Industrialization in Sub-Saharan Africa: Seizing Opportunities in Global Value Chains

Submitted by on Tue, 11/08/2022 - 14:58

Sub-Saharan Africa witnessed substantial growth in manufacturing jobs despite a lack of improvement in the contribution of manufacturing value-added to GDP. Despite being reasonably high, the predominance of exports of primary products and engagement in low-skill tasks characterizes the region’s integration into manufacturing global value chains (GVCs). Nevertheless, GVC integration has led to job growth, and backward integration is especially associated with more job creation. The capacity to strengthen integration and upgrade in manufacturing GVCs will require an appropriate policy mix targeted at exploiting current comparative advantages while developing capabilities to enhance high value-addition and compete in high-skill tasks. This entails boosting productivity growth by maintaining a competitive market environment, developing industry-specific skills program, and investing in enabling sectors such as infrastructure and finance.