Experts: Africa must leverage US policy shifts for economic growth

Arusha. African nations have been urged to capitalise on recent shifts in US foreign policy to accelerate their economic growth.

This call came from trade experts during a webinar titled: Trump, Trade, and Africa: Turning Policy Shifts into Opportunities.

The event was organised by the East African Business Council (EABC) attracting over 300 participants, including policymakers, business leaders, and thought leaders from across Africa and the US.

The webinar follows US President Donald Trump’s decision to increase tariffs on multiple countries, including China and freeze foreign aid to facilitate policy revisions centred on austerity.

These measures were introduced after the Trump administration took office on January 20, 2025.

But, experts on Friday, February 14, 2025, discussed how African nations can turn the ongoing policy shifts into real economic opportunities.

During the discussion, experts emphasised that Africa must adopt a comprehensive strategy to add value to its exports, foster regional cooperation, and invest in high-value sectors.

They should also ensure trade with the US becomes a driver of sustainable development across the continent.

EABC Chairman, Mr John Akol stressed the importance of Africa presenting a unified front and collaborating closely with the private sector.

He highlighted that only through a strategic and coordinated approach can the continent turn policy changes into tangible growth.

"Africa needs strong strategies to convert these shifts into opportunities for inclusive development. But success depends on unity and close collaboration between the public and private sectors,” he insisted.

Mr John Thomas of Nestpoint Associates discussed the US administration’s transactional approach to trade, noting that Africa has a significant opportunity to benefit from increased tariffs on Chinese goods by positioning itself as an alternative supply chain hub.

"To fully leverage this, Africa must prioritise technology, particularly in data centre development, which offers substantial growth potential," explained Mr Thomas.

The Kenya Private Sector Alliance (KEPSA) Chairman, Mr Jas Bedi, noted that the world is shifting from globalisation to regionalisation and localisation of global brands.

With the African Growth and Opportunity Act (AGOA) due to expire soon, Mr Bedi stressed the need for Africa to develop new strategies to ensure continued benefits from US trade.

Mr Bedi added that Africa currently contributes just 3.5 percent to the global economy, valued at $100 trillion, and accounts for a mere two percent of US imports.

According to him, despite this, Africa remains an underutilised trade partner for the US.

"The continent has a large, youthful population. It is vital to harness this resource to drive economic transformation. By adding value to products and strengthening regional integration, Africa can reap substantial benefits," said Mr Bedi.

A supply chain management expert, Dr Valencia de la Vega, stressed the importance of improving transportation links between Africa and the US.

She called for the adoption of AI-driven logistics solutions to streamline supply chains and highlighted renewable energy, battery production, and research into value-added manufacturing as key sectors with vast trade potential.

EABC Vice Chairman, Simon Kaheru, concluded by urging Africa to adopt robust business strategies rather than relying on international aid.

"Africa needs trade plans that drive growth, not dependence on external aid," he said.