nep-afr New Economics Papers
on Africa
Issue of 2024‒04‒15
six papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus


  1. The United Nation in a Multipolar World: Assessing Its Role and Relevance in Africa's Future By Khlil, Brahim
  2. How to cope with a refugee population? Evidence from Uganda By Kadigo, Mark Marvin
  3. Insights into the value of the market for cocaine, heroin and methamphetamine in South Africa By Scheibe, Andrew; Shelly, Shaun; Stowe, M. J.
  4. Effect of Exchange Rate Movements on Inflation in Sub-Saharan Africa By Laurent Kemoe; Moustapha Mbohou; Hamza Mighri; Mr. Saad N Quayyum
  5. Modeling Bank Financial Intermediation Functions: Theoretical and Empirical Evidence from Nigeria By Jacob Sesugh Angahar
  6. On the Preservation of Africa's Cultural Heritage in the Age of Artificial Intelligence By Louadi, Mohamed

  1. By: Khlil, Brahim (Independent researcher)
    Abstract: This white paper delves into the critical role of the United Nations (UN) in facilitating peace, development, and human rights within the multipolar global landscape, with a focused examination on Africa. In a world where power dynamics are increasingly distributed among various global actors, the UN's ability to rally international support, adapt to diverse development models, and address challenges through collective action is more vital than ever. Specifically, in Africa, the UN's contributions range from peacekeeping and conflict resolution to promoting economic growth and sustainable development, showcasing its pivotal position as a mediator, advocate, and ally for the continent. Through strategic partnerships and tailored initiatives, the UN aims to enhance its effectiveness in supporting Africa's journey towards stability, prosperity, and equitable global representation. This paper proposes actionable recommendations for reinforcing the UN-Africa collaboration, emphasizing the importance of innovation, inclusivity, and shared commitment to achieving sustainable development goals. It presents a vision for a future where the UN's dedicated support and Africa's rich potential converge to address global challenges in an interconnected world.
    Date: 2024–03–21
    URL: http://d.repec.org/n?u=RePEc:osf:osfxxx:q3nbz&r=afr
  2. By: Kadigo, Mark Marvin
    Abstract: Developing countries, particularly Sub-Saharan Africa, host over three quarters of the world's refugees, with Uganda hosting the most in SSA, predominantly from neighboring countries such as South Sudan and the Democratic Republic of Congo, a phenomenon dating back to the 1940s, primarily attributed to persistent conflict, and while hosting refugees can pose economic challenges, literature suggests mixed but generally positive economic effects on hosting countries.
    Keywords: Uganda, refugees
    Date: 2024–04
    URL: http://d.repec.org/n?u=RePEc:iob:apbrfs:2024001&r=afr
  3. By: Scheibe, Andrew; Shelly, Shaun; Stowe, M. J.
    Abstract: The illicit drug trade generates billions of dollars and sustains transnational criminal organisations. Drug markets can destabilise governance and undermine development. Data indicate increasing drug use in South Africa. However, information on the size and value of the drug market is limited. This is the first study to estimate the market value of cocaine, heroin and methamphetamine in South Africa. People who use drugs were meaningfully involved in all aspects of implementation. We used focus group discussions, ethnographic mapping, brief interviews, and the Delphi method to estimate the number of users, volumes consumed, and price for each drug in South Africa in 2020. Nationally, we estimated there to be: 400, 000 people who use heroin (probability range (PR) 215, 000–425, 000) consuming 146.00 tonnes (PR 78.48–155.13) with a value of US$1, 898.00 million (PR US$1, 020.18–US$2, 016.63); 350, 000 people who use cocaine (PR 250, 000–475, 000) consuming 18.77 tonnes (PR 13.41–25.47) with a market value of US$1, 219.86 million (PR 871.33–1, 655.52) and 290, 000 people who use methamphetamine (PR 225, 000–365, 000) consuming 60.19 tonnes (PR 6.58–10.68) and a market value of US$782.51 million (PR 607.12–984.88). The combined value was calculated at US$3.5 billion. Findings can be used to stimulate engagement to reform drug policy and approaches to mitigate the impact of the illicit drug trade. Additional studies that include people who use drugs in research design and implementation are needed to improve our understanding of drug markets.
    Keywords: drug market; illicit markets; valuation; South Africa
    JEL: N0
    Date: 2024–02–14
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:122162&r=afr
  4. By: Laurent Kemoe; Moustapha Mbohou; Hamza Mighri; Mr. Saad N Quayyum
    Abstract: This paper provides new evidence on the exchange rate passthrough to domestic inflation in Sub-Saharan Africa (SSA) using both bilateral US dollar exchange rate and the nominal effective exchange rate (NEER), and monthly data. We find that depreciations cause sizable increases in domestic inflation. The passthrough in SSA is higher than in other regions and its magnitude depends on the exchange rate regime, type of exchange rate (bilateral versus NEER), natural resource endowment and domestic market competitiveness. The passthrough is found to be disproportionately larger and more persistent for large depreciation shocks, and for exchange rate changes that are more persistent. We also find evidence of asymmetry, with passthrough eight times stronger during depreciations than appreciations. Additional findings suggest that improved monetary policy effectiveness is an important driver of our observed declining estimates of exchange rate passthrough over time, supporting the long-standing view that strengthening monetary policy frameworks and credibility helps mitigate the impact of depreciations on inflation.
    Keywords: Exchange rage passthrough; inflation; nonlinearities; Sub-Saharan Africa
    Date: 2024–03–15
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/059&r=afr
  5. By: Jacob Sesugh Angahar (NISER - Nigeria institute of social and Economic Research Ibadan)
    Abstract: This research examined the modeling of the financial intermediation functions of banks in Nigeria. The effectiveness of financial intermediation was determined by its impact on economic growth in Nigeria. Secondary time series data were collected to determine the association between variables. The study adopted an ex post facto research design and used ordinary least squares regression tests that reveal the predictive power of the model as well as the relative statistics of the short-term variables, while testing for the existence of a long-term equilibrium relationship, based on the multivariate cointegration technique performed. The results of the study suggest that there are both short-term and long-term relationships between financial intermediation and economic growth in Nigeria. Specifically, CBCPS has a positive relationship with GDP, while MS and MLR have a positive and significant relationship with GDP in the long run. The study recommends, inter alia, that monetary authorities, in particular the Central Bank of Nigeria, has to use measures to force banks to reduce their interest rates on loans. This will increase investment and enhance the overall performance of the economy's productive sectors.
    Keywords: Financial intermediation banks credit to private sector maximum lending rate money supply economic growth, Financial intermediation, banks, credit to private sector, maximum lending rate, money supply, economic growth
    Date: 2024–03–04
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04493271&r=afr
  6. By: Louadi, Mohamed (Institut Supérieur de Gestion)
    Abstract: In this paper we delve into the historical evolution of data as a fundamental element in communication and knowledge transmission. The paper traces the stages of knowledge dissemination from oral traditions to the digital era, highlighting the significance of languages and cultural diversity in this progression. It also explores the impact of digital technologies on memory, communication, and cultural preservation, emphasizing the need for promoting a culture of the digital (rather than a digital culture) in Africa and beyond. Additionally, it discusses the challenges and opportunities presented by data biases in AI development, underscoring the importance of creating diverse datasets for equitable representation. We advocate for investing in data as a crucial raw material for fostering digital literacy, economic development, and, above all, cultural preservation in the digital age.
    Date: 2024–03–07
    URL: http://d.repec.org/n?u=RePEc:osf:africa:xqtcs&r=afr

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