Okonjo-Iweala made the remark during an interview with Nigerian journalists at the Spring Meetings of the World Bank in Washington D.C. on Friday.
She explained that only 6.5 per cent of Africa’s exports go to the USA, while 4.4 per cent of its imports come from the U.S., meaning that the impact on the continent would be minimal.
“The trade of the continent is very limited with the USA. We have done the analysis, and the impact on the continent as a whole is not significant,” she said.
However, she noted that Africa’s limited trade with the USA was also not ideal, as it hindered economic growth.
The D-G emphasised that Africa needed to focus on utilising its own resources to reach its full potential, as aid was declining, and the continent required more investment.
She pointed out that Africa must strengthen internal trade, citing Lesotho as an example.
In spite of Lesotho exporting 200 million dollars’ worth of textiles to the USA, the country faced challenges due to the shrinking U.S. market.
Okonjo-Iweala noted that Africa spent 7 billion dollars annually on importing textiles, suggesting that Lesotho should instead focus on selling textiles within African markets.
She also urged the USA to consider the effects of tariffs on least-developed countries, calling for a reassessment of the reciprocal tariffs in poorer nations.
Okonjo-Iweala concluded that Africa needed more investments and should work towards boosting intra-Africa trade, which remained underdeveloped.
“We cannot trade more externally, where our trade is only 3 per cent of world trade, or internally, where intra-Africa trade is 16 to 20 per cent at most,” she said.(NAN)
