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INTERNATIONAL

these highlights just how important putting First, enhancing exports and
into action the promise of the AfCFTA is for economic sectors creates jobs
the continent. While the agreement has the and investment opportunities,
potential to be a game-changer for sure, the which in turn create income and
most important thing will be implementing the benefits for workers and their
policies. families. At a practical level, trade
is a close driver of socioeconomic
Will there be another report this year? If yes, what will be development and resilience in developing
the main themes? countries. Greater opportunities to trade with
The Economic Development in Africa Report is one regional neighbours like through the African
of UNCTAD’s major annual flagship publications. We Continental Free Trade Area, at the regional
produce a new report every year. The 2023 Report was level through greater intra-REC trade, and
launched in August this year. This year we’re focusing on with other regions also creates opportunities
The Potential of Africa to Capture Technology-intensive for local firms and businesses, whether this
Global Supply Chains. With all the turbulence in the global is through greater potential for value chain
economic system over the last few years, stemming from participation or the possibilities for investment
the impacts of the COVID-19 pandemic, the cost of living and technological learning. Agreements like
and inflation crises, war in Ukraine and other geopolitical the AfCFTA also can facilitate the movement
tensions, the global trade system has experienced many not only of goods and services but also of
challenges, and undergone some shifts in supply chain people, helping to plug labour market gaps
organization and management. One of the interesting and open opportunities in regional labour
questions against this background is, where can Africa fit markets for young people to find jobs in
into this new landscape? complementary sectors. Furthermore, the
Free Trade Area could increase opportunities
Although the integration of African economies into supply for the growth of small and medium-sized
chains is relatively low compared with other regions, enterprises and productive self-employment
disruptions to supply chain operations have a more than and contribute to effective reductions in the
proportionate adverse impact on their economies. Key widespread informality prevalent in Africa.
players and stakeholders are looking to strengthen the
resilience of existing supply chains by diversifying their Many European countries are currently facing
sources. This may create an opportunity for African difficulties – high interest rates, inflation,
economies to heighten their involvement in global supply growing social unrest, polarization. To what
chains. As multinational companies seek to extend their extent do these difficulties spill over into the
supply chains into diverse regions, African countries could countries of Africa, and which countries are
become potential sources of high-technology mineral most affected and how?
resources along shorter and simpler supply chains, with Global shocks certainly affect African
the added effect of contributing to the stable development countries. Depending on their own individual
of emerging industries on the continent. Nonetheless, economic structures and trade linkages, the
venturing into Africa as a supply chain destination will effects might be more or less severe. High
require enormous investment in adequate infrastructure, interest rates are making trade financing and
as well as the availability of human capital and technology. finance in general very expensive for African
The new report tackles these challenges and related policy businesses, with small and medium-sized
issues for the continent. enterprises shouldering the hardest burdens.
The spillovers of the war in Ukraine have
Beyond the matter of trade, there is socio-economic had major effects on global food supplies and
development on the local level, which is often very little critical inputs to the food system like fertilizer.
affected by trade. Could you talk a bit about how the The knock-on effects mean higher prices for
advantages of free trade can influence development at the consumers in destination markets.
local level, where most people would most benefit from it?
Trade and increased and more inclusive trade, African countries are also experiencing
higher value-added trade can have a major effect on financial challenges, owing to rising interest
development, including in local communities and regions. rates and more expensive financing for

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