Improved African infrastructure will be key to growth

2018 ◽  
Keyword(s):  
Sub Saharan Africa ◽  
Sovereign Wealth Funds ◽  
Content Type ◽  
High Profile ◽  
Access To Water ◽  
Insurance Firms ◽  
Sub Saharan ◽  
Private Financing ◽  
Ssa Countries

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.

Sovereign Wealth Funds and Long-Term Investments in Sub-Saharan Africa

2016 ◽  
Author(s):  
Boubacar Diallo ◽  
Fulbert Tchana Tchana ◽  
Albert G. Zeufack
Keyword(s):  
Sub Saharan Africa ◽  
Sovereign Wealth Funds ◽  
Sub Saharan

The nexus between economic institutions and unemployment: evidence from sub-Saharan Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdullahi Abdulhakeem Kilishi ◽  
Hammed Adesola Adebowale ◽  
Sodiq Abiodun Oladipupo
Keyword(s):  
Panel Data ◽  
Private Investment ◽  
Developed Countries ◽  
Sub Saharan Africa ◽  
Economic Institutions ◽  
Male And Female ◽  
Content Type ◽  
Long Run ◽  
Sub Saharan ◽  
Ssa Countries

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.

scholarly journals Remittances, ICT and doing business in Sub-Saharan Africa

2019 ◽  
Vol 46 (1) ◽  
pp. 35-54 ◽  
Author(s):  
Simplice Asongu ◽  
Nicholas Biekpe ◽  
Vanessa Tchamyou
Keyword(s):  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Negative Effects ◽  
Content Type ◽  
Doing Business ◽  
Time To Build ◽  
Start Up ◽  
Information And Communication ◽  
Sub Saharan ◽  
Ssa Countries

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.

What determines financial inclusion in Sub-Saharan Africa?

2017 ◽  
Vol 8 (1) ◽  
pp. 8-18 ◽  
Author(s):  
Sydney Chikalipah
Keyword(s):  
International Development ◽  
World Bank ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Data Set ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
Sub Saharan ◽  
Ssa Countries

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.

scholarly journals Adapting pastoral breeding to global changes in West and Central tropical Africa: Review of ecological views

2020 ◽  
Vol 73 (3) ◽  
pp. 149-159
Author(s):  
Pierre Hiernaux ◽  
Mohamed Habibou Assouma
Keyword(s):  
Breeding Systems ◽  
Sub Saharan Africa ◽  
Professional Organizations ◽  
Global Changes ◽  
International Investments ◽  
Livestock Breeding ◽  
Societal Changes ◽  
Access To Water ◽  
Sub Saharan

Pastoral livestock is defined as a reproduction-oriented, grazing-based familial livestock system with community-managed resources. Pastoral breeders differ from one another in the diversity of species and breeds raised, the size and management of herds and the extent of their regional mobility. The social, economic and environmental weight of pastoralist livestock in West and Central sub-Saharan Africa is evoked together with its imputation of environmental degradation. Global changes faced by pastoral livestock are sorted out by domains, climatic and societal, and by time scales, short or long. The incriminated impacts of livestock on ecosystems are assessed in the short and long terms. The functions of pastoral breeding already affected by global changes whether climatic or societal are analyzed. The capacity of two alternative livestock breeding systems, ranching and stall-feeding, to respond to these constraints is reviewed. Finally, pastoral breeding has been recognized as being able to adapt best to long-term climate change and to short- and long-term societal changes, provided that national and international investments are made. Civil security must be restored and pastoralists’ access to water and fodder resources must be secured. Professional organizations and associations should be empowered to negotiate grazing rights, and their skills should be enhanced. There is the need to complete, rehabilitate and manage hydraulic and veterinary infrastructures, but also to invest significantly in adapted health, education and communication infrastructures in long-neglected pastoral areas.

African population growth will add to traffic woes

2016 ◽  
Keyword(s):  
Population Growth ◽  
Urban Infrastructure ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Economic Productivity ◽  
The Road ◽  
Sub Saharan ◽  
On The Road ◽  
Exponential Population Growth ◽  
Ssa Countries

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.

Political anxiety over social media in Africa to grow

2016 ◽  
Keyword(s):  
Social Media ◽  
Urban Areas ◽  
Presidential Elections ◽  
Sub Saharan Africa ◽  
Virtual Private Networks ◽  
Content Type ◽  
Media Usage ◽  
High Profile ◽  
Social Media Platforms ◽  
Sub Saharan

Subject Outlook for social media in sub-Saharan Africa. Significance Across sub-Saharan Africa (SSA) in recent months, several high-profile protests have been coordinated using social media platforms, including the #ThisFlag demonstrations in Zimbabwe and opposition unrest following Uganda's presidential elections. This is spurring governments to tighten rules governing online platforms and content, and block platforms such as Twitter and Whatsapp. Impacts Opposition activists will increase use of virtual private networks to circumvent blocks on censored websites. Initiatives such as the Forum on China-Africa Media Cooperation will help governments to police online content. Nevertheless, some Western donors will continue to sponsor initiatives, such as radio call-in shows, encouraging free speech. Clampdowns on social media will mainly affect political mobilisation in urban areas, for now, given poor rural internet penetration. Unit and subscription-related costs for web-enabled phones will continue to fall, increasing social media usage.

How does foreign direct investment affect growth in sub-Saharan Africa? New evidence from threshold analysis

2020 ◽  
Vol 47 (1) ◽  
pp. 149-181 ◽  
Author(s):  
Oyakhilome Ibhagui
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Population Growth ◽  
Direct Investment ◽  
Sub Saharan Africa ◽  
Threshold Analysis ◽  
Content Type ◽  
Threshold Levels ◽  
Sub Saharan ◽  
Ssa Countries

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).

African Business Groups: How Does Group Affiliation Improve SMEs’ Export Intensity?

2018 ◽  
Vol 43 (6) ◽  
pp. 1194-1222 ◽  
Author(s):  
Mahdi Tajeddin ◽  
Michael Carney
Keyword(s):  
Business Groups ◽  
Sub Saharan Africa ◽  
Private Governance ◽  
Group Affiliation ◽  
Export Intensity ◽  
Governance Systems ◽  
Sub Saharan ◽  
Enterprise Survey ◽  
Ssa Countries

Can small and medium-sized enterprises (SMEs) in sub-Saharan Africa (SSA) overcome market imperfections to get the resources needed for exporting? We hypothesize that in many emerging economies, domestically owned SMEs address the hurdle of imperfect markets by creating private governance systems in the form of long-term business relationships in business groups (BGs). Our data are collected from the World Bank’s Enterprise Survey and comprises 8,885 SMEs in 33 SSA countries. We find that the export intensity of BG-affiliated SMEs is superior to independent firms, and that financial, human, and technological resources mediate the intensity of the BG affiliation–export relationship.

Effort to curb illicit logging in Africa to fall short

2015 ◽  
Keyword(s):  
Climate Change Mitigation ◽  
Large Scale ◽  
Sub Saharan Africa ◽  
Tropical Africa ◽  
Content Type ◽  
Food And Agriculture ◽  
The World ◽  
Sub Saharan ◽  
Change Mitigation

Subject Outlook for deforestation in sub-Saharan Africa. Significance The UN Food and Agriculture Organisation's World Forestry Congress last week said that the world has lost 129 million hectares (ha) of forested area since 1990, mainly in tropical Africa and South America. Three of the ten states with the fastest declines since 2010 are in sub-Saharan Africa (SSA), due to demand for wood-fuel and timber for export. Much of the timber is traded illicitly, depriving states of revenue. Impacts Large-scale deforestation could undermine long-term climate change mitigation; forests are critical for absorbing carbon dioxide. The depletion of reserves of rare trees such as Madagascan rosewood will raise its value over time, boosting demand. Gabon's afforestation push -- it has gained 200,000 ha since 2010 due to state programmes -- will support eco-tourism.

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