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on Africa |
| By: | Otaviano Canuto; Sabrine Emran; Badr Mandri |
| Abstract: | Africa has a wealth of natural resources, including minerals, agriculture, and energy commodities, which provides an opportunity for the financialization of these commodities on the continent, a concept that has gained global attention and sparked debate on the potential benefits and drawbacks. Although the financialization of commodities has been studied in various contexts, including in African countries, challenges such as liquidity constraints and market readiness have emerged as critical impediments to its widespread adoption. This paper examines the existing literature to clarify the positive and negative aspects of commodity financialization, drawing on global examples and specific cases within Africa. By examining best practices and lessons learned, this paper offers guidance on how African countries can navigate the complexities of preparing for and embracing commodity financialization in order to unlock its potential benefits while mitigating the associated risks. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_08-24 |
| By: | Sabrina Camélia Pagop; Luc Savard |
| Abstract: | This study conducts an in-depth exploration of the increasing interest in voluntary carbon markets (VCMs) in Africa, shedding light on the potential opportunities and challenges associated with African participation in these markets. VCMs have gained prominence as promising means to address climate change, driven by substantial financial incentives and market expansion. Nonetheless, persistent debates revolve around the legitimacy of carbon credits and their tangible contributions to climate change mitigation and adaptation. Drawing from secondary data sources, this research undertakes a comprehensive analysis of the theoretical foundations of carbon markets, the historical evolution of VCM initiatives in Africa, and the specific challenges and opportunities that beckon African nations towards more active involvement. Historically, African countries have primarily been passive beneficiaries of VCMs. Therefore, this study aims to provide insights about how African countries can strategically navigate these markets to maximize their potential benefits for sustainable development while contributing meaningfully to climate change mitigation and adaptation endeavors. |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_05-24 |
| By: | Larabi Jaïdi; Bruce Byiers; Saloi El Yamani |
| Abstract: | As the African Continental Free Trade Area (AfCFTA) enters its fifth year, the rules of origin for trade in goods are still being finalised, but the institutional architecture is nearly complete with increased capacity, technical committees and new supporting instruments. Despite this progress in AfCFTA ‘policy supply’, meaningful trade under the AfCFTA is still to begin. For this to happen, there must be ‘policy demand’ from the private sector to use the agreement’s range of protocols in shaping their investment and trade decisions and relations. Private sector engagement has so far varied across member states, with some demonstrating robust integration of business feedback while others lag in private sector consultation and involvement. Recommendations focus on enhancing private sector engagement and thus the use and impact of the AfCFTA through: - Increased awareness and practical application of AfCFTA protocols. - Sector-specific support aligned with AfCFTA’s goals. - Strengthening the roles of AU, RECs and the AfCFTA secretariat in national strategy alignment. - Promoting regional value chains with strategic financing and partnerships. - Improving the investment climate to facilitate cross-border trade and investment. Ultimately, AfCFTA’s success depends on robust implementation, dynamic private sector involvement and tailored strategies to meet diverse economic needs across Africa. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rtrade:afcfta_05_24 |
| By: | Hinh T. Dinh |
| Abstract: | This paper was originally published on The South African Institute of International Affairs (SAIIA) In order for Africa to raise living standards, create employment for youth and diversify exports, it must industrialise. Until recently, sub-Saharan African (SSA) countries made limited progress in manufacturing value addition and employment, mirroring the de-industrialisation trend seen in many developing countries. To propel industrialisation, SSA countries should adopt flexible strategies that foster structural transformation and boost productivity in both large and small enterprises, whilst taking into account the environmental impact of industrialisation, given Africa’s susceptibility to climate change. The G20 has long recognised the importance of industrialisation on the continent. This policy insight examines the Indonesian and Indian G20 presidencies and assesses how they have addressed Africa’s priorities and concerns in terms of industrialisation. It also sets out recommendations for upcoming G20 presidencies. |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rtrade:indus_g20 |
| By: | Mounia Boucetta |
| Abstract: | Over the next decade, the energy transition will transform the global economic landscape in terms of regulations, industrial and energy investments, and technological solutions. The African continent is set to play a significant role in this transition while addressing its own sustainable development needs. To fully capitalize on this emerging dynamic, African countries should pursue innovative paths tailored to their specific contexts and constraints. They should also identify strategic levers to advance and accelerate their energy transition, maximizing economic, social, and environmental benefits. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_25-24 |
| By: | Koura Abdelghani (USMS - Université Sultan Moulay Slimane); Boudhar Abdeslam; Mohamed Koura Oudgou |
| Abstract: | This study provides a comprehensive contextual analysis of the Moroccan SME financing landscape, with a particular focus on addressing the undercapitalization issue as a significant barrier to their growth and sustainability. The research fills a gap in understanding how the structural limitations and unique characteristics of Moroccan SMEs hinder their ability to access and effectively utilize financial resources, particularly within the traditional banking system. The primary goal of the study is to critically evaluate the predominant reliance on bank credit for SME financing, identifying the challenges posed by risk perceptions, information asymmetries, and the constraints imposed by monetary policy and banks' regulation. The study utilizes a rigorous evaluation of both traditional and alternative financing mechanisms, such as participatory banks, the stock market, and private equity. It also includes an overview of the increasing role of public actors and the forms and intensity of government support provided to Moroccan SMEs. The findings offer actionable policy recommendations aimed at enhancing the effectiveness of the SME financing ecosystem. Our study emphasizes the need for targeted government interventions and institutional reforms while proposing future research directions to build on the insights gained from this analysis. |
| Keywords: | SMEs financing, Bank credit, Alternative financing, Public support, Subsidies and direct aids, Public guarantee schemes |
| Date: | 2024–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04681802 |
| By: | Simplice A. Asongu (Johannesburg, South Africa); Samba Diop (Saint-Louis, Senegal); Cheikh Tidiane Ndiaye (Saint-Louis, Senegal) |
| Abstract: | The objective of the paper is to investigate the legitimacy of the African Union by examining the socio-demographic determinants of citizens’ support of African integration. To do this, we use Rounds 4, 5, 6 and 8 of the Afrobarometer survey data corresponding to more than 110 000 respondents. Using logistics regressions, we find that individual characteristics such as living area, education, employment status, political membership, freedom, living condition and Living Poverty Index (LPI) are significantly related to the probability of supporting African integration. The findings are largely robust to dynamics of regional integration, the African Union and Regional Economic Communities (RECs). Thus, since African citizens’ trust in the unification could be considered as a condition of legitimacy in the process, our results suggest that more efforts should be done to gain credibility, especially as it pertains to the benefits of African integration. |
| Keywords: | Institutional support, Afrobarometer survey, African Union |
| JEL: | C23 O55 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/018 |