In its first-quarter earnings report published on Wednesday, Germany’s flag carrier Lufthansa said it had hedged around 80 percent of its jet fuel requirements. Despite these measures, it expects fuel-related costs in 2026 to increase by 1.7 billion euros (2 billion U.S. dollars), nearly 24 percent higher than previously forecast, mainly driven by surging energy prices and disrupted global aviation markets.
The group said it plans to offset the additional burden through higher ticket revenues, network optimization and further cost-cutting measures in the coming quarters.
“The ongoing crisis in the Middle East, combined with rising fuel costs and operational constraints, poses enormous challenges for the global economy, the aviation industry and our company,” Lufthansa CEO Carsten Spohr said.
According to the International Air Transport Association (IATA), jet fuel prices surged 106.6 percent year-on-year in March amid escalating geopolitical tensions. In Europe, prices have climbed to their highest since 2022.
IATA Director General Willie Walsh said that while the industry remains in better shape than during the 2020 pandemic lockdowns, the current fuel crisis has emerged as the most acute shock to global aviation since COVID-19.
According to a study released by Allianz Trade last week, Europe produces only half of the kerosene required by its domestic market, leaving the region’s aviation sector dependent on imports for the remainder of its jet fuel needs.
Several European airlines have already introduced measures to cope with rising fuel costs and concerns over potential supply disruptions.
Air France-KLM said it plans to impose a surcharge of up to 50 euros (58.73 dollars) on long-haul flights, while EasyJet and Ryanair warned that fares could rise further if fuel markets remain tight. Lufthansa said it has already implemented ticket price increases.
Analysts at Allianz Trade painted an equally bleak picture, estimating that international airfares have already risen by between 5 percent and 15 percent.
Lufthansa is also evaluating stopover options for its long-haul routes to Asia and Africa as a contingency measure against potential refueling failures at destination airports. Highlighting the gravity of the supply crisis, Spohr remarked, “We can only fly if we have fuel.”
A Lufthansa aircraft (Rear) and an EasyJet aircraft are seen after arriving at the newly-opened Berlin Brandenburg Airport in Schoenefeld, Germany, on Oct. 31, 2020. (Thomas Trutschel/photothek/Handout via Xinhua)
Heza Estate comprises 548 residential units across two categories, apartments and townhouses designed to meet the needs of working professionals, families, and members of the Rwandan diaspora seeking a secure, fully integrated community to call home.
Heza Estate comprises 548 residential units across two categories , townhouse and apartments designed to accommodate a range of household needs and budgets.
Apartments are available in two and three bedroom configurations, arranged across four-storey blocks with two units per floor. Townhouses are offered in two types: two and three bedroom duplex units with a 3 bedroom corner townhouse
Pricing
Unit prices are structured based on the type and size of the property. Townhouses start at Rwf 80 million for a two-bedroom unit and go up to Rwf 117 million for a three-bedroom unit.
Apartments, on the other hand, are priced between Rwf 101 million and RWF 111 million, depending on the specific configuration and features.
Buyers may purchase units through flexible installment payment plans. RSSB has also partnered with multiple banks to provide mortgage financing at competitive interest rates, making homeownership more accessible than ever.
RSSB has launched Heza Estate, a residential community in Batsinda featuring 548 housing units.
A community built for modern living
Heza Estate is designed as a fully integrated community rather than a typical housing development.
It includes a nursery school, basketball and volleyball courts, landscaped gardens and family relaxation areas, as well as commercial spaces.
The estate also features paved internal roads with street lighting and dedicated parking for each unit.
Commenting on the development, Claudette Rubangura, RSSB’s Commercial Operation Manager, said: “Heza Estate was built with a clear purpose — to give middle-income Rwandans, young professionals, families, and diaspora members a place they can truly call their own. We wanted residents to have everything they need within reach: schools for their children, nearby shopping and everyday conveniences, spaces to relax, and a secure environment. This is not just a housing project; it is a community designed around how people actually live.”
Heza Estate is part of RSSB’s broader housing portfolio, which spans multiple market segments. The institution is also developing Vision City II , a project three times the scale of Vision City I, growing from 500 to approximately 1,500 units.
These developments directly support Rwanda’s housing goals. Current projections indicate that the country will require at least 5.5 million housing units by 2050, when the population is expected to reach 22.1 million.
Heza Estate is a 548-home housing project in Batsinda designed to provide modern, well-serviced living for middle-income Rwandans and diaspora buyers.
How to apply
Interested buyers are invited to take the first step towards owning their home by visiting hezaestate.rssb.rw to register online, calling sales team on +250 787 750 033
About RSSB
The Rwanda Social Security Board is a government institution responsible for social security administration in Rwanda.
Through its investment arm, RSSB develops housing and infrastructure projects that contribute to national development while generating sustainable returns for its members.
RSSB’s housing portfolio includes projects across multiple market segments, from Vision City to Heza Estate, serving a wide range of Rwandans seeking quality homes.
Heza Estate, developed by RSSB in Kinyinya Sector, Gasabo District, offers 548 apartments and townhouses as part of efforts to expand quality housing in Kigali.The Rwanda Social Security Board (RSSB) has unveiled Heza Estate in Batsinda, a 548-unit residential development aimed at middle-income buyers in Kigali, with construction now 90% complete.Heza Estate is a 548-unit residential project by RSSB featuring modern interior designs, green open spaces, and a secure environment tailored for middle-income homeowners.Heza Estate in Batsinda presents residents with a fully integrated living environment, featuring scenic views, green landscaped gardensHeza Estate forms part of RSSB’s broader housing portfolio aimed at expanding urban housing supply.The project combines housing with landscaped gardens and designated family relaxation spaces.Heza Estate features modern apartments and townhouses designed for middle-income homebuyers in Kigali.The 548-unit Heza Estate project by RSSB features apartments and townhouses with stylish interior designs and a focus on functionality, targeting middle-income buyers in Kigali’s growing housing market.
Recent high-level discussions between President Paul Kagame and a delegation from Chery Holding, led by Xu Hui, Chairman of Rich Resource International Investments (RRII) and Vice President and Board Secretary of Chery Holding, have drawn attention to the possibility of establishing a local EV assembly plant in Rwanda.
A day after meeting with the President last month, the Rwanda Development Board (RDB) Deputy CEO Juliana Muganza and Xu Hui signed a strategic partnership framework, laying the groundwork for sustainable investment and the growth of e-mobility solutions.
The talks were aligned with Rwanda’s broader industrialisation and e-mobility strategy, which prioritises sustainable transport and value-added manufacturing.
Chery Holding is among China’s leading car manufacturers and an increasingly influential player in the global mobility industry.
Established in 1997 in Wuhu, Anhui Province, the company has expanded into a Fortune Global 500 firm, now producing over 2.6 million vehicles each year and exporting to markets across Asia, Africa, Europe, and Latin America.
The group manages a diverse portfolio that covers traditional internal combustion vehicles, hybrids, and electric mobility solutions. Its brands include Chery New Energy, Exeed, Jetour, and Omoda, alongside other emerging EV-focused lines.
Over time, it has also built joint ventures and technological partnerships, particularly in areas such as advanced driver assistance systems and electrification, underscoring its shift toward smarter and lower-carbon transport solutions.
Chery was among the early Chinese automakers to invest in electric vehicle development, launching its EV programmes in the late 2000s and steadily expanding its capabilities in battery-electric platforms.
In recent years, the company has further accelerated its global EV push through strategic partnerships and investments aimed at boosting production capacity and strengthening its technological edge.
Discussions between President Kagame and Chery delegation recently focused on potential investment opportunities.
A project still at the exploratory stage
Speaking to IGIHE, Gao Zhiqiang, the Economic and Commercial Counselor at the Chinese Embassy in Rwanda, has clarified that while the idea of an EV assembly plant in Rwanda is being actively discussed, it remains at an early stage.
According to him, Chery has expressed interest in deepening cooperation with Rwandan counterparts in the electric mobility sector, including the possibility of setting up an assembly facility. However, he emphasized that this is still an intention rather than a confirmed investment.
“There are many technical issues that still need to be discussed, and follow-up steps are required,” he noted, adding that both sides are still engaging to explore feasibility and market potential.
Jetour is a modern SUV brand from Chery, and it is gradually winning the Rwandan market.
Rwanda positioned as a potential regional hub
Despite the early stage of discussions, Gao has expressed optimism about Rwanda’s attractiveness as an investment destination. Gao highlighted Rwanda’s stable governance, improving business environment, and strategic positioning as key advantages for foreign investors.
He further encouraged Chery to think beyond Rwanda’s domestic market and consider the broader regional opportunity, suggesting that the country could serve as a production and distribution hub for East Africa and beyond.
“Rwanda could become a business hub, especially with upcoming infrastructure such as the new Bugesera International Airport,” he said, pointing to long-term economic potential driven by improved connectivity and logistics.
Timeline
While interest is growing, officials cautioned that the project is unlikely to materialize in the immediate future.
According to Gao, setting up such a facility would require significant preparation, coordination, and investment planning.
“It will take time — at least two years or more. It will not happen next year,” he explained, underscoring the complexity of establishing automotive manufacturing operations.
Broader wave of Chinese industrial interest
Beyond the proposed EV assembly plant, Gao said, other Chinese investors are also engaging with Rwanda, exploring opportunities in manufacturing and industrial parks.
Among them is Asia Machinery, a firm proposing the development of an automobile industrial park, with submissions already made to Rwanda Development Board (RDB) and the Ministry of Trade and Industry (MINICOM).
Another firm in the medical equipment sector is also considering establishing an industrial park in Rwanda’s Eastern Province, reflecting a broader trend of diversified Chinese investment interest.
Although exact figures were not disclosed, preliminary estimates suggest that combined investments from these emerging projects could reach tens of millions of dollars.
Chery is seeking to establish an electric vehicle assembly plant in Rwanda.
Alignment with Rwanda’s e-mobility agenda
The discussions come at a time when Rwanda is accelerating its transition toward sustainable transport. The government has introduced policies requiring public institutions to allocate at least 30% of newly procured vehicles to electric models, a move aimed at reducing emissions and supporting green mobility adoption, amid global oil disruptions.
In this context, a potential EV assembly plant would align closely with national priorities, including industrialisation, job creation, and technology transfer. It would also support Rwanda’s long-term ambition to develop a domestic automotive value chain anchored in clean energy solutions.
While the Chery EV assembly project is still in its early stages, both Rwandan and Chinese stakeholders appear aligned on its long-term potential. If realized, the investment could position Rwanda as an emerging player in Africa’s electric mobility ecosystem, while strengthening industrial cooperation between the two countries.
Rwanda and China have maintained strong cooperation over the years, with total trade between Rwanda and China reaching $849 million in 2025, an increase of 26.9 percent year-on-year, while Rwanda’s exports to China rose by 42 percent.
Tiggo 7 is one of the modern vehicles gaining traction in the European market.Luxeed is one of the high-quality electric vehicle brands produced by Chery.
“We are going to see inflation climbing up, and then inevitably, inflation expectations would start de-anchoring,” she said at a conference hosted by the Milken Institute in Washington, D.C.
She noted that current conditions, including a prolonged conflict, oil prices hovering at or above 100 U.S. dollars per barrel, and mounting inflationary pressures, have already activated the IMF’s “adverse scenario.”
In April, the IMF issued three scenarios for global GDP growth in 2026 and 2027, namely the main “reference forecast,” a middle “adverse scenario,” and a much worse “severe scenario.”
Under the adverse scenario, global growth would slow to 2.5 percent in 2026, while inflation would rise to 5.4 percent.
The reference scenario, which assumes a short-lived conflict, projects growth of 3.1 percent and inflation of 4.4 percent.
“This scenario, with every day that passes, is further and further behind in the rear-view mirror,” Georgieva said.
For the severe scenario forecast, global growth would be just 2 percent, with inflation hitting 5.8 percent.
FILE – Kristalina Georgieva, Managing Director of the International Monetary Fund, attends the Annual Meeting of the World Economic Forum in Davos, Switzerland, Jan. 23, 2026. (AP Photo/Markus Schreiber, File)
The country imported 195,610 tonnes of sugar valued at $145 million (approximately Rwf 212 billion) in 2025, down from 308,000 tonnes worth $238 million (about Rwf 348 billion) in 2024.
The imports comprised raw sugar for industrial refining, inputs for beverage and food manufacturing, and refined sugar for household consumption.
Minister of Trade and Industry Prudence Sebahizi attributed the decline to a combination of reduced demand for refined sugar, increased domestic production, and a drop in re-exports to neighbouring countries.
“The decrease in imports can be attributed to a drop in refined sugar consumption locally, coupled with increased domestic production,” Sebahizi told The New Times.
He added that re-exports, particularly of raw sugar destined for further processing, also declined in 2025 compared to the previous year, contributing to the overall drop in import volumes.
According to the minister, the trend reflects broader market adjustments rather than the impact of new policy measures, pointing to evolving consumer preferences and supply dynamics.
The decline follows a surge in 2024, when sugar imports rose to 308,000 tonnes valued at $238 million, up 24 per cent from $192 million recorded in 2023.
Rwanda continues to apply the East African Community Common External Tariff alongside safeguard measures aimed at balancing consumer affordability with the protection of local producers. To stabilise prices, the government also permits strategic imports under managed quotas.
Additionally, authorities have temporarily eased the application of the regional external tariff on sugar and other essential food commodities to cushion consumers from rising costs, according to the Ministry of Finance and Economic Planning.
Looking ahead, the government plans to allocate 8,000 hectares of land for sugarcane cultivation and mobilise at least $50 million in private investment. The initiative is intended to expand processing capacity, strengthen the domestic sugar industry, and further reduce reliance on imports.
Rwanda imported 195,610 tonnes of sugar valued at $145 million (approximately Rwf 212 billion) in 2025, down from 308,000 tonnes worth $238 million (about Rwf 348 billion) in 2024.
The high-level meeting, which opened at the Kigali Marriott Hotel on Monday, May 4, 2026, brings together government officials, regulators, industry executives, and development partners to discuss how insurance can better support African economies facing increasing climate shocks, fiscal pressures, and development challenges.
Insurance gap at the centre of debate
Opening the meeting, ZEP-RE Managing Director and Group CEO Hope Murera said Africa continues to face a recurring cycle where governments are forced to fund disaster recovery after events occur, often through costly borrowing, while vulnerable populations remain largely unprotected.
“When disasters happen, governments step in to rebuild… resources are eventually found, but sometimes too late,” Murera said. “In many cases, this comes as expensive debt that remains long after the disasters.”
ZEP-RE Managing Director and Group CEO Hope Murera said Africa continues to face a recurring cycle where governments are forced to fund disaster recovery after events occur, often through costly borrowing.
She noted that insurance penetration remains low across the continent, leaving smallholder farmers, women, youth, and small businesses particularly exposed to shocks such as droughts, floods, and other climate-related events.
Murera emphasised that insurance should play a stronger role in absorbing risks and de-risking African economies, but said fragmented risk financing systems and limited affordability continue to hinder progress.
“This is the gap that we, as an industry, seek to address and help close,” she said.
Call for collective action
ZEP-RE Vice-Chair Simon Chikumbu, speaking on behalf of the Board Chairperson, said Africa remains significantly underinsured, adding that the consequences are widely felt across economies and communities.
He stressed that addressing the challenge requires coordinated action across governments, regulators, insurers, and development partners.
“The challenges before us are significant. Africa remains underinsured to a great extent,” he said. “Addressing this requires more than individual effort. It requires collective engagement and purposeful dialogue.”
The high-level meeting brought together government officials, regulators, industry executives, and development partners to discuss how insurance can better support African economies facing increasing climate shocks, fiscal pressures, and development challenges.
Chikumbu also underscored ZEP-RE’s founding mandate to build African reinsurance capacity, noting that while the institution has made progress, the continent’s insurance gap remains a major concern.
Delivering a keynote address, Rwanda’s Minister of Finance and Economic Planning, Yusuf Murangwa, highlighted the scale of the challenge, noting that Africa’s insurance penetration stands at about 2.7%, compared to a global average of 7%.
He warned that the gap leaves hundreds of millions of people exposed to financial hardship when disasters strike.
“The informal sector, the market stall owner, the smallholder farmer, the motorcyclist, taxi drivers, is not uninsurable; it is simply uninsured,” Murangwa said, adding that this distinction represents a major opportunity for industry growth and innovation.
Rwanda’s Minister of Finance and Economic Planning, Yusuf Murangwa, highlighted the scale of the challenge, noting that Africa’s insurance penetration stands at about 2.7%, compared to a global average of 7%.
He also pointed to climate-related losses that continue to strain public finances, noting that most catastrophe-related costs in Africa are borne by governments, households, and businesses rather than insurers.
Murangwa called for faster and more ambitious action beyond pilot projects, urging stakeholders to scale up solutions that address climate risks and disaster preparedness.
Insurance as a resilience tool
Governor of the National Bank of Rwanda, Soraya Hakuziyaremye, who opened the high-level panel discussions, said insurance must no longer be viewed as a niche financial product but as a strategic tool for economic resilience and growth.
She highlighted that Africa is increasingly exposed to climate shocks, citing floods, droughts, and storms that are becoming more frequent and severe.
“These shocks are no longer rare events, they are part of our new normal,” she said.
She added that more than 80% of catastrophe-related losses in Africa remain uninsured, shifting the financial burden to households and governments at times when they are least able to absorb it.
Hakuziyaremye also noted that Africa carries 19% of the global population and is expected to account for one in four people globally by 2050, increasing the urgency for scalable insurance solutions.
Governor of the National Bank of Rwanda, Soraya Hakuziyaremye, said insurance must no longer be viewed as a niche financial product but as a strategic tool for economic resilience and growth.
Innovation and regional solutions
Discussions at the meeting highlighted ongoing efforts to address Africa’s risk financing gap through insurance-based solutions, particularly index insurance models being developed in the agricultural sector.
Dr. Grace Muradzikwa, Commissioner of Insurance, Pensions and Provident Funds in Zimbabwe, noted that index insurance products have been developed with support from partners, including the World Bank, to help farmers manage climate-related risks. She cited agricultural insurance initiatives such as the
“Farmers Basket” scheme, which was first launched in one province and progressively expanded to eight provinces with support from multiple stakeholders.
According to Dr. Muradzikwa, such initiatives demonstrate how insurance can shift from post-disaster response to more proactive risk management, as governments, regulators, insurers, and development partners work together to structure more sustainable agricultural protection mechanisms.
Speakers also referenced regional insurance and risk-sharing frameworks, including the Common Market for Eastern and Southern Africa (COMESA) Yellow Card system, the Regional Compensation Transit Guarantee (RCTG), and African Risk Capacity (ARC) initiatives, aimed at strengthening resilience and facilitating risk pooling across African economies.
Moving from pilots to systemic impact
Participants agreed that while progress has been made in developing innovative insurance products, Africa must move beyond small-scale, pilot-driven approaches toward system-wide solutions that can deliver broader impact.
They emphasised the need for stronger collaboration between governments, regulators, insurers, and development partners to scale up insurance solutions that serve both agricultural producers and wider vulnerable populations.
However, challenges such as affordability, data limitations, low insurance awareness, and fragmented implementation across markets remain key barriers.
“In the world we are experiencing more than 10 types of disasters, such as floods, landslides, strong winds, lightning, and many others… In 2023, we experienced one of the strongest hazards in this country. In a single night, we lost more than 135 lives,” said Adalbert Rukebanuka, Director General of Policy, Planning and Risk Reduction at Ministry in charge of Emergency Management (MINEMA).
He noted that disasters are becoming more frequent and complex, placing increasing pressure on governments that already bear a significant share of recovery costs, underscoring the urgency of strengthening disaster risk financing systems that can deliver faster and more predictable responses while reducing pressure on public finances.
The AGM continues on Tuesday, May 5, with a closed session and concludes with the adoption of key resolutions.
ZEP-RE is a pan-African reinsurer established in 1990 under COMESA, operating in more than 45 African countries. It plays a central role in supporting insurance market development and building risk capacity across the continent.
Participants agreed that while progress has been made in developing innovative insurance products, Africa must move beyond small-scale, pilot-driven approaches toward system-wide solutions that can deliver broader impact.
In recent days, employees working in the building were informed to prepare for relocation. In a statement released on Monday, RDB stated that institutions previously operating in the building will be temporarily moved to alternative office spaces.
“Until the new premises are ready, One Stop Centre services are available at the Ground Floor of the Ministry of Infrastructure [Kimihurura KG 1 Roundabout, Kigali]. Other services will continue through RDB’s existing digital platforms,” reads the statement.
Institutions housed in the RDB Building include RDB, RCB, RMB, and RHA.
A building that has long attracted controversy
The RDB Building, located in Gishushu, is a 12-storey structure with four underground floors that can be used for various purposes, including parking and gym facilities. It has a total floor area of approximately 42,000 square metres.
The building was purchased by the government for Rwf 42 billion after concerns had been raised over its quality standards. The Rwanda Housing Authority (RHA) previously stated that it had conducted assessments to determine whether the building met required standards.
Analyses reportedly revealed several structural and construction-related issues, prompting corrective measures linked to both design and construction flaws.
Over time, these problems are said to have persisted and, in some cases, worsened, leading to growing concerns about the safety of occupants and the need for urgent intervention.
As a result, authorities decided to relocate all services from the building to ensure the safety of users while renovation works are undertaken.
The Deputy Director General of RHA, Dr Noël Nsanzineza, previously told Members of Parliament that, under the purchase agreement, the original owner was responsible for correcting the identified defects.
He stated: “According to the sale agreement, the issues were supposed to be corrected by the building’s owner. However, the contract also included a clause allowing us to withhold about Rwf 2 billion if the corrections were not made. The owner failed to fully address the problems despite some attempts, and we eventually decided to withhold the funds.”
The RDB Building, located in Gishushu, is a 12-storey structure with four underground floors that can be used for various purposes, including parking and gym facilities.
The initiative comes at a critical time for Africa’s agricultural expansion, particularly for South Africa’s fast-growing citrus sector, he said.
“South African citrus production is on such a significant growth trajectory that unlocking its full economic potential requires improved access to all high-value markets like China,” the business leader said.
Highlighting the sector’s broader socio-economic contribution, Ntshabele noted that the country’s citrus industry currently supports about 140,000 jobs at the farm level alone and that expanded access to a large market such as China could create further employment opportunities and support rural development.
Many rural communities in South Africa rely heavily on agricultural exports, he said, adding that citrus-producing regions are likely to be among the first to benefit from improved market access under the new tariff policy.
The zero-tariff treatment, he said, will help expand trade access and deepen economic ties between Africa and China, while strengthening the continent’s external trade resilience amid global economic uncertainty.
Such policy measures could contribute to a more stable global trading system by promoting inclusive trade and reducing barriers for developing economies, helping diversify supply chains, he added.
African exporters are expected to gain a stronger foothold in one of the world’s largest consumer markets, reinforcing confidence in long-term economic cooperation and shared growth between Africa and China, Ntshabele said.
“We greatly value the opportunities the Chinese market holds,” he added.
Many rural communities in South Africa rely heavily on agricultural exports
As a hallmark of China-Africa cooperation in the new era, the zero-tariff measure is expected to reduce trade barriers and deliver long-term benefits to people on both sides, injecting fresh momentum into their joint pursuit of modernization while contributing to a more inclusive and universally beneficial global trading system.
A reliable market
On the outskirts of the Ethiopian capital city of Addis Ababa, construction is underway on a new roasting facility for Awo Coffee to meet soaring export orders. According to Awo Coffee General Manager Tesfaye Gebru, about 90 percent of the firm’s roasted products are shipped to China each year.
“Since we began in 2014, the fast-growing Chinese coffee market has emerged as our primary export destination,” said Gebru, noting that in 2024, the company exported about 140 tonnes of Ethiopian green coffee beans and 20 tonnes of processed coffee products to China, with annual growth of around 10 percent.
Awo Coffee sources beans from its own 14-hectare farm. “We purchase beans from smallholder farmers at higher prices, directly boosting their incomes. During harvest seasons, we also hire local villagers to pick coffee cherries,” said Gebru.
Awo’s rapid expansion has been supported by early access to China’s zero-tariff policy. Effective from December 2024, China granted all least developed countries with which it has diplomatic relations zero-tariff treatment for 100 percent tariff lines, including 33 African countries.
The impact on Ethiopian coffee exporters has been swift. Ethiopia, widely known as the home of Arabica coffee, has strengthened its position in the Chinese market, rising to become one of the largest suppliers of coffee to China in recent years.
As China’s zero-tariff policy now extends to 53 African countries, Cameroon cocoa farmer George Wambo Cornyu described it as “a golden opportunity.”
“It’s going to encourage our domestic processing and also value additions,” said Cornyu, also president of Masoka-Ikata Farmers Cooperative in Cameroon. “It is going to trigger industrialization in our own sector.”
Beyond tariff reductions, China has in recent years expanded market access for African exports through upgraded “green channels” and other facilitation initiatives. It has also supported African participation in major trade expos such as the China International Import Expo, helping African products reach global markets.
In 2025, China-Africa trade grew by 17.7 percent year on year to reach 348 billion U.S. dollars, while Africa’s exports to China exceeded 123 billion dollars, reflecting deepening economic and trade ties.
James Kandoya, a senior economic journalist at Tanzania’s The Guardian Newspaper, noted that for a long time, many African products struggled to enter major global markets due to high tariffs, strict standards, or complicated procedures.
“When China opens its market to African exports with zero tariffs, it immediately creates real opportunities. It gives African businesses the feeling that there is a reliable market willing to engage with us on fairer terms. That can encourage more investment in agriculture, processing, and logistics,” he said.
An aerial drone photo taken on March 26, 2026 shows a view of the Lekki port in Lagos, Nigeria. (China Harbour Engineering Company Ltd./Handout via Xinhua)
A driver of African modernization
In March, the first cargo train carrying 54 containers of locally produced goods exported to China under zero-tariff treatment departed from Nairobi, Kenya’s capital. It traveled along the Chinese-built Mombasa-Nairobi Standard Gauge Railway to the port city of Mombasa before continuing by sea to China.
Among the shipments was a batch of avocado oil produced at a processing plant in the Athi River Export Processing Zone on the outskirts of Nairobi, invested in by the Chinese company Sanmark Limited.
Since beginning operation in August 2025, the processing plant has exported about 410 tonnes of avocado oil to China, where the product has evolved from a niche health item to a regular feature on major e-commerce platforms.
With China’s zero-tariff policy taking effect in May, Kenya’s avocado industry players expect further export growth.
“We look forward to exporting more avocado oil and boosting incomes for local farmers,” said Muhammad Khan, operations manager at Sanmark Limited. “I also believe more Chinese investors will be encouraged to enter the Kenyan market and set up processing factories, enhancing the efficiency and resilience of the industrial chain.”
In 2022, fresh Kenyan avocados embarked on their journey to China. Since then, Chinese and Kenyan companies have launched full value-chain cooperation spanning avocado cultivation, processing, cross-border logistics, and end-market distribution, significantly boosting the sector’s overall development.
Describing the zero-tariff initiative as “an unprecedented breakthrough in the export journey,” Lee Kinyanjui, cabinet secretary in the Ministry of Investments, Trade and Industry, said: “This is more than a policy shift; it is a game changer that opens the door to one of the world’s largest consumer markets and positions Kenya for a new era of trade growth and value addition.”
“Over the past two decades, the (China-Africa cooperation) framework has steadily shifted toward trade, industrialization support, and infrastructure development. Duty-free access complements infrastructure corridors, logistics projects, and industrial parks already developed through China-Africa cooperation,” Zimbabwean economic analyst and political commentator Dereck Goto said.
Sharing a similar view, Balew Demissie, a senior communication and publication consultant at the Policy Studies Institute of Ethiopia, said as a combined measure of trade and investment, “the zero-tariff policy closely aligns with Africa’s urgent industrialization agenda.”
“It could complement domestic industrial policies by creating new opportunities for manufacturing expansion, agro-processing, and export-oriented industrialization, thereby injecting fresh momentum into Africa’s modernization trajectory,” he added.
“This is an approach where China is trying to re-establish supply chains that are more predictable, that are more stable in this erratic world,” said Tabani Moyo, research fellow with the Graduate School of Business and Leadership at the University of KwaZulu-Natal, South Africa. “Hence, (there is) a need for the multiple industries in Africa to chip in and drive the modernization agenda through value-addition of their commodities.”
A timely stabilizer
Amid rising volatility and growing protectionism in global trade, China’s zero-tariff policy underscores its firm commitment to fostering an open world economy, advancing shared development across the Global South through practical cooperation, and injecting stability into the global trade system and economic growth.
During the 39th African Union Summit, United Nations Secretary-General Antonio Guterres welcomed the move, appealing to all developed countries and nations with large economic potential to take the same measure.
African Union Commission Chairperson Mahmoud Ali Youssouf said that China’s initiative is particularly vital as Africa bears the brunt of global uncertainties, which have disastrous effects on African economies, particularly those with structural vulnerabilities.
“We also see isolationist policies across the world, while protectionism is growing,” he said, noting that China’s zero-tariff treatment is a “very timely” move that will help Africa tackle global challenges.
“Amid unilateralism and protectionism, China’s zero-tariff treatment enhances trade resilience, supports diversification of African exports, and sustains development prospects by shielding them from external shocks,” said Leseko Makhetha, head of the Department of Economics at the National University of Lesotho.
“It reinforces a rules-based global trading system, offering an alternative to protectionism and helping stabilize trade flows amid global tensions,” Makhetha noted.
This photo taken on April 15, 2026 shows containers at the Nairobi station of the Mombasa-Nairobi Standard Gauge Railway (SGR) in Nairobi, Kenya. (Photo by Nelson Asienwa/Xinhua)
China’s announcement of zero-tariff treatment starting May 1 for all the 53 African countries with which it maintains diplomatic ties reaffirms its consistent commitment to opening its vast market to Global South partners.
As Chinese President Xi Jinping has put it, China is committed to providing new opportunities for the world with the new achievements of Chinese modernization and offering new impetus to Global South partners, including Africa, via its huge market.
At a moment when globalization is buffeted by protectionism, China remains firm in its conviction that mutually beneficial and open cooperation is the right path forward and the common aspiration of all people.
Through concrete action, it is transforming a consumer market of over 1.4 billion people into tangible development opportunities for African nations, yielding fruitful results.
The macro picture is compelling. China-Africa trade reached a record 348 billion U.S. dollars in 2025, up 17.7 percent year on year. Of the total, China’s imports from Africa amounted to 123 billion dollars, an annual increase of 5.4 percent.
China’s new zero-tariff measures will inject much-needed certainty and confidence into the African economy. In an increasingly uncertain global trade environment, the biggest advantage of the policy is not short-term profit but long-term predictability, said Cobus van Rensburg, general manager of the South African Pecan Nut Producers Association.
“It adds a lot of security, especially from a supply point of view, as well as from a demand point of view, because it creates a better bond between South Africa and China,” he said.
The zero-tariff policy marks another key step in furthering industrial partnership between the two sides, and is expected to help Africa move up the global value chain. The Forum on China-Africa Cooperation Beijing Action Plan explicitly commits to supporting “Africa in developing local value chains, manufacturing and deep processing of critical minerals.”
Over the years, China has also made great efforts to remove other non-tariff barriers in its trade with Africa. Expanded sanitary and phytosanitary agreements have widened the “green lanes” for African agricultural exports to China, while digital customs supervision and regulatory innovation have shortened the journey from farm to port and, ultimately, to consumers.
The results are already visible across Africa. In Kenya, avocados and macadamia nuts now move efficiently by rail toward Chinese markets, raising farmers’ incomes while driving investment in cold-chain logistics and related industries. In Cote d’Ivoire, a modern cocoa-processing complex built by a Chinese company has helped the country move beyond its long-standing reliance on raw bean exports, allowing local farmers to participate in higher-value stages of production. In Rwanda, Chinese-supported cold storage and drying facilities have enabled premium dried chillies to reach consumers in China, opening new opportunities for local growers.
Through technology transfer, infrastructure investment and expanded market access, China is helping Africa strengthen the industrial foundations needed for long-term development. Across the continent, China is increasingly seen as a reliable and sincere partner.
History has shaped that trust. African countries supported the restoration of China’s lawful seat at the United Nations more than five decades ago, while China has in recent years championed the African Union’s entry into the G20 and consistently advocated greater African representation in global governance.
As 2026 marks the China-Africa Year of People-to-People Exchanges, ties are deepening from government cooperation to closer bonds between ordinary people. Rooted in mutual respect and shared development, the China-Africa partnership is becoming an important force driving the rise of the Global South and supporting a more balanced global economy.
Over the years, China has also made great efforts to remove other non-tariff barriers in its trade with Africa.
