AfDB Warns of Disaster if US Tariffs Spark Retaliatiry Measures
President of the African Development Bank Group (AfDB), Akinwummi Adesina, has warned African countries not to impose retaliatory tariffs against the United States’ Government, as such an action could only bring disaster to their economy.
Adesina issued the warning on Friday while delivering a convocation lecture at the National Open University of Nigeria (NOUN) in Abuja, on the topic “Advancing Africa’s Positioning within Global Development and Geopolitical Dynamics.”
Adesina who was one time Nigeria’s minister of Agriculture, advised African leaders to engage in deeper discussions and negotiations with the US government on better ways to manage the issue amicably.
He said: “The world is obviously reeling from the effects of US tariffs. The increase in tariffs by the US is understandable from a domestic policy perspective, as it drives to correct long-term trade imbalances with the US experiencing the largest trade deficit in the world; a deficit estimated at over $1 trillion.
“The focus is also to reverse the loss of local manufacturing industries to other parts of the world, create jobs, and raise a government revenue. However, the decision has sparked global uncertainty and volatility.
“These global tariffs will also have significant indirect effects on Africa, as its export markets in developed countries such as China, those in Europe and Asia will buy less goods from Africa, which will affect Africa’s export revenues.
“Africa, therefore, should not get into a tariff war with the US. What is needed is more trade with Africa from the US. The current dynamics call for a recalibration of the trade and investment opportunities between the US and Africa. We should expand trade opportunities for the US in and with Africa.”
Adesina who noted that the era of free monies and aid was gone, reminded the leaders of African countries it was time to tap into the huge potentials in the continent including human and mineral resources.
“For instance, Africa is home to cocoa, but unfortunately, the continent contribute a paltry two per cent in the multi billion dollar sector.
“It’s a proven fact that the gateway to deep poverty is exportation of raw material to other countries, while the highway to success is the exportation of value added products.
“Africa has the population that could be its huge advantage in the ongoing global tariff war. India, China, and several others are leveraging their population to detect the market, and Africa should take advantage of its population, positively.
“In Nigeria, we are complaining of our population, but that should an advantage for us. Available data indicated that Africa will account for the world’s largest growing youth population, with a working age population expected to reach 450 million or close to 70 per cent by end of 2025.
“With appropriate skills, they will form the labour force for global industries even as several developed economies face a rapidly ageing population. But let’s be clear, just because the world is becoming more African does not mean the rest of the world must bear the burden of the explosive population growth from Africa.
“Africa’s demographic growth must not become a global negative externality. Africa cannot blame others for not taking in its rising migrant population. It must create the right environment for its own youth to thrive, right here on the continent. This must start with providing Africa’s youth with globally competitive quality education.”
NOUN Vice-Chancellor, Olufemi Peters, in his remarks, appreciated the indepth lecture delivered by the AfDB President, encouraging him to continue the transformative work he’s been doing to the African and global economies.
