The Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, has called on the United States to reconsider the application of reciprocal tariffs on exports from poor African nations, warning of potentially devastating effects on their fragile economies.
Speaking on the sidelines of the International Monetary Fund (IMF) and World Bank Spring Meetings in Washington D.C., Okonjo-Iweala emphasized the urgent need for African countries to focus on self-reliance by deepening intra-African trade and boosting domestic investment, particularly in the face of diminishing global aid.
This plea comes as former U.S. President Donald Trump claimed credit for brokering peace in Africa, asserting via his Truth Social platform that his administration had played a pivotal role in resolving violent conflicts across the continent.
Okonjo-Iweala warned that reciprocal tariffs—originally imposed by the Trump administration on all trade partners—pose a disproportionate threat to the poorest African nations. Citing Lesotho as a stark example, she explained the country exports $200 million in textiles to the U.S. but imports only $3 million worth of goods. Should reciprocal tariffs be enforced, Lesotho could lose up to half a percentage point of its GDP, a significant blow for its economy.
She urged the U.S. to waive such tariffs for least developed countries, warning that failing to do so would hinder development and worsen inequality. The WTO chief also highlighted the unevenness of tariffs among neighboring African countries—Rwanda facing a 21% tariff while Ghana faces only 10%—and cautioned against the market distortions such discrepancies could cause.
Although overall trade between Sub-Saharan Africa and the U.S. remains limited, Okonjo-Iweala argued this presented an opportunity for the continent to expand intra-African trade. She pointed to Africa’s marginal 3% share of global trade and its intra-continental trade volume, which lingers between 16% and 20%, as areas with enormous growth potential.
Lesotho’s reliance on U.S. markets, for instance, could be redirected into the $7 billion African textile market. “Why can’t Lesotho sell to Africa? We’re importing jeans; Lesotho is making them. Let’s trade more internally,” she urged.
Meanwhile, Nigeria’s economy has slipped to the fourth-largest in Africa, according to new data from Afreximbank based on IMF projections. The country’s GDP is now estimated at $187.64 billion, behind South Africa ($400.19 billion), Egypt ($383.11 billion), and Algeria ($264.91 billion). The decline underscores Nigeria’s persistent macroeconomic woes—volatile exchange rates, high inflation, and an overreliance on oil revenues.
Reacting to the downturn, the IMF advised Nigeria to increase transparency in its oil sector and improve the quality of its economic data to sustain current reform efforts. Abebe Aemro Selassie, Director of the IMF’s African Department, acknowledged recent reforms including the removal of oil subsidies and exchange rate realignment but stressed the need for deeper fiscal reforms.
Selassie emphasized better social protection frameworks and more transparent management of public finances, particularly in the oil sector, as crucial to ensuring the success of Nigeria’s ongoing economic overhaul. He warned that without these, the positive momentum generated by recent policies could easily stall.
