The African Continental Free Trade Area (@AfCFTA) could play a pivotal role in facilitating intra-African trade & strengthening regional supply chains in high-tech sectors.
UNCTAD’s Economic Development in Africa Report 2023 examines the continent’s potential to become a major participant in global supply chains for high-technology sectors like automobiles, mobile telephones, renewable energy and health care.
Recent disruptions due to trade turbulence, economic uncertainty, a global pandemic and geopolitical events have compelled manufacturers worldwide to diversify their production locations and geographical footprint.
This presents opportunities for African governments and businesses to position the continent as the new destination for global supply chains.
It has an abundance of critical minerals needed for high-tech and green products and is home to a young, tech-savvy population, an adaptable workforce and a burgeoning middle class.
The African Continental Free Trade Area also offers advantages by easing access to regional markets and strengthening production chains across the continent, helping domestic industries become more prepared for the global arena.
The report recommends policy actions to overcome supply chain hurdles African countries face, including poor logistics, low levels of technology, fragmented markets, limited capital sources, and weak institutions and regulations.
You must be logged in to post a comment.