- The Africa Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA) and Overseas Development Institute (ODI) have jointly released a working paper entitled “Africa trade and Covid 19: The supply chain dimension”.
- The paper examines the impacts of the pandemic on trade and value chains in Africa with special focus on Ethiopia and Kenya, and the pharmaceutical sector.
The Africa Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA) and the UK-based Overseas Development Institute (ODI) have jointly released a working paper entitled “Africa trade and Covid 19: The supply chain dimension”. The paper examines the impacts of the pandemic on trade and value chains in Africa with special focus on Ethiopia and Kenya, and the pharmaceutical sector.
The Paper also offers specific policy recommendations on how the African Continental Free Trade Area can be reconfigured to reflect the new realities and risks of the 21st century.
Covid-19 has created significant disruptions to global value chains, and Africa has been severely affected. The continent depends for about 82 percent and 96 percent of its imports of food items, and medicinal and pharmaceutical products respectively. China, accounts for 11 per cent of African exports and 16 percent of imports while Europe, accounts for 33 percent of African exports and 32 percent of imports.
The key recommendation is that the pandemic has strengthened the case for developing intra-African regional value chains and unlocking the continent’s business potential. The Supply chain disruption severely hit Kenya’s Tea and Cut Flower trade, Ethiopia’s coffee and aviation sector etc.
To speed up the recovery, the paper recommends urgent implementation of the Africa Continental Free Trade Agreement, and the development of “Made in Africa” brands. It urged for a review of the Africa Continental Free Trade Agreement to reflect the new realities and risks. The Paper underlines that a robust supplier management system as a prerequisite to utilize the Africa Continental Free Trade Agreement as a springboard for developing Africa’s industrial base.
