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Paper short abstract:

To catch up, African countries need inputs from foreign actors. This paper tests whether limitations in the supply of foreign intermediary goods to key sectors hinder industrialization and discusses their impact on regional trade and the industrialization process.

Paper long abstract:

Despite African countries’ lag in terms of development, they are the most at risk due to climate change and pandemics. They consequently need to implement several policies to adapt to the new challenges; however, those policies rely on technologies that African countries do not yet have. Facing those challenges, therefore, means gaining access to these technologies. As evidenced by the COVID crisis, access to vital technologies can face bottlenecks in times of crisis, and African countries might be interested in producing them domestically. However, the production of these goods can also be limited by additional bottlenecks. While some of these technologies can easily be bought by African actors, others can be more difficult to access. Intermediary goods required for the production at an industrial scale of key technologies can have their access limited due to intellectual property rights, export quotas, or high prices. African actors can therefore face difficulties accessing key technologies, which can limit their process of industrialization.

I will identify key technologies in the pharmaceutical and renewable energy sectors and test whether there are bottlenecks in their supply chains that could limit the emergence of domestic African industries. This analysis will rely on secondary data (trade database: BACI CEPII; Deep Trade Agreements database; market reports, etc.). I will also discuss the consequences for the industrialization process, both in terms of learning from imported technologies and the long run competitiveness of African industries. Additionally, I will examine the role of regional supply chains in addressing these vulnerabilities.