Latest news with #zeroTariff
Zawya
5 days ago
- Business
- Zawya
Can Zero Tariffs Drive Real Change? China's New Trade Policy and Africa's Energy-Led Future
China's zero-tariff policy for African goods has expanded rapidly in recent years, with 53 of the continent's countries now eligible to export their taxable goods to the Chinese market duty-free. Promoted as a vehicle for deeper Sino-African cooperation and shared prosperity, the policy has gained attention for its potential to open access to one of the world's largest consumer markets. But as the continent looks to secure long-term development and industrial transformation, a central question arises: will trade preferences like this serve as a catalyst for Africa's economic evolution, or simply reinforce its role as a low-value commodity supplier? Eswatini – one of the few African countries that maintains diplomatic ties with Taiwan – was excluded from the tariff breaks, underscoring that access to China's market remains conditional. The expanded duty-free and tax incentives also appear as a counter to the Trump-era tariffs, placing Africa in the throes of the China-U.S. trade war. As African Energy Week (AEW) 2025: Invest in African Energies prepares to convene in Cape Town from September 29 to October 3, the broader question for the continent is whether these expanding trade policies can deliver tangible, scalable benefits. Africa's ability to meet its development and energy access goals will depend not only on increased trade, but on how effectively such policies translate into investment in infrastructure, energy, and industrial growth. The Promise and Limits of Zero-Tariff Access On paper, zero-tariff access is a welcome opportunity. For African countries seeking to diversify export destinations and boost agricultural, mineral and energy-based trade, the initiative offers a cost advantage that could help expand trade volumes. For oil and gas producers, there may be openings to increase exports of refined products, petrochemicals or fertilizers, if the necessary processing capacity exists. But therein lies the challenge. Most African countries lack the industrial and energy infrastructure to capitalize on such preferences. Many exports continue to be raw or semi-processed materials with limited value retention on the continent. Tariff-free access does little to change that if non-tariff barriers, unreliable power supply or inadequate transport logistics continue to undermine competitiveness. Energy sits at the core of that equation. Africa's path to economic sovereignty depends on its ability to convert natural resources into industrial products – a process that begins with investment in upstream development and extends through midstream logistics and downstream transformation. Whether it's building pipelines and LNG infrastructure, electrifying industrial corridors or developing fertilizer and plastics manufacturing hubs, Africa's energy systems must evolve to support trade ambitions. Africa's Path to Integrated Energy and Industrial Growth Several countries are already moving in that direction. Nigeria is pushing forward with its gas commercialization strategy; Mozambique is scaling up LNG; Senegal and Mauritania are emerging as cross-border gas hubs. These projects not only generate export revenue, but create the foundation for broader economic diversification, from petrochemical industries to power generation for local factories. Meanwhile, the African Continental Free Trade Area provides the framework to harmonize standards, reduce internal tariffs and build common infrastructure, such as pipelines, ports and refineries, thereby enabling economies of scale and intra-African trade. If combined with external access like China's zero-tariff policy, this dual approach could allow African nations to integrate vertically and horizontally, moving from fragmented markets to unified production ecosystems. Still, risks remain. Trade with China remains heavily skewed toward raw materials, with manufactured imports often undercutting local industries. Without targeted support for African manufacturing, technology transfer and local content, tariff preferences risk entrenching the continent's supplier status rather than overturning it. African governments must therefore ensure that policies – both trade- and energy-related – are designed to channel benefits inward, not just extract them outward. 'That is the true promise of AEW 2025. As leaders, investors and institutions gather in Cape Town, the conference will not only facilitate deals and investment flows, but ask complex questions about how Africa can seize agency in its global partnerships. Energy security, industrialization and trade access must be viewed not in silos, but as interconnected levers for long-term prosperity,' says NJ Ayuk, Executive Chairman, African Energy Chamber. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Distributed by APO Group on behalf of African Energy Chamber.
Zawya
18-06-2025
- Business
- Zawya
China announces zero-tariff access for African countries, boosting trade opportunities
China has announced a zero-tariff policy granting duty-free access to all 53 African countries with which it maintains diplomatic relations. This significant move, announced in mid-2025, aims to deepen trade ties and open the Chinese market to a wider range of African products. The policy is expected to enhance export opportunities across the continent, positioning African businesses to better compete in the world's second-largest economy. In line with this development, Wesgro, the Western Cape's trade, tourism, and investment promotion agency, recently facilitated the participation of a Western Cape delegation at the China-Africa Economic and Trade Expo (CAETE), held from 12 to 15 June 2025 in Changsha, China. CAETE is one of the largest trade exhibitions globally, creating direct linkages between African businesses and the Chinese market. The delegation included exporters and trade facilitators showcasing products such as organic cosmetics, wines, spices, fresh flowers, teas, and nutritional goods. Wesgro CEO Wrenelle Stander says: "China is a key trading partner for the Western Cape. In 2024, total exports from the province to China reached R11.76bn, making it one of the largest export markets for the province. "If we are to realise our provincial objective of trebling exports from the province by 2035, growth in new markets will be essential. Over the coming weeks, Wesgro will work to understand how businesses can best leverage new opportunities flowing from this announcement.' The agency continues to focus on expanding access to other strategic markets, including the Association of Southeast Asian Nations (ASEAN), India, Brazil, and the Middle East. 'Market diversification is critical to building resilience and long-term growth for Western Cape businesses,' Stander added. 'By supporting engagements in key global markets like China, we're advancing our strategic mandate to drive trade and investment.' Strategic partnerships drive African market access Andrew Robertson, head of business enablement and operations at business and commercial banking, Standard Bank Group, highlighted the catalytic potential of China's zero-tariff policy for African exporters, saying: 'At Business and Commercial Banking, we pride ourselves on turning possibilities into opportunities for the businesses that power Africa's vibrant economies. "China's zero-tariff policy presents a catalytic opportunity, and through strategic platforms and our strategic partnerships with entities such as Wesgro, we support businesses convert policy into progress by unlocking direct access to high-potential buyers,' says Robertson. 'By leveraging our digital trade capabilities, sector-specific support, and cross-border partnerships, we empower clients to start, manage and grow, not just in China, but across the African continent and other key global markets. We are about enabling long-term growth through market access that is practical, scalable and sustainable.' Wesgro has partnered with Standard Bank Group to facilitate Western Cape exporters' participation at CAETE 2025, connecting local businesses directly with Chinese buyers and fostering market access under this new trade landscape. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
