Abstract
Many parts of the world have been impacted by the effects of the COVID-19 pandemic with related implications for their development agendas and Africa is no exception. COVID-19 has disrupted work, caused productivity chaos, layoffs, and lockdowns—all of which adversely affected national economies. Entangled in their struggle for economic advancement, African countries are pursuing various economic policies, while grappling with the effects of COVID-19, and trying to navigate the calls for a green economy. Services have become the indispensable backbone of economies around the world. Africa’s digital economy is important for sustainable growth and development and digital trade in services is growing dramatically. Fostering digital trade in services is promising, recognizing that this trade has helped cushion the COVID-19 pandemic’s blow to services trade. Taking its cue from the aforementioned, the aim of this chapter is threefold: first, it discusses the green economy, stressing its contested nature and appeal. Second, we look at how digitalization is impacting the services sector and resultant growth in digital trade in services. Third, the chapter outlines country-and region-specific examples that demonstrate the recognition by governments of digitalization in addressing servicification challenges.
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Notes
- 1.
A circular economy supports the transformation and development of industry and infrastructure towards sustainable consumption and production (SCP). The European Commission in 2015 adopted a “Circular Economy Action Plan” as one its major policy initiatives. UNEP also recognizes the circular economy as one of the key components of an inclusive green economy (UNEP, 2015a).
- 2.
While responding to concerns about resource scarcity, primarily centers on biological resources, such as those from agriculture, forestry and fisheries. It emphasizes a transition towards an optimal and sustainable use of renewable biological resources, as materials and bio-energy.
- 3.
18 underlying indicators define the Global Green Economy Index™ (GGEI), each contained within one of the four main dimensions of Climate Change & Social Equity, Sector Decarbonization, Markets & ESG Investment, and Environmental Health. Each dimension is equally weighted (25% each) in calculating the total score. Each indicator is also equally weighted within the four main dimensions. Our sample is limited to twenty-two top African leaders progressing towards a green economy (those with a GGEI score above 0.40—the highest GGEI score was 0.78 in 2022).
- 4.
The UNCTAD export concentration index shows to which degree exports of individual economies are concentrated on a few products. Due to the lack of export concentration data for 2022, we therefore use the 2021 export concentration index data.
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Hanson, K.T., Tang, V.T., Mutula, K.M. (2023). Fostering Africa’s Digital Trade in Services and Green Economy Post-COVID-19. In: Puplampu, K.P., Hanson, K.T., Arthur, P. (eds) Sustainable Development, Digitalization, and the Green Economy in Africa Post-COVID-19. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-32164-1_7
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