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U.S. Tariffs Will Have Minimal Impact on Africa – WTO DG Okonjo-Iweala

by Utomobong
April 26, 2025
in National
Reading Time: 1 min read
0

Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation (WTO), has stated that the recent U.S. tariffs will have minimal impact on Africa due to the continent’s limited trade volume with the United States.

Speaking during an interview at the World Bank Spring Meetings in Washington D.C., Okonjo-Iweala explained that:

1.Only 6.5% of Africa’s exports go to the U.S.

2. Just 4.4% of Africa’s imports come from the U.S.

“The impact on the continent as a whole is not significant,” she said.

Africa Needs to Trade More — Internally and Externally

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While the low impact of U.S. tariffs may seem positive in the short term, Okonjo-Iweala highlighted that it also reveals a bigger issue: Africa’s limited trade engagement with global markets, particularly the U.S.

She emphasized that:

Africa should boost intra-African trade, which currently stands at just 16–20% of its total trade volume.

The continent must leverage its own resources and attract more investment, especially as foreign aid continues to decline

Lesotho as a Case Study

Citing Lesotho, which exports $200 million in textiles to the U.S., the WTO DG noted the country is vulnerable due to U.S. market shifts. Meanwhile, Africa imports $7 billion in textiles annually, suggesting a missed opportunity for internal trade growth.

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A Call for Fairness and Self-Reliance

Okonjo-Iweala urged the U.S. to reconsider the effect of tariffs on least-developed countries, stressing the need for more equitable trade policies.

“We cannot trade more externally, where our trade is only 3 per cent of world trade…,” she said, “Africa must focus on strengthening internal markets and attracting more investment.

 

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