Dr. Akinwumi Adesina, President of the African Development Bank Group, has cautioned that the proposed EU carbon border tax could impede Africa’s trade and industrialization progress by penalizing value-added exports such as steel, cement, iron, aluminum, and fertilizers.
Adesina highlighted that the tax could force Africa to export raw commodities into Europe, leading to de-industrialization. He estimated potential annual losses for Africa of up to $25 billion due to the EU Carbon Border Tax Adjustment Mechanism. Adesina emphasized the need for “Just Trade-for-Energy Transition” policies to balance Africa’s renewable ambitions with trade prospects.
He also stressed the significance of intra-regional exchanges for Africa’s trade opportunities. The warning was issued at the Sustainable Trade Africa Conference in Dubai.
