The recent decision by the United States of America to impose sweeping 21% tariff would negatively impact Namibia’s export earnings by disrupting established supply chains, decreasing the competitiveness of goods exported from Namibia to the US, and impairing the ability of Namibian beef and fish exports to compete in the US market.
Namibian commodities’ stability on the global market may be threatened by the 21% tariff on imports, which might also harm export earnings and disrupt dependable supply systems. Consequently, the policy change can have a negative impact on significant businesses like uranium and diamonds.
Since 2001, Namibia has exported more than 6 400 goods to the US duty-free under the African Growth and Opportunity Act (Agoa). As a result, the tariffs will negatively impact Namibia’s economy in the near to medium term. Namibia must diversify its export markets, reinforce regional and global trade agreements, and attract investment from China, Russia, India, and other BRICS+ nations to mitigate the repercussions of US tariffs.
Alternatives to China and others are emerging in response to US presidential directives as the world shifts away from US economic dominance and as global alliances change. In particular, the imposition of punitive tariffs on nations is a key tool in a negotiation strategy to secure the best trade terms for the US.
Namibia must democratise, promote political participation, streamline business operations, reduce debt, open financial markets, attract foreign direct investment, facilitate technology transfers, build human capital, and improve good governance to achieve its potential success in the future. The country may boost its trade with other allies while the US tariffs cannot scare Namibia.
This is because nations like China, Russia, and the BRICS+ have, as their main goals, the development of practical cooperation in all fields; the establishment of a community of shared interests, responsibility, and destiny marked by mutual political trust, economic integration, and cultural inclusivity; and the facilitation of connectivity, unrestricted trade, financial integration, and interpersonal relationships.
In Namibia, the financial advantages of this are already evident.
Furthermore, Namibia can now make the most of this important partnership as the tariff intensifies by using the FOCAC’s pillars, taking part in high-level diplomatic discussions, and focusing on important areas like youth development, agricultural innovation, and economic cooperation. Many African countries rely on exporting their raw materials to markets in the West, including the US. Tariffs may raise costs and make it harder for African exporters to compete internationally.
In my honest opinion, China is a dependable ally, and since these tariffs may restrict Africa’s export potential, especially in sectors like mining and agriculture, time has come for African countries to turn their attention to China and BRICS+. The Belt and Road Initiative is just one example of the strong trade ties between China and Africa, which have undoubtedly been growing rapidly over time.
China’s substantial trade with Africa and the rest of the globe can be attributed to these basic components. Additionally, the need for foreign commodities has grown because of China’s development. China continues to lead the world in manufacturing, with an astounding US$5.65 trillion in industrial production in 2024.
With its sophisticated automation, vast industrial base, and strategic policies, China is impacting global supply chains and will eventually overtake all other economies as the largest in the world. China eliminated tariffs for all emerging nations to encourage industrial cooperation, upgrade, and draw in more African countries.
By means of the African Continental Free Trade Area (AfCFTA), African countries may now leverage their collective market size to negotiate improved trade terms with China and other global trading partners that have suffered due to US tariff action. Africa and China are experiencing economic growth, which might be influenced by additional trade agreements, investments, and infrastructure initiatives. In a nation like China, which has the second-biggest economy and second-largest consumer market for goods worldwide, these tariffs won’t have a major adverse effect.
Furthermore, Namibia should continue to actively participate in discussions with the WTO and its US counterparts in reaction to the tariff announcements, handling changing trade dynamics pragmatically and with a dedication to win-win solutions. The US and Namibia’s total goods trade was valued at about N$7.8 billion in 2024. About N$2.8 billion was the amount of US exports to Namibia, which is N$289.8 million less than the previous year.
Namibian exports to the US increased by around N$2.6 billion to about N$4.9 billion. It is still unclear, though, if Agoa is defunct and resting or if the tariffs transcend its principles. As a result, Namibia’s only recourse might be to renegotiate a bilateral trade agreement with the US based on fair trade.
Namibia, with a diverse economy and China as its main trading partner, may now look beyond the United States for new markets. It also signals to Africa, particularly Namibia, the urgent need to improve intra-African trade through the AfCFTA, reinforcing the case for Namibia’s accelerated implementation of the AfCFTA, deepening regional integration, and leveraging frameworks, as well as promoting intra-African trade.
The international community shares responsibilities for making economic globalisation more open, inclusive, universally beneficial, and balanced.
*Josef Kefas Sheehama