Industrialization in Sub-Saharan Africa

110 Industrialization in Sub-Saharan Africa

However, some strong regional value chains are in place across economies that neighbor South Africa. Countries located within Southern Africa, for example, Botswana, Eswatini, Namibia, Zambia, and Zimbabwe, are strongly connected to South Africa in the regional production system, sourcing substantial amounts of foreign value added from South Africa (figure 4.17). More distant Sub-Saharan African countries systematically show remarkably low integration in the regional production system. Proximity to countries with important manufacturing industries is critical to the development of such production networks.

Figure 4.17 Strong Regional Value Chains for Countries That Neighbor South Africa SEN

CPV GAB

GHA

COG

MUS

GIN MWI

SOM ETH

MRT ZAF

BDI MDG

SLE

ZMB

NGA

COD

RWA MLI

ERI

TCD GMB

BEN

LSO

TZA CMR

MOZ

KEN SYC

LBR

UGA

CIV

BWA

SWZ

ZWE

BFA

NER SUD

SDS

TGO NAM

DJI AGO

Source: World Bank illustration using indicators of global value chain participation (share of foreign value added) calculated from the United Nations Conference on Trade and Development Eora database. Note: Line thickness indicates strength of relationship between the two countries. Figure is based on weights of foreign value-added trade between countries in the region.

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Industrialization in Sub-Saharan Africa

Published on Nov 23, 2021

Agence Française de Développement

Industrialization drives the sustained growth in jobs and productivity that marks the developmental take-off of most developed economies. Yet, academics and policy makers have questioned the role of manufacturing in development for late industrializers, especially in view of rapid advancements in technologies and restructuring of international trade. Concurrently, industrialization and structural transformation are integral to the African Union’s Agenda 2063 and the development strategies of several countries in Sub-Saharan Africa (SSA). Given this renewed interest in industrialization across the region, a central question is not whether SSA countries should pursue industrialization as a potential path to sustainable growth but how to promote the prospects of industrialization.