FEMISE is pleased to announce the publication of the African Export-Import Bank- Afreximbank trade report 2023, which it has contributed to. This joint publication comes at a time when a new world order is changing the landscape and prospects for an African manufacturing led-growth and integration in the Regional Value Chain (RVC) are emerging.
Africa has great potential to accelerate its structural transformation and exports of manufactured goods through their integration into RVCs, particularly as a new world order shifts geopolitical dynamics and where immense opportunities for industrialization and manufacturing growth are emerging on the African continent. The African Continental Trade Area (AfCFTA) opens the door to accelerate the continent’s integration into the RVC and thus provides the catalyst needed to further develop its industrialization and manufacturing exports while seizing opportunities to create new trade partners, new jobs and new investments, promote innovation and digitalization, foster the green transition towards renewable energy and further benefit from regional cooperation.The report addresses these issues in more detail and provides some recommendations on the way forward.
FEMISE is delighted and honored to have been part of this flagship report produced by the Afreximbank every year, contributing with Chapter 2 entitled: Export Manufacturing and RegionalValue Chains in Africa under a New World Order. The Chapter has two overarching objectives. First, it will show that the current African and global geopolitical environment is ripe for the development of RVCs for export-manufacturing-led growth in Africa. Second, it will reflect on the set of policies and initiatives which will enable African countries to leverage an emerging new world order to develop robust RVCs for a successful export-led growth manufacturing model in the era of climate change.
In 6 sections, the chapter tackles the facets of this challenge and proposes opportunities. First, it examines the trade performance of all African countries, then assesses the new world order, particularly the changes in the manufacturing industry and the export opportunities they create, and identifies opportunities for Africa, which may be compromised by heavy dependence on imports from a few key producers and sectors of their economy. It then highlights the prerequisites for realizing Africa’s export potential, including RVC and Global Value Chains (GVC), as well as the need for industrialization, investment incentives, digitalization and transition to clean and renewable energy. The report highlights the importance of regional coordination and cooperation for the emergence of robust RVCs and a successful manufacturing-driven growth model in Africa, including the role of development finance institutions and concludes with suggested sets of national policies to promote a dynamic export manufacturing Africa.