African countries are stepping into the global spotlight as Indian exporters shift production to the continent to escape rising US tariffs. Washington’s recent duty increases of up to 50 percent on goods from India have forced manufacturers to rethink their supply chains, and Africa has quickly become the alternative destination.
Nations such as Kenya, Ethiopia, Nigeria, Morocco, and Botswana are offering tax holidays, customs duty exemptions, and special economic zones that reduce costs and attract investment. By moving operations into these markets, Indian companies are able to ship goods to the US at tariff rates as low as 10 percent compared to the much higher duties they face when exporting directly from India.
This adjustment is particularly appealing to sectors like automobiles, pharmaceuticals, textiles, and jewelry, where tariff differences can make or break competitiveness. Exporters including Gokaldas Exports and Raymond Lifestyle are already using African production bases to maintain their US market presence and preserve profitability.
The shift underscores how Africa is positioning itself not just as a resource supplier but as a true manufacturing hub. The move also strengthens India’s ties with African nations under the BRICS framework, opening opportunities for deeper collaboration in trade, investment, and infrastructure.
As global supply chains continue to fragment and realign, Africa’s importance in the manufacturing ecosystem will only grow. By leveraging policy incentives and strategic geography, the continent is transforming itself into a key player in the next chapter of international trade.