Global Value Chains, also called GVCs, may represent a significant opportunity for African countries to improve their prospects for expanding non -commodity exports.

In the past, for a country to become an apparel exporter, it would need everything from design capabilities through to textile mills. But under GVC dynamics, a country can specialise in certain activities and import the necessary inputs.

GVCs have provided a first step for expansion of the economies of China and much of East Asia. In these regions, GVCs are at the heart of the open economy model that is responsible for the growth and poverty reduction success story of the region in recent decades.

With wages rising rapidly in China, parts of these GVCs are migrating elsewhere in the region and globally. Some estimates suggest that 85 million manufacturing jobs will migrate from coastal China over the next 20 years and Sub-Saharan Africa is expected to be a major beneficiary.

However joining GVCs is not enough. Countries must establish value-adding positions in these production networks and upgrade continuously if they are to use GVCs effectively as an instrument for inclusive growth.

The GVC spillover effects are the highest in Namibia, slightly lower in South Africa, and very low in Swaziland.