Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has assured that the newly imposed tariffs by the United States will have a minimal impact on Africa's economy.
Speaking with Nigerian journalists during the Spring Meetings of the World Bank in Washington D.C. on Friday, Okonjo-Iweala explained that trade volumes between Africa and the U.S.
remain relatively small. According to her, only 6.5% of Africa’s exports are destined for the U.S., while just 4.4% of imports come from America.
“The trade of the continent is very limited with the USA. We have done the analysis, and the impact on the continent as a whole is not significant,” she stated.
However, the WTO boss noted that Africa’s limited trade relationship with the U.S. is a double-edged sword. While it shields the continent from major shocks, it also reflects missed opportunities for economic growth.
Okonjo-Iweala stressed the urgent need for Africa to look inward by maximizing the use of its own resources and bolstering internal trade, particularly as foreign aid continues to decline and the need for sustainable investment grows.
Using Lesotho as an example, she revealed that although the country exports textiles worth $200 million to the U.S., it still struggles due to contractions in the American market.
She pointed out that Africa spends an astonishing $7 billion annually importing textiles, suggesting that countries like Lesotho should shift focus toward serving African markets instead.
"We must trade more among ourselves. Internal trade can unlock enormous potential," Okonjo-Iweala said, advocating for a reorientation of Africa’s trade priorities.
In addition, she called on the United States to reconsider the burden placed on least-developed countries through reciprocal tariffs, urging more sensitive trade policies that support the economic aspirations of poorer nations.