Bloomberg Businessweek ICYMI: Former Central Bank of Kenya Governor Dr. Patrick Ngugi Njoroge
May 8, 2025
Dr. Patrick Ngugi Njoroge discusses the impact of trade wars on African economies, particularly in relation to Kenya's monetary policies. He emphasizes the importance of regional collaborations and new trade agreements to address rising tariffs. The conversation also highlights the current state of intercontinental trade in Africa, which lags behind other regions, and examines the implications of the U.S. reducing its presence, along with the roles of countries like China and India in shaping the future.
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Impact of U.S. Tariff Changes on Africa
- African countries traded extensively with the U.S. under the Africa Growth and Opportunities Act (AGOA) at zero tariffs.
- The imposition of at least 10% tariffs marks a significant economic shock for these countries, as seen when Ethiopia lost AGOA privileges.
Rising Intra-African Trade Efforts
- African nations are increasingly maneuvering trade deals within the continent and with major economies like the EU.
- The African Continental Free Trade Area aims to boost intra-African trade far above its current 16%.
Diversifying Africa's Trade Partners
- China is a significant economic partner for Africa, alongside emerging partners from the Middle East, Turkey, and India.
- Africa's trade relationships are diversifying beyond traditional Western partners to include varied global players.