The Industrial Challenge Facing Africa in the Global Trading System

The first half of this paper describes the weak position held by Africa in the global trade of goods and identifies key determinants of the region's industrial performance. It goes on to outline shifts in the overall structure of international trade and production, together with the challenges they pose for Africa. It analyses the reasons for low productivity rates, points to missed export opportunities and highlights the key determinants of competitiveness. The second half of the paper describes the role of trade in stimulating growth and fighting poverty. For all the potential benefits of trade, most developing countries have failed to reap significant gains from trading opportunities in rapidly expanding  liberalised markets.