Nigerian manufacturers, others to save $1.4b yearly on Chinese tariff removal

Manufacturers have welcomed Chinese President Xi Jinping’s decision to remove tariffs on imports from 53 African countries starting May 1, 2026, noting that the zero-tariff policy will open one of the world’s largest consumer markets to African producers and manufacturers.

Nigeria and other African manufacturers under their umbrella body, Pan-African Manufacturers Association (PAMA), expressed optimism that with bilateral trade already exceeding $300 billion in 2025, the move could boost sectors like agro-processing, textiles, light manufacturing, and industrial goods.

The tariff removal, according to them, could significantly expand African access to China’s vast consumer market, lowering entry barriers and potentially boosting export volumes, while eliminating up to $1.4 billion in annual duties based on current trade volumes.

In the short term, resource-rich countries may see faster growth in shipments of oil, minerals, and agricultural commodities.

PAMA, however, stressed that the real gains depend on Africa moving beyond raw exports toward value-added and finished products. “The zero-tariff window should serve as a catalyst for industrial upgrading, regional value chains, and stronger export competitiveness,” it said.

In a move set to reshape Sino-African trade relations, Xi Jinping, on February 14, 2026, announced that China will eliminate tariffs on all imports from 53 African countries starting May 1, 2026.

This zero-tariff policy expands an existing regime that previously covered only 33 African nations, granting duty-free access to one of the world’s largest consumer markets for a wide range of African goods, from agricultural products to manufactured items.

The announcement, made via state media, excludes only Eswatini—the sole African country maintaining diplomatic ties with Taiwan, in line with China’s One-China policy.

Xi’s pledge aligns with Beijing’s broader strategy to strengthen economic partnerships with Africa, where China is already the continent’s largest trading partner, with bilateral trade exceeding $300 billion in 2025.

But PAMA said it believes that the real economic and industrial gains from this initiative will not come from simply increasing the volume of raw commodity exports. Instead, these gains will depend on Africa’s ability to move up the value chain, producing semi-processed and finished goods that meet international quality standards.

According to PAMA, exporting raw materials alone risks leaving African economies exposed to price volatility and low-margin trade. “The zero-tariff window is expected to act as a strategic catalyst for industrial transformation,” it stated.

Established after the 2018 Intra-African Trade Fair in Cairo, Egypt, PAMA serves as the continental voice of manufacturers, driving Africa’s industrial transformation.

Currently led by Interim President Engr. Mansur Ahmed and Interim Co-Secretary Segun Ajayi-Kadir, PAMA represents, protects, and promotes the interests of manufacturers across Africa through advocacy and strategic partnerships.

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The Association said once operational, China’s zero-tariff policy could provide manufacturers with an opportunity to upgrade production facilities, adopt modern technologies, and improve product quality to meet the standards of the vast Chinese market.

Engr. Mansur highlighted other opportunities in the zero-tariff policy to include the likelihood of encouraging the development of regional value chains, fostering collaboration across sectors such as agro-processing, light manufacturing, and industrial goods.

He also said by strengthening inter-African production networks and linking them to global markets, African firms would have the potential to enhance productivity, reduce costs, and improve export competitiveness.

“In essence, the true benefits of the tariff removal will depend on Africa’s ability to move beyond exporting raw commodities and focus on producing value-added and finished goods,” he emphasised.

“For African manufacturers and producers, the benefits will depend on preparedness. Sectors such as processed foods, cocoa derivatives, textiles, and light-manufactured goods could gain ground if quality standards, scale, and logistics are competitive.

“Without deliberate value addition, however, exports may remain concentrated in primary commodities, reinforcing raw-material dependence and limiting industrial growth,” Ajayi-Kadir added.

Giving details of the tariff elimination, PAMA said the policy will apply comprehensively to all product categories from eligible African nations, marking China’s most extensive unilateral trade liberalisation toward the continent.

This initiative, the Association stayed, builds on last year’s commitment to extend zero-tariff treatment to all diplomatic partners in Africa, aiming to boost exports and foster predictable markets for African producers.

African exporters, particularly in agriculture, raw materials, and emerging manufacturing sectors, stand to gain significantly, as the removal could eliminate up to $1.4 billion in annual duties based on current trade volumes.