Trade Liberalization and Africa's Economic Crisis: The Role of the Diaspora in Driving Technological Development for Industrial Scale-Up and Economic Growth

Trade liberalization in Africa has failed to significantly boost international or intra-African trade shares, raising questions about alternative pathways for technological and industrial development. This study examines the underexplored role of the African diaspora in driving innovation and industrial scale-up, framed by Innovation Systems Theory and Endogenous Growth Theory. The study provides an analysis of the historical legacy of trade liberalisation and its impact on Africa's industrial and technological development. Through a systmatic analysis of trade liberalization’s historical impact, we reveal its contribution to economic vulnerabilities and limited industrial growth in Africa. Leveraging secondary data, we then demonstrate how diaspora engagement mitigates these gaps via four key channels: (1) technology/knowledge transfer, (2) entrepreneurial investments, (3) remittance flows, and (4) enhanced innovation capabilities. Our findings highlight transformative diaspora impacts in fintech, renewable energy, and e-commerce sectors. Policy analysis underscores the need for structured frameworks to optimize diaspora contributions, including investment-friendly policies, coordinated support systems, and strategic communication. We propose three actionable recommendations: (i) systematic mapping of diaspora networks, (ii) incentivized multi-stakeholder partnerships, and (iii) targeted interventions to align diaspora expertise with industrial priorities. The study advances debates on Africa’s development by shifting focus from trade liberalization’s limitations to diaspora-led growth opportunities, offering evidence-based strategies for policymakers to harness this potential.