Africa Must Work Towards Self-Reliance –Dr Bawumia

Former Vice President Dr. Mahamudu Bawumia has urged African countries to focus on economic self-reliance. He emphasized this need due to global trade uncertainties and rising protectionism.

Dr. Bawumia spoke at the International Democracy Union Forum in Brussels three days ago. He advocated for increased intra-African trade and regional value addition. He believes Africa should develop homegrown economic strategies.

In response to a question about trade weaponization, he highlighted its impact on African economies, especially Ghana. “There’s going to be more clamor for self-reliance,” he stated. He noted that countries will seek more intra-African trade as a solution.

He stressed the importance of reducing dependency on external markets. Africa must build economic resilience by looking inward, he said. “We need to reconsider our supply chains,” he added.

Dr. Bawumia criticized global policymakers for ignoring historical economic lessons. He pointed out that Africa contributes only 2.5 percent of global exports and 2.9 percent of imports. In contrast, Asia accounts for 43 percent of exports and 38 percent of imports.

He explained that trade deficits stem from macroeconomic issues, not tariffs. “Your deficit must equal the difference between savings and investment,” he noted. Countries spending more than they save will face trade deficits.

He referenced historical events like the U.S.’s Smoot-Hawley Act from the 1930s, which raised tariffs significantly and worsened the Great Depression. More recently, U.S.-China tariff disputes have negatively affected global trade.

Dr. Bawumia mentioned current U.S. tariff policies, which have risen from 2.4 percent to 10 percent since 1943. While Africa is less exposed to U.S. shocks, some countries like Lesotho are vulnerable due to high export dependence on the U.S.

“Lesotho exports about 50 percent of its goods to the United States,” he explained, highlighting risks under current tariffs affecting AGOA benefits.

To address these challenges, Dr. Bawumia called for deeper intra-continental trade and local value chain investments in Africa's economy.

He emphasized building sustainable economies rather than relying solely on major powers like China or the U.S., stating: “We need self-reliance.”

When asked about deepening ties with China amid protectionism, Dr. Bawumia acknowledged China's significant role but insisted diversification is necessary for African nations.

“In Ghana, China is our largest trading partner,” he said but noted that countries will adapt based on their needs as global dynamics change.

He concluded by stressing trust over tariffs in international trade relations: “Trust is more important than tariffs.”

Growing distrust among major powers hampers effective negotiations for trade agreements, he warned.

“If we don’t address this suspicion diplomatically,” he cautioned, “we’ll end up with suboptimal trade policies.” Trust must be prioritized for better cooperation in global trade.