Will US Tariffs Trigger Africa’s Economic Reinvention?

Amid the disruption lies an opportunity. With the African Continental Free Trade Area (AfCFTA) gaining traction, there is renewed urgency to recalibrate economic strategies, reduce external dependencies, and invest in intra-African trade. If anything, this moment may serve as a catalyst, prompting African leaders to pursue a more resilient and self-determined economic path, less vulnerable to the political tides of external partners.

To examine the impact of Washington’s recent tariff measures, African Currents spoke with Gift Essinalo, a researcher at Mozambique’s Center for Public Integrity in Maputo. He offers insights into how the tariffs are affecting African economies and what countries can do to strengthen their trade and financial strategies in response.

"Trump's aggressive tariff policy by promoting protectionism and shifting away from U.S.-centered global value chains may accelerate the global trend toward de-dollarization [...]. By conducting trade using their own currencies, African countries can gain several benefits. For example, the elimination of intermediaries in currency conversion process, reducing exposure to [US] dollar fluctuations, and the strengthening of monetary sovereignty [...]. With higher tariffs and growing uncertainty in global trade, it is essential for African countries to rethink their approaches to ensure continued relevance and access to international markets. One key strategy is the diversification of export markets. By reducing the reliance on the US markets, African countries can minimize the negative impacts of potential trade barriers while strengthening their economic resilience," Essinalo noted.

To find out what else our guest had to say, tune in to the African Currents podcast, brought to you by Sputnik Africa.

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