Global Trade Chaos? Africa Sees Opportunity—and It’s Betting Big on Itself

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Africa (Commonwealth Union) _ The Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene, has called on African nations to view the current global tariff turmoil as an opportunity to strengthen intra-African trade and economic resilience. His remarks were made during the opening of the AfCFTA Regional Conference on Special Economic Zones held in Djibouti on April 21.

The recent wave of US-imposed tariffs, particularly under the administration of former President Donald Trump, has significantly disrupted trade for many African nations—especially those trading under the African Growth and Opportunity Act (AGOA). While some nations, such as Rwanda, have experienced exclusion since 2018, many others now confront a transformed global trade landscape characterized by protectionism and uncertainty.

Mene acknowledged the adverse impact of the tariffs but emphasized that they could serve as a catalyst for regional economic integration. “This crisis must push us to accelerate intra-African trade and reduce our vulnerability to external shocks,” he said. A recent AfCFTA Council of Ministers session reached a consensus on a unified continental response to the tariff hikes, prioritizing swift implementation of AfCFTA strategies.

Key to this response is the development of Special Economic Zones (SEZs) and the integration of African industrial production. Mene highlighted that Africa must diversify its export markets and build local value chains to lessen dependency on global supply networks.

“With 49 out of 55 African Union members having ratified the AfCFTA agreement, we are moving toward a unified market for goods, services, and digital trade,” Mene stated. This continental free trade area promises to open new investment avenues, strengthen economic self-sufficiency, and create cost-competitive production hubs.

Africa currently hosts over 200 SEZs, with 70 more in development. Recent African Union regulations now allow products manufactured in these zones to fully benefit from AfCFTA if they meet established rules of origin, boosting their competitiveness within the African market.

Mahamoud Ali Youssouf, Chairperson of the African Union Commission, reinforced the call to action. He emphasized the need to expand the AfCFTA’s Guided Trade Initiative, eliminate non-tariff barriers, and ensure SEZs play a central role in adapting to global economic shifts.

“In these difficult times, we must convert challenges into opportunities,” Youssouf said, “and SEZs will be vital to our adaptive strategy for economic growth.”

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