Africa's Regional and Global Integration

Abstract

This short paper examines Africa's regional and global integration through trade, global and regional value chains (GVCs and RVCs) at the aggregate and sector levels using detailed trade data and the EMERGING MRIO tables. It finds that the share of Africa's trade with itself is increasing and that precious stones and metals, petrochemicals, mining, and processed foods are driving RVCs, with high potential for further integration. Most RVC trade is within regional economic communities (RECs), particularly inside SADC, implying opportunities to expand RVCs in other RECs and establish cross-REC RVCs. The continent's upstreamness in GVCs has decreased in many sectors, suggesting a trend towards greater local value-addition.

Keywords: Africa, regional integration, trade, GVCs, RVCs

JEL Classification: F14, F15, O11