From Made in the World to Made in Africa?

Jaime DE MELO
Scientific Advisor, FERDI
Emeritus Professor, University of Geneva
CEPR Fellow

CategoryWorking papers
Published on27 August 2026
PublishersFerdi

‘Radical uncertainty’ about the future of the World Trading System is pushing countries to deglobalize to reduce their exposition to potentially more risky production networks and to turn towards supply chains with geopolitically closer partners. This paper uses multi-regional input-output measures over 1995-2022 to evaluate Africa’s participation in supply chain trade Africa’s position in global value chains has remained largely unchanged over the period. In 2022, the continent’s backward participation (import content of exports) was about 14%, compared with 20% at the world level. Its forward participation rose to 25%, indicating that exports continue to be processed abroad before reaching the final consumer. This pattern confirms that Africa remains concentrated at the start of supply chains.

A successful AfCFTA could contribute towards a ‘made in Africa’. Progress is uneven. Tariff liberalization commitments is advancing. Rules of origin remain complex and fragmented. Both limit the emergence of regional production networks.
Africa has yet to build the conditions for reshoring within the continent. While some efforts are made on the tariff front, notably, negotiators’ commitments to adopt simple rules of origin, both necessary to direct supply production networks towards African countries, lack ambition.

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