WTO lowers trade prospects for Africa

Africa's trade prospects have dimmed in the face of rising global protectionism, with new tariffs from the United States and escalating trade policy uncertainty threatening to stall the continent's modest post-pandemic recovery, according to a report by the World Trade Organization.

In its report, Global Trade Outlook and Statistics, the WTO warns that a surge in tariffs and other restrictive measures — particularly from the United States — has sharply downgraded projections for global merchandise trade, with ripple effects hitting developing economies hardest, including Africa. The report now forecasts a 0.2 percent contraction in global trade volumes this year — a steep drop from the nearly 3 percent growth initially anticipated.

"The outlook for 2025 is subdued for Africa," the report states, noting the continent's services exports are projected to shrink by 1.6 percent, reversing earlier expectations of 1.8 percent growth. Although a rebound is forecast for 2026, with services exports projected to rise by 5.3 percent, the WTO cautioned that near-term risks remain elevated.