Tariffs may be a blessing in disguise for Africa – FG
The Minister of Solid Minerals Development, Dele Alake, has said that the wave of tariffs introduced by the United States to discourage export by Nigerian businesses may become a blessing in disguise for African economies.
The minister made this remark during a chat session at the 14th Annual Investment Meeting Congress in Abu Dhabi, United Arab Emirates.
A statement by the minister aide, Segun Tomori, on Sunday said the session was titled “The Alchemy of Foreign Direct Investment – Turning Policies into Prosperity for Emerging Global Markets,” focused on the shifting climate for investment and trade.
Recall that US President Donald Trump recently imposed a 14 per cent tariff on exports by Nigerian businesses, presenting a significant risk to the $10bn annual exports to the United States, potentially disrupting key sectors such as oil export and agricultural trade.
The regime, now suspended for 90 days, has ignited a trade war, raised the prices of goods and services for consumers, weakened the standard of living, slowed down manufacturing activities and hindered international trade.
Commenting on the implications of US-led trade tariffs, Alake urged African countries to take a more inward-looking approach by strengthening domestic policies and boosting intra-African trade.
He also called on African countries to adopt an introspective approach by looking inwards and adjusting their domestic policies to focus more on intra-African trade, with little dependence on external forces.
He said, “The prevailing barrage of tariffs initiated by the United States of America may well be a blessing in disguise for African countries. We need to organize our economic imperatives to ensure a balance of trade and strengthen intra-African trade among ourselves. The time is now”.
Alake criticised the long-standing model of exporting unprocessed raw materials from Africa — a practice he described as “pit to port.”
“That era can no longer continue. Investors are welcome, but they must come in, set up factories, add value to our mineral resources and create jobs on the continent — not just ship out raw wealth,” he said.
According to the minister, Nigeria’s mineral development policy prioritises value addition and job creation, a stance that is gaining ground among mineral-producing African nations.
Alake chairs the African Minerals Strategy Group, a coalition focused on protecting the continent’s mineral wealth.
Nigeria’s policy on the minerals sector development is strictly geared toward value addition and boosting the local economy through job creation.
Other participants who spoke at the fireside chat included His Excellency Zaher Al Qatarneh, Secretary General of Jordan Ministry of Investment, Goncalo Terenas, Co-founder- Diaspora Prime Portugal, and Vadim Tretyakov, Minister of Investment and Development of the Sverdlovsk Region.
During the Congress, Alake toured the exhibition platform where Nigeria was ably represented by the Solid Minerals Development Ministry, Solid Minerals Development Fund, and Zamfara State government.
He also visited the booths of the private business groups from Nigeria, such as the Women Enterprise Alliance and Ghana’s Jant’s Fashion Collection.
The AIM Congress welcomed thousands of top government leaders from around the world, including corporate leaders, technology innovators, and sundry financial institutions and experts.
The aim of the yearly congress is to “ignite positive transformation by creating investment opportunities, upholding solidarity and developing economic relations among nations.”
The yearly AIM Congress took place at the impressive Abu Dhabi National Exhibition Centre under the broad theme, “Mapping the Future of Global Investment: The New Wave of a Globalized Investment Landscape – Towards a New Balanced World Structure.”
