In a move to address crucial trade challenges and drive inclusive growth to unleash the African continent’s untapped export potential, the Arab Bank for Economic Development in Africa (BADEA) proudly released the inaugural 2023 Africa Export Competitiveness Report (the Report) at the Bank’s 50th-anniversary celebrations recently held in Accra, Ghana. The event also celebrated the launch of the Arab-Africa Financial Consortium (AAFC), marking a new era of economic collaboration and growth for the continent.

The inaugural Report, prepared in collaboration with the African Capacity Building Foundation (“ACBF”), Shift Impact Africa, the Institute for Competitiveness Africa (IFCA), and the Institute for Competitiveness India, examines the export capacity and Ecosystems of 30 African countries. It sheds light on the main factors and obstacles influencing Africa’s export competitiveness, and the key findings provide a comprehensive understanding of the continent’s economic landscape, complexities, and main drivers to foster an intensification of intra-African trade and African exports.

“Private sector development is a cornerstone of BADEA's 2030 Strategy, as we recognise the crucial role entrepreneurship and private enterprises, especially SMEs, play in driving economic growth. We are committed to creating an enabling environment for the private sector to thrive and seize export opportunities under AfCFTA, enabling the continent to compete on a global scale,” said H.E. Dr. Sidi Ould Tah, President of the Arab Bank for Economic Development in Africa (BADEA).

The Report was developed with a single purpose in mind: To become a regular benchmark publication and a world-class reference in its field. “We hope policymakers, development partners, and business leaders across Africa will reference it as a key decision-support tool. It sheds light on strategic investments in infrastructure required as a foundation for Africa’s economic competitiveness, providing invaluable insights to guide the design of skills development programs, and helping stakeholders to shape regulatory reforms to improve the continent’s overall competitiveness,” said Mr. Mamadou Biteye, Executive Secretary of ACBF.

The Report offers an aggregated overview of the continent’s competitiveness based on Professor Michael Porter's foundational competitiveness framework. “Our data-driven benchmark methodology evaluates the export performance of African nations, assessing export-related competitiveness and fostering peer-to-peer learning by highlighting best practices. The Report further analyses export conditions, underscoring fundamental drivers and challenges. By assessing national export capacities and ecosystems, 30 out of 54 African countries were assessed based on their current performance. In its pilot phase, ongoing evaluations will build upon this foundation with a commitment to including all African nations in future editions of the Report,” said Dr. Amit Kapoor, a visiting scholar at Stanford University and Honorary Chairman of the Institute for Competitiveness India.

The Report at a glance: A four-pillar index

The Report’s framework rests on four foundational pillars.

  • The first pillar, Enabling Environment, evaluates the policies, infrastructure, and knowledge systems crucial for enhancing export capabilities and fostering economic growth.
  • The second pillar, Demand Sophistication, focuses on analysing domestic market demands, which supports businesses in their capacity to innovate and remain competitive by understanding the evolving needs of buyers.
  • The third pillar, Business Dynamism, emphasises the importance of financial accessibility, administrative efficiency, and foreign direct investment (FDI) in promoting export competitiveness and economic development.
  • The fourth pillar, Export Performance, measures the extent and diversification of exports, offering valuable insights into market penetration, high-tech exports, and the overall effectiveness of export activities across Africa.

The Report provides key recommendations for African nations to enhance their export competitiveness. It suggests diversifying and expanding export sectors, investing in research and development (R&D), improving export infrastructure, and promoting export diversification through innovative incentives and strong support to develop new, profitable export sectors and niches.

"The release of this inaugural Report is timely and urgent as Africa navigates a complex global landscape marked by geopolitical, economic, and environmental challenges. The collaborative process behind the Report exemplifies the multi-stakeholder partnership approach essential for driving sustainable economic transformation in Africa and underscores the need for immediate action," concludes Ms. Tiekie Barnard, CEO of Shift Impact Africa.

The full Report is available here AIfC-Report23_ONLINE.pdf (svai.africa)