Africa Development Dynamics Report 2022

Feb 2, 2022 - 16:30

Strengthening African countries’ productive capacities is vital to their economic recovery. The COVID-19 pandemic is setting back Africa’s economic convergence with the world economy. African economic growth will reach 3.9% in 2022, one percentage point lower than the growth rate for the rest of the world, which stands at 4.9%. In 2022, Africa’s gross domestic product (GDP) as a share of the world GDP is expected to fall to 4.7%, the lowest level since 2002. COVID-19 has also reversed progress in reducing poverty in Africa, pushing at least an additional 29 million people into extreme poverty.

The Africa’s Development Dynamics 2022 covers a number of key issues on why the African continent must develop regional value chains for a sustainable recovery from the COVID-19 pandemic. The report, among other issues looks at:

How the health and economic crises mutually reinforce each other and the importance of accelerating the vaccination programmes.
The fiscal space available to African governments against the scope for fiscal stimulus.
The production constraints that limit African producers’ ability to benefit from the rebound in global demand.
Accelerating productive transformation for quality jobs that reduce poverty and strengthen Africa’s economic resilience.
The opportunities the African Continental Free Trade Area (AfCFTA) provides for regional value chain integration.
Regional policies for expansion of regional production networks that address structural constraints and risks in regional production.
Lessons learned on past experiences on the importance of private-sector participation in developing regional value chains and adopting a bottom-up process driven by the private sector to sustain political momentum.
Digital innovations and the increase in efficiency of trade-related logistics, customs and finance such as the use of the distributed ledger technology for cross-border payments and trade finance and smart contracts.
Tailoring skills policies to technical needs and emerging trends to attract investment and increasing linkages with lead firms.

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Economic Development, Tourism, Trade, Industry, Mining (ETTIM)

Department Resources