nep-afr New Economics Papers
on Africa
Issue of 2024‒10‒07
five papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus


  1. The Financial development-renewable energy consumption nexus in Africa: Does governance quality matter? By Toyo A. M. Dossou; Dossou K. Pascal; Emmanuelle N. Kambaye; Simplice A. Asongu; Alastaire S. Alinsato
  2. How managers respond to fraud, waste and mismanagement: ethics management survey in Uganda and Kenya By Onyango, Gedion
  3. Innovative Development Financing Amidst Uncertainty: How Can African Countries Leverage Domestic Resource Mobilization? By Arogundade, Sodiq; Ngarachu, Maria; Bandele, Olayinka
  4. UN arms embargoes under scrutiny: Obstacles and options for an effective contribution to conflict resolution By Vorrath, Judith
  5. Differentiated and conflicting incentives across the sanitation value chain: the case of Sanergy in Nairobi By Zaqout, Mariam; Mdee, Anna; Barrington, Dani; Agol, Dorice; Evans, Barbara E.

  1. By: Toyo A. M. Dossou (University of Abomey-Calavi in Benin); Dossou K. Pascal (Gbégamey-Cotonou, Benin); Emmanuelle N. Kambaye (Wenjiang District, Chengdu, China); Simplice A. Asongu (Yaoundé, Cameroon); Alastaire S. Alinsato (Gbégamey-Cotonou, Benin)
    Abstract: Although the impact of financial development on renewable energy consumption has been extensively examined in recent years, the study regarding the moderation of governance quality on the financial development on renewable energy consumption nexus is sparse. By filling the gap in the energy economics literature, this study investigates the moderating effect of governance quality on the relationship between financial development on renewable energy consumption for a panel of 33 African countries over the period 2000-2020. The fully modified ordinary least square (FMOLS) estimation techniques has been used to account for the cointegration and cross-sectional dependence, respectively. The results unveil that the impact of governance quality and financial development on renewable energy consumption is negative and statistically significant. Moreover, the results reveal that the FD-governance quality interactions are significant and negative. Governance quality thresholds at which the negative incidence of financial development on renewable energy consumption is completely nullified are 0.825; 2.15; 2.86; 3.52;3.36; and 0, 1, respectively.
    Keywords: Financial development, renewable energy consumption, governance quality, Africa
    Date: 2024–01
    URL: https://d.repec.org/n?u=RePEc:agd:wpaper:24/020
  2. By: Onyango, Gedion
    Abstract: Ethics management remains a grey area, especially in how developing countries organise and manage their public finances and administrative activities. This paper draws on a descriptive statistical analysis to explore managers’ perceptions of whether appropriate procedures and sanctions exist against fraud or wrongdoing and whether organisational mechanisms and management of human resources promote ethical conduct in Uganda and Kenya. It explores the central tendencies of Ugandan (N = 122) and Kenyan (N = 104) managers’ perceptions of ethics management in their own organisations. The findings show that despite critical challenges, there is progress towards improving ethics management conditions through the drafting of specific anti-fraud policies and guidelines, the promotion of ethical conduct, and the higher individual propensities to report observed fraud by managers.
    Keywords: whistleblowing; African public management; public integrity; public leadership; T&F deal
    JEL: R14 J01
    Date: 2024–02–29
    URL: https://d.repec.org/n?u=RePEc:ehl:lserod:124889
  3. By: Arogundade, Sodiq; Ngarachu, Maria; Bandele, Olayinka
    Abstract: In achieving the African Union Agenda 2063 – The Africa We Want – and financing SDGs, African economies will require an unprecedented mobilization of resources. This study examines the role of financial development on the nexus between domestic resource mobilization (DRM) and inclusive growth using an unbalanced panel of 31 African countries from 1990-2022. The study finds that: (1) in the presence of a sound financial sector, DRM contributes positively to inclusive growth; (2) African countries with higher inclusive growth benefit more from the positive impact of tax revenue than those with lower growth; (3) regional characteristics differ in terms of the impact of DRM on inclusive growth; and (4) countries must maintain an annual threshold of DRM and financial development to harness the benefits of DRM. The empirical results are robust to different measures of DRM and estimators (two-step system GMM, Machado and Silva quantile regression, and the dynamic panel threshold model). In leveraging the benefits of DRM, the study recommends that African governments should improve their financial sector, and they can learn from the success story of the South African Financial Sector Development and Reform Program.
    Keywords: Inclusive Growth, Domestic Resource Mobilization, Financial development, System GMM, Machado and Silva quantile regression, Dynamic Panel Threshold.
    JEL: D6 D60 H60
    Date: 2024–09–13
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:122041
  4. By: Vorrath, Judith
    Abstract: There are still a number of UN arms embargoes in place to prevent the flow of arms and military material into conflict zones. Although the UN Security Council is not generally deadlocked on this issue, it has only taken relevant decisions to re-design the embargoes in a few cases over the last ten years. Recent amending decisions have essentially created or extended exceptions or exemptions for the security forces of the respective national government. This is intended to strengthen them against non-state armed groups. Accompanying control mechanisms are increasingly controversial - both with the countries concerned and among the members of the Security Council. At the same time, meaningful political guidance on the embargoes and their adaptation to the respective conflict situation have proven to be difficult. This study focuses primarily on the relatively active UN arms embargoes on Somalia, Libya, the Democratic Republic of the Congo and the Central African Republic. For those, it reveals overarching challenges in implementation and enforcement: a) smuggling and irregular supplies, which also reflect the increasing internationalization of conflicts, b) exceptions and exemptions for government forces where there is a high risk of weapons being diverted from official stocks, and c) increased use of technologies such as drones and improvised explosive devices, whose components would have to be controlled as dual use goods. This suggests a need for further reforms of arms embargoes. Above all, however, they need to be better linked to political processes, especially those in the affected region. Arms embargoes can also be useful to obtain access to more or better information or as a bargaining chip vis-à-vis the internationally recognized government.
    Keywords: UN arms embargoes, UN Security Council, Somalia, Libya, Democratic Republic of the Congo, Central African Republic, preventing the flow of arms and military material into conflict zones
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:swprps:302545
  5. By: Zaqout, Mariam; Mdee, Anna; Barrington, Dani; Agol, Dorice; Evans, Barbara E.
    Abstract: The challenge of achieving safely managed sanitation in low-income settlements in the context of rapid urban expansion in Nairobi is significant. National and county government plans for sanitation focus primarily on extending large-scale sewer systems, but in recent years, there had been increasing activity on non-sewered sanitation, particularly container-based sanitation (CBS) to potentially extend safely managed sanitation. Market-based CBS providers received extensive investment and promised to rapidly scale service delivery. Yet, progress has faltered, and scaling up is proving to be problematic. We apply a service characteristics analysis to examine the case of Sanergy, a CBS provider. Data are drawn from documents and stakeholder interviews. We demonstrate that misaligned incentives between stakeholders explain why extensive scaling up has (so far) failed to materialise. In particular, the creation of a self-sustaining faecal waste circular economy has proved to be elusive and highlights the need for the state to engage actively in sanitation provision as a public good.
    Keywords: incentives; market-based sanitation; political economy; public-private partnership; sanitation value chain; public–private partnership
    JEL: R14 J01
    Date: 2024–07–01
    URL: https://d.repec.org/n?u=RePEc:ehl:lserod:124201

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