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The Pan-African Manufacturers Association has raised alarm over the detrimental effects of the ongoing trade war between the United States and China on Africa’s economy.
The association expressed concern about the increasing disruptions in supply chains, rising production costs, and uncertainties surrounding export markets, which have left many African manufacturers struggling to cope with the fallout.
According to the PAMA Secretariat, these challenges are being compounded by a global economic slowdown and persistent inflationary pressures.
In its latest bulletin, the Manufacturing Global News, released in September and made available to PUNCH Online on Monday, PAMA highlighted the far-reaching impact of the trade war.
“Technically, a trade war is an economic confrontation between countries, where one nation imposes ‘unfriendly’ tariffs or other barriers on imports from another country, prompting retaliation,” PAMA explained.
The trade dispute, which has escalated since 2018, has significantly affected African access to essential raw materials and machinery sourced from China.
Simultaneously, African exports to the US are facing stiffer competition as American firms seek alternative markets amidst rising tariffs on Chinese goods.
Many manufacturers across the continent have reported declines in production capacity and profitability, prompting calls for government intervention and the exploration of intra-African trade opportunities, particularly through the African Continental Free Trade Area.
“In an increasingly interconnected global economy, the impact of geopolitical conflicts on trade is undeniable,” the PAMA Secretariat noted, underscoring the need for a strategic response to mitigate the crisis.
It added,”In retaliation, the aggrieved country imposes tariffs to protect its domestic industries. However, instead of resolving the issues, these measures typically escalate into broader conflicts, increasing barriers and limiting trade between nations.
“In an increasingly interconnected global economy, the impact of geopolitical conflicts on trade is undeniable. One of the most significant examples in recent years has been the trade war between the United States and China, which began in 2018.
“This conflict has reshaped global economic relations, especially in the manufacturing sector, where supply chains, pricing, and competitiveness have been severely affected. The repercussions of this trade war extended far beyond the borders of the two superpowers, influencing economies around the world, including Africa.”
