China’s tariff cuts benefit African exporters
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China began removing tariffs on goods from African countries in May, and Standard Bank reports that exporters are already seeing cost savings.
Businesses in South Africa, Kenya, Zimbabwe, and Nigeria are among the first to utilize the new trade arrangement. South African apples and wine, Kenyan coffee, Nigerian cattle-bone products, Zimbabwean tobacco, Kenyan avocado oil, and West African cocoa have recently entered China without tariffs.
Previously, South African apples faced a 10% tariff, but a recent shipment saved approximately 20,000 yuan (about R47,500) upon clearing customs. Importers estimate this change will lead to annual savings exceeding R23.45 million, based on previous import levels. Similarly, over 6,000 bottles of South African wine cleared customs with tariff savings of around $3,090, with projected annual savings of $735,300. Standard Bank notes that this tariff reduction offers opportunities to diversify export destinations and strengthen trade routes.
Their Africa Trade Barometer shows increasing interest in Asian trade partners, with 35% of surveyed businesses across ten African markets now preferring them, up from 24% in 2024. The tariff cuts apply to the 53 African countries with which China maintains diplomatic relations, and are in effect for South Africa until April 2028, contingent on meeting China’s rules of origin.
