Analysing likely impact of Trump’s policy direction on Africa

US President Donald Trump recently reiterated his stance on imposing 100 percent tariffs on BRICS nations if they continue their de-dollarization efforts. This statement has sparked discussions and debates about the potential impact of Trump's policy direction on Africa and Nigeria's role in the changing global trade landscape. In a recent interview on CNBC Africa, Johnson Chukwu, CEO of Cowry Asset Management, and Adedapo Adelegan, Former President of the Nigeria British Chamber of Commerce, joined the conversation to analyze Trump's inauguration speech and discuss the implications of his policies, particularly in relation to Nigeria joining BRICS as a partner country. Trump's inaugural speech highlighted his prioritization of American investment in crude oil exploration and production, signaling a shift towards supporting fossil fuel industries and technology advancements in hydraulic fracturing. Additionally, Trump's threat to impose 100 percent tariffs on BRICS countries aiming to develop a counter-currency to challenge the dominance of the US dollar raised concerns about potential trade disruptions. Chukwu pointed out that Trump's policies could lead to a global slowdown in production and trade as countries adopt more nationalistic approaches to economic independence. Adelegan echoed Chukwu's sentiments, emphasizing the irreversible momentum of BRICS countries in de-dollarization efforts and the strained relations between the US and traditional allies, such as Western European nations. He predicted a tit-for-tat diplomatic response to Trump's protectionist stance and highlighted the importance of African nations like Nigeria exploring alternative partnerships and economic strategies in the face of evolving global dynamics. The conversation also delved into the potential effects of a stronger US dollar and increased American energy exports on African markets. Chukwu suggested that Trump's proposed tax cuts may actually weaken the dollar in the long run due to increased borrowing, affecting global trade dynamics. Furthermore, the imposition of tariffs on major trading partners like China and disruptions in international relations could lead to a reconfiguration of the global economic order and a drive towards energy independence. Regarding the future of US-Africa relations under the Trump administration, Adelegan expressed skepticism about significant policy support for Africa, urging African leaders to focus on intra-African trade and cooperation initiatives like the African Continental Free Trade Area (AfCFTA). He predicted limited engagement from the US in the continent's economic development agenda and advised African nations to prioritize self-reliance and regional partnerships. In conclusion, Chukwu highlighted the positive prospects of Nigeria joining BRICS as a partner country, emphasizing the need for the nation to enhance its economic attractiveness, reduce corruption, and improve the ease of doing business to leverage its position in the global economy. Both experts underscored the importance of proactive economic policies to navigate the evolving international trade environment and position Nigeria as a key player in the new world order. As Trump's policy direction unfolds, African nations like Nigeria face complex challenges and opportunities in shaping their economic strategies and international engagements. Navigating this dynamic landscape requires a blend of resilience, adaptability, and strategic foresight to thrive in a rapidly changing global economy.