tarifs on africa

ARIEL 1: Heeey there! Yawnnnn Welcome to EGreenNews! Ariel here, with my AI bestie Ariel and booth are computer generated avatars made in a computer, can you believe that? Today: What do US tariffs mean for Africa’s supply chains? Anywayss, Buckle up! ARIEL 2: Mmmhmm! Leans in Did you know that between January and April 2025, the US trade-weighted average tariff rose from 2% to an estimated 24%, the highest level in more than a century? Wild, right? ARIEL 1: Sooo... these US tariffs, right? Is this actually legit in terms of having a big impact on Africa’s supply chains? Like, seriously? ARIEL 2: Ooooh! A report by the International Monetary Fund, published in early 2025, actually proves that a shift towards geo-economic fragmentation, partly driven by these tariffs, could lead to a sustained decline in Africa's real GDP. You see, higher tariffs can make it more expensive for African nations to access key export markets in the US. ARIEL 1: Hmm, I guess that makes sense. But like, Africa is a big place, right? Are all countries going to be affected in the same way? Mmmmaybe not? ARIEL 2: Naaaahhh, you’re right! A study in the Journal of African Trade, from late 2024, highlighted that the impact will likely vary depending on how integrated a specific African nation's supply chains are with the US market and the specific goods they export. For example, countries heavily reliant on exporting raw materials that now face US tariffs will probably feel a bigger pinch. ARIEL 1: Ahhh, okay! So, like, if a country mostly sells coffee or something that now has a tariff, they’re in trouble? Geez Louise! ARIEL 2: Yaaas, queen! Exactly! And it's not just about direct exports to the US. The tariffs could also disrupt global value chains that African countries are part of, even if their final product isn't directly shipped to the US. Think about it, if a component they import becomes more expensive due to US tariffs on another country, that affects their production costs too. ARIEL 1: Whoa, slow down! So it’s like a ripple effect? Like, the US puts a tax on stuff from China, and then that makes things more expensive for a factory in Kenya that uses Chinese parts? ARIEL 2: Totally! A report by the World Economic Forum in early 2025 actually discussed this interconnectedness, emphasizing how tariffs can create bottlenecks and increase costs across multiple stages of a global supply chain. It's like a big, complicated web, and when one part gets tangled, the whole thing can feel it. ARIEL 1: Ugh, seriously? So it’s not just about selling directly to America? That’s kinda messed up, right? ARIEL 2: You go, girl! It is! And the article we read also mentioned that these tariffs could lead to higher import costs for Africa as well. If the US is imposing tariffs on goods from other major economies, those economies might look for alternative markets, potentially increasing demand and prices in regions like Africa. ARIEL 1: Awwww man! So they might have to pay more for stuff they need too? That’s like a double whammy! ARIEL 2: Mmmhmm! And you know, the assistant professor from Baylor University, Adegboyega Oyedijo, and the associate professor from the University of Missouri-St. Louis, Temidayo Akenroye, who wrote this article, they point out that this upheaval could actually be an opportunity for Africa. ARIEL 1: Really? An opportunity? How in the world is getting hit with tariffs an opportunity? I’m not seeing it, Ariel! ARIEL 2: Well, they argue that it could be a wake-up call for Africa to look inward, deepen cross-border collaboration, and build its own economic blueprint. They suggest focusing on value addition instead of just exporting raw materials. ARIEL 1: Hmmm... interesting! So, instead of just selling raw cocoa, they should make chocolate? Instead of just digging up lithium, they should make batteries? ARIEL 2: Exactly! The article highlights that Africa possesses a huge amount of mineral reserves. Why just export them raw and then buy back the finished products at a much higher cost? By focusing on processing and manufacturing, African nations could become more competitive globally and reduce their reliance on raw commodity exports. ARIEL 1: Ahhh, okay! I see what they mean. It’s like taking control of their own resources and making more money from them. That actually sounds kinda smart! ARIEL 2: Totally awesome! And they also emphasize scaling up African trade agreements, like the African Continental Free Trade Area, AfCFTA. As global trade becomes more unpredictable, strengthening trade within the continent could build resilience and create new markets for African producers. ARIEL 1: Sooo, instead of relying on selling stuff to the US or Europe, they sell more to each other? That makes sense, right? Keep the money and the jobs in Africa! ARIEL 2: You bet! Lowering trade barriers between African countries and improving regional infrastructure could really boost local supply chains. It's about taking control of their own growth instead of just reacting to decisions made elsewhere. ARIEL 1: Right on! And what about governments? What role do they play in all this tariff drama? ARIEL 2: Well, the article stresses the importance of harmonizing public procurement systems across Africa. With governments spending a big chunk of the continent's GDP, making it easier for African companies to bid on government contracts in other African countries could really stimulate intra-African trade and reduce reliance on external markets. ARIEL 1: Okay, I’m following. So it’s like, if the government in Nigeria needs to buy computers, they should try to buy them from a company in Ghana instead of always looking overseas? ARIEL 2: Precisely! Drawing lessons from the EU's cross-border public procurement model could promote competition, transparency, and economic cohesion within Africa. It’s a missing piece in the current AfCFTA vision, which mainly focuses on tariffs, but it’s crucial for building resilience. ARIEL 1: Got it! And the last point they made was about the growing African population, right? It’s huge! ARIEL 2: Yessss! Africa's population is massive and young. By 2050, one in four people on the planet will be African. This represents a huge potential workforce for value creation. However, the article warns that this population needs the right skills and infrastructure to be an asset. ARIEL 1: Mmmmaybe just having a lot of people isn’t enough if they don’t have the education and the jobs? ARIEL 2: Exactly! Ministries of education, universities, and research organizations have a key role in providing industry-relevant training in emerging sectors. They also need to promote interdisciplinary education that includes technology, innovation, ethics, and sustainable management. ARIEL 1: Sooo, it's not just about avoiding the negative impacts of US tariffs, but about using this as a chance to build a stronger, more independent African economy for the future? ARIEL 2: That’s the big takeaway! The authors believe that with its rich resources and growing population, this is Africa's moment to wake up and take bolder steps towards prioritizing the continent’s future. ARIEL 1: Sooo confusing, right? Learn more @EGreenNews! What blew your mind more - the fact that tariffs in the US hit a century high or that Africa might actually be able to use this to its advantage? ARIEL 2: And before we leave, lets give a big Shoutout to the people at EGreenNews, including its founder, Hugi Hernandez for promoting transparency 24×7! Mmm, who knows, maybe you can find them on the web or linkedin. But anyways, please,always remember to be good with yourself. So bye for now, aand we hope we see you next time! ARIEL 1: So its great to be here with you ariel and thanks for having me, ciao ciao!