ABSTRACT
This chapter assesses critical skills needed for the AfCFTA to be a game changer for the continent’s economic integration and transformation. Free movement of goods and services across the continent following the suppression of tariffs and non-tariffs barriers will create opportunities for further participation in backward global value chains (GVCs) or new continental and regional value chains development. Indeed, most of the African economies produce primarily commodities for further processing in other countries and a limited number of countries are engaged in the production of limited manufacturing products. Participating in and positioning through these value chains depends critically on countries’ workforce skills level. The chapter provides an analysis of the skills supply and gaps relative to skills requirements for backward GVC participation for agribusiness, manufacturing, the digital economy, and logistics. The chapter documents substantial skills gaps but also cross-countries disparities in several critical technical advanced skills necessary for the positioning into the higher segments of the value chains, specifically in STEM and ICT. Going forward, African leaders both at country and at the AU levels should take a series of interrelated policy interventions to upgrade and close the existing skills gap. Policies should aim to improve access and outcomes of education and training systems, harmonize education systems, ensure recognition of academic credentials, and ease skilled workforce mobility across the continent through the implementation of the African passport and putting in place incentives to attract the skilled African diaspora.
