S.