Africa Told to Drive its Own Trade Future

WORLD Trade Organisation (WTO) Director-General Ngozi Okonjo-Iweala has called on African nations to deepen their trade self-reliance amid rising global tariffs and supply chain pressures, warning that over-dependence on external markets leaves many countries exposed to economic shocks.

Speaking at a press briefing in Geneva earlier this week, Okonjo-Iweala addressed the potential implications of recently announced US tariff hikes, noting that while Africa’s overall exposure to US trade remains modest, the risks for individual countries are significant.

‘Africa’s trade with the US is relatively small at the aggregate level, but that masks how vulnerable some countries are,’ she said.

Disproportionate impact across African economies

According to Okonjo-Iweala, Africa sends only about 6.5 percent of its total exports to the United States and receives just 4.4 percent of its imports from there. However, these averages conceal more serious vulnerabilities among specific nations and sectors.

She cited Lesotho, where textile exports to the US — valued at $240 million annually — represent nearly 10 percent of the country’s GDP, and Côte d’Ivoire, which exports around $800 million worth of cocoa to the US, as key examples.

‘Tariff changes can have unintended consequences,’ she warned. ‘Higher duties on cocoa, for instance, could trigger smuggling from Côte d’Ivoire into neighbouring Ghana, distorting both markets.’

A message for Africa: invest in self-reliance

While acknowledging calls for tariff exemptions for least developed countries (LDCs) — 32 of the world’s 44 LDCs are in Africa — the WTO chief underscored the urgent need for the continent to look inward and invest in long-term competitiveness.

‘Africa is the future of global demand, with 25 percent of the world’s population expected to live on the continent by 2050,’ Okonjo-Iweala said. ‘But to take advantage of that, Africa must accelerate industrialisation, expand regional value chains, and deepen intra-African trade.’

She said the African Continental Free Trade Area (AfCFTA) presents a vital opportunity for countries to diversify away from reliance on a few key markets and commodities, and to develop more robust domestic industries.

Trade reform must include structural change

Okonjo-Iweala’s comments come at a time when multiple African economies are grappling with the impact of global inflation, shrinking foreign aid, and the threat of geopolitical fragmentation in trade.

‘Trade can be a powerful tool for development — but only if African economies can move up the value chain,’ she said, urging greater investment in infrastructure, manufacturing, logistics, and digital trade systems.

She also highlighted the role of women and youth in building a resilient trade base, calling on governments to support inclusive policies that promote skills development and entrepreneurial growth.

WTO ready to support African integration

The WTO chief reaffirmed the organisation’s support for African-led initiatives and trade reform. She said the WTO stands ready to assist member states in navigating tariff disputes, accessing global markets, and aligning with sustainable trade practices.

‘The WTO is committed to ensuring trade works for all, especially for developing and least developed countries,’ she said. ‘But Africa must lead its own transformation.’