Post-COVID-19 Global Value Chain- The Place of Nigeria, Africa- Analysis
President Donald Trump has declared an open war against subsisting global value chain which is increasingly placing China at the centre of world economy. American companies are under increasing pressure to quit China and relocate home.
The Global Value Chain is under attacks. COVID-19 and subsequent disruption awaken the world to a new reality. Nations are now ruminating over new production and support system.
It is not clear how succesaful President Trump will be in his campaign against GVC.Whatever the outcome, the world is not likely to be the same again.
Governments are still in shoc by the scrambling for medical equipment. The developed nations were caught napping. It was clear existing GVC does not protect national sovereignty;It strenghtens some countries and weakens others.
Africa has never been a serious player in the now challenged GVC. Only two countries namely South Africa and to an extent,Ethiopia plays certain levels of roles. The rest of the continent is mere consumer of products from value chains largely domiciled in Asia and Europe.
A disrupted GVC is therefore an opportunity for Nigeria and Africa as a whole to push for regional production value chains.
In this agenda to reshape world economy,Nigeria as the biggest economy on the continent is challenged to rise above her shortcomings to play crucial roles.
As a key partner of China,it is time for negotiation to be adopted as a regional production hub for Africa. South Africa has secured such privileges from the West with many industrial establishment located in SA.
Within the context of AFCTA,Africa is now more than obligated to rise for a share of regional production hub. Rwanda ,Kenya and Morroco are pushing hard in that direction.
Nigeria has laid out post COVID-19 measures,but the nation may have to widen her outlook, taking into account the growing clamour for restructuring of the global value chains.
We published some articles as a precursor to sharing thoughts of Nigerian business leaders on this struggle for a new global value chains.