The Chief Executive Officer of Ecobank Transnational Inc., Jeremy Awori, has stated that African nations can soften the economic impact of United States President, Donald Trump’s new tariffs by strengthening trade among themselves.
In an interview with Bloomberg TV, Awori explained that the tariffs are likely to replace the African Growth and Opportunity Act, a program that has supported export-led industries like textiles and apparel in around 30 African countries.
He emphasized that increasing intra-African trade could help reduce dependence on external markets and support sustainable economic growth.
In 2023, sub-Saharan Africa exported $29 billion in goods to the United States, ranking it as the region’s fourth-largest export destination, behind China, the United Arab Emirates, and India.
According to Awori, although the U.S. is not Africa’s largest trading partner, the continent could still suffer indirect effects if the tariffs prompt major partners like China to scale back demand for African exports.
He emphasized that the escalating trade tensions highlight the need for African countries to accelerate the implementation of the African Continental Free Trade Area, which officially launched in October 2022.
The World Bank estimates that the AfCFTA could increase African exports by as much as $560 billion. However, implementation has been sluggish, with key terms still under negotiation.
In 2023, intra-African trade rose by 3.2% to $192 billion, yet it represented just 15% of the continent’s total trade—highlighting the vast untapped potential within regional markets.
The Ecobank boss stressed that reducing tariffs alone is not enough; African countries must also tackle non-tariff barriers like restrictive visa policies and the logistical hurdles faced by landlocked nations.
He also highlighted that the new tariffs come on the heels of President Trump’s earlier move to freeze aid to Africa—a decision which, according to Ecobank research, could push an additional six million people into extreme poverty.
Awori emphasized that fully implementing the AfCFTA and prioritizing value addition to raw materials within Africa would enable the continent to capture more economic value, generate employment, and enhance living standards.
“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.
