A SILVER LINING FOR LOCAL MANUFACTURING?

WITH THE EXCEP TION OF A handful of countries, Africa’s industrial sector has re- mained largely underdeveloped, with most nations relying heavily on imported manufactured goods to meet domestic needs. Therefore, it comes as no sur- prise that 66% of respondents said that the ongoing crisis is likely or very likely to boost industry and manufacturing in their country.

More than ever, the Covid-19 pandemic is exposing the vulnerabilities associated with weak value and supply chains, stressing the need to accelerate policies targeting economic diversi cation, local content and self-su ciency at the domestic and regional level.

The ongoing global race for medical supplies, in which the developed world has ercely engaged, has made this all the more obvious, underlining the importance of developing stronger regional ties that will outlive the crisis and strengthen Africa’s economic foundations in the long run.

It is with this very ambition that most African nations came together in 2019

to set the framework for the Africa Continental Free Trade Area agreement, which aims at boosting trade ties, encouraging African business, and easing the movement of goods, people and services.

While still at an embryonic stage, the agreement brings with it the promise to increase intra-regional trade levels by 50% in the rst ve years of its implementation, up from the current level of 16% of the continent’s total trade volumes. The agreement also promises to help establish a robust and modern industrial base, as markets increasingly shift trade away from traditional com- modities in favour of more value creation.

Bringing these ambitions to fruition, however, is far from an easy task, more so during the pandemic, which has disrupted industrial supply chains at large.