New Markets Investor

Q3 2015Textile production in EgyptUS$1.5 billion investment in new port in GhanaAfrican leaders sign 26 nation Tripartite Free TradeArea TFTA agreementimprove production and marketing processes,and ultimately to meet the qualitystandards of world markets.• Leveraging services:Services exports are typicallyviewed as an area of comparative advantagefor more advanced economies, buta deeper examination of trade statisticssuggests that they are much more significantfor Africa than previously thought,especially as inputs into exports fromother sectors. Further development oflow-cost, high-quality services will helpcountries participate in local, regionaland global value chains. It will alsoencourage policy-makers to promoteservices development as part of a widergrowth agenda.• Tapping global value chains (GVCs):Greater participation in globaland regional value chains can accelerateAfrican economic transformationthrough the gains associated withenhanced productivity and the developmentof new activities. However, gainsfrom GVC participation are not automaticand require a broad set of policies,with a particular focus on trade facilitation,investment, transport infrastructureand access to finance. Many of thesepolicy areas have economy-wide benefitsbeyond GVC integration.“Business cannot continue as usual inAfrica’s agriculture sector. It is imperativethat productivity be significantlyboosted through tailored agricultureresearch, harnessing ICT and strengtheninglinkages between small-scalefarmers and commercial producers,integrating them into regional and globalvalue chains” said Steve Kayizzi-Mugerwa,Chief Economist and Vice-President,African Development Bank.“The service sector is rapidly becomingmuch more prominent on the developmentagenda across Africa and for theWorld Bank. In many countries acrossthe region, services are the most rapidlygrowing sector, creating new jobs andeconomic activities, and providing criticalinputs to boost production in othersectors. Yet productivity of the servicesector remains low.To be more competitive, governmentsmust lower trade barriers as well as enactcomplementary regulatory reforms.These reforms are also necessary for Africato deepen its integration into globalvalue chains,” said Anabel González,Senior Trade and Competitiveness Director,World Bank, Washington, DC.“To consolidate the progress achievedand make new gains that will allowSub-Saharan Africa to fulfill its fullpotential, we need to promote furtherinvestment in infrastructure, adopt swiftertrade procedures, increase regionalintegration and build more effectiveinstitutions. Faster structural transformationis also needed to boost productivity,enhance job creation and improvesocial cohesion,” said Angel Gurría,Secretary-General, Organisation for EconomicCo-operation and Development(OECD), Paris.New Markets Investor28