africa

Yale Center for the Study of Globalization
and others, 2013). The objective would be to move up the value chain through the
local supply of input services and to capture as much value added as possible.
Three scenarios are possible for the provision of services inputs to traditional industries:
first, the services could be imported if local supply is insufficient or insufficiently
competitive (price and quality); second, foreign providers could establish themselves
locally to supply themselves with services (that is, if demand is likely to be sustained);
third, local providers could supply services, if needed after an adjustment
of their capacity for training, investment, or maintenance of standards. Spillover
effects are maximized in the second and third scenarios: local establishment of
foreign suppliers could help transfers of all kinds (capital, knowledge, know-how,
etc.) and contribute to local capacity building; the third scenario might take longer
to accomplish, depending on the availability of local resources and skills.
Figure 16.15: Using Traditional Exports to Diversify African Economies and
Foster Growth
Source: World Bank (2014).
Guinea’s case provides an example from the mining industry in Africa. For Guinea,
participation in the global mining value chain is a direct source of FDI inflows (US$950
million in 2011 and US$570 million in 2012), economic activity (about 20 percent of
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