Washington D.C., United States — As the World Bank/IMF 2025 spring meetings unfold, Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation (WTO), donned a determined look while interacting with global leaders. With the recent trade tensions stemming from U.S. tariff policies, she emphasized Africa’s urgent need for investment and trade integration.
On that particular Friday afternoon, Okonjo-Iweala made a quick stop to address reporters eager for her thoughts on how the U.S.-China tariff altercations would impact African economies. “The problem is that within Africa, there are a handful of countries that are very severely impacted because they’ve got high reciprocal tariffs put on them, and these are poor countries,” she revealed to a group of Nigerian journalists.
Her insights are backed by her extensive experience as a development economist, having spent 25 years at the World Bank and held significant positions as Nigeria’s finance minister. Okonjo-Iweala argued that Africa must navigate the drying up of global aid and shift focus towards attracting investment to drive growth. “Aid is disappearing; we (Africa) need investment,” she stressed. “When you need investment, you have to do so much more in terms of mobilising domestic resources.”
The economic landscape has shifted dramatically, particularly since the U.S. decision to scale down aid through the USAID agency. A report by the OECD highlighted a significant drop in global aid flows in 2024 and flagged the risks that reduced development assistance pose to African nations striving to alleviate poverty.
In 2023, U.S. aid to sub-Saharan Africa dipped significantly, contributing to regional socio-economic challenges. Okonjo-Iweala highlighted that African trade must evolve beyond external dependencies. “We cannot trade more externally… We have to trade more internally,” she asserted, urging for deeper intra-African market integration.
Supporting her view, Akinwunmi Adesina, President of the African Development Bank, echoed that the continent has to reject a culture of dependence and embrace self-reliance. He lamented that 47 out of 54 African nations now face increased U.S. tariffs, which threaten economic stability.
Lesotho‘s situation exemplifies the gravity of the tariff policy changes; relying heavily on U.S. exports for its GDP, the country faces crippling trade relations resulting from a sudden 50% import tariff. “Why can’t Lesotho sell its textiles in the African markets?” Okonjo-Iweala queried, hinting at the untapped potential within the continent.
As various stakeholders discussed pathways for economic reform, Nigerian Finance Minister Wale Edun affirmed the need to bolster domestic capital and streamline trade processes. “Crowding in the private sector is essential,” he noted, reiterating the necessity of innovation in response to global trade shifts.
The African Continental Free Trade Area (AfCFTA), while aimed at easing trade barriers, still grapples with significant challenges like inadequate infrastructure and non-tariff barriers. Okonjo-Iweala made it clear that facing geopolitical trade tensions means African countries must double down on fostering regional economic synergy.
Last month, Nigerian President Bola Tinubu stressed the urgency of economic cooperation within ECOWAS and pointed at the AfCFTA as a vital mechanism for economic transformation. He called on member nations to work collectively towards a “Community of People.”
As deadlines loom with U.S. tariffs affecting African economies, Pan-African leaders are urged to rethink strategies amidst looming economic uncertainty and fading support. The IMF has projected a need for more dynamic solutions to sustain growth and promote resilience against global economic shifts.
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