AU delegates spell out worrying impact of trade war on Africa’s growth
12 Feb 2019 - by Chante Ho Hip
Trade and Industry minister Rob Davies has warned that the current trade war between the US and China could decrease Africa’s GDP growth by 0.7%.
He was speaking on the side-lines of the AU Summit in Addis Ababa where his sentiments were shared by African Development Bank (AfDB) director, Hanan Morsy, who said he expected a noticeable impact in the tradeable sectors, including export commodities like minerals, oil and food related products.
To put the trade war’s impact on the continent into perspective, Africa’s GDP grew 3.5% last year.
More importantly, it was predicted that there be would be growth of 4% in 2019 with more than 40% of African countries expected to share in the economic momentum.
Global hopes are for continued rapprochement following a recent meeting between US President Donald Trump and his Chinese counterpart, Xi Jinping.
They are due for talks again on March 1 but hopes that an earlier meeting might be set has been dashed by Trump.
- Chante' Ho Hip