Turning tariffs into opportunity for African SMEs

The recent implementation of new U.S. tariffs has sparked a wave of uncertainty and disruption in global markets, but for African entrepreneurs like Arafo Hassan Barbad, General Secretary of the Network of Ambitious Djiboutian Entrepreneurs, this may present a unique opportunity to expand business horizons and forge new partnerships. In a recent interview with CNBC Africa, Barbad expressed optimism about the potential benefits that could arise from navigating these turbulent waters. He highlighted the importance of initiatives that support small and medium-sized enterprises (SMEs), such as the Network of Ambitious Djiboutian Entrepreneurs, in fostering economic growth, job creation, and cross-border collaboration across the African continent. Barbad emphasized the critical role that MSMEs play in driving the economy and acting as a bridge between different African nations. He underscored the need for greater inclusion of entrepreneurs in decision-making processes and business forums to promote dialogue, networking, and knowledge exchange. By creating opportunities for entrepreneurs to connect with each other, discuss potential partnerships, and explore new markets, initiatives like the Network of Ambitious Djiboutian Entrepreneurs can help pave the way for increased trade and investment within Africa. One key aspect of Barbad's vision is the potential for African businesses to capitalize on the shifting dynamics in the global market, particularly in light of the U.S. tariffs targeting China and other countries. He highlighted the opportunity for African entrepreneurs to engage with Chinese investors and capitalize on Chinese products that were previously destined for the U.S. market. By leveraging the open market in Africa, entrepreneurs can establish mutually beneficial relationships with Chinese partners, expanding their business reach and tapping into new opportunities for growth. Barbad also pointed to the importance of understanding the nuances of Chinese business culture and building bridges to facilitate smoother interactions and collaborations. He highlighted the need for educational initiatives that promote cultural understanding and business acumen, enabling African entrepreneurs to navigate the complexities of international trade and forge lasting partnerships with Chinese counterparts. In conclusion, Barbad's insights shed light on the transformative potential of turning challenges like tariffs into opportunities for African SMEs. By embracing initiatives that support entrepreneurship, fostering dialogue and collaboration, and adapting to the changing global landscape, African businesses can position themselves for success in an increasingly interconnected world. As Barbad aptly summarized, "Africa is, Trump is giving us a chance. So Trump might be a good president for Africa."