The National Coordinator of the African Continental Free Trade Area (AfCFTA) Coordination Office in Ghana, Dr. Fareed Kwesi Arthur, has advised that Africa must shift its focus inward to help strengthen intracontinental trade and also reduce reliance on external markets.
He argues that global economic shifts, which include the new U.S. trade policies, present an opportunity for Africa to transform its trade dynamics.
Speaking on TV3’s News Central on Thursday, April 3, Dr. Arthur said that the recently imposed U.S. tariffs will impact African exports, particularly raw materials, if demand from American companies declines.
“The tariffs as put by the Trump administration will have some initial, if I dare say short term, impact on our trading patterns,” he stated
He therefore emphasized the need for Africa to add value to its products rather than just exporting raw materials to help foster regional trade and manufacturing, which will retain more economic benefits within the continent.
“Maybe this provides us an opportunity to try to convert challenges into opportunities to try and get Africa itself to start adding value to the products that we produce,” Dr. Arthur added.
Dr. Arthur explained that while African exporters may not directly bear the cost of tariffs, the impact will eventually be felt through global price adjustments.
“The tariff will not be paid by African exporters… it will be paid by the end consumers.”
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The President of the United States has revealed 10% tariffs on imports, including imports from Ghana, which requires that US importers pay extra charges on goods they import.
He believes these tariffs will protect businesses in America from foreign competition.
For Ghana, the impact includes the disruption of raw materials in sectors like agriculture and textiles and many more. These tariffs on imports could make Ghanaian exports less competitive in the U.S. market. This could reduce demand for Ghana’s goods, affecting the income of many and the overall economy
While global trade disruptions bring challenges for African economies, they also present an opportunity for the continent to also strengthen intra-African trade.
Dr. Arthur believes that the AfCFTA framework provides a viable pathway to achieving this transformation. “With time, I think that can be achieved,” he added.