Value Chains and Connectivity in Sub-Saharan Africa

Value Chains and Connectivity in Sub-Saharan Africa
International Trade Working Paper

This paper examines global value chain (GVC) activity in Sub-Saharan Africa, through the lens of newly assembled data on value added trade.

It finds that GVC participation is quite weak by world standards. Although there are emerging intra-regional connections, particularly with South Africa as a hub, some countries trade more easily with distant markets like the UK and USA than with their neighbours. The paper then examines data that could help explain these findings, focusing on bilateral trade costs and transport connectivity, as influenced by non-traditional trade policies like regulatory barriers. It concludes that there is considerable scope for Sub-Saharan Africa to promote value chain integration by improving connectivity in all its dimensions.