Byline: Fred Ezeh, Abuja
Dr Akinwumi Adesina, President of the African Development Bank Group (AfDB), has cautioned African nations against imposing retaliatory tariffs in response to recent US trade policies, warning that such measures could devastate their economies.
Speaking at a convocation lecture at the National Open University of Nigeria (NOUN) in Abuja, themed “Advancing Africa’s Positioning within Global Development and Geopolitical Dynamics,” Adesina advocated for dialogue and strategic negotiations with the US to resolve trade tensions amicably.
“The world is obviously reeling from the effects of US tariffs,” he said. “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 government revenue. However, the decision has sparked global uncertainty and volatility.”
Adesina highlighted the indirect impact on Africa, noting, “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.”
He urged African leaders to prioritise openness in trade discussions, emphasising Africa’s vast investment potential in sectors critical to the global economy. Adesina stressed that the era of relying on aid and free money has ended, pushing for a focus on the continent’s abundant human and mineral resources.
“For instance, Africa is home to cocoa, but unfortunately, the continent contributes a paltry two per cent in the multibillion-dollar sector,” he said. “It’s a proven fact that the gateway to deep poverty is the exportation of raw material to other countries, while the highway to success is the exportation of value-added products.”
Adesina also pointed to Africa’s demographic advantage, stating, “In Nigeria, we are complaining about our population, but that should be an advantage for us. Available data indicate 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 the 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.”
He warned, however, “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 VVice-Chancellor Prof.Olufemi Peters commended Adesina’s insightful lecture, encouraging him to continue his transformative work for Africa’s economy.