African economies face persistent challenges in translating trade integration into broad-based economic transformation. Traditional development pathways have emphasized manufacturing-led growth and integration into global value chains. However, changing global trade patterns, digitalization and servicification of global value chains, and Africa’s growing services sectors raise the question whether economic transformation could increasingly be driven by services trade, including digital, business, and infrastructure-related services.

This event explores how trade can support economic development in Africa in a context of structural change, and whether a partial “leapfrogging” from manufacturing-focused strategies toward services-led growth is feasible. It will examine the role of foreign direct investment (FDI) in enabling both manufacturing and services trade, and assess how multilateral frameworks - including the WTO Investment Facilitation for Development Agreement - can help improve investment climates, reduce transaction costs, and support sustainable development objectives. The discussion aims to identify policy priorities for African countries and the WTO to better align trade and investment with economic transformation.

Main questions:

• Is manufacturing-led development still the primary pathway for economic transformation in Africa, or can services trade (including digital and business services) play a more central role?
• To what extent can African economies “leapfrog” traditional industrialization stages, and what are the risks of premature de-industrialization?
• How can foreign direct investment better support domestic value creation, technology transfer, and linkages in both manufacturing and services sectors? 
• What practical contribution can the WTO Investment Facilitation for Development Agreement make to improving investment conditions in Africa, and how can it complement regional initiatives such as AfCFTA?