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Africa's Development Dynamics 2022

Regional Value Chains for a Sustainable Recovery

image of Africa's Development Dynamics 2022

Africa’s Development Dynamics uses lessons from Central, East, North, Southern and West Africa to develop policy recommendations and share good practices. Drawing on the most recent statistics, the analysis of development dynamics aims to assist African leaders in reaching the targets of the African Union’s Agenda 2063 at all levels: continental, regional, national and local.

The 2022 edition explores how developing regional value chains can help African countries rebound from the socio-economic shocks of the COVID-19 pandemic and accelerate productive transformation. It targets policy areas where private and public actors can support regional value chains when operationalising the African Continental Free Trade Area (AfCFTA). African firms can harness digital innovations to reduce production costs, and governments can design policies for skills development, public procurement and foreign investment to strengthen industrial linkages. Two continental chapters examine related African initiatives and global trends. Five chapters tailor policy recommendations to specific value chains in each region.

Africa’s Development Dynamics feeds into a policy debate between governments, citizens, entrepreneurs and researchers. It proposes a new collaboration between countries and regions, focusing on mutual learning and the preservation of common goods. This report results from a partnership between the African Union Commission and the OECD Development Centre.

English Also available in: French, Portuguese

Executive summary

The COVID-19 pandemic is delaying African economies’ convergence with the rest of the world. In 2022, African economic growth is projected to be a full percentage point below the global rate of 4.9%. Under current projections, it will take African countries more than five years to regain their pre-COVID share (about 5%) of the world’s gross domestic product (GDP). Weaker global demand for commodities, supply chain disruptions and necessary sanitary measures have constrained Africa’s production capacity. Our analysis of 127 African industrial clusters, based on night light intensity, suggests that their activities decreased by up to 7.2% between March and August 2020. The slow pace of COVID-19 vaccinations holds back recovery. In December 2021, only 7.7% of Africa’s population had received a vaccination, compared to 69.5% in high-income countries.

English Also available in: French, Portuguese, Italian

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