Abstract
A key objective of the AfCFTA is to promote industrialization through the creation of regional value chains (RVCs). While there is broad agreement on the need for African economies to industrialize, capture greater added value domestically, and diversify from exporting raw materials, there is less clarity on how to do so. Though the AfCFTA may offer new opportunities, it may also face the same political economy challenges that have undermined previous endeavours. After briefly reviewing recent industrial performance in Africa and the logic of the AfCFTA, a second section discusses past regional industrialization strategies in that light, including those of the regional economic communities, and the AU Accelerated Industrial Development for Africa (AIDA) Action Plan. It examines their objectives and how they have been implemented. Based on this discussion, a third section draws lessons and possible inputs to a new continental African industrialization framework that avoids the pitfalls of past industrialization strategies, while offering a way for countries to use the AfCFTA as a tool for promoting industrialization.
About the Author
Bruce Byiers is the head of ECDPM’s African economic integration team.
Bruce is a development economist with a DPhil from the University of Sussex. His work focuses on regional integration processes in Africa, particularly from a political economy perspective. This includes looking at regional organisations, but also at regional economic integration dynamics.