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    Home»Economy»Africa’s Infant Industry Gamble Reignites Debate
    Economy

    Africa’s Infant Industry Gamble Reignites Debate

    By Congo Times24 November 20254 Mins Read
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    Global return of strategic trade policy

    From Washington to Brussels the vocabulary of tariffs, carbon borders and local content rules has re-entered mainstream discourse. The United States’ Inflation Reduction Act links tax breaks to domestic battery supply, while the European Union is reinforcing its anti-dumping arsenal and mulling a carbon border adjustment. Academic taboos are fading: protecting critical capabilities is again considered a legitimate lever of statecraft (Organisation for Economic Co-operation and Development data, 2023). Against this backdrop, African capitals are asking whether the continent should remain the last bastion of unilateral openness.

    Historical evidence challenges laissez-faire orthodoxy

    Beyond the ideological pendulum, economic history is unequivocal. Nineteenth-century America sheltered steel behind Alexander Hamilton’s “Report on Manufactures”. Germany and Japan combined high tariffs with vocational institutes, while post-war Korea and later China mobilised temporary export licenses and performance-linked subsidies (World Bank, 2019). Each episode confirms the argument of Friedrich List: without a ladder of selective protection, latecomers struggle to climb the techno-industrial staircase.

    Blueprint for an African infant-industry shield

    Infant-industry protection is not synonymous with autarky. The concept prescribes calibrated, sunset-clause measures coupled with investment in skills, standards and finance. Priority sectors frequently cited by the United Nations Economic Commission for Africa include agro-processing, textiles, pharmaceuticals, green construction materials and digital services. Tariff lines could be raised just enough to neutralise the price wedge with imports, while clear productivity milestones discipline both firms and policymakers.

    Congo-Brazzaville’s diversification agenda gains traction

    Brazzaville’s 2022–2026 National Development Plan already assigns strategic value to domestic timber transformation, fertiliser blending and light metallurgy. Officials at the Ministry of Industrial Development indicate that ad-valorem duties on selected sawn wood products could rise temporarily from 10 % to 25 %, giving local mills breathing space to master kiln-drying and laminating techniques. In parallel, preferential credit windows through the Banque Postale du Congo are being expanded to small and medium-sized enterprises in software outsourcing, echoing President Denis Sassou Nguesso’s commitment to anchor youth employment in a digital economy. Crucially, authorities emphasise that any tariff change would respect regional ceilings under the Economic and Monetary Community of Central Africa.

    AfCFTA provisions offer legal headroom

    Contrary to a widespread misconception, the African Continental Free Trade Area (AfCFTA) does not impose blanket zero-tariff schedules. Annex 9 authorises transition periods of up to 13 years for Least Developed Countries, safeguard clauses against import surges and infant-industry derogations vetted by the Secretariat. Economists at the AfCFTA Policy Support Facility note that well-documented business plans strengthen a member state’s case. The real challenge therefore lies in coordination: if Congo raises duties on timber, Cameroon and Gabon must align standards to avoid trade diversion and feed an integrated regional value chain.

    Why Europe has a stake in African capacity building

    An Africa that manufactures more than it extracts enlarges, rather than shrinks, the commercial horizon of European partners. Higher household incomes translate into demand for machinery, logistics and knowledge services where European firms remain competitive. Moreover, diversified African supply chains mitigate geopolitical concentration risks exposed by recent disruptions in Eastern Europe and the Red Sea. Speaking in Paris this spring, a senior French Development Agency official argued that “every euro invested in African processing saves two euros in future crisis management” – a calculation difficult to ignore amid fiscal pressures on the Old Continent.

    Governance safeguards to avert rent-seeking

    Skeptics caution that protection can ossify into permanent privilege. To pre-empt such drifts, lessons from Mauritius and Rwanda underline the value of independent tariff review committees, public monitoring dashboards and sunset provisions legislated ex ante. In Brazzaville, civil-society think tanks propose coupling any new duty with a biennial parliamentary audit of productivity gains, aligning with the government’s stated ambition for transparent, rules-based economic management.

    A calibrated path to economic sovereignty

    Africa’s debate has moved beyond the binary open versus closed. The question is how to orchestrate a temporary scaffold robust enough to nurture competitive firms yet porous enough to keep the discipline of global markets alive. By articulating infant-industry clauses inside AfCFTA disciplines, and by embedding them in credible governance mechanisms, Congo-Brazzaville and its neighbours may replicate the developmental arcs previously traced by now-industrialised nations. The wager is demanding but not unprecedented; history suggests that the greater risk lies in abstention.

    Congo Brazzaville Infant Industry Protectionism Trade Policy ZLECAf
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