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The power of disruptive innovations

In any industry, disruptive innovation creates a new market or value network, displacing established market leaders. For instance, Kodak’s film-based business model was displaced by digital photography and the wide use of smart phones. Today, the major disruptive forces sweeping the global economy originate from automation, digitization, climate change and protectionism. Anecdotal evidence shows that low and middle income economies are poorly positioned for adapting to these disruptions. Hence, there is a need for an early and ambitious response to combat these forces. This could include some traditional drivers of development such as expanding and efficiently allocating capital stock to boost labour productivity.

Developing the cassava value chain in harnessing the benefits of AfCFTA

Nigeria has consistently remained the world’s largest producer of cassava. However, the industry is still highly underdeveloped. As the world’s largest producer of cassava, the development of the cassava value chain could serve as a test case for shifting from a natural resource-based economy to a manufacturing-based economy. This is one viable strategy that Nigeria could adopt to reduce its vulnerability to global shocks and harness the benefits associated with the AfCFTA.

In this edition of the FDC Monthly publication, the FDC Think-Tank analyzes these issues and their implications on businesses and the economy at large.

Enjoy your read.

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