Global value chains hold the promise of boosting employment and structural transformation in
The latest edition of the publication - a joint effort by the
Like its predecessors, this year's AEO takes an analytical perspective covering all 54 African countries by highlighting recent economic performance and providing medium-term growth projections.
The continent's growth is projected to accelerate to 4.8% in 2014 and 5 to 6% in 2015, levels which have not been seen since the global economic crisis of 2009, the report says.
"In order to sustain the economic growth and ensure that it creates opportunities for all, African countries should continue to rebuild shock absorbers and exercise prudent macro management. Any slackening on macro management will undermine future economic growth," said Mthuli Ncube, Chief Economist and Vice-President of the
"In the medium- to long-term, the opportunity for participating in global value chains, should be viewed as part as part of the strategy for achieving strong, sustained and inclusive growth," he added.
While presenting the key note address at the launch of the report,
Through participation in a value chain, he argued, countries and firms can acquire new capabilities that make it possible to upgrade
However, Lamy cautioned that African countries must be prepared to deal with emerging issues in global trade in particular the non-tariff barriers (NTBs) to facilitate the development of global value chains.
"There is need to consider these changes in trade policy," he said, underscoring that trade barriers as a result of NTBs can no longer be solved by preferential trade agreements.
In his remarks,
"Public policies need to be articulated in a targeted strategy that promotes more equitable economic and social transformation and an environmentally sound development," he said.
The AEO also shows that there has been remarkable progress in human development, with lower poverty levels, rising incomes and improving rates of school enrollment and health coverage.
"In order for value chains to effectively integrate the poor and marginalized, often including women, targeted public policies and inclusive business models should facilitate access to productive assets such as land and financing, enhance productivity, and improve the resilience of small producers."
For her part, Amb. Valentine Rugwabiza, Chief Executive,
Reduction in transport time, she argued, has impact on competiveness.
"Regional integration requires a pragmatic approach. If we cannot harmonize at least we should have mutual recognition," she said, pointing out that reducing the transit time for trucks between Mombasa and
The report argues that more effective participation in regional and global value chains - the range of activities in different countries that bring a product from conception to delivery to the consumer - could serve as a springboard for
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