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How China’s Zero-Tariff Policy Could Shift Africa’s Trade

How China’s Zero-Tariff Policy Could Shift Africa’s Trade

In a bold move to strengthen economic ties with Africa, China recently unveiled a zero-tariff policy that grants duty-free access to imports from 53 African countries. This initiative, announced during the China-Africa Trade and Economic Cooperation Forum in Changsha in June 2025, marks a pivotal shift in China-Africa trade relations. It removes tariffs on nearly all goods, ranging from agricultural produce and minerals to textiles and manufactured items.

This development is not merely a diplomatic gesture. It reflects a strategic recalibration aimed at balancing China’s significant trade surplus with Africa, while opening up new export opportunities for African nations. As such, it could catalyze economic transformation, provided that African countries align policies and build capacity that fully leverage this opening.

An image illustrating the "Zero-Tariff Policy" shows two blue shipping containers, each hoisted by a crane against a white background. The container on the left displays the flag of China (red with five yellow stars), while the container on the right displays the flag of the African Union (green with a map of Africa and stars).

Understanding the Zero-Tariff Policy

China’s zero-tariff policy is part of a larger effort under the Forum on China–Africa Cooperation (FOCAC). It expands previous trade preferences limited to least-developed countries (LDCs) to now include middle-income economies such as Kenya, Nigeria, Egypt, and South Africa.

According to China’s Ministry of Commerce, the policy is expected to cover over 98% of taxable items originating from the listed African countries. These include staple exports like coffee, tea, cotton, seafood, ores, and processed goods. In return, African countries are expected to support trade facilitation and align standards with international best practices.

China’s Vice Commerce Minister, Li Fei, stated, “This is not charity, it’s a restructuring of how we engage with Africa. We want a win-win development” (CGTN 2025). 

Potential Benefits for African Economies

1. Expanded Market Access

One of the immediate benefits of the zero-tariff initiative is the removal of cost barriers. African exporters can now sell goods in China at more competitive prices, unlocking new markets for agricultural and manufactured goods.

For example, Kenya’s avocado exports to China rose by 28% in 2024 following partial tariff relief. With tariffs now fully eliminated, this trend is expected to accelerate. Likewise, Ethiopia’s coffee sector, already prominent in China’s specialty market, could witness a surge in demand.

2. Value Addition and Industrial Growth

Incentivizing value-added exports is a key opportunity. Countries like Ghana and Côte d’Ivoire, which produce large volumes of raw cocoa, now have the chance to build processing capacity and export chocolate products instead of raw beans.

Moreover, textile and apparel industries in countries like Lesotho and Ethiopia could benefit significantly if supported by policies that enhance logistics, quality control, and branding.

3. Boost for SMEs and Rural Economies

Small and medium-sized enterprises (SMEs) and farmer cooperatives can now participate more actively in international trade. With the right training, certifications, and logistics support, Africa’s informal sector could access China’s $17 trillion consumer economy.

Key Challenges to Overcome

1. Non-Tariff Barriers

Beyond tariffs, African exporters face challenges in product standards, labeling requirements, and language barriers. Without support in navigating Chinese import regulations, many will struggle to comply and lose out despite tariff exemptions.

2. Limited Infrastructure

Poor logistics, ranging from inadequate ports to slow customs processes, could limit the ability to scale exports. A study by the African Development Bank found that Africa loses up to 40% of its agricultural output due to post-harvest and transport inefficiencies.

3. Export Diversification

Many African countries still rely on a narrow range of raw material exports. To shift toward industrial development, governments need to invest in agro-processing zones, manufacturing hubs, and digital export tools.

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Geopolitical and Economic Context

This policy comes at a time when the U.S. and Europe are reassessing trade relations with Africa. Earlier this year, the U.S. raised tariffs on certain African textiles and metals under revised trade laws. Meanwhile, China’s approach seems to be increasingly aligned with the African Continental Free Trade Area (AfCFTA) and Agenda 2063 goals.

By waiving tariffs, China positions itself as a reliable trade partner and strengthens its economic diplomacy in the Global South. Analysts argue that this move may also be a response to criticisms that China’s trade model fuels debt and resource dependency without inclusive growth.

A close-up, textured image shows a green silhouette of the African continent printed on a coarse, light brown burlap-like fabric. The left side of the image is dominated by the map of Africa, while the right side shows more of the fabric's texture.

What African Governments Must Do

To fully benefit from this policy, African nations must adopt a proactive strategy. This includes:

  1. Upgrading trade infrastructure – ports, roads, and customs systems must be modernized
  2. Capacity building for exporters – training SMEs in export documentation, quality assurance, and e-commerce
  3. Promotion of export diversification – policies that encourage innovation and value-added production
  4. Public-private partnerships – aligning efforts between trade ministries, chambers of commerce, and regional economic blocs

In addition, regional cooperation through platforms like COMESA, ECOWAS, and EAC can enable cross-border supply chains that increase scale and competitiveness.

Conclusion

The zero-tariff policy is more than a trade concession. It is a strategic window for Africa to reimagine its place in global commerce. If met with investment, policy reform, and private-sector engagement, this opportunity could spark a new chapter in Africa’s trade transformation.

As global economic trends shift and international trade becomes increasingly competitive, Africa must leverage this moment not just to export more, but to export better. The road ahead is challenging, but the destination of a more resilient, self-sustaining African economy is within reach.

 

Emmanuel Oriedo

Emmanuel Oriedo is a strategic <strong>Digital Marketer at Indepth Research Institute (IRES)</strong>, specializing in digital engagement within the <strong>economy, finance, and development sectors</strong>. With a diverse background in <strong>broadcast media</strong><strong> production, NGO communications, and creative multimedia content development</strong>, Emmanuel combines creative expertise with data-driven strategy to advance impactful communication and capacity-building across Africa’s economic landscape.

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