Dr. Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization (WTO), has reassured that the impact of the tariffs imposed by the United States on African nations will be minimal.
Speaking during an interview with Nigerian journalists at the World Bank’s Spring Meetings in Washington D.C. on Friday, Okonjo-Iweala stated that the limited trade relationship between Africa and the U.S. means the continent will not be significantly affected by the tariffs.
“Only 6.5 percent of Africa’s exports go to the U.S., and 4.4 percent of its imports come from the U.S.,” she explained. “The impact on the continent as a whole is not significant.”
However, Okonjo-Iweala acknowledged that Africa’s minimal trade with the U.S. was not ideal, as it limits the continent’s economic growth.
She urged Africa to focus more on utilizing its own resources and to boost intra-African trade, which remains underdeveloped.
The D-G also pointed to the example of Lesotho, which exports $200 million worth of textiles to the U.S. yet faces challenges due to the shrinking U.S. market.
“Lesotho should instead focus on selling textiles within African markets,” she said, noting that Africa spends $7 billion annually on textile imports.
Okonjo-Iweala concluded by calling for a reassessment of tariffs on least-developed countries, urging the U.S. to consider the effects on these nations.
She also emphasized that Africa must work toward increasing intra-African trade, which currently stands at just 16 to 20 percent of total African trade.
