U.S Tariffs Will Create More Political Space for Intra-African Trade - Dr. Bawumia

Brussels, Belgium - 18 May, 2025 - Former Ghanaian Vice President Dr. Mahamudu Bawumia has predicted a significant shift in Africa's trade orientation due to rising global tariffs, particularly from the United States. 

Speaking at the International Democrat Union (IDU) Forum, Dr. Bawumia warned that the increased tariffs would impact Africa's export-reliant economies.

The US has raised its average tariff rate from 2.4% to 10%, a significant increase that will have far-reaching consequences. While Africa's overall trade exposure to the US is limited, certain countries like Lesotho are vulnerable due to their heavy reliance on US trade. Lesotho sends around 50% of its exports, mainly textiles, to the US under the African Growth and Opportunity Act (AGOA).

Dr. Bawumia expects AGOA benefits to be threatened under the new tariff regime, potentially leading to its collapse.

“AGOA is essentially going to collapse under these tariffs,” he said.

He forecasts a shift in trade strategy across Africa, with nations looking inward for solutions and increasing intra-African trade.

“What you’re going to see in Africa, as you’re seeing across the world, is more clamour for self-reliance. And you’re going to see more political space being created for intra-African trade as a way of dealing with this,” he stated.

Source: Lead News Online