20 Countries in Africa Where Imports are Cheap Due to Low Tariffs
- African countries have some of the highest import tariffs in the world with some making it hard for businesses to import products
- This hikes inflation and puts pressure on the local currency, and sometimes give local industries a less competitive edge
- In order to protect local industries, countries impose tariffs on imported products to discourage importation, allowing local companies to stay in business
One of the ways to stabilise a country’s local currency and stem inflation is to increase exports and reduce tariffs on imported products.
Nearly every African country has some type of trade control in order to protect their local industries and markets. These could range from local content requirements to quotas on imports and exports, subsidies and import tariffs.
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What import tariffs are
Business Insider report stated that despite the trade barriers, import tariffs seem to be the most popularly used. Less developed and developing markets around the world, most of which are in Africa, seem to have some of the highest import tariffs in the world, according to Investopedia.
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According to the International Trade Administration, tariffs are taxes imposed by governments on imported products. These vary from country to country and these also cover the freight and insurance on imported products.
The tariffs also contribute to the cost of the products which is always borne by the consumers who buy the products as importers try to recoup the cost of their imported products.
Tariffs spike the prices of imported goods due to duties imposed on tariffs as domestic producers are not compelled to increase their prices due to increased competition.
Tariffs also reduce effectiveness by letting companies with less competitive advantage remain in business.
The top African countries with the highest import tariffs rates
- Botswana: 0.8 per cent.
- Mauritius: 0.9 per cent.
- Namibia: 1.3 per cent.
- Seychelles: 1.5 per cent.
- Eswatini: 2.3 per cent.
- Lesotho: 3.3 per cent.
- Mozambique: 4.1 per cent.
- South Africa: 4.4 per cent.
- Libya: 4.5 per cent.
- Comoros: 4.6 per cent.
- Zambia: 5.0 per cent.
- Eritrea: 5.4 per cent.
- Malawi: 6.2 per cent.
- Liberia: 6.6 per cent.
- Burkina Faso: 7.2 per cent.
- Madagascar: 7.2 per cent.
- Ivory Coast: 7.6 per cent.
- Niger: 8.1 per cent.
- Uganda: 8.1 per cent.
- Democratic 8.4 per cent.
The List of African countries with highest debt to China, amount and what the debts are used for
Legit.ng reported that Macau is the only country in the world that is debt-free, according to the International Monetary Fund (IMF). The world’s greatest economies rank among the 20 countries with the highest external debts.
They are the US, Russia, United Kingdom, France, Germany, Japan and China, according to a Daily Trust report.
Many African countries take loans from different places as well as from the World Bank, the IMF, China and other countries to finance critical infrastructure and various development projects.
Source: Legit.ng
