Driving Industrialization in Africa: How Innovation and Global Value Chains Can Transform Economic Growth

A recent study by Jegede, O. (2025) titled “Leveraging innovation and global value chains participation for industrialisation: An agenda for research in Africa” published in African Journal of Science, Technology, Innovation and Development, reveals that African countries face numerous barriers to innovation, including underdeveloped research and development (R&D) infrastructure, limited access to financing, and significant human capital deficits.

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Africa can achieve industrial growth by leveraging innovation and strategic GVC participation, despite challenges in R\&D, finance, and skills.
– Jegede, O. 2025

This study investigates the critical relationship between innovation and Global Value Chain (GVC) participation, with a focus on how Africa can harness these mechanisms to drive industrialization and sustainable economic growth. Central to the analysis is the role of National Innovation Systems (NIS) in facilitating technological advancement and enhancing the continent’s competitiveness on the global stage. Despite persistent challenges such as inadequate research and development (R&D) infrastructure, limited access to financing, and human capital deficits, the paper argues that African nations can still make significant strides by strategically leveraging innovation. Through a systematic search and review of existing literature, the study identifies actionable pathways for Africa to deepen its integration into GVCs. Key insights emphasize the dual importance of coherent government policies and adaptive firm-level strategies. Governments are urged to implement supportive industrial policies, invest in quality infrastructure, and promote cross-border collaboration and regional integration to boost innovation capabilities. Meanwhile, firms are encouraged to adopt proactive approaches such as technology upgrading and expanding export activities to enhance global competitiveness. Overall, the research advocates for a coordinated effort across public and private sectors to strengthen Africa’s innovation ecosystem, positioning the continent for more effective participation in GVCs and long-term industrial transformation.

How the Study was Conducted

This study employed a systematic search and review methodology to critically examine existing literature on the relationship between innovation and Global Value Chains (GVCs), with a particular focus on the African context. The primary objective was to explore how innovation can facilitate Africa’s participation in GVCs and drive industrialization across the continent. A structured search strategy was implemented using major academic databases such as PubMed, Scopus, Web of Science, and Google Scholar. Relevant keywords—including “innovation,” “GVCs,” “industrialization,” and “Africa”—were used to identify pertinent studies. The review encompassed both qualitative and quantitative research while excluding non-peer-reviewed sources and non-English publications. The data collection process involved an initial screening of titles and abstracts to identify relevant studies, followed by a full-text review based on predefined inclusion criteria. The selected studies underwent data extraction and were analyzed using narrative synthesis and thematic analysis to identify recurring patterns, key themes, and critical insights. These analyses revealed how innovation serves as a catalyst for enhancing Africa’s integration into GVCs and promoting industrial development. To ensure methodological rigor, all selected studies were evaluated for quality and credibility. The findings were then structured to provide clear, actionable recommendations—highlighting the importance of strategic government policies, firm-level innovation strategies, and regional collaboration in strengthening Africa’s GVC positioning. The study also acknowledged several limitations, including language and publication bias, variability in study quality, and contextual differences among African countries. Despite these constraints, the review offers valuable insights into the role of innovation in fostering sustainable industrial growth in Africa.

What the Author Found

The author found that African countries face numerous barriers to innovation, including underdeveloped research and development (R&D) infrastructure, limited access to financing, and significant human capital deficits. These constraints hinder the continent’s ability to generate and apply new knowledge effectively. Furthermore, Africa’s participation in GVCs remains uneven, with substantial variation across countries and sectors, often concentrated in low-value activities such as raw material extraction or basic manufacturing.

Why is this important

Enhancing Africa’s Global Competitiveness: African economies often struggle with low-value production and limited global market integration. By leveraging innovation, firms can transition from raw material exporters to higher-value producers in sectors like manufacturing and technology.

Overcoming Structural Challenges: The study identifies key obstacles—such as weak research infrastructure, limited access to financing, and human capital gaps—that hinder Africa’s industrial growth. Understanding these challenges helps policymakers design effective strategies for supporting innovation and economic transformation.

Strengthening National Innovation Systems (NIS): A strong NIS ensures technology flows efficiently between businesses, universities, and research institutions. Investing in R&D, education, and technology adoption will help African firms move up the value chain.

Supporting Sustainable Development: Innovation-driven industrialisation can boost job creation, reduce poverty, and improve living standards. Rather than relying on resource extraction, African economies can diversify and develop resilient industries.

Leveraging Regional Integration: Initiatives like the African Continental Free Trade Area (AfCFTA) can facilitate deeper GVC participation. Regional collaboration helps streamline supply chains, foster knowledge-sharing, and increase cross-border innovation.

Informing Policy and Business Strategy: Governments and businesses can use insights from this study to craft better policies—from infrastructure investments to trade regulations—that enable African firms to compete globally.

What the Author Recommended

• Governments should prioritize investments in research and development (R&D) infrastructure, foster collaboration between universities, industries, and research institutions, and implement policies that facilitate technology transfer and knowledge sharing. Building robust NIS will enhance local innovation capacity and competitiveness in global markets.
• Policymakers must craft industrial strategies aligned with global market demands while investing in essential infrastructure—such as roads, ports, and digital networks—to support efficient trade. Financial incentives should be provided to firms engaged in technology upgrading and export-oriented activities, enabling their integration into higher-value segments of GVCs.
• African businesses should be encouraged to adopt advanced technologies, pursue digital transformation, and improve product standards to move up the value chain. Regional trade frameworks like the African Continental Free Trade Area (AfCFTA) should be leveraged to enhance cross-border operations and foster competitive industrial clusters.
• Investments in education, vocational training, and entrepreneurship programs are critical to developing a skilled workforce capable of supporting industrial innovation. Particular emphasis should be placed on building digital competencies and technical expertise to meet the demands of modern industries and evolving GVCs.
• Governments and regional bodies should promote cross-border innovation partnerships, support joint ventures between African and international firms, and harmonize policies to reduce fragmentation and create a more integrated African innovation and industrial ecosystem.
• A focused research agenda tailored to Africa’s innovation and industrial needs is essential. Policymakers and scholars should prioritize evidence-based strategies, support data-driven decision-making, and continuously monitor and evaluate innovation initiatives to refine approaches and improve outcomes over time.

In conclusion, the study by Jegede (2025) highlights the pivotal role of innovation and strategic participation in global value chains as essential drivers of Africa’s industrial transformation. Despite persistent structural barriers, the continent holds significant potential to enhance its global competitiveness through targeted investments in R\&D, education, and infrastructure, as well as supportive policy frameworks and regional collaboration. By aligning public and private sector efforts and fostering a robust innovation ecosystem, African nations can move beyond low-value economic activities toward sustainable, inclusive, and resilient industrial growth.