Would you like to receive notifications on latest updates of the following headlines?

US-China trade war detriment to Africa’s economy- PAMA

POSTED ON October 1, 2024 •   Business      BY Abiodun Saheed Omodara •   VIEWS 66
Pan-African Manufacturers Association

The Pan-African Manufacturers Association has raised alarm over the detrimental effects of the ongoing trade war between the United States and China on Africa’s economy.

The association expressed concern about the increasing disruptions in supply chains, rising production costs, and uncertainties surrounding export markets, which have left many African manufacturers struggling to cope with the fallout.

According to the PAMA Secretariat, these challenges are being compounded by a global economic slowdown and persistent inflationary pressures.

In its latest bulletin, the Manufacturing Global News, released in September and made available on Monday, PAMA highlighted the far-reaching impact of the trade war.

“Technically, a trade war is an economic confrontation between countries, where one nation imposes ‘unfriendly’ tariffs or other barriers on imports from another country, prompting retaliation,” PAMA explained.

The trade dispute, which has escalated since 2018, has significantly affected African access to essential raw materials and machinery sourced from China.

Simultaneously, African exports to the US are facing stiffer competition as American firms seek alternative markets amidst rising tariffs on Chinese goods.

Many manufacturers across the continent have reported declines in production capacity and profitability, prompting calls for government intervention and the exploration of intra-African trade opportunities, particularly through the African Continental Free Trade Area.

“In an increasingly interconnected global economy, the impact of geopolitical conflicts on trade is undeniable,” the PAMA Secretariat noted, underscoring the need for a strategic response to mitigate the crisis.

It added,”In retaliation, the aggrieved country imposes tariffs to protect its domestic industries. However, instead of resolving the issues, these measures typically escalate into broader conflicts, increasing barriers and limiting trade between nations.

“In an increasingly interconnected global economy, the impact of geopolitical conflicts on trade is undeniable. One of the most significant examples in recent years has been the trade war between the United States and China, which began in 2018.

“This conflict has reshaped global economic relations, especially in the manufacturing sector, where supply chains, pricing, and competitiveness have been severely affected.  The repercussions of this trade war extended far beyond the borders of the two superpowers, influencing economies around the world, including Africa.”

RECOMMENDED FOR YOU
Nigeria at 64: Citizens grappling with challenging economic landscape
BY Benedicta Bassey October 2, 2024 0

As Nigeria marks its 64th independence anniversary, citizens are grappling with a challenging econom...

RECOMMENDED FOR YOU
FCCPC and NBC announce different stances on Pay-Per-View for GOtv, DStv
BY Abiodun Saheed Omodara October 2, 2024 0

The Federal Competition and Consumer Protection Commission (FCCPC) and the National Broadcasting Com...

RECOMMENDED FOR YOU
Bitcoin drops to $60,000 following Iran's Missile attack on Israel
BY Abiodun Saheed Omodara October 2, 2024 0

The leading cryptocurrency, Bitcoin, experienced a significant decline, dropping to around $60,000 y...

RECOMMENDED FOR YOU
49% of Nigerian businesses raise product prices in September- Stanbic PMI
BY Abiodun Saheed Omodara October 2, 2024 0

Inflationary pressures persist in Nigerian businesses, with up to 49% of companies reporting increas...

RECOMMENDED FOR YOU
US hacker sentenced to 20 years in prison for $37 million crypto theft
BY Abiodun Saheed Omodara October 2, 2024 0

Evan Frederick Light, a 21-year-old American, faces up to 20 years in prison for defrauding a Sioux...

RECOMMENDED FOR YOU
Nigeria celebrates 64th independence amid bad governance, economic hardship
BY Abiodun Saheed Omodara October 1, 2024 0

ABIODUN OMODARA and BENEDICTA BASSEY write that as the pulsating rhythms of celebration echo through...

RECOMMENDED FOR YOU
Nigeria leads to achieve wheat self-sufficiency in West Africa
BY Abiodun Saheed Omodara October 1, 2024 0

West Africa is intensifying its efforts to achieve wheat self-sufficiency as the Second Regional Sum...

RECOMMENDED FOR YOU
US-China trade war detriment to Africa’s economy- PAMA
BY Abiodun Saheed Omodara October 1, 2024 0

The Pan-African Manufacturers Association has raised alarm over the detrimental effects of the ongoi...

OUR CHANNELS:

OTHER ARTICLES ::

3rd October, 2024
Amid cry for help: BBNaija 2011 winner Karen Igho opens $50,000 GoFundMe
BY Ebiakuboere England October 3, 2024 0

Karen Igho, the winner of Big Brother Africa 2011, has established a $50,000 GoFundMe campaign to he...


Unknown assailants kill three in tragic Lisbon shooting
BY Benedicta Bassey October 3, 2024 0

Three persons were shot and killed by unidentified assailants in broad daylight in a rare act of vio...


Ex-Singaporean minister Iswaran jailed over corruption scandal
BY Benedicta Bassey October 3, 2024 0

A court sitting in Singapore on Thursday sentenced former cabinet minister S. Iswaran to 12 months i...


Bangladesh’s interim govt recalls five diplomats amid major reshuffle
BY Benedicta Bassey October 3, 2024 0

Bangladesh’s interim government, led by Nobel Peace laureate Muhammad Yunus, following a major...


Prosecutor indicts Trump of overturning 2020 poll before losing power
BY Benedicta Bassey October 3, 2024 0

New evidence has emerged against former US President Donald Trump, indicting him of overturning the...


Israel bars Antonio Guterres from country, global leaders issues statement
BY Benedicta Bassey October 3, 2024 0

For failing to unequivocally condemn Iran's missile attack on Israel, Israel’s foreign ministe...


LASG moves to enforce physical planning compliance
BY Abiodun Saheed Omodara October 3, 2024 0

The Lagos State government through the Lagos State Ministry of Physical Planning and Urban Developme...


FG inaugurates inter-ministerial committee on dams' evaluation
BY Abiodun Saheed Omodara October 3, 2024 0

The Federal Government has inaugurated an Inter-ministerial Technical Committee on Dams' Evaluation...


Nigeria requires $410bn to deliver energy transition plan by 2060 — ECN
BY Abiodun Saheed Omodara October 3, 2024 0

The Energy Commission of Nigeria (ECN) says Nigeria requires $410 billion to deliver energy transiti...


ICPC announces recovery of N13bn looted funds
BY Benedicta Bassey October 3, 2024 0

The Chairman, Independent Corrupt Practices and Other Related Offences Commission, Dr Musa Aliyu (SA...


Menu