Trade fragmentation and reconfiguration of the global value chain: Opportunities for the African automotive sector to produce electric vehicle batteries

This research determined the causes and effects of trade fragmentation and how to reconfigure the global value chain by looking at the challenges and opportunities for the African automotive sector to produce electric vehicle batteries. Mixed method research methodology made use of journal articles from diverse online repositories. The data were analysed using documentary analysis and descriptive statistics. The results indicated that trade fragmentation is caused by geopolitical conflicts, policy concerns, trade prohibitions, and weak bilateral and international institutions. The findings indicated that trade interruptions, economic volatility, technology decoupling, company closures, job losses, welfare losses, and a decline in global output are all consequences of trade fragmentation. Opportunities are available to be explored by the African automotive sector, it was established that African economies can use the abundant minerals needed as raw materials to produce EV batteries. This, however, should be accompanied by effective industrial policies, capital, research and development, as well as harnessing much-needed modern technology. In terms of policy recommendations, it is suggested that there is a need to develop and implement an African automotive policy framework, promote business partnerships, and mobilise financial resources to enable the setting up of the EV battery industry in Africa.