Accra: The Institute of Economic Affairs (IEA) has urged African governments to enhance sustainable growth by prioritising economic independence through efficient resource use, value addition, and stronger intra-African trade. The call follows recent global trade tensions, notably the United States' imposition of 10 to 60 per cent tariffs on African exports.
According to Ghana News Agency, at a forum on the theme 'Trump Tariffs: Implications for Africa and Ghana,' Dr. Vladimir Antwi-Danso, Senior Fellow at the IEA, said the situation necessitated a unified African response towards economic self-reliance. He emphasized the importance of the African Continental Free Trade Area (AfCFTA) and the need to diversify production and accelerate integration processes within the continent.
Dr. Antwi-Danso questioned why Africa continues to export raw resources such as cocoa, coffee, bauxite, and lithium without value addition, calling for a systemic change. He stressed strengthening the AfCFTA by boosting intra-African trade, silencing conflicts, and encouraging domestic patronage of African products. He stated that achieving the capability to produce 90 per cent of consumed goods would place the continent in a better position, highlighting the necessity for disciplined economic management.
In addition, Professor Aaron Mike Oquaye, former Speaker of Parliament, urged African leaders to focus inward, noting that global trade tensions reaffirm that 'there are no permanent friends but interest.' He cited historical examples of successful industrial programs that required countries to protect their domestic industries, advocating for a similar strategy in Africa. Prof. Oquaye also emphasized the importance of agriculture and maximizing the benefits from the continent's natural resources.
Furthermore, Prof. Oquaye encouraged Africans to adopt self-reliant strategies, drawing lessons from the COVID-19 pandemic to find ways of self-dependence amid current challenges. Mr. Samson Asaki Awingobit, Executive Secretary of the Importers and Exporters Association of Ghana, called on the African Union (AU) to lead the continent's negotiations on international trade tariffs, rather than leaving it to individual states. He also urged African governments to incentivise local production through affordable tariffs and lower loan interest rates to support AfCFTA implementation.
