China scraps tariffs for all but one African nation

China has announced it will eliminate tariffs on imports from all African countries except Eswatini, which maintains diplomatic ties with Taiwan. This move expands a duty-free policy that previously applied to 33 least-developed African nations to now cover 53 countries, effective from December 2024. Beijing has highlighted this as a historic gesture, positioning itself as the first major economy to offer unilateral zero-tariff treatment to Africa. However, the policy’s long-term status remains uncertain. The tariff removal aims to boost African exports, particularly in agricultural products, potentially improving rural incomes and reducing poverty. Analysts note that China’s gesture contrasts with recent U.S. tariff policies, which imposed duties of up to 30% on some African goods before being partially rolled back. Despite the tariff cuts, Africa faces a significant trade imbalance with China, with African exports largely consisting of raw materials like crude oil, cobalt, and metallic ores, while Chinese exports to Africa far exceed imports. Last year, Africa’s trade deficit with China surged by 65% to approximately $102 billion. Experts caution that the zero-tariff policy alone will not resolve deeper structural challenges in African economies. Many countries still grapple with limited industrial capacity, inadequate infrastructure, and heavy reliance on commodity exports, which restrict their ability to capitalize fully on tariff reductions. More industrialized nations such as South Africa and Morocco are expected to benefit more from the policy, while less developed countries may see limited gains. Long-term benefits depend on African countries’ ability to diversify their economies, expand production, and move up the value chain. While the immediate economic impact may be modest and concentrated in countries with existing export capacity, the policy could foster stronger Sino-African economic ties and enhance China’s soft power on the continent. The move also underscores China’s strategic positioning as a trade liberalizer and economic partner in Africa amid shifting global trade dynamics.