News

Balancing Regional And Global Value Chains: Strategic Pathways For Africa's Industrialization

Friday, 10 October 2025 17:07

The rise of protectionism and surging tariffs in major economies has reshaped global trade dynamics, posing both risks and opportunities for African economies. While regional value chains (RVCs) under the African Continental Free Trade Area (AfCFTA) can act as a catalyst for intra-African trade and industrialization, they cannot fully replace integration into global value chains (GVCs), which remain crucial for acquiring advanced technologies and knowhow, attracting investment, and enhancing competitiveness. This paper explores strategic approaches African businesses must adopt to leverage both regional and global networks, highlighting how a balanced engagement can support sustainable industrialization and enhance systemic competitiveness. Read on SSRN.

“Trade Fallback” and the Dual Economy Phenomenon in Africa

Wednesday, 08 October 2025 13:00

An old African proverb says: “When the lion does not hunt, the hyena will feed”. In many African economies, this proverb vividly captures a reality familiar to anyone who lives or works on the continent: when formal employment opportunities in the manufacturing or service sectors (the “lion”) are scarce, people turn to trade a primary source of income. This dynamic, which can be described borrowing a term from development economics as “trade fallback”, lies at the heart of Africa’s expanding informal economy.

From Colonial Legacies to Regional Integration: Understanding the Barriers to Intra-African Trade:

Wednesday, 08 October 2025 10:30

Intra-African trade has historically been constrained by a combination of infrastructural, institutional, and policy factors rooted in the colonial period. Despite abundant natural resources and significant market potential, African nations have remained largely dependent on trade with external partners. This contrasts sharply with Europe and Asia, where cross-border economic linkages are far more developed. Understanding the historical origins of these trade patterns is essential for designing policies that foster regional integration and inclusive economic development (keep reading on our blog)

Another emerging Customs Union in Africa? AES reveals plans for Common External Tariff adoption

Tuesday, 07 October 2025 09:01

There is confirmation that the Alliance of Sahel States (AES)—comprising Mali, Burkina Faso, and Niger—has initiated steps toward establishing a Common External Tariff (CET) as part of broader economic integration efforts. On October 3, 2025, during a meeting in Bamako, officials from AES member states and Togo discussed the modernization and harmonization of customs information systems. The discussions included strategies to improve the efficiency of customs duty collection, enhance cross-border cooperation, and critically, establish preferential tariffs within the AES region.

High Growth, Low Inclusion: the 'Africa Rising' Illusion

Monday, 06 October 2025 09:08

Ethiopia’s reported 8.1% gross domestic product (GDP) growth rate for the fiscal year 2023/24 highlights a paradox that resonates across much of Africa: robust economic expansion often coexists with deep structural inequalities. Too often, investors and policymakers equate GDP growth with market attractiveness, while overlooking how unevenly its benefits are distributed. Ethiopia—where GDP per capita remains among the lowest on the continent despite sustained growth in the last two decades—illustrates this tension and offers a cautionary lens for understanding similar patterns across Africa.