nep-afr New Economics Papers
on Africa
Issue of 2011‒07‒02
sixteen papers chosen by
Quentin Wodon
World Bank

  1. Nigeria's infrastructure : a continental perspective By Foster, Vivien; Pushak, Nataliya
  2. Success and Failure of African Exporters By Olivier Cadot; Leonardo Iacovone; Denisse Pierola; Ferdinand Rauch
  3. Niger's infrastructure : a continental perspective By Dominguez-Torres, Carolina; Foster, Vivien
  4. Cape Verde's infrastructure : a continental perspective By Briceno-Garmendia, Cecilia M.; Benitez, Daniel Alberto
  5. MAINSTREAMING GOOD GOVERNANCE PRACTICES IN ELECTRONIC RECRUITMENT IN NIGERIAN PUBLIC SECTOR By Ahmad Sanusi; Assoc. Prof. Dr. Ahmad Mohamed Martadha
  6. Mali's infrastructure : a continental perspective By Briceno-Garmendia, Cecilia M.; Dominguez, Carolina; Pushak, Nataliya
  7. The Central African Republic's infrastructure : a continental perspective By Dominguez-Torres, Carolina; Foster, Vivien
  8. Benin's infrastructure : a continental perspective By Dominguez-Torres, Carolina; Foster, Vivien
  9. The African Union, constitutionalism and power-sharing By Vandeginste, Stef
  10. When is capital enough to get female enterprises growing ? evidence from a randomized experiment in Ghana By Fafchamps, Marcel; McKenzie, David; McKenzie, David; Quinn, Simon; Woodruff, Christopher
  11. Self-help groups and mutual assistance: Evidence from urban Kenya By Marcel Fafchamps; Eliana La Ferrara
  12. Surveying HIV/AIDS Incidence in Sudan By Mohamed, Issam A.W.
  13. Family size, human capital and growth: structural path analysis of Rwanda By Temel, Tugrul
  14. Empirical Analysis of Field Data on HIV/AIDS Epidemic in Khartoum State, Sudan By Mohamed, Issam A.W.
  15. Willingness-to-pay for Local Milk-based Dairy Product in Senegal By Melanie Lefevre
  16. Explaining learning gaps in Namibia: The role of language proficiency By Garrouste, Christelle

  1. By: Foster, Vivien; Pushak, Nataliya
    Abstract: Infrastructure made a net contribution of around one percentage point to Nigeria's improved per capita growth performance in recent years, in spite of the fact that unreliable power supplies held growth back. Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by around 4 percentage points. Among its African peers, Nigeria has relatively advanced power, road, rail, and ICT networks that cover the national territory quite extensively. Extensive reforms are ongoing in the power, ports, ICT, and domestic air transport sectors. But challenges persist. The power sector's operational efficiency and cost recovery has been among the worst in Africa, supplying about half of what is required, with subsequent social costs of about 3.7 percent of GDP. The water and sanitation sector has inefficient operations, with low and declining levels of piped water coverage. Irrigation development is also low relative to the country's substantial potential. In the transport sector, Nigeria's road networks are in poor condition from lack of maintenance, and the country has a poor record on air transport safety. Addressing Nigeria's infrastructure challenges will require sustained expenditure of almost $14.2 billion per year over the next decade, or about 12 percent of GDP. Nigeria already spends about $5.9 billion. It is well placed to raise the funds needed for infrastructure, given the strength of the national economy, abundant oil revenues, and efforts at electricity cost recovery and other improvements to operations and management.
    Keywords: Transport Economics Policy&Planning,Infrastructure Economics,Public Sector Economics,E-Business,Town Water Supply and Sanitation
    Date: 2011–06–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5686&r=afr
  2. By: Olivier Cadot; Leonardo Iacovone; Denisse Pierola; Ferdinand Rauch
    Abstract: Using a novel dataset with transactions level exports data from four African countries (Malawi, Mali, Senegal and Tanzania), this paper uncovers evidence of a high degree of experimentation at the extensive margin associated with low survival rates, consistent with high and middle income country evidence. Consequently, the authors focus on the questions of what determines success and survival beyond the first year and find that survival probability rises with the number of firms exporting the same product to the same destination from the same country, pointing towards the existence of crossfirm synergies. Accordingly the evidence is consistent with the hypothesis that those synergies may be driven by information spillovers. More intuitively and consistently with multi-product firms models, the analysis also finds that firms more diversified in terms of products, but even more in terms of markets, are more likely to be successful and survive beyond the first year.
    Keywords: Africa, export survival
    JEL: F10 F14 O55
    Date: 2011–06
    URL: http://d.repec.org/n?u=RePEc:cep:cepdps:dp1054&r=afr
  3. By: Dominguez-Torres, Carolina; Foster, Vivien
    Abstract: Between 2000 and 2005 infrastructure made a net contribution of less than a third of a percentage point to the improved per capita growth performance of Niger, one of the lowest contributions in Sub-Saharan Africa. Raising the country's infrastructure endowment to that of the region’s middle-income countries could boost annual growth in Niger by about 4.5 percentage points. Niger has made significant progress in some areas of its infrastructure, including water and telecommunications. But the country still faces a number of important infrastructure challenges, the most pressing of which is probably in the water and sanitation sector, as 82 percent of Nigeriens still practice open defecation, the highest in the continent. Niger also faces significant challenges in the power sector, as only 8 percent of the population is electrified. Niger currently spends about $225 million per year on infrastructure, leaving an annual funding gap of $460 million even after savings from curing inefficiencies are taken into account. Niger can close that gap by tapping alternative sources of financing or by adopting lower-cost technologies. There is plenty of room for private-sector participation in Niger's infrastructure sectors, and the adoption of lower-cost technologies could reduce the funding gap by almost half.
    Keywords: Transport Economics Policy&Planning,Infrastructure Economics,Town Water Supply and Sanitation,Water Supply and Systems,Energy Production and Transportation
    Date: 2011–06–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5698&r=afr
  4. By: Briceno-Garmendia, Cecilia M.; Benitez, Daniel Alberto
    Abstract: Cape Verde stands out in West Africa as a country whose economic geography poses major and unique challenges for infrastructure development. Its small population of half a million people is spread across a nine-island archipelago. The islands need complementary infrastructure in terms of roads, water, transport, ports, power, and ICT. Cape Verde already has well-developed infrastructure networks. Road density is relatively high, and most of the national network is paved. Almost all islands have port and airport facilities. Around 70 percent of the population has power and utility water. Indicators for ICT coverage -- penetration, bandwidth, submarine cable, private sector participation -- are relatively good. Nevertheless, prices for all services are exceptionally high. The quality of services is often deficient. At least half of the national road network is in poor condition; power supply is unreliable; and half of the population receives water from standposts. Cape Verde devotes around $147 million per year to infrastructure (almost 15 percent of GDP), among the highest levels of infrastructure spending on the continent. Some $50 million of that is lost each year to operations inefficiencies and underpricing. The country's main challenges are to improve infrastructure management and reduce high costs of services.
    Keywords: Transport Economics Policy&Planning,Infrastructure Economics,Energy Production and Transportation,E-Business,Banks&Banking Reform
    Date: 2011–06–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5687&r=afr
  5. By: Ahmad Sanusi; Assoc. Prof. Dr. Ahmad Mohamed Martadha (College of Law, Government and International Studies, Department of Public Management, Universiti Utara Malaysia)
    Abstract: Recruitment in the public sector in contemporary African societies was conducted mostly through traditional and manual sourcing of teeming number of suitably qualified applicants which many stakeholders believed is full of inconsistencies and neglect of universally clamoured good governance practice. To be in line with global realities different countries in Africa including Nigeria started to embraced the use of electronic tools to obtain the maximum number of personnel they require to fill existing job vacancies. Most public sector organisations relied heavily on private recruiting firm for sourcing applicants online who charged high fees causing a lot of hardships on both applicants and the organisation. This study critically assesses the extent of applicability of good governance practices in the process of recruiting personnel through electronic means. Qualitative method was employed through face to face interview with applicants and stakeholders. The data was collected and analysed. The result revealed that the conduct of e-recruitment in public sector is yet to address the problems bedevilling recruitment and hiring process. Therefore it is recommended that political patronage and lukewarm attitude of policy makers towards justice and fairness should be address squarely by the government and its agencies
    Keywords: Public Service, Recruitment, E-recruitment and Good Governance
    JEL: M0
    Date: 2011–06
    URL: http://d.repec.org/n?u=RePEc:cms:1icm11:2011-003-093&r=afr
  6. By: Briceno-Garmendia, Cecilia M.; Dominguez, Carolina; Pushak, Nataliya
    Abstract: Despite external shocks, Mali's economy grew by 5.3 percent per year between 2003 and 2006, driven primarily by the telecommunications sector. But Mali's landlocked condition, together with the uneven distribution of population and economic activities between the arid north and the much richer south, defy the country's ability to sustain this pace of growth. Mali depends heavily on regional infrastructure and transport corridors. A strategic focus on regional integration has paid off, and critical institutional decisions are bringing many positive developments. But Mali still faces infrastructure challenges, the starkest of which lies in the power sector. The cost of producing power in Mali is among the highest in the region, with the result that only around 17 percent of the population has access to electricity, much lower than in other low-income African countries. The water and sanitation sectors also represent a challenge, as the nation works to separate the power and water-and-sanitation functions of EDM, the multisector utility. Mali spent about $555 million per year on infrastructure during the late 2000s. A total of $200 million is lost annually to inefficiencies. Assessing spending needs against existing spending and potential efficiency gains leaves an annual funding gap of $283 million per year.Mali will likely need more than a decade to reach the illustrative infrastructure targets outlined in this report. Under business-as-usual assumptions for spending and efficiency, it would take over 50 years for Mali to reach these goals. Yet with a combination of increased finance, improved efficiency, and cost-reducing innovations, it should be possible to reduce that time to 15 years.
    Keywords: Transport Economics Policy&Planning,Infrastructure Economics,Energy Production and Transportation,E-Business,Town Water Supply and Sanitation
    Date: 2011–06–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5688&r=afr
  7. By: Dominguez-Torres, Carolina; Foster, Vivien
    Abstract: Between 2000 and 2005, infrastructure contributed less than 1 percentage point to the Central African Republic's annual per capita GDP growth, despite substantial spending in the road sector. Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by about 3.5 percentage points. The CAR has made significant progress in the transport, water, power, and information and communications technology (ICT) sectors. But the high cost of fuel, which raises transportation and energy costs, has been a vexing issue across all infrastructure sectors. The CAR's most pressing infrastructural challenge lies in the transport sector, which relies heavily on neighboring countries and could benefit from improved road conditions and enhanced performance at the port of Douala in Cameroon. In the power sector, the country suffers from a deteriorating infrastructure stock that it can no longer afford to maintain, and an inefficient and unreliable power supply. Additional challenges include a need for improved infrastructure in the water and sanitation and ICT sectors. Addressing the CAR's infrastructure challenges will require sustained expenditure of $346 million per year over the next decade. The nation already spends around $134 million per year on infrastructure, with $37 million a year lost to inefficiencies of various kinds. If those inefficiencies were fully eliminated, the country's annual infrastructure funding gap would be $183 million per year. Improvements in funding, coupled with the prospect of an economic rebound and prudent policies, could lift the country from its fragile state back to and beyond the prosperity standards it once enjoyed.
    Keywords: Transport Economics Policy&Planning,Town Water Supply and Sanitation,Energy Production and Transportation,Infrastructure Economics,E-Business
    Date: 2011–06–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5697&r=afr
  8. By: Dominguez-Torres, Carolina; Foster, Vivien
    Abstract: Between 2000 and 2005 infrastructure made an important contribution of 1.6 percentage points to Benin's improved per capita growth performance, which was the highest among West African countries during the period. Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by about 3.2 percentage points. Benin has made significant progress in some areas of its infrastructure, including roads, air transport, water, and telecommunications. But the country still faces important infrastructure challenges, including improving road conditions and port performance and upgrading deteriorating electrical infrastructure. The nation must also improve the quality and efficiency of its water and sanitation systems. Benin currently spends about $452 million a year on infrastructure, with almost $101 million lost to inefficiencies. Comparing spending needs with existing spending and potential efficiency gains leaves an annual funding gap of $210 million per year. Benin has the potential to close that gap by adopting alternative technologies in water supply, transport, and power, which could save as much as $227 million a year. The nation would also benefit from raising tariffs to cost-recovery levels and reducing inefficiencies, which could substantially boost financial flows to the infrastructure sectors.
    Keywords: Transport Economics Policy&Planning,Infrastructure Economics,Public Sector Economics,Town Water Supply and Sanitation,Economic Theory&Research
    Date: 2011–06–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5689&r=afr
  9. By: Vandeginste, Stef
    Abstract: Over the past decade, the African Union (AU) had put in place an important normative framework to promote constitutional rule and, in particular, orderly constitutional transfers of power in its member states. Through its Peace and Security Council (PSC), the AU has actively opposed, including through the use of sanctions, unconstitutional changes of government. As a key element of its policy, the PSC systematically advocates a return to constitutional order as a remedy for unconstitutional changes of government. Free and fair elections are an important element in the PSC policy of legitimating a new constitutional and political order. However, while opposing unconstitutional means of obtaining or transferring power, the AU has been generally supportive of the use of power-sharing agreements as an instrument of negotiated conflict settlement. Most power-sharing agreements are not in accordance with the prevailing constitutional order and, as part of a larger peace agreement, often contain new constitutional blueprints. This dual policy of, on the one hand, opposing certain types of unconstitutional changes of government, in particular military coups, and, on the other, advocating power-sharing agreements in the absence of a regulatory framework or normative guidance on such agreements poses an obvious challenge for the consistency of AU policy. Insofar as the AU wishes to nurture a culture of constitutionalism in its member states, it might benefit from developing policy guidelines about how to enhance the legitimacy of a new constitutional order - and of the political regime exercising political authority – be it in the aftermath of a coup or as a result of power-sharing.
    Date: 2011–06
    URL: http://d.repec.org/n?u=RePEc:iob:wpaper:2011005&r=afr
  10. By: Fafchamps, Marcel; McKenzie, David; McKenzie, David; Quinn, Simon; Woodruff, Christopher
    Abstract: Standard models of investment predict that credit-constrained firms should grow rapidly when given additional capital, and that how this capital is provided should not affect decisions to invest in the business or consume the capital. The authors randomly gave cash and in-kind grants to male- and female-owned microenterprises in urban Ghana. Their findings cast doubt on the ability of capital alone to stimulate the growth of female microenterprises. First, while the average treatment effects of the in-kind grants are large and positive for both males and females, the gain in profits is almost zero for women with initial profits below the median, suggesting that capital alone is not enough to grow subsistence enterprises owned by women. Second, for women they strongly reject equality of the cash and in-kind grants; only in-kind grants lead to growth in business profits. The results for men also suggest a lower impact of cash, but differences between cash and in-kind grants are less robust. The difference in the effects of cash and in-kind grants is associated more with a lack of self-control than with external pressure. As a result, the manner in which funding is provided affects microenterprise growth.
    Keywords: Debt Markets,Economic Theory&Research,Investment and Investment Climate,Science Education,Scientific Research&Science Parks
    Date: 2011–06–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5706&r=afr
  11. By: Marcel Fafchamps; Eliana La Ferrara
    Abstract: This paper examines the incomes of individuals who have joined self-help groups in poor neighborhoods of Nairobi. Self-help groups are often advocated as a way of facilitating income pooling. We …nd that incomes are indeed more correlated among individuals in the same group than among individuals who belong to different groups. Using an original methodology, we test whether this correlation is due to self-selection of similar individuals into the same groups. We find that this correlation is not driven by positive assortative matching. If anything, selection works in the opposite direction: incomes from group activities would be more correlated if individuals were matched at random. These findings are consistent with the idea that self-help groups play a mutual assistance role.
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:igi:igierp:401&r=afr
  12. By: Mohamed, Issam A.W.
    Abstract: The present paper introduces results of an analysis conducted on data collected from Khartoum state for the yea 2009. It aims to apply statistical models for the HIV/AIDS data in Khartoum state centers of testing blood and counseling. AIDS is recognized as an emerging disease only in the early 1980s, AIDS has rapidly established itself throughout the world, and is likely to endure and persist well into the 21s century. AIDS has evolved from a mysterious illness to a global pandemic which has infected tens of millions less than 20 years. The importance of the study is to emphasize that the disease exists even under the special conditions of the country and its status. The study constructs three main hypotheses that non-linear models fit the HIV/AIDS data well especially binary logistic regression. Moreover, it is assumed that demographic variables affect the HIV/AIDS incidence in Khartoum state. It is also assumed that incidences of HIV/AIDS are increasing as manifested among volunteers in the three centers Khartoum, Khartoum North, and Omdurman. The main objective of the paper was to apply statistical models for HIV/AIDS in Khartoum state so as to obtain a good analysis, beside other sub objectives. Data were from secondary sources and volunteers centers for blood testing and counseling inside Omdurman, Khartoum, and Khartoum North teaching hospitals. Also data were collected through questionnaires designed to get all the information registered inside the three centers. The main idea of analysis was to apply and identify statistical model that related to AIDS by using statistical packages to construct the models depends on the collected data about HIV/AIDS of Khartoum state. The focus was on binary logistic regression, because it’s suitable to the data collected from the three centers inside the three hospitals in Khartoum. Estimated coefficients and statistical tests were conducted to distinguish between the variables that related to HIV/AIDS incidence and spread through people in the three cities Khartoum, Khartoum North, and Omdurman. It is concluded that there is no effect of education level on n HIV/AIDS infection for the data collected from Omdurman. However, there is dependency between HIV/AIDS incidence and occupation of volunteers. So the job of individuals affects the HIV/AIDS incidence inside Omdurman area. Also there is an association between HIV/AIDS incidence and social status of individuals. High numbers of positive HIV/AIDS in Omdurman center are among married people.
    Keywords: Sudan; HIV; AIDS; Incidence; Prevalence;Khartoum; Refugees; Economic Activities
    JEL: I11 H55 I12 H5 K32 H51 I18 H7 H75
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:31781&r=afr
  13. By: Temel, Tugrul
    Abstract: This paper analyzes the macroeconomic role that different household groups play in human capital formation, sectoral growth and income distribution in Rwanda. Using a disaggregated SAM for Rwanda and with the assistance of structural path analysis, the paper explores the macroeconomic implications of family size for human capital, sectoral growth and income distribution. The findings support the so-called quantity-quality trade-off hypothesis: the smaller the family size, the higher the investment in human capital. In particular, the human capital investment of households with 1-3 children tends to be more pronounced than that of households with more than 3 children. Moreover, households with 1-3 children act as an important intermediate pole transmitting the influence of human capital investment on agricultural production. As a result, promoting family planning programs seems to be a viable strategy for economic growth and poverty reduction.
    Keywords: Family size; human capital; growth; Rwanda; structural path analysis
    JEL: J13 O47 H31 D33 H41 I18 O15 I28 C67
    Date: 2011–06–21
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:31741&r=afr
  14. By: Mohamed, Issam A.W.
    Abstract: The study focuses on the HIV/AIDS in Khartoum state during the period (2003-2007). The main objectives are to study the situation of HIV/AIDS in Khartoum state through a sample of 1439 of volunteers for the three selected blood testing and counseling centers in Khartoum, Omdurman, and Khartoum North teaching hospitals. The data of the study were collected from secondary source namely the registered information about volunteers after testing blood for HIV. The data were analyzed by using descriptive statistics, chi-square test for dependency between demographic variables and HIV/AIDS incidence, and logistic regression model to discover the effect of predictors variables on the dependent HIV/AIDS incidence. The infected percent is found to be very high in Khartoum center (36.0), 33.5 for Omdurman center. The incidence rate of HIV/AIDS is found to 14.3 for Khartoum North center. The logistic regression model results have concluded social status, Occupation, and education level affect the HIV/AIDS incidence Khartoum state. The trends of the disease during 2007 have indicated that, the pandemic is at increasing rate for both sexes males and females positive although the positive cases for males were greater than females positive cases, except in one or two months. It is recommended that there must be assessment for the current situation of the HIV/AIDS so as to construct strategic plan to stop or eradicate the spread among the people mainly adults. The study has focused on the HIV/AIDS in Khartoum state during the period (2003-2007).Its main objective was to study the situation of HIV/AIDS in Khartoum state through a sample of 1439 of volunteers for the three selected blood testing and counseling centers in Khartoum, Omdurman, and Khartoum North teaching hospitals. The data of the study were collected from secondary source namely the registered information about volunteers after testing blood for HIV checking The data were analyzed by using descriptive statistics, chi-square test for dependency between demographic variables and HIV/AIDS incidence, and logistic regression model to discover the effect of predictors variables on the dependent HIV/AIDS incidence. The infected percent is found to be very high in Khartoum center (36.0), 33.5 for Omdurman center, and The incidence rate of HIV/AIDS is found to 14.3 for Khartoum North center. The logistic regression model results have concluded social status, occupation, and education level affect the HIV/AIDS incidence Khartoum state. The trends of the disease during 2007 have indicated that, the pandemic is at increasing rate for both sexes males and females positive although the positive cases for males were greater than females positive cases, except in one or two months. The study recommended that there must be assessment for the current situation of the HIV/AIDS so as to construct strategic plan to stop or eradicate the spread among the people mainly adults.
    Keywords: Sudan; HIV/AIDS; Prevalence; Incidences; Khartoum State; Pandemic; Socioeconomic Status
    JEL: I11 K3 A1 I12 C46 H5 A10 C4 O1 K32 H51 J28 H75 I18 I1
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:31783&r=afr
  15. By: Melanie Lefevre
    Abstract: This paper aims to evaluate Senegalese consumers' willingness-to-pay (WTP) for local fresh milk-based products, in opposition to the ones produced with imported powder. Using data from a choice-based-conjoint analysis conducted on 400 households in the re- gion of Dakar, we evaluate the premium that consumers are willing to pay for fresh raw material (rather than powder) in the composition of sour milk. Based on an Ordered Probit Model, the results show evidence for a positive WTP for fresh raw material, which may be seen as a strong indication of preference for local products. This WTP greatly depends on the characteristics of the households. Wealthier house- holds are willing to pay more than the medium households, while big households are ready to pay much less than the base category ones. Obviously, some niche markets exist, that producers may target to sell the local milk-based dairy products. However, more infor- mation has to be provided about the composition of dairy products, as consumers are not currently able to distinguish both types of raw material, even if they are willing to pay more for one of them.
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:rpp:wpaper:1108&r=afr
  16. By: Garrouste, Christelle
    Abstract: In a multilingual context, this study investigates the role of language skills on mathematics achievement. It compares characteristics of 5048 Grade-6 learners in 275 Namibian schools. The outcome variable is the standardized SACMEQ mathematics score collected in year 2000. Hierarchical linear modeling is used to partition the total variance in mathematics achievement into its within- and between-school components. The results do confirm the positive correlation between strong language skills variations at the school-level and low pupil mathematics scores, which may question the capacity of the current bilingual policy to provide for an effective and equal learning environment.
    Keywords: Learning achievement; language skills; multilevel analysis; HLM
    JEL: C13 I2 C3
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:25066&r=afr

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