World tariff profiles is the publication that the World Trade Organization (WTO) makes in collaboration with ITC and UNCTAD to give an overview of the tariffs and non-tariff measures imposed by various countries and customs territories in the world (170 in total). In analyzing data referred to Africa, it is interesting to note how the Most-Favored Nation (MFN) average tariffs vary widely among its nations. MFN tariffs are the tariff rates that a country applies to imports from all its trading partners which are not part of a preferential trade agreement (such as a free trade area or customs union). In practice, MFN rates are the highest (most restrictive) tariffs that a country can charge on imports (see the table below). The WTO data shows that in Africa, the higher tariffs are applied by Sudan (21.6%), Tunisia (19.5%) and Algeria (18.9%). To be noted that the first and the last country (Sudan and Algeria) are non-WTO members. On the other hand, the lowest tariffs are applied by Mauritius (0.8%) and Seychelles (2.5%). In terms of Regional Economic Communities (RECs), the ones with the lower MFN tariff rates are SACU (7.6%) and ECOWAS (12%), while the one with the highest is CEMAC (18%). A mistery, instead, remains the huge difference in MFN tariffs between EAC member States, that as a customs union should apply a common tariff towards non-EAC members.

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According to the latest edition of the UNCTAD World Investment Report 2023, Foreign Direct Investment (FDI) flows in Africa registered a 44 per cent decline with respect to 2021, falling back to the 2019 level of $45 billion. However, the report also admits that the strong growth of FDI in Africa in 2021 was “anomalous”, having been influenced by a single large intrafirm financial transaction that was concluded in South Africa in that year. If this transaction is excluded, the change in FDI flows to Africa in 2022, compared to 2021, would have increased by 7 per cent.

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