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Minerals In Hand, Africa’s Commerce Envoys Head For The US – FREEDOMBUNKER

by Index Investing News
April 21, 2025
in Opinion
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Authored by Darren Taylor through The Epoch Occasions,

Mcebisi Jonas doesn’t often undergo from nerves. If he did, he wouldn’t have survived a brutal guerrilla marketing campaign in opposition to South Africa’s apartheid foot-soldiers within the Nineteen Seventies and Eighties.

“As a cadre for the ANC [then-banned African National Congress], I used to be preventing for freedom from racism, for black individuals’s proper to vote, for human rights,” he informed The Epoch Occasions.

“Now, I’m about to struggle one other, very totally different battle. I’m a bit nervous, however I’m prepared to speak with any and all representatives of the U.S. president, and I belief we’ll deal with each other with respect,” stated Pretoria’s eloquent former minister of finance and now profitable businessman.

Jonas is a part of a lately created unique membership of particular envoys appointed by most of Africa’s 54 international locations to barter higher export phrases they hope will permit them to promote their items for “cheap revenue” on the planet’s most profitable market.

Minerals In Hand, Africa’s Commerce Envoys Head For The US – FREEDOMBUNKER

This adopted U.S. President Donald Trump’s April 2 announcement of tariffs on items exported to the US by its financial companions. Trump has stated the duties would right commerce imbalances he stated are unfair to America.

Per week later, Trump paused his reciprocal tariffs for 90 days—aside from these on China—indicating that many international locations had reached out and that the US was open to negotiations.

If nothing have been to alter after the 90-day pause, a few of the highest tariffs—between 30 and 50 p.c—could be for merchandise imported from Africa.

Africa’s envoys are actually speeding to satisfy the deadline in July when the raised duties are scheduled to return into impact.

A person melts pure gold fragments coming from totally different mines within the area, at a gold market in Geita, Tanzania, on Could 28, 2022. Luis Tato/AFP through Getty Pictures

“Most African international locations export rather more to the US than they import from the US, so the Trump administration calculated that commerce between the areas is unfairly weighted in direction of Africa and that the US is shedding out,” defined Morné Malan, deputy head of coverage at South Africa’s Free Market Basis.

In addition to commerce deficits, Trump additionally appeared for different indicators of commerce boundaries as standards for imposing tariffs.

Kenya, with which the US loved a commerce surplus, is an instance.

In keeping with the US Commerce Consultant, East Africa’s largest economic system exported items—primarily textiles, espresso, tea, and fruit—to the worth of $737.3 million to the US in 2024.

That 12 months, Kenya imported items price $782.5 million from the US, primarily petroleum merchandise, plane and associated elements, equipment, and prescription drugs, giving the US a commerce surplus of $45.2 million.

Regardless of this, President William Ruto’s authorities had anticipated that Trump would hit Kenya with the next tariff, as Nairobi costs a ten p.c tax on American imports.

So, stated Commerce and Trade cupboard secretary, Lee Kinyanjui, the nation went into “harm management mode,” dispatching a workforce of negotiators to the White Home a day earlier than Trump’s “Liberation Day” tariffs announcement.

Though the Kenyan authorities’s important goal of securing duty-free or “very beneficial responsibility entry” for its items into the U.S. market continues to be the topic of talks, Trump levied a reciprocal tariff of solely 10 p.c on Nairobi.

“We consider it helped us quite a bit to talk to Trump’s individuals forward of his announcement, and instantly afterwards,” Kinyanjui informed The Epoch Occasions.

“We’re contemplating a free commerce settlement with the US, and that can imply the scrapping of the tariff on American items getting into Kenya, and we’ll hopefully nonetheless export duty-free to the US. That’s reciprocity.”

Steven Gruzd of the South African Institute of Worldwide Affairs described Kenya as a “little bit of an anomaly.”

“I’m no fan of the African governments that steal their international locations’ assets and hold their individuals poor, however I need to additionally agree that it’s a little bit of a stretch to count on nations with low GDPs and tiny budgets and big money owed and low manufacturing bases to import at giant scale costly items, services from the wealthiest economic system on the planet,” he informed The Epoch Occasions.

It’s on this context that the African envoys will go to the White Home.

“He’s about to enter a lion’s den,” Malan stated of Jonas, the South African diplomat.

Artisanal miners accumulate gravel from the Lukushi river looking for cassiterite in Manono, Democratic Republic of Congo, on Feb. 17, 2022 Junior Kannah/AFP through Getty Pictures

The USA’ 31 p.c tariffs on South Africa—which was included in an inventory of 60 nations Trump stated had traded together with his nation unfairly throughout his announcement on April 2—is simply the president’s newest salvo in opposition to the continent’s largest, most industrialized economic system.

The nation featured prominently within the sequence of govt orders Trump has signed since re-entering the White Home on Jan. 20.

In one in every of his first govt orders, the U.S. chief accused Pretoria of implementing racist legal guidelines aimed toward discriminating and inspiring violence in opposition to white Afrikaners.

Trump subsequently withdrew $440 million in annual funding to South Africa, leading to a slowdown of the nation’s HIV therapy and prevention program.

He stated South Africa is a menace to U.S. nationwide safety as its ANC authorities has army and financial alliances with a few of Washington’s main geopolitical foes, together with China, Iran, and Russia.

Trump additionally criticized Pretoria for launching a case of genocide within the Gaza struggle in opposition to Israel on the Worldwide Court docket of Justice. The struggle was triggered by terrorist group Hamas’s Oct. 7, 2023, assault on Israel.

Then, Secretary of State Marco Rubio expelled South Africa’s ambassador to Washington, the ANC’s Ebrahim Rasool, after the diplomat described Trump’s Make America Nice Once more (MAGA) motion and his administration as “supremacist.”

Jonas grimaced and stated, “Sure, latest historical past between South Africa and the US is just not good.

“However I’m satisfied we will cooperate going ahead and we will come to a mutually useful settlement that can foster the circulate of American items into our nation, and vice versa.”

Steven Gruzd of the South African Institute of Worldwide Affairs stated that, in communications inside the Trump administration, “it has turn into clear that they think about Pretoria to be the enemy, giving the [President Cyril] Ramaphosa authorities the identical standing as Beijing and Moscow and Tehran.”

Like many in Africa, stated Gruzd, Pretoria has “good playing cards to deal” to persuade the U.S. president. Its playing cards are beaming the attract of the continent’s huge assets, which embrace valuable metals like gold and platinum, and important minerals important to power safety and protection, as they’re main parts of weapons and army gear.

In a paper analyzing Africa’s potential responses to the U.S. tariffs, the Middle for Strategic and Worldwide Research (CSIS) in Washington stated 24 of Africa’s 54 international locations are depending on mining and minerals for earnings.

Africa holds a 3rd of the world’s vital minerals, in response to a examine by U.S. think-tank The Atlantic Council.

South Africa already provides virtually all of America’s chromium and offers 1 / 4 of its manganese necessities.

Manganese is a various mineral, used to provide metal and rechargeable batteries.

Chromium options prominently in weapons manufacturing, together with missile techniques and fighter jets.

Different minerals produced at a big scale by African international locations embrace lithium, utilized in electrical automobile batteries, and coltan, utilized in communications gear like cell telephones and computer systems.

Though Trump has exempted vital minerals from tariffs, Gruzd stated South Africa’s mineral wealth nonetheless has a job in presumably decreasing the U.S. levies on South Africa, contemplating the Trump administration’s want to cut back U.S. dependency on Chinese language provides.

“China dominates Africa’s minerals sector, and it has mines far and wide, from DRC [Democratic Republic of Congo] to Zambia to Guinea,” Gruzd stated.

“Beijing’s harvesting of the continent’s minerals and metals and processing them has positioned the US at an immense drawback by way of ensuring it has a dependable provide of those vital gadgets effectively into the longer term.

Gruzd stated if the US and South Africa can strike a deal on vital minerals, “that may be an enormous win, politically and economically, for the Trump administration.”

“If Trump is obtainable mining rights in sure African international locations, this could go a great distance in persuading him to decrease tariffs and maybe even drop them as a result of it could give the US an enormous foothold in international provide chains,” he stated.

The CSIS stated that Trump ought to revoke tariffs on African international locations and that the African Union and African leaders “ought to search to reveal that preferential commerce with the continent, in truth, total serves U.S. nationwide pursuits.”

“Identical to Canada and Mexico have been exempt from the reciprocal tariffs because of the United States’ nationwide curiosity, an identical case could be made for Africa by way of market entry and important minerals provide chain safety,” wrote financial improvement consultants Hannah Ryder, Trevor Lwere, and Ovigwe Eguegu.

“As tariffs are set to hit U.S. companies within the automotive, aerospace, and chemical sectors, that are closely depending on vital minerals, the majority of which Africa has, it isn’t within the U.S. curiosity to impose tariffs on African items.”

Ryder, Lwere, and Eguegu highlighted that one of many Trump administration’s goals is to realize larger market entry for American companies and merchandise overseas.

“This requires the existence of buying energy amongst overseas customers. By imposing tariffs on African exports to the US, nevertheless, the US makes it troublesome for Africa to acquire the buying energy essential to demand U.S. merchandise,” they stated.

The consultants stated the US ought to help preferential entry for African items to the American market as a market-building technique.

That is vital, they wrote, particularly contemplating that Africa has the youngest inhabitants and will probably be residence to over 25 p.c of the worldwide inhabitants within the subsequent few many years.

Bamidele Ayemibo, lead commerce coverage guide at Nigeria’s 3T Impex Consulting Restricted, stated African governments’ response to Trump’s tariffs must be to signal preferential commerce agreements with the US—and with different companions.

“The very last thing they need to do is retaliate with increased tariffs on U.S. merchandise; they don’t have the financial energy to take action and they’ll solely damage themselves,” he informed The Epoch Occasions.

“Now, greater than ever, it’s time for discuss and for bargaining.”



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