Key messages:
- Fall in trade volume – especially cross-border trade – investment and commodity prices have negatively impacted the forecast for Africa’s economic growth. For the first time in 25 years, gross domestic product (GDP) for the continent is projected to contract.
- Comparative value chain analyses show some similarities: adaptation includes shifting manufacturing towards the production of personal protective equipment (PPE).
- The shutdown of pharmaceutical manufacturing facilities in India and China, increased prices of raw materials and export restrictions imposed by other countries have exposed Africa’s vulnerabilities. There is a renewed focus on boosting intra-regional trade in the pharmaceutical sector.
- Covid-19 has strengthened the case for developing intra-African regional value chains and unlocking the continent’s business potential through the African Continental Free Trade Area (AfCFTA).