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Afreximbank highlights Africa’s opportunities under China’s zero-tariff policy

Afreximbank highlights Africa’s opportunities under China’s zero-tariff policy
Wednesday, 12 November 2025 11:50
  • China plans to grant zero-tariff access to exports from 53 African nations
  • Afreximbank says policy could boost value chains, logistics, and integration
  • Report urges investment in infrastructure, trade financing, and standards alignment

African countries can make full use of the zero-tariff treatment that China plans to apply to their exports by developing regional value chains in high-potential sectors such as agricultural processing, light industry, and mineral treatment, while also strengthening infrastructure and trade corridors. This is outlined in a report released in early November by the African Export-Import Bank (Afreximbank).

Titled “China’s Zero-Tariff Policy and Africa’s Trade Future: A Strategic Inflection Point,” the report recalls that China proposed in June an exemption from customs duties on all products it imports from African countries with which it maintains diplomatic relations. In a letter to African foreign ministers attending a follow-up meeting on the Forum on China-Africa Cooperation (FOCAC) decisions in the city of Changsha, President Xi Jinping announced that the 53 African countries maintaining diplomatic ties with China would be granted “zero-tariff treatment for 100% of tariff lines.”

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Bilateral trade was discussed at the 2024 Forum on China-Africa Cooperation.

This measure will be the subject of a future economic agreement to be negotiated and signed. The only exception is Eswatini (formerly Swaziland), an ally of Taiwan, with which Beijing has strained relations.

A different approach from the United States and key advantages

No date of implementation has been announced so far, but the Chinese “zero-tariff” initiative stands in stark contrast to the protectionist trade policies of U.S. President Donald Trump. It offers an alternative to trade agreements concluded between African countries and Western powers, such as the African Growth and Opportunity Act (AGOA) and the Economic Partnership Agreements (EPAs) signed with the European Union.

The broad customs exemption offered by China comes with no governance or human rights conditions and applies not only to the least-developed African countries—which have already benefited since September 2024 from zero-tariff treatment on the Chinese market—but also to middle-income countries such as Egypt, Nigeria, and South Africa. Beyond the diplomatic and geostrategic dimension of this move, which counters the U.S. approach, Beijing is also facilitating the reduction of its large trade surplus with Africa.

On paper, the initiative offers several opportunities for African economies, including expanded access to a market of more than 1.4 billion consumers. Previously subject to standard Chinese tariffs of up to 25%, middle-income countries will, for the first time, benefit from duty-free access to this market. Additionally, the Chinese “zero-tariff” policy could strengthen the bargaining power of African countries with other trade partners. When negotiating a new trade agreement with the United States or revising the EPAs with the European Union, these countries could demand more favorable rules of origin and preferential conditions by citing the Chinese precedent.

Aligning exports with Chinese demand

However, African exports to China remain concentrated in a handful of countries—mainly Angola, the Democratic Republic of Congo, and South Africa—and are largely composed of raw materials such as oil, agricultural products, and minerals. Consequently, Beijing’s initiative may have limited impact on rebalancing bilateral trade relations, since specific tariff regimes already exist for raw materials.

The first step should therefore be to align exports with the evolving preferences of Chinese consumers. Beyond simply increasing production, this requires a data-driven approach to identify high-potential niche products such as specialty coffee, macadamia nuts, avocados, and transition minerals. It is equally important to upgrade national standards and certification systems to meet China’s strict quality requirements, which often serve as a prerequisite for access to its market.

afrexim 2

At the same time, access to digital retail platforms such as Alibaba, JD.com, and Pinduoduo, along with an understanding of Chinese preferences in packaging, labeling, and payment methods, will be essential to capture new market segments and enhance the visibility of African brands. Moreover, strengthening infrastructure that supports increased trade flows—such as industrial zones near ports, integrated rail links, dry ports, and cold storage networks—will make African exports more competitive in a distant market like China.

In this same vein, attention should be given to strengthening trade finance mechanisms such as export credit insurance and commercial loans denominated in Chinese yuan renminbi, in order to reduce the risks faced by exporters, particularly small and medium-sized enterprises. African countries would also benefit from deepening their regional integration under the African Continental Free Trade Area (AfCFTA).

The AfCFTA offers a platform to consolidate fragmented markets, streamline regulations, and establish continent-wide production networks. Promoting regional value chains built around, for instance, a textile manufacturing corridor in East Africa or a battery minerals hub in Southern Africa, could help achieve scale and specialization, thereby improving trade profiles. Building ecosystems around key export sectors would also encourage value-added production.

Finally, harmonizing standards, documentation, and border procedures among countries would significantly reduce administrative costs and delays, while accelerating the digitalization of customs and transport systems would help move goods efficiently across borders.

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