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Yahoo
3 days ago
- Business
- Yahoo
'We are on our own'- Africa looks within to weather growing global tariff turmoil
'We are on our own'- Africa looks within to weather growing global tariff turmoil By Colleen Goko and Libby George JOHANNESBURG (Reuters) -African leaders are pushing to speed up implementation of a continent-wide deal to boost trade as growing concerns over U.S. tariffs, including rates as high as 50% for Lesotho, threaten to decimate industries and hit economic growth. The African Continental Free Trade Area pact designed to unify all 1.4 billion people under Africa's more than 50 nations into a single market, has been legally ratified by 49 countries and officially launched trading in 2021. But translation into action has been sluggish, with less than half of member states actively trading under the framework. The World Bank estimates AfCFTA could increase Africa's intra-continental exports by 81% and proponents point to last year's 12.4% boost in intra-African trade, to $208 billion, according to Afreximbank figures, as early signs of success. "We've got to accelerate the establishment of our own value chain systems. What we are observing now — the weaponisation of trade policy, investment policy, nationalism — is unprecedented and it has a very negative impact on the multilateral trading system," AfCFTA Secretary-General Wamkele Mene told Reuters. "The lesson to observe is that we are on our own as a continent." U.S. President Donald Trump's return to the White House in January put trade relations centre-stage for policymakers worldwide, with his breathless cycle of punitive tariff policies poised to upend decades of globalisation and reshape flows of money and goods. G20 finance chiefs meeting in Durban this week, under South Africa's presidency, have trade high on the agenda. But despite the urgent need to boost African continental trade, accelerating it is beset with challenges. African Union countries have a combined GDP of some $3 trillion - not far off the size of France's economy, a G7 nation. So far, 24 countries are officially trading under AfCFTA, Mene said, including South Africa and Nigeria. Implementation has been inconsistent, said Raheema Parker of Oxford Economics, with weak governance undermining overall effectiveness and informal trade adding complexities. "These barriers are especially pronounced in smaller sub-Saharan economies, which are more vulnerable to external shocks and often lack the administrative and financial capacity," Parker said. INFRASTRUCTURE GAP The biggest constraint to intra-Africa trade is an infrastructure deficit, Mene said. The African Development Bank and Afreximbank collectively invested $65 billion in infrastructure projects since 2020 - barely making a dent in the $100 billion plus estimated annual infrastructure investment shortfall. Johannesburg-based Standard Bank CEO Bill Blackie warned that "without hardened bridges and faster rail links, AfCFTA will remain a paper promise." Other barriers include border delays and complex paperwork requirements. "We need to diminish all the commercial barriers," said Chad's ex-finance minister Abbas Mahamat Tolli. DOWN WITH THE DOLLAR? Currency is also contentious; nearly two-thirds of payments across more than 40 African currencies are clearing through dollar corridors. Afreximbank has called for a shift away from the dollar, citing volatility and high fees. "Local-currency corridors must become the norm to slash costs and tame volatility," said Afreximbank group chief economist Yemi Kale. The recently launched Pan-African Payments and Settlement System links 16 central banks and aims to reduce costs. Leaders say AfCFTA's transformative potential is worth tackling the challenges. "We have a generational chance to build value chains that keep wealth on the continent, develop competitive industries, and create millions of jobs while shaping global supply chains from a position of strength," Kenyan President William Ruto said earlier this month. Solve the daily Crossword
Straits Times
3 days ago
- Business
- Straits Times
'We are on our own'- Africa looks within to weather growing global tariff turmoil
Find out what's new on ST website and app. FILE PHOTO: A general view shows the 3.2 Kilometre Kigongo–Busisi Bridge, named John Pombe Magufuli Bridge that crosses the southern end of Lake Victoria at a cost of approximately $300 million, in Mwanza, Tanzania June 19, 2025. REUTERS/Emmanuel Herman/File Photo JOHANNESBURG - African leaders are pushing to speed up implementation of a continent-wide deal to boost trade as growing concerns over U.S. tariffs, including rates as high as 50% for Lesotho, threaten to decimate industries and hit economic growth. The African Continental Free Trade Area pact designed to unify all 1.4 billion people under Africa's more than 50 nations into a single market, has been legally ratified by 49 countries and officially launched trading in 2021. But translation into action has been sluggish, with less than half of member states actively trading under the framework. The World Bank estimates AfCFTA could increase Africa's intra-continental exports by 81% and proponents point to last year's 12.4% boost in intra-African trade, to $208 billion, according to Afreximbank figures, as early signs of success. "We've got to accelerate the establishment of our own value chain systems. What we are observing now — the weaponisation of trade policy, investment policy, nationalism — is unprecedented and it has a very negative impact on the multilateral trading system," AfCFTA Secretary-General Wamkele Mene told Reuters. "The lesson to observe is that we are on our own as a continent." U.S. President Donald Trump's return to the White House in January put trade relations centre-stage for policymakers worldwide, with his breathless cycle of punitive tariff policies poised to upend decades of globalisation and reshape flows of money and goods. Top stories Swipe. Select. Stay informed. Singapore Critical infrastructure in S'pore under attack by cyber espionage group: Shanmugam Singapore Who is UNC3886, the group that attacked S'pore's critical information infrastructure? Singapore HSA looking to get anti-vape cyber surveillance tool with AI capabilities Singapore Singapore police in contact with Indonesian authorities over baby trafficking allegations Singapore Alleged Kpod peddler filmed trying to flee raid in Bishan charged with 6 offences Singapore NTU upholds zero grade for student accused of using AI in essay; panel found 14 false citations or data Singapore 30% of aviation jobs could be redesigned due to AI, automation; $200m fund to support workers: CAAS Singapore Former NUH male nurse faces charges after he allegedly molested man at hospital G20 finance chiefs meeting in Durban this week, under South Africa's presidency, have trade high on the agenda. But despite the urgent need to boost African continental trade, accelerating it is beset with challenges. African Union countries have a combined GDP of some $3 trillion - not far off the size of France's economy, a G7 nation. So far, 24 countries are officially trading under AfCFTA, Mene said, including South Africa and Nigeria. Implementation has been inconsistent, said Raheema Parker of Oxford Economics, with weak governance undermining overall effectiveness and informal trade adding complexities. "These barriers are especially pronounced in smaller sub-Saharan economies, which are more vulnerable to external shocks and often lack the administrative and financial capacity," Parker said. INFRASTRUCTURE GAP The biggest constraint to intra-Africa trade is an infrastructure deficit, Mene said. The African Development Bank and Afreximbank collectively invested $65 billion in infrastructure projects since 2020 - barely making a dent in the $100 billion plus estimated annual infrastructure investment shortfall. Johannesburg-based Standard Bank CEO Bill Blackie warned that "without hardened bridges and faster rail links, AfCFTA will remain a paper promise." Other barriers include border delays and complex paperwork requirements. "We need to diminish all the commercial barriers," said Chad's ex-finance minister Abbas Mahamat Tolli. DOWN WITH THE DOLLAR? Currency is also contentious; nearly two-thirds of payments across more than 40 African currencies are clearing through dollar corridors. Afreximbank has called for a shift away from the dollar, citing volatility and high fees. "Local-currency corridors must become the norm to slash costs and tame volatility," said Afreximbank group chief economist Yemi Kale. The recently launched Pan-African Payments and Settlement System links 16 central banks and aims to reduce costs. Leaders say AfCFTA's transformative potential is worth tackling the challenges. "We have a generational chance to build value chains that keep wealth on the continent, develop competitive industries, and create millions of jobs while shaping global supply chains from a position of strength," Kenyan President William Ruto said earlier this month. REUTERS
Reuters
3 days ago
- Business
- Reuters
'We are on our own'- Africa looks within to weather growing global tariff turmoil
JOHANNESBURG, July 18 (Reuters) - African leaders are pushing to speed up implementation of a continent-wide deal to boost trade as growing concerns over U.S. tariffs, including rates as high as 50% for Lesotho, threaten to decimate industries and hit economic growth. The African Continental Free Trade Area pact designed to unify all 1.4 billion people under Africa's more than 50 nations into a single market, has been legally ratified by 49 countries and officially launched trading in 2021. But translation into action has been sluggish, with less than half of member states actively trading under the framework. The World Bank estimates AfCFTA could increase Africa's intra-continental exports by 81% and proponents point to last year's 12.4% boost in intra-African trade, to $208 billion, according to Afreximbank figures, as early signs of success. "We've got to accelerate the establishment of our own value chain systems. What we are observing now — the weaponisation of trade policy, investment policy, nationalism — is unprecedented and it has a very negative impact on the multilateral trading system," AfCFTA Secretary-General Wamkele Mene told Reuters. "The lesson to observe is that we are on our own as a continent." U.S. President Donald Trump's return to the White House in January put trade relations centre-stage for policymakers worldwide, with his breathless cycle of punitive tariff policies poised to upend decades of globalisation and reshape flows of money and goods. G20 finance chiefs meeting in Durban this week, under South Africa's presidency, have trade high on the agenda. But despite the urgent need to boost African continental trade, accelerating it is beset with challenges. African Union countries have a combined GDP of some $3 trillion - not far off the size of France's economy, a G7 nation. So far, 24 countries are officially trading under AfCFTA, Mene said, including South Africa and Nigeria. Implementation has been inconsistent, said Raheema Parker of Oxford Economics, with weak governance undermining overall effectiveness and informal trade adding complexities. "These barriers are especially pronounced in smaller sub-Saharan economies, which are more vulnerable to external shocks and often lack the administrative and financial capacity," Parker said. The biggest constraint to intra-Africa trade is an infrastructure deficit, Mene said. The African Development Bank and Afreximbank collectively invested $65 billion in infrastructure projects since 2020 - barely making a dent in the $100 billion plus estimated annual infrastructure investment shortfall. Johannesburg-based Standard Bank CEO Bill Blackie warned that "without hardened bridges and faster rail links, AfCFTA will remain a paper promise." Other barriers include border delays and complex paperwork requirements. "We need to diminish all the commercial barriers," said Chad's ex-finance minister Abbas Mahamat Tolli. Currency is also contentious; nearly two-thirds of payments across more than 40 African currencies are clearing through dollar corridors. Afreximbank has called for a shift away from the dollar, citing volatility and high fees. "Local-currency corridors must become the norm to slash costs and tame volatility," said Afreximbank group chief economist Yemi Kale. The recently launched Pan-African Payments and Settlement System links 16 central banks and aims to reduce costs. Leaders say AfCFTA's transformative potential is worth tackling the challenges. "We have a generational chance to build value chains that keep wealth on the continent, develop competitive industries, and create millions of jobs while shaping global supply chains from a position of strength," Kenyan President William Ruto said earlier this month.
Al-Ahram Weekly
25-06-2025
- Business
- Al-Ahram Weekly
Digital economy in Africa to exceed $712bln by 2035: AfCFTA secretary general - Economy
Wamkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA) Secretariat, stated that the value of Africa's digital market is expected to exceed $712 billion by 2035. Mene explained that such expansion in the African digital market opens up unprecedented opportunities for young people and entrepreneurs in innovation and technology and calls for directing investments towards data centres, digital infrastructure, and cross-border data transfer. He also noted that the Digital Trade Protocol adopted under the AfCFTA agreement marks a significant turning point in supporting the digital economy in Africa. In addition, Mene emphasised that the AfCFTA agreement is no longer just a matter of political declarations or future aspirations, but is now based on real and practical tools that will transform the nature of trade and growth in Africa. He also announced that the number of countries that have ratified the agreement has increased to 49, demonstrating the commitment of political leadership to achieving economic integration by removing customs barriers and achieving African unity, a long-held dream of the founding fathers of the Organization of African Unity. Moreover, Mene called for leveraging the benefits provided by the trade area—the largest free trade area in the world, comprising 1.3 billion people with a total GDP of $3.4 trillion. He also highlighted the area's first-ever protocol for women and youth to ensure that the national economy and marginalized groups are integrated into the trade area. Furthermore, Mene praised the African Export-Import Bank's role in supporting the trade area and all African financial institutions in promoting trade, e-commerce, industrialization, and the necessary infrastructure to facilitate intra-African trade. He highlighted the trade area's support for small and medium-sized enterprises and their integration into the regional integration process. Follow us on: Facebook Instagram Whatsapp Short link:
Zawya
09-06-2025
- Business
- Zawya
Nigeria: Makinde has increased Oyo economic growth index by over 4% — AfCTA
The African Continental Free Trade Area (AfCFTA) has disclosed that Governor Seyi Makinde of Oyo state has been able to grow the economy of the state by over four per cent in the past six years. Secretary General of AfCFTA, Wamkele Mene disclosed this during his visit to Ibadan, Oyo state at the weekend. He submitted that the Oyo economic growth index bested that of the average Country on the continent. 'We see the average growth rate across the continent being 3 or 3.5 per cent. To scale up above that is a testament to your leadership. 'I think it helps that you came from the private sector, you have a sense of getting things done,' he said. On the purpose of his visit, Mene said, 'We discussed this visit a few months ago when the governor and his team visited the secretariat. It was the first time that we hosted a governor. 'The purpose of us coming here is first to consolidate the collaboration between the AfCFTA and Oyo State. Second, it is for us to be aware of what investment opportunities are available in the state. 'It is very important for us to be aware. Just last week or the week before, we were in South Korea. 'We have a Memorandum of Collaboration with Korean International Trade Agency and all of the large Korean corporations are members. We meet about twice a year and the question they always ask us is where should we invest? 'There are big companies that have no presence anywhere in Africa. What we have been telling them is that they have to invest in Africa. 'This is a very important visit because it gives us a very strong investment case to make when we meet with those that are seeking to invest. 'Another reason this meeting is important is that yesterday, we had to give a report to President William Ruto on African Union climate change and we mobilized all of our development finance institutions. 'The President tasked me to bring them to the table so that we can jointly identify opportunities to invest in green infrastructure, agro-processing etc. 'We came out of that meeting with a long list of bankable projects and investment portfolio that will be spread across the continent. 'We are well positioned to support the establishment of a green industrial technology sector, we have the capability for solar or renewable energy', those kinds of projects would be supported through this syndicated financing that we are agreeing to with the development financing institutions that I have mentioned.' In his address, Makinde has assured intending local and foreign investors of adequate legislation that would enable their businesses to thrive The governor said, 'I know that political risk is something that most investors don't want to deal with. While I am here, I believe we have the opportunity to lock things up for the next 25 to 30 years and back it up by law. We have a legislative arm that is on the same page with the executive in terms of how to develop our state.' Speaking on the comparative advantage of the state, Governor Makinde said, 'Oyo State is central in the geography of Nigeria and that of West Africa. We share a common border with the Republic of Benin, which means we have access to the West African sub-region in terms of developing the market. 'We are upgrading our airport in Ibadan to international standard. Why we took that decision is not far-fetched. In Africa, you have three major airlines that go everywhere. 'The largest is Ethiopian Airline, followed by Kenyan Airline and the Rwandan Air. Oyo State is bigger than Rwanda but they have an airline that goes everywhere. Nigeria is in the centre geographically. So, how come we are connecting through Ethiopia, Kenya, Rwanda or Morocco? Wherever you are going, you first go Far West or Far East and then you try to connect elsewhere. 'We felt because of the geography and in terms of how much is spent on fuel and trying to connect, if we develop a Kigali-type of airport here in Ibadan, we may be able to attract people who don't have too much time to waste connecting. 'The air side will be ready in September; the terminal itself will be ready in the second quarter of next year. 'We have a land that is arable; you can literally grow anything here. In terms of agribusiness, we have a competitive advantage. We also have competitive advantage in terms of solid minerals. 'This is a major lithium belt. We believe that we can also develop that quickly.' The governor also said that the state plans to turn the Rasidi Ladoja Circular Road axis into a world-class environment, a city that would be planned to international standards right from the outset. He said, 'We just set up a new authority in Oyo State through which we are trying to have new towns and cities developed to international standards, a first world environment. The Circular Road is a 110-km road round the city of Ibadan and we have another 4,000 hectares into a new city, which we believe will be up to international standards. We have the opportunity to plan it right from the scratch. 'The first segment of the Circular Road will be ready before the end of the year. It will be ready for concessioning as well with all the real estate around it.' Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
