Connecting the Souths: Identifying Strategic Sectors for Africa-Latin America Trade, industrial and Value Chain Cooperation

Amidst rising geopolitical uncertainty and tensions, Africa and Latin America & the Caribbean (LAC) possess significant, yet untapped potential for developing resilient South-South value chains. A new paper we prepared in collaboration with the Latin-Africa Chamber of Commerce in Colombia conducts a comparative analysis of their business environments and identifies structural and regulatory challenges to cross-continental industrial collaboration. Sectors with the greatest complementarities-including agri-food, light manufacturing (such as textiles and apparel), digital services, and logistics-are highlighted as priorities for cooperation. Based on this analysis, the paper proposes a pragmatic, phased, corridor-focused strategy to operationalize South-South value-chain integration. Key elements of this roadmap include the establishment of strategic pilot initiatives, the adoption of Mutual Recognition Agreements (MRAs) to harmonize certification, testing and inspection procedures, the deployment of blended-finance instruments to de-risk joint investments, and the integration of informal economic actors to ensure inclusivity. This approach aims to translate identified complementarities into sustainable, institutionalized value chains that strengthen interregional trade and economic resilience. Read on SSRN.