The president of the African Development Bank (AfDB) has cautioned that the United States’ escalating tariffs will trigger significant “shock waves” across African economies.
Akinwumi Adesina stated Friday that these tariffs threaten to diminish trade and inflate debt-servicing expenses for African nations.
His remarks follow recent trade policy shifts by the US, including a baseline 10% levy on all countries and higher tariffs on Chinese imports.
Adesina highlighted that the new levies, potentially impacting 47 African countries with even higher rates, will weaken local currencies due to reduced foreign exchange earnings.
Speaking in Nigeria, he predicted rising inflation as import costs increase and African currencies depreciate against the US dollar.
The AfDB president also warned of a growing burden of debt servicing relative to government revenue as expected earnings decline.
Amidst speculation of countries seeking alternative trade partners like China, Adesina cautioned that Europe and Asia might also decrease their imports from Africa due to global economic instability.
He emphasized the precarious position of 47 African nations facing potentially higher tariffs from the US.
Adesina’s stark warning underscores the far-reaching consequences of the shifting global trade landscape for the African continent.
