African population growth will add to traffic woes

Significance The twin processes of urbanisation and middle class growth have driven a rapid increase in vehicles on the road, leading to gridlock in many cities across sub-Saharan Africa (SSA). Excessive traffic on the continent undermines economic productivity by abbreviating work hours, increasing transit costs and contributing to a range of environmental and health problems. Impacts Projected exponential population growth in SSA will add pressure to already-strained urban infrastructure. Lack of law enforcement, poor roads and reckless driving will likely keep SSA countries among the most dangerous for driving. Radical measures to relocate populations away from urban centres would face stiff resistance.

2020 ◽  
Vol 47 (1) ◽  
pp. 149-181 ◽  
Author(s):  
Oyakhilome Ibhagui

PurposeThe threshold regression framework is used to examine the effect of foreign direct investment on growth in Sub-Saharan Africa (SSA). The growth literature is awash with divergent evidence on the role of foreign direct investment (FDI) on economic growth. Although the FDI–growth nexus has been studied in diverse ways, very few studies have examined the relationship within the framework of threshold analysis. Furthermore, even where this framework has been adopted, none of the previous studies has comprehensively examined the FDI–growth nexus in the broader SSA. In this paper, within the standard panel and threshold regression framework, the problem of determining the growth impact of FDI is revisited.Design/methodology/approachSix variables are used as thresholds – inflation, initial income, population growth, trade openness, financial market development and human capital, and the analysis is based on a large panel data set that comprises 45 SSA countries for the years 1985–2013.FindingsThe results of this study show that the direct impact of FDI on growth is largely ambiguous and inconsistent. However, under the threshold analysis, it is evident that FDI accelerates economic growth when SSA countries have achieved certain threshold levels of inflation, population growth and financial markets development. This evidence is largely invariant qualitatively and is robust to different empirical specifications. FDI enhances growth in SSA when inflation and private sector credit are below their threshold levels while human capital and population growth are above their threshold levels.Originality/valueThe contribution of this paper is twofold. First, the paper streamlines the threshold analysis of FDI–growth nexus to focus on countries in SSA – previous studies on FDI-growth nexus in SSA are country-specific and time series–based (see Tshepo, 2014; Raheem and Oyınlola, 2013 and Bende-Nabende, 2002). This paper provides a panel analysis and considers a broader set of up to 45 SSA countries. Such a broad set of SSA countries had never been considered in the literature. Second, the paper expands on available threshold variables to include two new important macroeconomic variables, population growth and inflation which, though are important absorptive capacities but, until now, had not been used as thresholds in the FDI–growth literature. The rationale for including these variables as thresholds stems from the evidence of an empirical relationship between population growth and economic growth, see Darrat and Al-Yousif (1999), and between inflation and economic growth, see Kremer et al. (2013).


Author(s):  
Vincent Sebastian Pande ◽  
Neema Penance Kumburu

Development efforts in several countries in Sub-Saharan Africa (SSA) are harmed by a combination of many factors, high rates of population growth being among of them. Despite the strong links between population and sustainable development, these issues were not a priority in broader development policies and strategies in SSA. Population and sustainable development had been often addressed separately at policy and programme levels. Despite the fact that decision makers in these countries recognize the importance of population issues for sustainable development, these issues are rarely worked on together, limiting the payoff that could result from integrating the two. This chapter, therefore, re-examines and relates these two concepts to see their compatibility and provides a more realistic approach in converting population growth into economic gains for future development of SSA countries and Africa in general.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdullahi Abdulhakeem Kilishi ◽  
Hammed Adesola Adebowale ◽  
Sodiq Abiodun Oladipupo

Purpose This paper aims to investigate the nexus between economic institutions (EI) and unemployment in sub-Saharan African (SSA) countries. Specifically, the paper examines the impact of aggregate EI and ten different components of institutions on total, male and female unemployment in SSA. Design/methodology/approach The paper used unbalanced panel data of 37 SSA countries covering the period between 1995 and 2018. A dynamic heterogenous panel data model is specified for the study. Two alternative estimation techniques of dynamic fixed effect and pool mean group methods were used to estimate the models. The choice of appropriate method is based on Hausman specification test. Findings The findings reveal that aggregate EI and institutions related to the monetary system, trade flows, government spending and fiscal process significantly lead to less unemployment in the long-run. However, there is no evidence of a significant relationship between EI and unemployment in the short-run. These findings are consistent for total, male and female unemployment, respectively. Practical implications To reduce unemployment significantly in the long run, policymakers in SSA need to build more market-friendly institutions that will incentivize private investment, allow free movement of labour and goods, as well as guarantee a stable macroeconomic environment and efficient fiscal system. Originality/value Most of the existing studies focused on the influence of labour market institutions on unemployment ignoring the effects of other forms of institutions. While available studies on the link between institutions and unemployment used either OECD or other developed countries sample, with scanty evidence from Africa. However, the effects of EI could vary across regions. Thus, generalizing the findings from developed countries for SSA countries and other developing countries may be misleading. Hence, this paper contributes to the existing literature by examining the nexus between different types of EI and unemployment using the SSA sample.


2019 ◽  
Vol 46 (1) ◽  
pp. 35-54 ◽  
Author(s):  
Simplice Asongu ◽  
Nicholas Biekpe ◽  
Vanessa Tchamyou

Purpose The purpose of this paper is to examine how linkages between information and communication technology (ICT) and remittances affect the doing of business. Design/methodology/approach The focus is on a panel of 49 Sub-Saharan African (SSA) countries for the period 2000–2012. The empirical evidence is based on the generalized method of moments. Findings While the authors establish some appealing results in terms of net negative effects on constraints to the doing of business (i.e. time to start a business and time to pay taxes), some positive net effects are also apparent (i.e. number of start-up procedures, time to build a warehouse and time to register a property). The authors also establish ICT penetration thresholds at which the unconditional effect of remittances can be changed from positive to negative, notably: for the number of start-up procedures, an internet level of 9.00 penetration per 100 people is required, while for the time to build a warehouse, a mobile phone penetration level of 32.33 penetration per 100 people is essential. Practical and theoretical implications are discussed. Originality/value To the best of the authors’ knowledge, this is the first study to assess linkages between ICT, remittances and doing business in SSA.


Subject Infrastructure outlook for Sub-Saharan Africa. Significance Africa's infrastructure needs are under increasing scrutiny after several recent high-profile summits, as well as visits by international leaders to the continent. Sub-Saharan African (SSA) countries need to invest collectively an estimated 130-170 billion dollars per year to maintain and enhance transportation networks, achieve near 100% electrification and 100% access to water and sanitation. However, SSA faces an annual deficit of more than 68 billion dollars unless financing commitments increase sharply. Impacts A growing number of international insurance firms are likely to invest in regional and continent-wide infrastructure funds. Sovereign wealth funds could lead the private financing drive as they face fewer restrictions than pension funds and invest long-term. Amid growing African debt levels, development banks and multilateral bodies will increasingly support private infrastructure deals.


2017 ◽  
Vol 8 (1) ◽  
pp. 8-18 ◽  
Author(s):  
Sydney Chikalipah

Purpose The purpose of this paper is to investigate the determinants of financial inclusion (FI) in Sub-Saharan Africa (SSA). Design/methodology/approach The paper uses the World Bank country-level data from 20 SSA countries for the year 2014. Findings The empirical findings in this study indicate that illiteracy is the major hindrance to FI in SSA. The findings provide useful information to government agencies and international development organisations. Also, the findings can help accelerate and strengthen FI strategies among SSA countries. Research limitations/implications Some countries were excluded from the final analysis due to lack of data. Practical implications In the last two decades, there has been renewed interest in fighting financial exclusion in Africa. Therefore, this study provide evidence which clearly shows that enhancing literacy levels in a country can immensely contribute towards building the financially inclusive societies in the SSA region. Originality/value To the best of the author’s knowledge, this is the first study to empirically test the determinants of FI in SSA using the World Bank FI data set. Furthermore, this is the first attempt to estimate the determinants of FI with a combined data of SSA countries.


2015 ◽  
Vol 2015 ◽  
pp. 1-5 ◽  
Author(s):  
P. Makobore ◽  
M. Galukande ◽  
E. Kalanzi ◽  
S. C. Kijjambu

Background. Hand injuries are common worldwide and lead to heavy financial losses in terms of treatment, job loss, and time off duty. There is paucity of data on hand injuries in sub-Saharan Africa. The aim of this study was to determine the burden and early outcomes of hand injuries at a tertiary hospital.Method. A descriptive prospective study. Eligible patients were recruited over 5 months and followed up for four weeks. Pain, nerve function, and gross functions of the hand were assessed.Results. In total 138 patients were enrolled out of 2940 trauma patients. Of these, 122 patients returned for follow-up. The majority of the patients were males (83%). Mean age was 26.7 years (SD 12.8). The commonest places of injury occurrence were the workplace (36%), home (28%), and on the road (traffic crushes) (23%). Machines (21.3%) were the commonest agent of injuries; others were knives (10%) and broken glass (10%). Sixty-three (51%) patients still had pain at one month.Conclusions. Hand injuries accounted for 4.7% of all trauma patients. Road traffic crushes and machines were the commonest causes of hand injuries. Men in their 20s were mostly involved. Sensitization for prevention strategies at the workplace may be helpful.


Author(s):  
Vincent Sebastian Pande ◽  
Neema Penance Kumburu

Development efforts in several countries in Sub-Saharan Africa (SSA) are harmed by a combination of many factors, high rates of population growth being among of them. Despite the strong links between population and sustainable development, these issues were not a priority in broader development policies and strategies in SSA. Population and sustainable development had been often addressed separately at policy and programme levels. Despite the fact that decision makers in these countries recognize the importance of population issues for sustainable development, these issues are rarely worked on together, limiting the payoff that could result from integrating the two. This chapter, therefore, re-examines and relates these two concepts to see their compatibility and provides a more realistic approach in converting population growth into economic gains for future development of SSA countries and Africa in general.


Significance This is significant since the region is projected to need 16-20 million new jobs each year to keep pace with population growth. Impacts An expansion of high-skilled jobs and reduction in low-skilled jobs will increase inequality. Jobless growth will intensify political instability. Post-pandemic reconstruction will reduce public spending on infrastructure and human capital.


2018 ◽  
Vol 9 (4) ◽  
pp. 512-522 ◽  
Author(s):  
Emmanuel Sarpong-Kumankoma ◽  
Joshua Abor ◽  
Anthony Q.Q. Aboagye ◽  
Mohammed Amidu

Purpose The purpose of this paper is to examine differences in determinants of bank profit persistence among Sub-Saharan African (SSA) countries. Design/methodology/approach Using system generalized method of moments and data from four SSA countries during the period 2006–2012, this study considers differences in determinants of bank profit persistence across countries. Findings Efficiency in cost management is a major determinant of profit persistence in all the countries. However, concentration is found to be insignificant in all the estimations, suggesting that efficiency may be a more important determinant of profit persistence than concentration. Economic freedom associates negatively with profit persistence in Ghana, but its effect is insignificant in Tanzania, Kenya and South Africa. Lending specialization translates into less profit persistence in South Africa, but greater persistence in Tanzania. Higher levels of financial development result in lower profit persistence in Kenya and Ghana, but does not matter in Tanzania and South Africa. Practical implications The level of profit persistence gives an indication of the effectiveness of competition policies, and the differences observed in their determinants in this study suggest the need for tailor-made policy responses in the different countries. Originality/value This study improves the understanding of why some banking market competition policies have not achieved the desired outcomes in some countries. It is evident that blanket rules or wholesale importation of policies from other countries may not work in different contexts.


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