The global economic crisis triggered by the outbreak of the COVID pandemic in 2020 and Russia’s invasion of Ukraine in February this year has intensified the risk of declining trade integration between countries. A process referred to as the deglobalisation of trade. This trend risks adding additional strain to economies in Africa on top of the current economic pain from soaring food and fuel price inflation imposed by the war in Ukraine. Connecting to the global economy is vital for spurring growth and development on the continent. Entry into global value chains is therefore crucial for several reasons. Firstly, to boost the growth of African SMEs, secondly to support the African Continental Free Trade Area in advancing regional trade integration, thirdly in diversifying production and export structures, and finally promoting the pick-up of industrialisation. Over time, these positive economic outcomes will substantially reduce poverty in Africa.
SOURCE: THE CONVERSATION