India and Spain Share Strong Economic Ties: Senior Official Says

Barcelona [Spain], July 18 (ANI): India andSpainmaintain a robust economic and commercial connection, with bilateral trade reaching approximately USD 10 billion, statedRaghvendra Kumar Singh, Principal Secretary to Madhya Pradesh Chief Minister Mohan Yadav, during a speech in Barcelona on Thursday.

"India and Spainmaintain a strong and prosperous economic and commercial relationship. The overall trade betweenSpainand India is approximately 10 billion dollars. There are 280 Spanish firms active in India and 90 Indian companies functioning inSpain," Singh said.

Emphasizing the possible effects of the continuing India-EU FreeTradeSingh mentioned, "We have numerous opportunities... through the India-EU trade relationship, which is expected to be finalized, I hope, by the end of this year, creating new prospects for Spanish businesses in India and Indian enterprises in"Spain."

Promoting Madhya PradeshAs an investment location, Singh mentioned that the centrally situated state offers significant potential across various industries.Madhya Pradeshis located in the center of India. It is known as the Central Provinces. In the past, it was called the Central Provinces. It is the second largest state in terms of area, fifth largest in terms of population, and has a population of 88 million. The population is 88 million. It has a much larger population thanSpain," he said.

"We are home to 2 million young people aged between 15 and 29. We rank as the second-largest producer of food grains in India and are the leading exporter of wheat in the country," he added.

Singh also highlighted the state's environmental advantages and experienced labor force. "We are likely the cleanest state in the whole country of India. We have 32 percent of forest coverage inMadhya Pradesh, which is approximately 12 percent of the total national forest area in India. When you wish to make an investment,Madhya Pradeshcan serve as a perfect location because we offer you chances across various sectors, and we do not restrict ourselves to just a few areas, allowing you to invest in numerous fields.

He added, "Our working population constitutes 47 percent, with 200,000 graduates entering the job market annually. We experience a very low dropout rate. We offer an excellent work-life balance and a high standard of living."

Highlighting the state's industrial setup, Singh stated, "We possess a large number of skilled workers, and a plentiful water supply for industries—over 1,000 million cubic meters at highly reasonable rates. We are a state with excess power generation, producing 31 gigawatts of electricity, with more than 20 percent coming from renewable sources—approximately 6 gigawatts at present."

He stated, "However, the Honorable Prime Minister has committed to generating 550 gigawatts of power by 2030,Madhya Pradeshhas also made a commitment that, starting from 6 gigawatts now, we aim to reach 33 gigawatts of renewable energy by 2030."

Continuing with this wider perspective on sustainable development, Chief MinisterMohan Yadav, during his trip toSpain, visited Mercabarna -- one of Europe's largest integrated wholesale food markets -- to examine models that could aid in the development of Mega Food Parks, agricultural export zones, and multi-modal logistics infrastructure inMadhya Pradesh.

In a post on X, MP CM Yadav mentioned that he participated in a conversation focused onMadhya PradeshTheir initiatives to develop integrated logistics facilities, agricultural export areas, and large food parks.

On the third day of theSpain visit under Madhya PradeshGlobal Dialogue 2025, Mercamadrid, one of Europe's biggest combined wholesale food markets, was inspected, along with conversations with its representatives. The talks centered aroundMadhya PradeshHis plan for establishing Mega Food Parks, agricultural export zones, and multi-modal logistics infrastructure. The smooth functioning of Mercamadrid is expected to become a historic example of cooperation for the state's agricultural industry," he mentioned in a post on X.

Yadav also highlighted the importance of a government-backed environment to shield farmers from falling prices during periods of high output, while also pointing out the opportunity for value-added processing to increase farmers' earnings and enhance export possibilities.

We are currently at Mercabarna inSpainA 250-acre campus where farmers not only vend their crops but also get assistance in handling excess harvests. We are optimistic that, as the irrigated area inMadhya PradeshAs production increases and farmers observe high crop outputs, we can implement a comparable framework. In this scenario, we have started ongoing initiatives to establish a favorable environment — a government-backed system that links different communities. When there is a surplus in supply, market prices usually decrease. To shield farmers from these price declines, we require systems that facilitate processing and enhance value where it is most essential," the MP CM stated.

Putting such a model into practiceMadhya Pradeshmight be a turning point — benefiting both farmers and the state's economy — creating strong business prospects inside India and in global markets," he added.

The MP Chief Minister will be remaining inSpainuntil July 19 as part of his trip. (ANI)

Read More

Will AfCFTA Save Africa Amid Rising Tariff Conflicts?

By Vivian Kai LOKKO

The worldwide economy is preparing for additional upheavals as the United States escalates its protectionist approach. On Saturday, July 12, 2025, Washington introduced significant new tariffs—30percent charges on products from the European Union and Mexico, set to take effect in August. This comes after a series of comparable actions aimed at 23 other nations, such as Canada, Brazil, Vietnam, and Japan, with tax rates varying between 20percent and 50percent, along with an earlier declaration of 10percent for African countries.

Only in the EU, where one-fifth of its exports are directed towards the U.S., the consequences are immense. Although talks are still taking place with the aim of achieving deals before the August deadline, the ambiguity is already causing significant disruption in global markets. U.S. President Donald Trump's tough approach to trade, revived in April through warnings of mutual tariffs, has led to financial market instability, undermined investor trust, and introduced substantial uncertainty into corporate strategies around the world.

The unexpected and unanticipated rise in tariffs is not only putting pressure on diplomatic relationships but also increasing concerns about increased prices, loss of employment, and lasting harm to international trade. As the leading economies of the world prepare for the consequences, a key question arises for Africa: Will the African Continental Free Trade Area (AfCFTA) serve as its defense—or a chance that will be overlooked?

AfCFTA – Africa's Journey Toward Wealth and Growth

The AfCFTA goes beyond a mere policy deal—it represents Africa's largest economic integration effort so far. Aimed at establishing a single market for products and services throughout the continent, the AfCFTA offers potential for boosting industrial development, generating employment, and fostering long-term economic growth. Since its trade component officially began on January 1, 2021, the project has achieved significant achievements—yet the path to complete execution continues to be challenging and evolving. Among its key successes are;

• Signature & Ratification:By December 2022, 54 of the 55 African Union member nations had signed the AfCFTA, while 47 had officially approved the deal. Eritrea is still the sole nation that has not signed.
• Rules of Origin:Approximately 92.3% of tariff lines have completed discussions on Origin Rules—essential for identifying which products are eligible for preferential trade under AfCFTA.
• Guided Trade Initiative (GTI):Launched in October 2022, the GTI supports the seamless movement of products across borders and has expanded from 7 to 39 member states—effectively implementing the AfCFTA.
• Trade Growth:As per the African Trade Report 2025 from the African Export-Import Bank (Afreximbank), trade within Africa increased by 12.4 percent in 2024, reaching a total of US$220.3 billion—showing a significant recovery from the 5.9 percent decline observed in 2023—highlighting the agreement's strength despite global challenges.

Although there have been progressions, the AfCFTA is currently encountering its most significant challenge: dealing with the unstable conditions of increasing global trade conflicts. The declaration from the United States to apply a general 10% tax on imports from several African nations, including Ghana, in April 2025, caused widespread concern throughout the continent, as countries such as South Africa and Lesotho are set to experience further increases of 50%.

For Ghana, the increases might put crucial industries such as cocoa, textiles, and agriculture at risk. This not only jeopardizes export revenues but also weakens industrial competitiveness.

The consequences go further. Many African countries depend significantly on exporting raw resources. Changes in global demand or fluctuations in prices may disrupt their economic stability. Increasing trade conflicts create uncertainties that discourage foreign investment—especially in developing markets such as Africa.

African producers rely on imported equipment and materials, and new tariffs might increase manufacturing expenses, reduce profit margins, and affect consumer spending ability. In other words, the trade conflict highlights Africa's susceptibility to outside influences—and strengthens the argument for enhancing regional integration through the AfCFTA.

Why the AfCFTA is More Important Than Ever

Amid rising protectionist trends, AfCFTA provides Africa with a strategic defense and a strong platform for growth. By reducing internal tariffs and aligning trade regulations, it strengthens the continent's economic independence and shields it from global instability.

Gradual elimination of internal trade tariffs will also enhance the competitiveness of African products across borders. Streamlining regulations, minimizing bureaucratic procedures, and tackling customs inefficiencies will lower trade expenses. Although the AfCFTA has shown significant progress, it still faces substantial challenges—many of which stem from political reluctance and structural weaknesses.

As Mavis Owusu-Gyamfi, the CEO of the African Centre for Economic Transformation (ACET), highlighted at the 2025 Citi Business Forum, the main challenge is not an absence of funding but a shortage of political determination. “We sign the agreement,” she stated, “but when it's time to put it into action, we struggle.”

Throughout the continent, fragile logistics systems, poorly developed transportation infrastructure, and varying trade regulations still hinder the smooth movement of products. The goal of aligning regulations across 54 different economies is a huge challenge—one that is delayed by ongoing customs inefficiencies, excessive bureaucratic procedures, and administrative lags.

Persistent regional conflicts and unstable governance further hinder trade routes, erode investor trust, and diminish the confidence essential for comprehensive continental integration. Nevertheless, amid this challenging environment, there is a potential opportunity. The global tariff conflict, although disruptive, presents Africa with an opportunity to reassess, reconfigure, and advance.

Opportunities amid global disruption

The AfCFTA presents Africa with a unique and significant chance—not merely to endure, but to grow effectively. The continent's increasing importance in global politics is clear, as countries such as India, China, and Russia step up their involvement throughout Africa.

Africa's commerce with China has reached a new peak of $134 billion in the initial five months of 2025, whereas India's trade stood at $97.85 billion during the 2022/23 period.

Indian Prime Minister Narendra Modi, during his recent trip to Ghana on July 3, 2025, highlighted Africa's importance in defining the Global South and emphasized India's growing economic and commercial connections. India has become Ghana's fourth-largest supplier of imports, with trade reaching almost US$3 billion in the 2023/24 period.

In a similar manner, China—Ghana's leading import partner, which accounted for GHC 33.9 billion in imports in 2023—has increased its involvement, highlighted by the establishment of the China-Ghana Mining Association. These changes represent a significant opportunity for Africa to take a stronger stance through the AfCFTA.

By showcasing a cohesive stance, AfCFTA allows Africa to communicate with a single voice in international trade discussions, enhancing its ability to seek more equitable conditions and establish stronger alliances. The continent's large market, home to over 1.3 billion people, offers companies significant opportunities to expand beyond individual countries, opening up new economic areas across Africa.

As global companies look for more secure and varied locations for their supply chains, Africa's growing integration makes it a promising option for foreign investment. This change has the potential to boost local industries, helping the continent move from relying on raw material exports to focusing on manufacturing and industrial development.

Furthermore, a robust internal market diminishes Africa's susceptibility to external shocks, shielding its economies from the consequences of geopolitical conflicts. In a world fragmented by trade disagreements, Africa's neutral position provides a distinctive diplomatic advantage—creating an opportunity to secure improved infrastructure and development agreements from competing global powers.

As former Ghanaian Trade Minister Dr. Ekwow Spio-Garbrah recently stated: "For 34 years, we've had a shared goal that hasn't been achieved yet. A united Africa is our greatest opportunity for economic independence." The AfCFTA, if fully implemented, could represent that much-anticipated progress.

The road ahead

The AfCFTA is more than just a reaction to outside challenges—it represents Africa's comprehensive plan for sustained development. While the global community becomes more inward-focused, Africa needs to look within. By speeding up the adoption of AfCFTA, developing trade infrastructure, and fostering political support, Africa can thrive not in spite of the global trade conflict—but as a result of it. In an era of unpredictability, AfCFTA continues to be Africa's most direct route to economic strength and independently driven growth.

>>>the author serves as Head of News at Citi FM and Channel One TV. She also has expertise in business, finance, and economic reporting.

Read More

Can EAC Conquer Its Challenges to Lead Africa's Largest Trade Bloc?

Dar es Salaam. The East African Community (EAC) has taken over the rotating chairmanship of the COMESA-EAC-SADC Tripartite Task Force (TTF) at a crucial time, reigniting hopes for a more unified and integrated regional trade system. However, a central question remains: can this leadership role help the EAC overcome its internal challenges and lead to a genuinely tariff-free region? The TTF unites three major Regional Economic Communities (RECs): the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC), and the Southern African Development Community (SADC). It was created to coordinate the implementation of the Tripartite Free Trade Area (TFTA). Launched in 2015, the TFTA aims to promote market integration, industrial growth, and infrastructure development across 29 African countries, serving a population of over 700 million. Yet, almost a decade later, progress has been slower than anticipated due to ongoing non-tariff barriers, delayed ratifications, and a lack of unified customs systems among member states. On July 25, 2024, the TFTA Agreement officially came into effect after securing the necessary 14 ratifications. However, the real challenge lies in putting the agreement into practice, a task now entrusted to the EAC as it assumes the TTF's leadership. EAC Secretary General, Ms Veronica Nduva, speaking at a high-level roundtable in Malabo, Equatorial Guinea, on July 14, 2025, advocated for a continent-wide resource mobilisation strategy to replace fragmented efforts that have hindered progress. "We must abandon disjointed approaches. Africa needs a harmonised strategy for resource mobilisation to effectively implement Agenda 2063," she stated. "We see the TFTA as a strategic tool to deepen integration, boost competitiveness, unlock intra-African trade, and advance inclusive industrialisation," she added. Ms Nduva also highlighted the importance of blended financing models involving public, private, and philanthropic capital, along with the use of technology to enhance coordination and accountability. The big question While the EAC’s assumption of leadership is diplomatically significant, the bloc has faced difficulties in implementing its integration protocols. Several EAC Partner States have previously failed to uphold agreed tariff removals, leading to internal trade disputes and delays in harmonisation efforts. Trade tensions between Kenya and Tanzania over products such as sugar, maize, and milk have revealed the inconsistent application of EAC trade rules, undermining the bloc’s credibility in broader integration efforts. According to Dr Paul Omollo, a regional trade policy analyst based in Dar es Salaam, the EAC must first address its shortcomings. "The EAC has made impressive commitments on paper. But implementation remains its biggest weakness," Dr Omollo told The Citizen by phone. "Taking over TTF leadership is significant, but the EAC must back that up with real reforms at home. It must demonstrate that regional integration can work, starting with its borders." What does chairing the TTF mean? Assuming the TTF chairmanship places the EAC in charge of guiding the finalisation of tariff offers, adoption of rules of origin, and encouraging ratification by the remaining states. The bloc is also expected to lead the revival of the TFTA’s industrial development pillar, one of its key components. "Our focus is to ensure that the TFTA becomes fully operational, not just in name but in action," said Ms Nduva. "We are pushing for the ratification of both the trade and movement of businesspeople agreements," she said. Experts believe this leadership position could allow the EAC to influence harmonised customs policies, coordinated infrastructure investments, and the development of joint industrial zones, provided there is strong political will among member states. "The TFTA could be a game-changer if it builds synergies across the three RECs," said a policy adviser at TradeMark Africa, Mr Humphrey Ramela. "The EAC’s leadership is timely. But success depends on aligning national interests with regional ambitions," he added. Another key theme from the Malabo roundtable was financial independence, with Ms Nduva reiterating the need for African nations to reduce reliance on external donors and adopt African-led financing models. "Austerity must go hand-in-hand with innovation. Resources allocated for development must be managed with discipline and efficiency," she noted. The African Union Commission Chairperson, Mahmoud Ali Youssouf, echoed this sentiment, urging member states to finance their development agendas and adopt the instruments required to operationalise the TFTA by the time of the next Tripartite Council of Ministers meeting. "African ownership is not optional; it is the only path to sustainable development," said Mr Youssouf. With preparations for the fourth Tripartite Summit underway, during which the TFTA will be formally launched, expectations are high. The EAC’s challenge will be to not only champion regional integration at the tripartite level but also prove its commitment to seamless trade within its borders.

Read More

KRA's Cargo Certificate Rule Threatens Small Importers

The compulsory requirement for all shipments entering Kenya to include a Certificate of Origin is expected to significantly affect small operators who combine cargo, according to traders.

The Kenya Revenue Authority (KRA) has mandated that starting July 1, all imports must be accompanied by the specified certificate issued by an authorized body.in the exporting country.

Importers, customs clearing agents and the general public has been warned since then.

To ensure a seamless shift, a temporary period until September1, The year 2025 has been allocated to assist with adherence to regulations and give importers sufficient time to obtain the necessary paperwork.

"Keep in mind that after this period, shipments that do not meet the requirements will be subject to seizure according to the provisions of the Act," Commissioner for Customs and Border Control,Lilian Nyawanda, stated in the notice.

This represents a significant departure from previous procedures, in which Certificates of origin were needed solely for products covered by preferential trade agreements to establish their origin and grant tariff advantages.

A recognized official entity means a governmental department or officially appointed organization in the country from which goods are exported, that has the power to issue certificates of origin.

A Certificate of Origin is considered valid when it includes the name and address of both the exporter and the importer, the port of origin, a precise description of the items, the quantity of the goods, the country of origin; and the country of destination.

Failure to comply will result in the KRA imposing penalties, leading to the confiscation or loss of goods by the Commissioner or an authorized officer.

"KRA continues to focus on promoting legal trade while maintaining complete adherence to the law," Nyawanda stated in the announcement.

The Shippers Council of Eastern Africa (SCEA), which advocates for the interests of importers and exporters, has expressed concerns, stating that the action will affect small traders, particularly those who consolidate cargo. It also describes the move as a "big surprise," referring to the requirement of a standard certificate that does not offer any preferences.

As per SCEA, it has become more frequent for importers to obtain products from carriers that combine shipments from various countries.

For instance, a shipping company located in Singapore might acquire goods from multiple nations including China, Hong Kong, Indonesia, and Malaysia, and then combine the freight into one delivery heading to Kenya.

"In such a situation, we aim to learn about the necessary documentation when importing into Kenya: Does the shipper based in Singapore need to present individual certificates of origin from each original source? We will continue seeking further advice and also request exemptions," said Agayo Ogambi, CEO of SCEA, to the Star.

Trade Agreement for Simplifying Commerce under the World Trade Organization, building onGeneral Agreement on Tariffs and Trade (GATT) Article VIII, emphasisses thatcharges, procedures, and paperwork—including certificates of origin—should be kept to a minimum.

The World Customs Organization also points out that documents indicating origin without preferential treatment should not be required for regular imports.

This is necessary only when a particular trade policy, such as anti-dumping measures, import quotas, or Origin labeling requires it and should be implemented on an individual basis, not automatically.

We will also look for clarity on whether the standard certificate of origin can be regulated by the Tax Procedures Act instead of the East Africa Community Customs Management Act," Ogambi stated, "We value the transitional period but hope to discuss with the Commissioner of Customs KRA about its execution and effects.

KRA’sDepartment of Customs and Border Protection collectsed Sh879.3a billion in the fiscal year concluding June 2025, official statistics reveal, victoryan average daily gathering ofSh3.5 billion.

The performance was driven by non-otaxes that increased by 10.3 per cent to Sh541 billion and oil taxes that increased by 12.5 per cent to Sh338.276 billion.

Import duty grew by 18.3 per cent to Sh157.9 billion with the agricultural and steel industries at the forefront, experiencing increases of 67 per cent and 39 per cent, respectively.

Excise Tax also increased by 11.6 per cent to Sh125.300 billion, Railway Development Charge (RDL) collection increased by 15 per cent to Sh36.820 bmillion while Road Maintenance Levy increased by 50.9 per cent to Sh119.662 billion.

The rise in RML is due to higher applicable rates fromSh18 per litre to Sh£25 per liter. Additionally, oil quantities increased significantly by 13 per cent in July-June 2024-25 mostly from gasoline, diesel and other petroleum products (coal, electrical energy, lubricating greases,among others.)

“The introduction of centralised clearance procedures led to a 62 per centreduction in the time required to clear cargo from 110 hours to 42 hours,” Nyawanda said yesterday.

Read More

AGOA's Decline: Reimagining AfCFTA as Africa's Growth Catalyst

By Kwame Asante (Director of Executive, Structured Solutions Development, Cash, Standard Chartered Bank)

The African Growth and Opportunity Act (AGOA), a significant U.S. trade program introduced in 2000, is now encountering an uncertain path as renewal talks are delayed in Washington. Should it not be extended, this would signify the conclusion of a 20-year preferential trade arrangement that has influenced economic ties between Africa and the U.S., especially within industries like textiles, farming, and light industry.

The greatest effect would be experienced by countries such as Kenya, South Africa, Ghana, and Nigeria, which have utilized AGOA to expand their exports and draw in investments.

The AGOA offers duty-free entry into the U.S. market for more than 6,500 items from 35 qualifying sub-Saharan African nations. It has encouraged export-driven growth, employment opportunities, and industrial development, particularly within labor-heavy sectors.

Upcoming Turbulence: What's on the Line

In Kenya, the clothing industry has received the main advantage from AGOA, with more than 90% of fabric exports heading to the United States. The initiative provides around 58,000 direct employment opportunities, mostly occupied by women in export processing zones. Without AGOA, these companies are at risk due to increasing tariffs and reduced competitiveness.

South Africa, home to one of Africa's most varied economies, has leveraged AGOA benefits to boost exports of agricultural products like citrus fruits and wine, along with vehicles and manufacturing items. Losing AGOA would reduce export revenues, limit employment opportunities, and interfere with supply networks that aid the larger Southern African Development Community (SADC) region.

Ghana and Nigeria have also utilized AGOA to boost non-traditional exports. Ghana's clothing exports and agricultural products like yams, pineapples, and cocoa-related items have secured a steady market through the program. Nigeria, which previously depended heavily on oil exports under AGOA, has made progress in developing its light manufacturing and food processing industries. These achievements are now in jeopardy.

In addition to the figures, ending AGOA would mark a step back in Africa's efforts to develop its industries, generate employment, and achieve inclusive economic growth. It would also hinder progress in establishing robust supply chains throughout the continent.

AfCFTA: A Key Shift for Strength

The African Continental Free Trade Area (AfCFTA) presents a different approach, moving the focus from external preferences towards creating a strong, unified African market. By bringing together 54 nations with a total population of 1.4 billion and a GDP of $3.4 trillion, AfCFTA seeks to increase trade within Africa, which currently stands below 17%, in contrast to over 60% in Europe and Asia.

At its foundation, AfCFTA aims to strengthen regional value chains. Instead of exporting raw resources, African nations can work together to create final products, boost industrial strength, and increase job opportunities. Important industries like textiles, processed foods, automotive parts, and medicines, which once gained advantages from AGOA, can now be focused on meeting rising demand within Africa.

Furthermore, AfCFTA offers a structure for Africa to engage with international partners from a stronger stance. It highlights the continent's goal to shape its trade policies around common prosperity, self-reliance, and coordinated strategies.

Progress and Priorities

The AfCFTA rollout has achieved considerable progress:

• All 54 nations belonging to the African Union have signed the accord, with 49 having approved it.
• The Guided Trade Initiative, introduced in 2022, is facilitating commerce in accordance with AfCFTA regulations, showing encouraging initial outcomes.
• Four key industries — Agro-processing, Pharmaceuticals, Automotives, and Transportation & Logistics — have been identified for regional value chain development.
• Agreements concerning Products and Services, Investment, Competition Rules, Intellectual Property, and online trade have been discussed and approved.
• Tariff schedules and origin rules now apply to 92% of goods exchanged. Textile and automotive regulations are almost finalized.
• The Pan-African Payment and Settlement System (PAPSS) is now active, linking more than 20 central banks and 160 commercial banks to facilitate transactions in local currencies.
• Seven countries now allow African citizens to enter without a visa, while 24 provide electronic visas.
• An AfCFTA Adjustment Fund, which includes a Base Fund (for technical support), General Fund (for trade infrastructure), and Credit Fund (for enhancing the capabilities of SMEs and the private sector), has been introduced to assist nations in transitioning and investing in trade-supporting systems.

These advancements go beyond mere policy successes, marking essential progress toward a new regional economic system.

To quicken progress, officials should concentrate on:

• Completing the alignment of customs procedures, digital trade frameworks, and product regulations.
• Funding developments including ports, transportation routes, and distribution centers.
• Allowing small and medium-sized enterprises, which constitute more than 80% of African businesses, to enter formal markets, obtain financial support, and meet certification requirements through the AfCFTA.

Implications for African Businesses

The AfCFTA offers a significant chance for businesses to thrive. It provides entry into a market that is becoming more open across 54 nations, presenting larger opportunities and fresh consumer groups. Lower tariffs, easier origin rules, and improved transportation networks make trading between countries more practical and less hazardous.

To benefit, companies must:

• Sign up with the national AfCFTA secretariats.
• Adhere to the certification and origin regulations.
• Place themselves in a favorable position to engage with local supply networks.

Pioneers, especially within manufacturing, transportation, and agricultural processing, are positioned to achieve a competitive edge as the trade environment evolves.

How We Can Help

With a 150-year history on the continent, Standard Chartered is actively helping clients manage and gain advantages from AfCFTA. We offer:

• Availability of funding and online commerce and cash systems.
• Policy recommendations and strategic guidance on AfCFTA; and
• Services designed to assist companies in expanding across regions.

Our objective is to link clients with emerging growth areas, facilitate the movement of capital, and promote equitable trade throughout Africa.

Final Thoughts: Africa at a Critical Turning Point

The possible termination of AGOA signifies a crucial turning point in the economic ties between Africa and the U.S. However, instead of perceiving it as a disadvantage, it should be regarded as an opportunity for autonomy. The AfCFTA offers a framework to shape a new story, focused on growth driven by African initiatives, trade within the continent, and the development of regional value chains and integration.

The necessary policies and tools have been established. The goal is evident. What is left is unified action. Government officials, companies, and development allies need to collaborate to ensure AfCFTA becomes more than a trade deal, but a powerful driver of growth across the continent.

Africa is entering a new era of trade, this time according to its own conditions.

Provided by SyndiGate Media Inc.Syndigate.info).

Read More

Chinese Entrepreneurs in the U.S. Discover the American Dream's Harsh Reality

With the US using tariffs to try to bring manufacturers back, an unpredictable trade policy, a contentious immigration enforcement strategy, and declining consumer demand have dimmed the appeal of the American dream for some Chinese investors currently in the country.

On Monday, President Donald Trump delayed the launch of a new set of his so-called mutual tariffs – which were initially scheduled for July 9 – moving the implementation date to August 1. His recent actions includetariffs as high as 40 percent on goods coming from 14 nations- several of which are closely allied with China in trade, such as Japan, South Korea, Laos, and Kazakhstan.

From the beginning of his tenure, Trump has used tariffs as a central tool to revitalize American manufacturing, increase jobs for blue-collar workers, and reduce the trade deficit. However, this approach is causing difficulties for investors like Peter Wang, who established a mobile-phone-repair factory in Dallas, Texas, in 2002.

Are you curious about the most significant issues and developments happening globally? Find the information you need withSCMP Knowledge, our latest platform offering handpicked content including explainers, FAQs, analyses, and infographics, presented by our acclaimed team.

"Trump's tariffs have definitely attracted more American customers to us - but they still want the speed and low costs associated with Asian factories, and that's simply not feasible in the US," said Wang, whose plant employs over 200 workers and is currently operating at a break-even point.

When American customers wish to test new products, Chinese manufacturers can quickly adapt - they are flexible, involved, and willing to make it happen," he said. "In the US, an entire production line can come to a halt simply because the system isn't properly configured.

Trump aims to repatriate manufacturing, yet his advisors appear unaware of the actual workings of the supply chain.

Peter Wang, Texas

The U.S. customs and tax systems do not provide any viable solutions. If I have to incur such high expenses, why would I consider moving production to the U.S.?" he stated, adding that he continues to obtain raw materials from Asia, albeit at a higher cost. "Trump aims to bring manufacturing back, but his advisors appear not to grasp how the supply chain truly functions.

Trump has positioned bringing manufacturing back as a core element of his economic strategy since his initial term, and this year's global tariff initiative has further advanced that goal.

Nevertheless, not all individuals perceive it as a complete loss, highlighting the increased prospects they recognize for local suppliers in the downstream sector.

"Materials sourced from Asia are becoming more expensive, leading more local businesses to opt for domestic suppliers — which is actually helping many smaller American suppliers further down the supply chain," Wang stated.

As per the US Bureau of Economic Analysis, manufacturing contributed $2.9 trillion to the economy in the first quarter of 2025, representing a 0.6 percent rise compared to the same period in the previous year, highlighting its significant role in the economy after finance, business services, and government.

US manufacturing activity indicated a recovery in the previous month, as the Institute for Supply Management's Purchasing Managers' Index increased to 49.0 in June compared to 48.5 in May.

Certainly, Trump implemented corporate tax reductions - but his approaches are extremely erratic

Mr Zheng, investor

Evan Gu, a mattress producer, moved his modest factory from Guangdong province to the San Francisco Bay Area in 2018 in order to escape tariffs implemented during Trump's initial term. He allocated $200,000, and the relocation was completed within two months.

Although existing tariffs have not affected Gu's supply chain or his 12 employees, he notices a different form of pressure emerging.

"From what I've heard from my customers and others, many of them report that their buying power has decreased by 30 to 40 percent, and it seems like no one is willing to spend money anymore, as they are facing much higher prices due to the tariff increase," Gu said.

Mr. Zheng, a Chinese investor who established an automotive components factory in Texas in 2023, believed he was following the guidelines—doing precisely what the US encouraged by bringing manufacturing back to the country. However, even this has not protected him from increasing scrutiny.

When Trump initially introduced the 25 percent tariff in 2019, we thought about relocating from the Yangtze River Delta, but the pandemic put our plans on hold," he stated, speaking under the condition of anonymity. "Later, in 2024, just after the factory was finished, Biden announced a new set of tariffs.

And now, the immigration policies during Trump's second term have made things even more challenging, Zheng stated.

Mexicans put in a lot of effort but are compensated well below the local minimum wage," he stated. "And now, they must also be concerned about ... the large-scale deportation wave.

Indeed, Trump implemented corporate tax reductions – but his policies are extremely unpredictable. We invest two weeks in training an individual, and just as they become productive, immigration intervenes and removes them. How can we make long-term plans under such circumstances?

(Texas) is hoping that residents will take initiative and establish factories. However, most Americans are not showing interest.

Evan Hu, manufacturer constructor in America

The U.S. Bureau of Labor Statistics stated in May that approximately 414,000 positions in manufacturing were available, marking a small increase from 392,000 in April, as persistent labor shortages continue within the industrial sector.

Evan Hu, a factory developer based in Texas, mentioned that his business was once thriving — but that has changed. Since last year, he has been receiving questions from Chinese companies operating in areas like semiconductors, electric vehicles, and solar energy, all interested in starting operations in the state.

Four factories are currently operational under his leadership, with three additional ones in progress. However, he mentioned that increasing policy challenges are beginning to slow the momentum.

Last year, Chinese investors were waiting in line to inquire about establishing factories," Hu said. "But since Texas passed thatland-restriction law(last month), interest plummeted in the second quarter.

The legislation was enacted on June 20, introducing significant limitations on property ownership by individuals and organizations from specified nations, such as China, Iran, North Korea, and Russia. The law becomes active on September 1, prohibiting Chinese investors from purchasing land or long-term assets within the state.

The government is counting on residents to establish factories," Hu stated. "However, most Americans aren't showing interest - building factories is extremely expensive here, and they're not keen on taking such a significant risk.

More Articles from SCMP

EU increases its efforts to reduce reliance on China by planning to take back control of critical industries

Revised IT hub proposal at the University of Hong Kong sparks discontent among Pok Fu Lam locals

A Hong Kong-based startup called IntelliGen AI is seeking to compete with Google DeepMind in the field of drug discovery.

New instance of bitumen contamination in Hong Kong's water supply, legislator states

Hong Kong authorities confiscate counterfeit medical items valued at HK$1.1 million, detain 5 individuals

This piece was first published in the South China Morning Post (www.scmp.com), a top news outlet covering China and Asia.

Read More

Will U.S. tariffs drive China's manufacturing mouse out of the Asean maze?

"Each investment is a risk," and Chinese factories are experiencing "significant losses" by manufacturing in Southeast Asian countries subjected to Trump's tariffs, as reported by industry experts.

Chinese exporters, such as Huang Yongxing, are seeking clear responses to begin producing and delivering products from their factories located in China or Southeast Asia.

And the responses— or at least the updates— that Huang receives, he posts on his social media account through weekly updates that have become popular among owners of small and medium-sized businesses as unpredictable and changing tariff policies from Washington keep reshaping the profit margins for manufacturers.

They are now confronted with a long-term challenge regarding investments, as some of their international factories are facing the threat of US President Donald Trump's "reciprocal"tariffs as high as 40 percent on 14 nations, many of which are key markets for Chinese exports.

Are you curious about the most significant issues and developments happening globally? Find the information you need withSCMP Knowledge, our latest platform featuring curated content including explainers, FAQs, analyses, and infographics, presented by our acclaimed team.

Trump's action, revealed on Monday, places Southeast Asia—China's biggest export market—within Washington's trade focus, simultaneously impacting Chinese exporters' transshipment plans across the region.

Uncertainty surrounds the U.S. approach to transshipment, as high tariffs are hinted at without clear implementation plans, causing significant concerns for Chinese investors looking to invest abroad.

In reply, numerous Chinese firms—those that have already gone global and others intending to expand internationally—have had limited choice but to proceed cautiously.

Huang, a lighting product exporter located in Zhejiang province, has had to frequently adjust its plans to establish a factory in Cambodia because of the changing trade policies under Trump in recent months.

"Customers were urging me to establish production in Southeast Asia, but this involves double costs—maintaining my Chinese factory while investing in a new one," he mentioned in a recent video shared on WeChat, China's widely used messaging application.

Due to underdeveloped local supply chains, it will require at least two years to acquire new clients. The actual cost would be twice as high, yet there would be only a single source of revenue.

Six of the 10 Association of Southeast Asian Nations members are impacted, with Cambodia, Thailand, Indonesia, Laos, and Myanmar encountering tariffs between 25 to 40 percent. Among these, Laos and Myanmar would face the highest tariffs at 40 percent, making the cost increase render Chinese companies' method of re-exporting to the US through these nations almost ineffective.

Influenced by years of increasing trade measures and policy changes, the current weighted average tariff on Chinese imports is estimated at 42 per cent, as reported by Morgan Stanley. UBS estimates the rate at43.5 per cent.

No matter what decision you make, it always seems incorrect," said another lighting supplier, Levi Tan, from Guangdong province. "Those individuals who have already constructed factories are unable to sleep at night.

Industry experts have cautioned that, although the "going global" trend remains strong, increasing uncertainty about tariffs is quickly reducing the strategic options available to Chinese exporters.

"Without consistent expectations, each investment becomes a risk," noted supply-chain expert Liu Kaiming, who has experience with rerouting models.

Cambodia currently possesses a relatively comprehensive industrial chain specifically in the garment sector, while Laos and Myanmar only have isolated factories," Liu explained. "If they are placed on the high-tariff list, re-exports from Laos and Myanmar would become nearly impossible, and Chinese factories operating there will certainly face significant losses.

Liu stated that he is convinced Southeast Asia will remain a crucial factor in reshaping China's supply chain, although he noted that the process is turning out to be significantly more challenging than many companies had originally anticipated.

From enhancing production capabilities to raising capital, all expenses are increasing," Liu stated. "Trump's policy changes happen so often that many business owners feel as if whatever they do is the wrong decision.

Hardware exporter Kevin Huang from Guangdong shared similar worries, pointing out how ongoing modifications in US tariff regulations are increasing immediate risks. "Some of my colleagues have just completed establishing their factories but are now experiencing cash-flow difficulties," he mentioned.

With his American clients "experiencing losses and postponing payments," Huang stated: "I'm afraid to keep shipping right now, and all I can do is get ready to handle the bad debt."

Some local producers, however, perceive an unforeseen benefit.

"If Southeast Asia faces tariffs, we could potentially gain a competitive advantage," stated Wang Shui, a pet product manufacturer based in Guangdong.

We don't fear tariffs. Provided we can offer high-quality items, customers will continue to place their orders. Numerous products are beyond the production capabilities of Southeast Asia.

Nevertheless, Wang recognized that the overall trade situation was becoming more unstable.

Whether remaining in China or venturing overseas, manufacturers are encountering extraordinary uncertainty," he expressed. "As US policies change constantly, no one can predict what will come next.

More Articles from SCMP

Why the 'Hermès' and 'Chanel' of Chinese lychees are so highly desired

It's time for companies to cease benefiting from Israel's 'economy of genocide'

Award-winning data scientist She Yiyuan returns to China for a new position after many years in the United States.

Style Edit: Richard Mille introduces the exclusive RM 30-01 Le Mans Classic to celebrate the historic car race that inspired its name.

This piece was first published in the South China Morning Post (www.scmp.com), a top news outlet covering China and Asia.

Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.

Read More