Upgrading in global value chains is largely driven by the development of regional value chains. Building regional value chains is vital to promote sub regional integration. In addition to the non-exploitation of the natural assets that North Africa possesses for sub regional integration, in particular in certain sectors – agri-food and fisheries, energy and chemicals, mechanical engineering and electronic components – the crisis caused by the coronavirus disease (COVID-19) pandemic has shown that, thanks to their resilience, the pharmaceutical industries could become one of the emerging sectors in the post-pandemic era. The sector also has great potential to drive integration and could utilize economic complementary that already exist in the subregion. This emerging sector has the potential to give North African countries high revealed comparative advantages that can accelerate economic integration and, most importantly, accelerate upgrading in global value chains and the construction of regional value chains. It is in this context that the current study is taking place, the aim of which is to map out the North African pharmaceutical sector and analyse the potential to develop a subregional value chain for the sector. There are two chapters in the study. The first chapter is an analysis of the pharmaceutical industries in North African countries. The analysis looks at developments in global and subregional trade to target the competitiveness profiles of products and identify the sectors in which there is potential for subregional integration. The second chapter seeks to find avenues for building a regional value chain in the pharmaceutical sector. It looks at the context of trade among North African countries and their trade with the rest of the world. Potential avenues for accelerating the subregional integration process in the current context are also explored. The global fight against COVID-19, the concern of contractors to secure supply chains, in particular in the health sector, and the recent implementation of the African Continental Free Trade Area provide opportunities for the development of regional value chains in North Africa.
