Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319286 
Year of Publication: 
2025
Series/Report no.: 
ODI Global Report
Publisher: 
ODI Global, London
Abstract: 
The global economic landscape has undergone significant transformation since the 2008 financial crisis, marked by rising protectionism, intensifying competition between major powers, and disruptions to trade and investment flows. These changes present both challenges and opportunities for Africa, particularly as the continent seeks to leverage the African Continental Free Trade Area (AfCFTA) for economic transformation. This report provides a crucial analysis of these evolving dynamics, focusing on their impact on Africa's automotive sector-a key industry for the continent's industrialisation strategy and at the core of the transformation of global value chains in the last 30 years. Key insights: - A changing global economic order: The past 15 years have witnessed a shift in global trade. This includes the increased importance of semiconductors and services in trade. The rise of East and Southeast Asia, coupled with evolving trade flows and FDI patterns, demands a reassessment of Africa's position in the global economy. - Geopolitical dynamics and value chains: Protectionist policies and trade disputes are disrupting global supply chains and investment patterns, posing challenges for African economies that are deeply integrated into global value chains. Moreover, a global conflict is emerging among economic powers aiming to boost industrial development while disrupting their partners. - Focus on the automotive sector: The automotive industry, a key driver of global economic growth, is undergoing a significant transformation due to the energy transition. Africa's automotive industry faces longstanding challenges. However, emerging opportunities driven by the EV revolution and increasing consumer demand can foster growth. - Case studies - South Africa and Morocco: Two distinct models of automotive development in Africa are examined: South Africa's pursuit of a continental production hub and Morocco's integration into European value chains. Policy recommendations: To harness geopolitical opportunities, the report advocates enhancing regional trade integration through the AfCFTA, diversifying investment sources and fostering a coordinated approach among African policymakers.
Subjects: 
Economic growth
Geo-politics
Morocco
South Africa
Africa
Trade & investment
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Research Report

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