The Chief Executive Officer of Ecobank Transnational Inc., Jeremy Awori, has urged African governments to accelerate the implementation of the African Continental Free Trade Area (AfCFTA) as a strategic response to the economic risks posed by new tariffs imposed by U.S. President Donald Trump.
In an interview with Bloomberg TV, Awori warned that the tariffs, which are expected to replace the African Growth and Opportunity Act (AGOA), could undermine export-driven industries across the continent.
Approximately 30 African nations have relied on AGOA to grow sectors such as textiles, apparel, and agricultural products for the U.S. market.
“Now more than ever, African countries must focus on trading more with each other and creating a seamless framework for intra-continental commerce,” Awori stated.
According to U.S. trade data, sub-Saharan Africa exported $29bn worth of goods to the United States in 2023, making it the region’s fourth-largest trading partner after China, the United Arab Emirates, and India.
However, Awori emphasised that while the U.S. may not be Africa’s biggest trading partner, the ripple effects of protectionist policies could affect the continent’s broader economic outlook, particularly if major partners like China scale back their imports from Africa in response to global trade tensions.
Awori stressed that the unfolding trade dynamics present a crucial opportunity for Africa to strengthen intra-continental trade under the AfCFTA framework, which officially came into effect in October 2022.
Though the agreement has the potential to boost African exports by an estimated $560bn, progress on its implementation has been slow due to protracted negotiations over key trade terms and regulatory alignment.
Data from the African Union showed that intra-African trade rose by 3.2 per cent in 2023 to $192bn, yet it still represents only 15 per cent of Africa’s total trade volume.
To fully capitalise on the agreement, Awori underscored the need to eliminate non-tariff barriers, including restrictive visa regimes, poor transport infrastructure, and the logistical disadvantages faced by landlocked countries.
The newly announced tariffs vary significantly across the continent, with Benin, Kenya, and Cape Verde facing levies of up to 10 per cent, while Lesotho has been hit with a 50 per cent tariff—the highest applied to any sovereign country under the policy.
Analysts warn this could severely hamper export growth, local manufacturing, and job creation in affected nations.
Awori also noted that the tariff policy follows an earlier move by President Trump to freeze development aid to Africa, which Ecobank research estimates could plunge an additional six million Africans into extreme poverty if not mitigated.
Awori argued that for African nations to shield themselves from such shocks, adding value to raw materials domestically and deepening regional integration must become economic priorities.
“Fully implementing AfCFTA isn’t just about lowering tariffs—it’s about transforming the structure of African economies so we’re not overly dependent on external markets,” Awori concluded.
As African leaders prepare for upcoming AfCFTA negotiation rounds and trade policy summits, Awori’s remarks reinforce the growing consensus that regional collaboration and economic self-reliance are critical to Africa’s resilience in an increasingly volatile global trade environment.
