Almost every African country has some form of trade control in place to protect their local industries/markets. These controls could range from local content requirements to quotas on imports & exports, subsidies and import tariffs.

Of all these trade barrier mechanisms, import tariffs appear to be the most widely used. According to Investopedia, less developed and developing countries of the world (many of which are in Africa) tend to have some of the highest import tariff rates in the world.

What are import tariffs?

The International Trade Administration defines import tariffs as the taxation imposed by governments on imported products. Different countries impose different kinds of tariffs on imported products. Import tariffs also typically cover the freight and the insurance of imported products.

Tariffs ultimately contribute to the costs that consumers have to incur to purchase imported products. And that’s because importers always try to to recoup the costs associated with import tariffs by pushing prices higher.

There are two forms of import tariffs:

  • An Ad Valorem Tariff: This involves calculating customs duty as a percentage of the value of the product.
  • A Non Ad Valorem Tariffs: This type of tariff is not expressed as a percentage of the price or value.

20 African countries with the highest import tariffs rates

Having explained all these, let’s focus on the 20 African countries with the lowest import tariffs. Please note that this list is courtesy of data obtained from the World Bank.

  1. Botswana: Has a weighted mean applied tariff of 0.8%.
  2. Mauritius: Has a weighted mean applied tariff of 0.9%.
  3. Namibia: Has a weighted mean applied tariff of 1.3%.
  4. Seychelles: Has a weighted mean applied tariff of 1.5%.
  5. Eswatini: Has a weighted mean applied tariff of 2.3%.
  6. Lesotho: Has a weighted mean applied tariff of 3.3%.
  7. Mozambique: Has a weighted mean applied tariff of 4.1%.
  8. South Africa: Has a weighted mean applied tariff of 4.4%.
  9. Libya: Has a weighted mean applied tariff of 4.5%.
  10. Comoros: Has a weighted mean applied tariff of 4.6%.
  11. Zambia: Has a weighted mean applied tariff of 5.0%.
  12. Eritrea: Has a weighted mean applied tariff of 5.4%.
  13. Malawi: Has a weighted mean applied tariff of 6.2%.
  14. Liberia: Has a weighted mean applied tariff of 6.6%.
  15. Burkina Faso: Has a weighted mean applied tariff of 7.2%.
  16. Madagascar: Has a weighted mean applied tariff of 7.2%.
  17. Ivory Coast: Has a weighted mean applied tariff of 7.6%.
  18. Niger: Has a weighted mean applied tariff of 8.1%.
  19. Uganda: Has a weighted mean applied tariff of 8.1%.
  20. Democratic Republic of Congo: Has a weighted mean applied tariff of 8.4%.

 Emmanuel Abara Benson

EMMANUEL ABARA BENSON

Source; BusinessInsider

error: Content is protected !!