Policy highlights:

  • Despite high economic growth rates since the 2000s, value addition in Africa is still low. For instance, 90% of the revenues from coffee production in African countries ends up in the consuming countries.
  • African countries have been unable to create linkages to more value-adding activities in global value chains because of structural and country-specific factors, such as the importance of low-value-addition primary commodities in African economies and the imposition of import tariffs on semi-processed and processed goods.
  • Although there is no blueprint for promoting industrialization, a policy framework is needed that addresses the entire value chain and supporting institutions and promotes activities such as building good infrastructure, supporting technical skill development and creating regional integration.
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