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Abstract: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.
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