Zero-tariff policy fuels African trade

Trade is a vital pillar of China-Africa cooperation and plays a profound role in development, as evidenced by China's own economic journey.

Manufacturing is fundamental for trade, and China's significant investment in this sector has earned it the title of "global factory".

China manufactures a large number of goods and exports to many places across the world.

Hence, it is not surprising that trade initiatives are included in every action plan of the Forum on China-Africa Cooperation.

When FOCAC was established in 2000, Africa's trade with China was barely $10 billion a year. Since then, trade relations have grown exponentially.

By 2024, bilateral trade had touched $295.6 billion.

In late 2024, China shifted from selective trade agreements to a comprehensive, unilateral zero-tariff policy.

Announced at the 2024 FOCAC Summit in Beijing, the policy took effect on Dec 1, 2024, aiming to encourage exports from Africa to China.

The policy granted zero-tariff treatment for all tariff lines of all Least Developed Countries that had diplomatic relations with China, initially covering 33 African nations.

In May 2026, the policy was extended to all 53 African countries with diplomatic relations with China, removing duties even for middle-income economies such as Egypt, Nigeria and Kenya.

This policy differs from standard free trade agreements because it is unilateral and doesn't require reciprocal tax cuts by African nations.

The policy has transformed the trade landscape.

The impact on trade volume and variety has been record-breaking.

Bilateral trade zoomed from $295.6 billion in 2024 to $348 billion in 2025, growing 17.7 percent year-on-year. China's exports to Africa jumped 25.8 percent from $178.76 billion to $225.03 billion.

While the trade facilitation by China is commendable, Africa must take steps to remove supply-side constraints through appropriate policy measures. The focus should be on value addition and increasing productivity in Africa, supported by Chinese investment and technology transfer.

This approach will also help diversify trade beyond a few African countries such as South Africa, Nigeria, the Democratic Republic of the Congo and Angola.

The introduction of "Green Lanes" for agricultural products has been one of the major contributing factors for the surge in trade volumes.

China not only removed taxes but also streamlined customs procedures for perishable products coming from Africa. Other African countries must also take advantage of this opportunity.

The removal of tariffs, which were previously up to 30 percent for some products, has given African exporters a competitive edge over their rivals.

They can undercut competitors from Latin America and Southeast Asia.

Trade has expanded beyond just minerals and oil, with a notable spike in "specialty" exports like Senegalese tuna, Rwandan chili and Ethiopian coffee.

The policy has also triggered a shift from "trading goods" to "building industries".

To meet Chinese quality standards, Chinese companies have increased investments in local African processing. This value chain development supports value addition on African products.

Investment in infrastructure development has added synergy, with the Belt and Road infrastructure supporting the growth in trade.

By unilaterally removing tariffs, China has strengthened its position as a "partner for development" at a time when Western trade policies are often seen as more restrictive or conditional.

This geopolitical pivot makes China an attractive market for African nations.

To sustain and enhance this partnership, greater cooperation is essential. Despite the surge, two major hurdles need to be overcome.

One, many African nations still struggle with high internal logistics costs that can offset the zero-tariff benefit. Chinese enterprises have already undertaken major infrastructure projects in Africa.

More work and more investment are needed to address the gaps.

The second hurdle is trade imbalance. Africa should focus on increasing production, enhancing productivity, adding value to exports and diversifying its export base.

China-Africa trade has entered a new phase: the challenge is no longer simply to trade more, but to trade better and build more productive economies.

Zero tariffs can open the door, but value addition, investment, technology and stronger African production capacity will determine how far the partnership can go.

The next chapter of China-Africa trade should therefore be about turning market access into industrial growth, shared prosperity and a more balanced and sustainable partnership.

The author is a former ambassador of Ethiopia to China.

The views don't necessarily reflect those of China Daily.

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