China to Remove All Tariffs on African Exports in Major Trade Boost Initiative

Republic of the Congo President Denis Sassou Nguesso and Chinese President Xi Jinping shake hands at the opening ceremony of the ninth Forum on China-Africa Cooperation (FOCAC) Summit, at the Great Hall of the People in Beijing, China September 5, 2024. REUTERS/Florence Lo/File Photo

China has announced a sweeping new economic initiative to eliminate all tariffs on exports from African countries it has diplomatic relations with, in a move aimed at boosting trade and deepening economic ties with the continent.

The decision, unveiled after high-level talks in Changsha between senior Chinese officials and African foreign ministers, marks a shift in Beijing’s trade strategy. While China already provides duty- and quota-free access to products from least developed countries (LDCs), the new plan will extend similar benefits to middle-income nations across Africa.

“China is ready to… welcome quality products from Africa to the Chinese market,” the Chinese Foreign Ministry said in a statement following the meeting, which reviewed progress on commitments made during the China-Africa summit held in Beijing last September.

The policy change is expected to benefit all 53 African states that maintain diplomatic ties with Beijing. Analysts say this could be particularly advantageous for relatively advanced economies such as South Africa, Kenya, Nigeria, Egypt, and Morocco, which have growing manufacturing bases and export-ready industries.

“This enables middle-income countries like Kenya, South Africa, Nigeria, Egypt and Morocco… to now enter the Chinese market duty-free,” said Hannah Ryder, CEO of Africa-focused consultancy Development Reimagined. “It is a significant step in creating a more balanced trade relationship.”

Trade between China and Africa has expanded significantly in recent years, but remains largely tilted in China’s favor. In 2024, China posted a trade surplus of $62 billion with the continent. Ryder noted that unless African exports grow substantially, trade imbalances will persist. The new tariff-free access could be a turning point in addressing that gap.

To ensure fair competition, especially for LDCs that might struggle to compete with more developed African economies, China pledged additional support measures. These include training, capacity building, and market promotion aimed at boosting the competitiveness of businesses in countries like Tanzania and Mali.

The tariff removal follows China’s commitment of 360 billion yuan (approximately $50 billion) in credit lines and investments over three years, a pledge made during last year’s summit. The funds are intended to revitalize Chinese financing in Africa after a slowdown during the COVID-19 pandemic.

The latest move is seen as a strategic effort by Beijing to reinforce its role as a key trade and development partner for Africa, while giving African nations greater access to the world’s second-largest economy.

Written By Rodney Mbua