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World Bank recommends global value chains for Africa

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THE way forward for economies of African countries has received another recommendation from World Bank which has called on Africa to key into global value chains as panacea to dwindling national and regional incomes.

  Vice President of World Bank on Development Economics and Chief Economist of World Bank Group, Pinelopi Goldberg, made the recommendation yesterday. According to Goldberg, Africa does not benefit largely from international trade because of its concentration on exports of agriculture and allied commodities.

  “When African firms engage more in exporting and importing, they tend to create jobs and this translates into poverty reduction. It will go a long way in improving global value chains in Africa’s development. In principle, global value chains make it easier to engage in import or export activities because the manufacturing of parts does not require the full range of capabilities of producing a finished product,” Goldberg said.

  Therefore, she stated that only greater participation in global trade will lead to technology transfer, especially through imports in Africa, adding that the challenge is on Africa to expedite its integration into global markets amid rising protectionism trends in some advanced economies.

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