Africa’s economic growth is projected to accelerate to 4.8% in 2014 and 5% to 6% in 2015, levels which have not been seen since the global economic crisis of 2009.

This is according to the African Development Bank’s (AfDB) latest African Economic Outlook report which says that Africa can transform its economy and achieve a development breakthrough by participating more effectively in the global production of goods and services.

The report shows that the continent’s economic growth is more broad-based, driven by domestic demand, infrastructure and increased continental trade in manufactured goods.

It argues that more effective participation in regional and global value chains could serve as a springboard for Africa in economic diversification, domestic resource mobilisation and investments in critical infrastructure.

Chief Economist and Vice-President of the AfDB, Mthuli Ncube, says that, in the medium- to long-term, the opportunity for participating in global value chains should be viewed as part of the strategy for achieving strong, sustained and inclusive growth. “In order to sustain the economic growth and ensure that it creates opportunities for all, African countries should continue to rebuild shock absorbers and exercise prudent macro management. Any slackening on macro management will undermine future economic growth,” he says.

However, the continent needs to avoid getting stuck in low value-added activities, says the report. To do this the continent must invest in new and more productive sectors, build skills, create jobs and acquire new technology, knowledge and market information.

Mario Pezzini, Director of the OECD Development Centre points out that ensuring that greater insertion into global value chains is achieved and has a positive impact on people’s lives is a challenge for many African nations. “Public policies need to be articulated in a targeted strategy that promotes more equitable economic and social transformation and an environmentally sound development,” he adds.