nep-afr New Economics Papers
on Africa
Issue of 2024‒08‒19
six papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus


  1. Migration and Youth Unemployment in Africa: Implications for the African Continental Free Trade Area By Aliyu, Shehu Usman Rano; Salissu, Afees; Kale, Oyeyemi
  2. Accessing and navigating reliable health-related information for African SMEs during the pandemic Insights from an empirical study in 5 African countries. By Myriam Raymond
  3. The Role of Women in Economic Governance for Sustained and Equitable Growth in the African Continent By Jackson, Emerson Abraham
  4. Green hydrogen in Namibia: Opportunities and risks By Altenburg, Tilman; Kantel, Anne
  5. Technical and economic efficiency measurement of African commercial banks using data envelopment analysis (DEA) By Evans Darko; Nadia Saghi-Zedek; Gervais Thenet
  6. Do voluntary sustainability standards improve socioeconomic and ecological outcomes? Evidence from Ghana’s cocoa sector By Wätzold, Marlene Yu Lilin; Abdulai, Issaka; Cooke, Amanda; Krumbiegel, Katharina; Ocampo-Ariza, Carolina; Wenzel, Arne; Wollni, Meike

  1. By: Aliyu, Shehu Usman Rano; Salissu, Afees; Kale, Oyeyemi
    Abstract: This study explores the effect of intra-African migration on total unemployment and youth unemployment. It further distils the effect of intra-African migration on male and female youth unemployment and later employs a two-level estimation approach to determine gravity models of migration using Poisson pseudo maximum likelihood techniques and a 2-stage least squares approach, which is efficient in dealing with endogeneity bias. The results show that income per capita and population size of both origin and destination countries influence intra-African migration. Additionally, regional trade agreements are the main drivers of bilateral migration among African countries, suggesting that an Africa-wide trade agreement such as the African Continental Free Trade Area (AfCFTA) will stimulate migration. The results show a negative and statistically significant relationship between migration and youth as well as with overall unemployment in Africa. However, total unemployment tends to reduce faster than youth unemployment, suggesting that adults and experienced labour will benefit more from the employment opportunities created by the AfCFTA than the youth. In addition, the study finds that intra-African migration tends to reduce female youth unemployment than male youth unemployment.
    Keywords: migration, unemployment, AfCFTA, 2SLS, Poisson pseudo maximum likelihood, Africa
    JEL: C51 J60 N37 R23
    Date: 2024–04–18
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:121437
  2. By: Myriam Raymond (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université, DiPLab - Digital Platform Labor - SES - Département Sciences Economiques et Sociales - Télécom ParisTech, GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)
    Abstract: The COVID-19 pandemic posed formidable challenges for small and medium-sized enterprises (SMEs) globally, with distinct impacts on those in Africa. This empirical study, conducted across five African countries, delves into the critical question of how African SMEs perceived, navigated, and implemented health-related information amidst the complexities of the pandemic. The study reveals multifaceted challenges faced by SMEs, emphasizing the importance of reliable information for their growth and resilience. Drawing from a diverse set of survey respondents, the research explores SMEs' responses to public measures, the clarity of messages, and the implications for public policy. Findings indicate that while technology plays a crucial role, challenges persist in accessing business information. The study also evaluates SMEs' perceptions of government communication, their responses to pandemic measures, and their trust in information sources. The nuanced insights contribute to discussions on effective governance, communication strategies, and technology use, providing valuable considerations for supporting SMEs in navigating crises. Despite limitations stemming from aggregated responses across diverse regions, this study offers key empirical evidence specific to COVID-19, shedding light on the intricate challenges faced by African SMEs and underscoring the need for targeted interventions to enhance their resilience.
    Keywords: Information Governance, Access to Information, Covid-19 pandemic, Health-Information Reliability, African SMEs.
    Date: 2024–05–26
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-04634750
  3. By: Jackson, Emerson Abraham
    Abstract: This paper delves into the vital role of women in economic governance for achieving sustained and equitable growth in Africa. Historically, African women have played significant roles in economic activities and governance structures, particularly in pre-colonial societies, where they were integral to agricultural production, trade, and local governance. However, colonial and post-colonial periods saw a decline in their influence due to imported patriarchal norms. The chapter examines how modern initiatives, such as the African Union's Agenda 2063 and the African Continental Free Trade Area, have aimed to promote economic integration and resilience but still face challenges like corruption, inadequate infrastructure, and socio-political instability. It highlights the importance of gender-inclusive governance, supported by research indicating that including women in leadership leads to better financial performance and more sustainable policy outcomes. Case studies from Rwanda, where women hold 61% of parliamentary seats, and Nigeria, where women like Ngozi Okonjo-Iweala have made significant economic reforms, illustrate the positive impact of female leadership. The chapter also addresses barriers to women's participation, including cultural norms, patriarchal systems, and legal constraints, and suggests policy reforms to enhance gender equality in governance. Philosophical perspectives on equity and justice, particularly those of John Rawls and Martha Nussbaum, are used to argue for the inclusion of women in governance structures. Strategies for enhancing women's roles through education and capacity-building initiatives are discussed, emphasizing the need for comprehensive approaches to gender equality. The chapter concludes by asserting that empowering women in economic governance is not only a matter of fairness but is essential for achieving long-term economic stability and reducing disparities across Africa.
    Keywords: Women and Economic Governance, Inclusive and Sustainable Growth, African Continent
    JEL: J16 O15 P16 D63
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:esprep:300524
  4. By: Altenburg, Tilman; Kantel, Anne
    Abstract: Namibia is a highly competitive location for solar and wind energy, which can be utilised to produce green hydrogen and derivatives that are essential for decarbonising the global economy. Its government therefore has high hopes for this entire industrial complex, as do several European countries interested in importing green hydrogen and derivatives from Namibia. This Discussion Paper assesses the related opportunities and risks and offers policy recommendations with a view to maximising the societal benefits for Namibians. Scaling up renewables projects is a no regret option for Namibia, as there is demand for domestic electrification, clean electricity could be exported to South Africa, and using renewable to produce hydrogen and derivatives for export offers prospects for foreign exchange earnings and economic growth. Here, the most immediate opportunities lie in exporting green ammonia, yet other market opportunities may open up, including the export of sustainable aviation fuel, hot-briquetted iron and green fertiliser. At the same time, international investors are hesitant to implement their planned investments due to uncertainties regarding international offtake agreements and other risk factors, e.g. relating to shipping capacities and financial guarantees. This calls for a gradual scaling-up of hydrogen and ammonia investments, accompanied by continuous technology and market foresight, and carefully designed risk-sharing agreements with international investors. Hydrogen investments come with political and environmental risks. Politically, the sheer size of the planned projects creates incentives for socially exclusive rent-seeking deals. Unless strict transparency rules are applied, directly partaking in deals with large investors may create opportunities for legal or extra-legal enrichment. Hence, it is essential to have full transparency for tenders and contracts. Even if all deals were fully transparent, this would not guarantee widespread benefits for the Namibian people. We predict fewer employment and other socio-economic spillovers than anticipated in the country's current strategy. Also, projects may be less profitable than expected, and information asymmetries between large investors and Namibian policy-makers may translate into unfavourable risk- and benefit-sharing agreements. To ensure widely shared benefits, options for a pro-poor use of revenues from hydrogen projects should be explored to achieve socio-economic spillovers from financial investments in green hydrogen. These include direct dividend payments to citizens, earmarking of public revenues for development funds, mandatory oversizing of electricity generation and desalination to serve local communities, and co-ownership of energy projects.
    Keywords: Hydrogen, value chains, energy transition, industrial policy
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:diedps:300228
  5. By: Evans Darko (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, IGR-IAE Rennes - Institut de Gestion de Rennes - Institut d'Administration des Entreprises - Rennes - UR - Université de Rennes); Nadia Saghi-Zedek (IGR-IAE Rennes - Institut de Gestion de Rennes - Institut d'Administration des Entreprises - Rennes - UR - Université de Rennes); Gervais Thenet (IGR-IAE Rennes - Institut de Gestion de Rennes - Institut d'Administration des Entreprises - Rennes - UR - Université de Rennes)
    Abstract: The paper aims to analyze the Technical Efficiency of 70 Commercial banks from 19 African countries from 2009-2020. Using the Data Envelopment Analysis (DEA) method of the two main approaches, Variable Return to Scale (VRS) and Constant Return to Scale (CRS) technique on a Panel Data. We find that African banks have a higher efficacy assessment with the VRS than the CRS technique, thus, with a Pure Technical Efficiency (PTE) score than Technical Efficiency (TE) . Our findings show that the majority of the banks are operating at very low levels of efficiency (not technically efficient), and inability to optimize the conversion of bank assets and liabilities into loan production for customers. Furthermore, the banks are operating inefficiently in scale, economic, and allocative manner due to mismatches in scale of production. Considering these findings, the implications of these inefficiencies extend to the overall economic development and financial stability of the region.
    Abstract: Le présent article vise à analyser l'efficacité technique de 70 banques commerciales de 19 pays africains sur la période 2009-2020. En utilisant la méthode d'analyse de l'enveloppement des données (DEA) des deux approches principales, le rendement variable de l'échelle (VRS) et la technique du rendement constant de l'échelle (CRS) sur des données de panel. Nous constatons que les banques africaines ont une évaluation de l'efficacité plus élevée avec la technique VRS qu'avec la technique CRS, donc avec un score d'efficacité technique pure (PTE) plutôt que d'efficacité technique (TE). Nos résultats montrent que la majorité des banques opèrent à des niveaux d'efficacité très bas (pas techniquement efficaces), et sont incapables d'optimiser la conversion des actifs et des passifs bancaires en production de prêts pour les clients. En outre, les banques opèrent de manière inefficace en termes d'échelle, d'économie et d'allocation en raison d'une inadéquation de l'échelle de production. Compte tenu de ces résultats, les implications de ces inefficacités s'étendent au développement économique global et à la stabilité financière de la région.
    Keywords: African banking, Data Envelopment Analysis, Technical Efficiency
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-04613082
  6. By: Wätzold, Marlene Yu Lilin; Abdulai, Issaka; Cooke, Amanda; Krumbiegel, Katharina; Ocampo-Ariza, Carolina; Wenzel, Arne; Wollni, Meike
    Abstract: Voluntary sustainability standards offer potential for sustainable development by improving the livelihoods of smallholder cash crop farmers while conserving biodiversity. However, their overall implications remain poorly understood, as studies have mostly focused on assessing their effects on single sustainability dimensions. Here, we use an interdisciplinary approach to understand the simultaneous effects of sustainability standards on socioeconomic and ecological outcomes in Ghana’s cocoa sector. Our study is based on a rich dataset comprising representative household data from 814 smallholder cocoa-producing households from five major cocoa regions and ecological data from 119 cocoa plots. Results from the endogenous switching regression approach suggest that sustainability standards have positive effects on socioeconomic outcomes such as cocoa yield, net cocoa income and net returns to land. However, using generalized linear mixed effects models, we do not find any significant associations with ecological outcomes related to vegetation structure and animal diversity. Our results indicate that sustainability standards in Ghana’s cocoa sector lead to socioeconomic benefits but not to ecological benefits for the plot environment. Nevertheless, yield increases do not come at the expense of biodiversity. We conclude that sustainability standards have the potential to improve socioeconomic outcomes, without significantly creating trade-offs with ecological outcomes.
    Keywords: Community/Rural/Urban Development, Environmental Economics and Policy, Sustainability
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:ags:gausfs:344223

This nep-afr issue is ©2024 by Sam Sarpong. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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