By: Tobi Awodipe
President of the Pan-African Manufacturers Association (PAMA), Mansur Ahmed, has warned that exportation of raw materials alone risks leaving African economies exposed to price volatility and low-margin trade.
Reacting to China’s announcement that starting May 1, 2026, it would eliminate tariffs on all imports from 53 African countries, Ahmed said the real economic and industrial gains from this initiative would not come from simply increasing the volume of raw commodity exports.
Instead, he said, any gains to be earned would depend on Africa’s ability to move up the value chain, producing semi-processed and finished goods that meet international quality standards.
The zero-tariff policy expands an existing regime that previously covered only 33 African nations, granting duty-free access to one of the world’s largest consumer markets for a wide range of African goods, from agricultural products to manufactured items.
China is already the continent’s largest trading partner, with bilateral trade exceeding $300 billion last year.
The policy would apply comprehensively to all product categories from eligible African nations, marking China’s most extensive unilateral trade liberalisation towards the continent.
This initiative builds on last year’s commitment to extend zero-tariff treatment to all diplomatic partners in Africa, aiming to boost exports and foster predictable markets for African producers.
African exporters, particularly in agriculture, raw materials and emerging manufacturing sectors, stand to gain as the removal could eliminate up to $1.4 billion in annual duties based on current trade volumes.
Ahmed noted that the tariff removal could significantly expand African access to China’s vast consumer market, lowering entry barriers and potentially boosting export volumes.
In the short term, he said, resource-rich countries may see faster growth in shipments of oil, minerals, and agricultural commodities.
However, the real opportunity lies in moving beyond raw exports towards processed and value-added goods, where higher margins, stronger domestic linkages and job creation are possible.
“Sectors like processed foods, cocoa derivatives, textiles and light-manufactured goods could gain ground if quality standards, scale and logistics are competitive. Without deliberate value addition, however, exports may remain concentrated in primary commodities, thereby reinforcing raw material dependence and limiting industrial growth.
“The zero-tariff window is expected to act as a strategic catalyst for industrial transformation. Once operational, it could provide manufacturers with an opportunity to upgrade production facilities, adopt modern technologies and improve product quality to meet the standards of the Chinese market.
“Moreover, it is likely to encourage the development of regional value chains, fostering collaboration across sectors such as agro-processing, light manufacturing, and industrial goods. By strengthening inter-African production networks and linking them to global markets, African firms would have the potential to enhance productivity, reduce costs and improve export competitiveness,” he said.