Regional Value Chains Are Not a Substitute for Global Value Chains: Strategies for African Industrialization

Danilo Desiderio

Trade Policy expert and Senior Associate, Horn Economic and Social Policy Institute (HESPI), Regional Office Kenya, Nairobi, Kenya. 

Abstract

The rise of protectionism and surging tariffs in major economies has reshaped global trade dynamics, posing both risks and opportunities for African economies. While regional value chains (RVCs) under the African Continental Free Trade Area (AfCFTA) can act as a catalyst for intra-African trade and industrialization, they cannot fully replace integration into global value chains (GVCs), which remain crucial for acquiring advanced technologies and know-how, attracting investment, and enhancing competitiveness. This paper explores strategic approaches African businesses must adopt to leverage both regional and global networks, highlighting how a balanced engagement can support sustainable industrialization and enhance systemic competitiveness.     

Keywords: Global value chains, Regional value chains, AfCFTA, Trade uncertainty, Tariffs

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