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Côte d’Ivoire Begins Gradual Tariff Cuts Under African Free Trade Deal

Côte d’Ivoire Begins Gradual Tariff Cuts Under African Free Trade Deal
Thursday, 24 April 2025 17:39

(Ecofin Agency) - • New rule cuts tariffs on 5,516 non-sensitive products over 10 years
• Côte d’Ivoire aims to boost trade within Africa and grow its economy
• Move comes as global trade pressure rises, especially from the U.S.

On April 23, 2025, the Ivorian Council of Ministers approved a new ordinance that will gradually lower import tariffs on thousands of products considered non-sensitive to the country's economy. The decision is part of the African Continental Free Trade Area (AfCFTA) agreement.

The reform covers 5,516 tariff lines under the ECOWAS Common External Tariff, using the 2017 version of the World Customs Organization's harmonized system. These products, seen as having low risk for food security, tax revenues, or economic stability, will see their import duties reduced by 10% each year. Within a decade, the tariffs on these goods will drop to zero. This phased approach is based on the principle of reciprocity between member states, although other import-related fees will still apply.

The ordinance is part of Côte d’Ivoire’s broader effort to deepen its participation in the AfCFTA, which it ratified in 2018. The agreement aims to create a single market across the continent for goods and services, boost intra-African trade, and fast-track economic integration.

Back in 2020, a World Bank report estimated that Côte d’Ivoire could be one of the biggest winners from the deal. The country stands to increase its income by 13.5% by 2035—the highest projected gain among all African countries—thanks to lower trade costs, which are currently among the steepest in Africa. With improved access to African markets, Côte d’Ivoire may even outpace larger economies like Nigeria and South Africa in economic growth tied to the trade area.

The government has already begun laying the groundwork. In July 2021, it hosted a national workshop to train small businesses on how to export within Africa. In December 2023, it rolled out a private sector strategy for 2024–2028, designed to make local firms more competitive and help them tap into the benefits of the free trade zone.

The timing of the move is also strategic. Earlier this month, on April 5, the United States introduced new tariffs of 10% on most of its imports. In this tense global environment, African nations are looking inward to strengthen their economies. The AfCFTA is emerging as a way to make African markets more resilient by reducing their reliance on external partners and creating alternatives to global trade shocks.

Agriculture will likely play a major role in this shift. Côte d’Ivoire ranks as the fourth-largest net agricultural exporter on the continent, with a surplus of $285.8 million in intra-African farm trade, according to the 2024 Africa Agricultural Trade Monitor. As the world’s top cocoa producer, the country could use agriculture to boost its competitiveness and secure a stronger role in Africa’s economic future under the AfCFTA.

So far, 48 out of 54 African countries have ratified the agreement—an overwhelming show of support for what many see as a new chapter in the continent’s economic transformation.

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