Africa is among the least diversified regions in the world with regard to exports. Commodities account for more than 60 percent of total merchandise exports in 45 of the 54 countries in Africa, leaving them highly vulnerable to global commodity price shocks and undermining the continent’s inclusive growth and development prospects.
Economic Development in Africa Report 2022 shows that neglecting the potentially transformative role of high knowledge-intensive services, such as information and communications technology services and financial services, is among the key reasons why export diversification remains a challenge in Africa.
The report shows that effectively addressing barriers to services trade under the African Continental Free Trade Area will be key to unleashing the transformative role of services in enhancing the diversity and complexity of products from Africa.
UNCTAD recommends that for export diversification strategies to be impactful in Africa, policies need to be in place that enhance inclusive access to innovative financing technologies, including for small and medium-sized enterprises. Leveraging high knowledge-intensive services to increase productivity and improve competitiveness in the private sector will be key to achieving higher value-added diversification and growth under the African Continental Free Trade Area.
Website: unctad.org/edar2022
