Supply chain trade in East Africa: Prospects and challenges

Deeper regional integration is the main objective of the recently launched Africa Continental Free Trade Area (AfCFTA). Supply chain trade both at the level of the Regional Economic Communities (RECs) and across RECs are to spearhead the AfCFTA. Indicators of Global Value Chains (GVC) participation show that even though the EAC and other African RECs have increased their participation in GVCs over the period 1990-2015 surpassing MERCOSUR they still lag behind the ASEAN region. There has also been little improvement in the participation of African RECs in Regional Value Chains (RVCs). This outcome is not due to a lack of ambition. Indeed, African Regional Economic Communities (RECs) have prioritized strengthening deeper RVC integration as a stepping stone to their development.

de Melo J., Twum A. (2020) "Supply chain trade in East Africa: Prospects and challenges", FERDI Working paper P263, February (also International Growth Center (IGC) report F-19103-RWA-1)

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