African countries leaving LDC status – new trade conditions
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About trade
Published: 25 Sep 2025
Several African countries are preparing to leave the UN’s category of least developed countries (LDCs). This is a positive step, but it also means that key trade preferences will gradually disappear.
As duty-free access and WTO exemptions are phased out, the conditions for trade with the EU are changing. Today, these countries enjoy duty-free access to markets such as the EU and the UK – preferences worth over USD 40 billion annually. The impact of losing these varies: mineral exporters are less affected, while countries with large shares of agricultural and textile products risk significant losses.
– Graduating from LDC status is a development success, but it also means that central trade preferences are gradually lost. The EU can play an important role in easing the transition and opening new opportunities, says Malin Ljungkvist, Senior Adviser at the National Board of Trade Sweden.
The analysis points to several ways forward, including the EU’s GSP+, Economic Partnership Agreements (EPAs) and the African Continental Free Trade Area (AfCFTA). It also highlights that countries that remain LDCs may gain new market shares when others lose their preferences.