By Munyaradzi Munaro
AS the world grapples with the implications of President Trump’s tariffs including on African states, many have been quick to condemn the move as a blow to the continent’s economy. The spectre of protectionism looms large, threatening to disrupt established trade relationships and stifle economic growth. Yet, amidst the potential for hardship, lies an opportunity, a catalyst, even for Africa to finally embrace its long-held vision of continental economic integration.
Trump’s decision is a blessing in disguise for Africa. The tariffs, although unwelcome, present an opportunity for African states to accelerate the African Continental Free Trade Area (AfCFTA) and increase trade among themselves.
For too long, African nations have been beholden to external markets, exporting raw materials and importing finished goods, perpetuating a cycle of dependency. We’ve allowed ourselves to be divided, prioritising trade with distant partners over our own neighbours. Trump’s tariffs, while undoubtedly painful in the short term, could serve as a rude awakening, a stark reminder of the fragility of our reliance on external forces.
It is essential to acknowledge that Africa’s over-reliance on international trade has hindered its economic growth and development. For decades, African countries have been exporting raw materials to the West, only to import finished goods at exorbitant prices. This vicious cycle has perpetuated poverty, inequality, and underdevelopment. Trump’s tariffs, therefore, serve as a wake-up call for African leaders to rethink their trade strategies and focus on intra-African trade.
The AfCFTA, which was launched in 2018, aims to create a single market for goods and services across Africa. With a combined GDP of over US$2,5 trillion, the potential for growth and development is immense. However, the agreement has been slow to take off, with many countries dragging their feet on implementation hampered by bureaucratic hurdles, infrastructure deficits, and a lack of political will. Trump’s tariffs should now serve as a catalyst for African states to expedite the ratification and implementation of the AfCFTA.
Imagine a scenario where African nations, faced with restricted access to traditional markets, turn to each other. Instead of shipping raw minerals to Europe or the US, they process them locally, creating value-added products for regional consumption. Instead of importing finished goods from Asia, they invest in domestic manufacturing, fostering intra-African trade and creating jobs. By trading among themselves, African countries can reduce their dependence on external markets and create a more sustainable economic model.
This is not a utopian dream. The AfCFTA has the potential to unleash the continent’s vast economic potential, creating a market of over 1,3 billion people with a combined GDP of trillions of dollars. It can diversify our economies, reduce our reliance on commodities, and create a more resilient and sustainable future.
Furthermore, increased intra-African trade can also lead to the development of regional value chains. This means that African countries can specialise in specific industries, such as manufacturing or agro-processing, and trade with each other to create a more diversified economy. For example, countries like Nigeria and Egypt can specialise in manufacturing, while countries like Zimbabwe, Ghana and Côte d’Ivoire can focus on agro-processing. This specialisation can lead to increased efficiency, productivity, and competitiveness.
Another significant advantage of increased intra-African trade is the reduction of transportation costs and times. With most African countries located in close proximity to each other, transportation costs and times are significantly lower than those associated with international trade. This can lead to faster and more efficient supply chains, making African goods more competitive in the global market.
In addition, Trump’s tariffs can also serve as an opportunity for African states to diversify their economies and reduce their dependence on commodities. For decades, African countries have been exporting raw materials, such as oil, gold, and cocoa, to the West. However, the volatility of commodity prices has led to economic instability and vulnerability. By diversifying their economies and increasing trade among themselves, African countries can reduce their dependence on commodities and create a more sustainable economic model.
However, realising this potential requires a fundamental shift in mindset. We must move beyond rhetoric and embrace concrete action. We must invest in infrastructure, streamline customs procedures, and eliminate non-tariff barriers that impede trade. We must foster a culture of entrepreneurship and innovation, empowering our businesses to compete in a globalised world.
Finally, it is essential to acknowledge that Trump’s tariffs are not a permanent fixture. They are a political tool, designed to extract concessions from trade partners. Once the political landscape changes, the tariffs will likely be lifted. However, the benefits of increased intra-African trade will be long-lasting, providing a sustainable foundation for Africa’s economic growth and development.
Trump’s tariffs, in their own twisted way, could be the jolt we need to overcome our inertia. They should serve as a wake-up call, a reminder that we cannot afford to wait any longer. We must seize this moment to accelerate the AfCFTA’s implementation and forge a new era of intra-African trade.
This is not about isolationism or turning our backs on the world. It’s about building a stronger, more self-reliant Africa, capable of engaging with the global economy on its own terms. It’s about creating a future where our economic destiny is determined by our own ingenuity and resilience, not by the whims of foreign powers.
It is essential to acknowledge that the tariffs imposed by the Trump administration are a clear indication of the unpredictability and protectionism that has become a hallmark of the current global trade landscape. In this context, African countries can no longer rely on external partners to drive their economic growth and development. Instead, they must take control of their own destiny and forge their own path forward. Let us turn Trump’s tariffs into a blessing in disguise, a catalyst for continental economic liberation. Let us build an Africa where trade flows freely across our borders, where our businesses thrive and where our people prosper.
