According to a new report by the African Export-Import Bank (Afreximbank), China’s decision to extend zero-tariff treatment to all 53 African countries represents a historic shift in global trade relations and a major opportunity for the continent to accelerate industrialisation, diversify exports, and strengthen its position in the global economy.
The policy, announced by Beijing in June 2025, eliminates tariffs across all product lines for every African nation with diplomatic ties to China. The initiative, detailed in Afreximbank’s Trade & Development Finance Brief (ATDFB), Volume 9, Issue 2, is described as a “strategic inflection point” in Africa–China trade relations and a landmark move toward deepening South–South economic cooperation.
China’s trade surplus with Africa reached US$98 billion in 2024, largely due to Chinese exports. By opening its market to African goods, the policy seeks to reduce trade imbalances, diversify China’s imports, and help African economies capture more value from exports beyond raw materials such as petroleum, copper, and ores.
Afreximbank notes that the zero-tariff regime could boost African competitiveness in sectors such as agriculture, textiles, light manufacturing, and automotive components, provided the continent invests in production capacity, quality assurance, and supply chain integration.
The report says the new tariff framework shifts China’s engagement model from infrastructure-led diplomacy to trade-led growth, aligning more closely with Africa’s goals of industrial transformation under the African Continental Free Trade Area (AfCFTA). It also presents Africa with a viable alternative to Western trade programmes such as the U.S. African Growth and Opportunity Act (AGOA) and the European Union’s Economic Partnership Agreements (EPAs).
The report identifies three major opportunities for Africa under the policy, expanded market access, enhanced value addition, and stronger bargaining power in global trade negotiations. Middle-income countries that previously faced tariffs of up to 25% ,including Nigeria, Egypt, and South Africa, now enjoy duty-free access to the Chinese market. This is expected to unlock new opportunities in processed food, apparel, electronics, and agribusiness exports.
Afreximbank notes that the zero-tariff initiative could serve as leverage in Africa’s future trade talks with the United States and European Union, allowing African negotiators to demand “more favourable rules of origin, longer preference terms, and fewer conditions.”
However, the report cautions that Africa’s ability to capitalise on the new opportunity depends on addressing long-standing infrastructure and logistics bottlenecks. It cites poor transport connectivity, inefficient ports, inadequate rail networks, and fragmented cold chain systems as persistent barriers that inflate export costs and weaken global competitiveness.
Afreximbank proposes four strategic pathways to ensure Africa maximises the benefits of the zero-tariff regime:
- Aligning exports with Chinese market demand, including meeting stringent quality and certification standards.
- Scaling up development finance and trade infrastructure, through industrial zones, export processing hubs, and improved logistics.
- Deepening AfCFTA integration, to harmonise regulations and create continental value chains.
- Enhancing trade diplomacy, using China’s offer to reshape Africa’s global trade negotiations and governance frameworks.
The report warns that without strong institutional readiness, a competitive private sector, and regional coordination, the benefits of China’s zero-tariff access could remain limited to a few well-prepared economies. It notes that only countries with efficient customs, certification systems, and investment promotion agencies will fully realise the potential gains.
The bank concludes that while the zero-tariff initiative could transform Africa from a supplier of raw materials into a hub for value-added exports, its success depends on “deliberate, coordinated, and sustained action” across the continent.
“China’s policy offer could mark a pivotal turning point,” the report states. “It has the potential to trigger a structural shift, transforming Africa from a supplier of primary commodities into a competitive hub for diversified, value-added, and globally integrated trade. The opportunity is real, but only if Africa chooses to act.”
