Dar es Salaam, 30 June 2014 By participating more effectively in the global production

of goods and services, Africa can transform its economy and achieve a development
breakthrough, according to the latest African Economic Outlook, released here today.

The report is produced annually by the African Development Bank (AfDB), the OECD
Development Centre, the Economic Commission for Africa (ECA) and the UN Development
Programme (UNDP).

The report portrays a promising outlook for 2014 and 2015, confirming Africas healthy
resilience to internal and external shocks. The continents growth is projected to accelerate to
4.8 percent in 2014 and 5 to 6 percent in 2015 levels last seen before the global economic
crisis of 2009. The report notes that, Africas economic growth is becoming more broad-based,
driven by domestic demand, infrastructure and increased continental trade in manufactured
goods.

Africas participation in global value chains is currently limited to lower value activities although
opportunities exist for upgrading to higher ones- the report argues, noting further that, Africas
share in global trade in value added grew from 1.4% in 1995 to 2.2% in 2011. And, the report
points out that the challenge for African economies is to ensure that global value chains have a
positive impact on socially inclusive development.

More effective participation in regional and global value chains is strongly emphasized in the
report - the range of activities in different countries that bring a product from conception to
delivery to the consumer could serve as a springboard for Africa in economic diversification,
domestic resource mobilisation and investments in critical infrastructure. In order to do so,
however, the continent needs to avoid getting stuck in low value-added activities. .. if
combined with upgrading, Global Value Chain integration has a potential to accelerate
structural transformation in Africa said Dr. Tonia Kandiero, AfDBs Resident Representative to
Tanzania.

The report argues that, African countries can further integrate into global value chains by
opening to trade, targeting regional and emerging markets, modernising infrastructure,
promoting local entrepreneurship, and investing in education. In order to benefit from global

value chains, we need to address the shortcomings in the business environment, infrastructure,
productive capacity and skills in Africa said Hon. Janet Mbene, Deputy Minister for Industries
and Trade. The Deputy Minister highlighted the significance of Foreign Direct Investments
(FDI), trade linkages with regional trading partners, as well as careful exploration of natural
resources, including minerals and natural gas, as potentials avenues for Tanzanias more
effective integration into the global value chains.

The African Economic Outlook shows that the continent has continued to make progress in
human development, with lower poverty levels, rising incomes and improving rates of school
enrollment and health coverage. It argues that, further gains in human development could be
achieved by empowering people and ensuring environmental sustainability, so that economic
growth can yield benefits for all.

The report cautions that, in order for value chains to effectively integrate the poor and
marginalized, often including women, targeted public policies and inclusive business models
should facilitate access to productive assets such as land and financing, enhance productivity,
and improve the resilience of small producers.