Repositioning Africa in global value chains and facilitating trade in intermediates and services

Global value chains (GVCs) are an important feature in today’s global economy. African countries show high participation in them, though at very low rungs of the ladder: that is, participation does not guarantee structural transformation. Africa needs to focus on improving its backward integration—the share of value added embedded in its country’s exports—expanding GVC linkages to other areas of the economy. Trade-integrated regions are more attractive to lead firms in GVCs, and hence intra-regional trade in processed goods via regional value chains (RVCs) is the first opportunity for African firms to seize.

Related Subject(s): Economic and Social Development