ECA concludes review of forthcoming 2022 Edition of the Economic Report

Addis Ababa 6 May 2022 (ECA) - Experts from across academia and policy sectors have concluded the external peer review of the 2022 edition of the Economic Report on Africa (ERA 2022), a flagship of the Economic Commission for Africa (ECA).

The report on the theme: "Leveraging digital technology and innovation to promote regional value chains in building forward better in Africa" will be formally launched later in the year after being presented at the 54th session of the ECA Conference of Ministers (CoM2022) scheduled for 11 -17 of May 2022 in Dakar, Senegal.

According to the lead coordinator of the report, Jean-Paul Adam, Director, Climate Change, Natural Resource Management and Technology at ECA, this year's report aims to critically analyse the impact of digital technology and innovation as a lever for the promotion of regional value chains as part of efforts to build forward better in Africa. It will further stipulate policy recommendations for various stakeholders to support existing efforts.

ERA 2022 assesses the development of Africa's regional value chains in the context of ongoing COVID-19 recovery efforts and their importance in strengthening the African Continental Free Trade Agreement (AfCFTA). It also takes into account the challenges and contributions of digital technologies and innovation to regional value chains and proposes policy recommendations aimed at strengthening the application of digital technologies in this regard.

The report indicates that the application of digital technologies is driving socio-economic transformation, enhancing efficient production and distribution of goods and services, opening up new markets, and opportunities for increased income generation for millions of people and enhancing connectivity between people, societies, government, and organisations.

However, the report notes that Africa could benefit from a more robust infrastructure that can support and consolidate regional value chains. The COVID-19 pandemic has highlighted Africa's need to increase self-sufficiency in the pharmaceutical sector and the need to invest in stronger regional value chains.

Furthermore, according to the report, integrating supply-led value chains in digital technologies and innovations can reduce costs and add value at every stage of a product's lifecycle. There is potential within Industry 4.0 innovations, Internet of Things (IoT), artificial intelligence, cloud computing, robotics, big data, machine learning and 3D printing, according to Mactar Seck, ECA's economic affairs officer, Technology, Climate Change and Natural Resource Management Division.

"The benefits of Internet of Things on regional value chains are being witnessed across many sectors such as monitoring soil moisture in farming, food retailing and chemical manufacturing. However, advancements are challenged by limited infrastructure, connectivity, capacity and skills gaps. The challenges of implementing digital technologies in regional value chains vary by country depending on the level of integration of digital economy," he added.

At the heart of this challenge is the fact that Africa remains the least connected region in the world, with around 28.2% Internet coverage and 34% of mobile broadband access.

"Infrastructure is a key challenge, given the low level of connectivity in Africa," noted the meeting.

A key message to policy makers is the need for a clear policy and regulatory framework and the need to adopt a responsive and interactive approach to improve the continent's value chains.

"It is crucial to adopt regulations and policies that are implementable and out-come based, focusing on results and performance rather than form, and finally regulation that is collaborative," added Mr. Adam.

Issued by:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: [email protected]

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