nep-afr New Economics Papers
on Africa
Issue of 2014‒08‒25
twelve papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Working Paper 204 - Skills and Youth Entrepreneurship in Africa: Analysis with Evidence from Swaziland By Zuzana Brixiova; Mthuli Ncube; Zorobabel Bicaba
  2. Integrating mining into the economies of Africa By Mtegha, Hudson
  3. China’s African financial engagement, real exchange rates and trade between China and Africa By Sylviane GUILLAUMONT JEANNENEY; Ping HUA
  4. Examining the sense and science behind Ghana’s current blanket fertilizer recommendation: By Chapoto, Antony; Tetteh, Francis
  5. Democratisation in Africa: The Role of Self-Enforcing Constitutional Rules By Sophia du Plessis, Ada Jansen and Krige Siebrits
  6. Are Cash Transfers a Silver Bullet? Evidence from the Zambian Child Grant By Sudhanshu Handa; David Seidenfeld; Benjamin Davis; Gelson Tembo; Zambia Cash Transfer Evaluation Team; UNICEF Innocenti Research Centre
  7. Growth without Borders : A Regional Growth Pole Diagnostic for Southern Africa By World Bank
  8. Manufacturing Export Competitiveness in Kenya : A Policy Note on Revitalizing and Diversifying Kenya's Manufacturing Sector By Thomas Farole; Megha Mukim
  9. How to Revamp a Business Edge Program : The Case of Ghana By Mario Gomes
  10. Scaling Up Access to Electricity : The Case of Lighting Africa By Daniel Murphy; Arsh Sharma
  11. International remittances and financial inclusion in Sub-Saharan Africa By Aga, Gemechu Ayana; Soledad Martinez Peria, Maria
  12. Foreign direct investment and local spillovers in the apparel sector in Sub-Saharan Africa By Staritz, Cornelia

  1. By: Zuzana Brixiova; Mthuli Ncube; Zorobabel Bicaba
    Abstract: The shortages of entrepreneurial skillshave lowered search effectiveness of potential young entrepreneurs and the rate of youth start-ups. Our paper contributes to closing a gap in the entrepreneurship and development literature with a model of costly firm creation and skill differences between young and adult entrepreneurs. The model shows that for young entrepreneurs facing high cost of searching for business opportunities, support for training is more effective in stimulating productive start-ups than subsidies. Further, the case for interventions targeted at youth rises in societies with high cost of youth unemployment. We test the role of skills and training for productive youth entrepreneurship on data from a recent survey of entrepreneurs in Swaziland.
    Date: 2014–08–06
  2. By: Mtegha, Hudson
    Abstract: Africa’s abundant mineral resources offer opportunities for its countries’ governments to work with mining companies so that minerals exploitation can benefit both company and country. Well-managed mineral exploitation can underpin broad-based sustainable growth and socioeconomic development, in the words of the Africa Mining Vision (AMV) of 2009. An Action Plan for Implementing the AMV (2011) has set out strategies for developing mineral management systems and institutions through which Africa can benefit from its mineral resources, and it is now being implemented by the African Minerals Development Centre which has begun work in Addis Ababa, Ethiopia, within the UN Economic Commission for Africa (UNECA). The Centre’s task is to build strategies and policies to support sustainable development. Stakeholder relations, both with investing companies and affected communities, are critical, as also is careful forethought about social and environmental impacts, legislation, infrastructure and adaptation of technologies to bring modern tools and practices to African agriculture.
    Keywords: International Development, International Relations/Trade, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy,
    Date: 2013
  3. By: Sylviane GUILLAUMONT JEANNENEY (University of Auvergne); Ping HUA (FERDI)
    Abstract: In the last decade China’s trade with Africa increased faster than its overall foreign trade. This paper focuses on the role of real exchange rates in this growth. A “bilateral real exchange rate” augmented trade gravity model applied to China’s trade with 49 African countries over the period 2000 to 2011 shows that the real appreciation of most African currencies relative to the renminbi favoured China’s exports to these countries, but had no impact on China’s imports from Africa. This real appreciation of African currencies is explained by three main factors: 1) the decision to peg them to other currencies (in particular to the euro), 2) the amount of export of raw materials from African countries, and 3) the amount of financial assistance from international donors including China. Thus, a kind of detrimental sequence exists in Africa’s relationship with China: China’s imports of raw materials and its economic cooperation are among the factors explaining the appreciation of African real exchange rates, which itself stimulates China’s exports of manufactured goods, and so restricts Africa’s own industrial development.
    JEL: F12 F14 F31 F35
    Date: 2014–08
  4. By: Chapoto, Antony; Tetteh, Francis
    Abstract: This paper was written to help bolster the case and present visual evidence demonstrating why it is important to seriously consider spatial soil fertility variability in Ghana and to promote area-specific fertilizer recommendations. Using geostatistical analysis of soil samples collected from farmer plots in three districts (Tamale Municipality, Savelugu-Nanton, and West Mamprusi in northern Ghana), the paper analyzes spatial variations in soil fertility. The results clearly show that there are variations in soil pH, organic matter content, and available phosphorous even at the community level, supporting the need for Ghana to seriously consider location-specific fertilizer recommendations.
    Keywords: Agricultural production, productivity, fertilizer use, Geographical information systems, Fertilizers, Soil fertility, farm inputs,
    Date: 2014
  5. By: Sophia du Plessis, Ada Jansen and Krige Siebrits
    Abstract: Following several decades during which violent civil conflict was common in African countries, the period from 1990 onwards was notably marked by a spreading and deepening of adherence to democratic principles. However, it is true to say that many African countries are still experiencing political instability and civil unrest. This raises the question of why these countries cannot attain sustainable conflict resolution. Drawing on economic ideas about contracts and institutions, this paper outlines a conceptual framework for thinking about the role of constitutional rules in achieving political stability, and we elucidate the main requirement for sustainable democratic systems. The gist of the argument is that constitutional rules must become self-enforcing in order to safeguard democratic systems and to avoid relapses into violent civil conflict. We discuss selective examples where constitutions do not adhere to the framework of self-enforcement, making them unable to prevent the recurrence of civil war in these countries
    Keywords: Constitutional rules, self-enforcing constitutions, informal institutions, Democracy, civil war, Africa
    JEL: D7 N4 N9
    Date: 2014
  6. By: Sudhanshu Handa; David Seidenfeld; Benjamin Davis; Gelson Tembo; Zambia Cash Transfer Evaluation Team; UNICEF Innocenti Research Centre
    Abstract: We document the broad impacts of the Zambian Government’s Child Support Grant , including on consumption, livelihood strengthening, material welfare of children, young child feeding, investment in assets, productive activities and housing after two years, making this one of the first studies to demonstrate both protective and productive impacts of a national unconditional cash transfer programme. However impacts in areas such as child nutritional status and schooling depend on initial conditions of the household, suggesting that cash alone is not enough to solve all constraints faced by these poor, rural households.
    Keywords: cash transfers; zambia;
    Date: 2014
  7. By: World Bank
    Keywords: Finance and Financial Sector Development - Access to Finance Banks and Banking Reform Economic Theory and Research Private Sector Development - Emerging Markets Transport Economics Policy and Planning Transport Macroeconomics and Economic Growth
    Date: 2013–10
  8. By: Thomas Farole; Megha Mukim
    Keywords: Macroeconomics and Economic Growth - Markets and Market Access International Economics and Trade - Free Trade Economic Theory and Research Finance and Financial Sector Development - Debt Markets Private Sector Development - E-Business
    Date: 2013–12
  9. By: Mario Gomes
    Keywords: Private Sector Development - Competitiveness and Competition Policy Private Sector Development - Business Environment Education - Education For All Access and Equity in Basic Education Education - Primary Education
    Date: 2012–11
  10. By: Daniel Murphy; Arsh Sharma
    Keywords: Environment - Climate Change Mitigation and Green House Gases Macroeconomics and Economic Growth - Climate Change Economics Macroeconomics and Economic Growth - Markets and Market Access Energy - Energy Production and Transportation Energy - Energy Demand
    Date: 2014–06
  11. By: Aga, Gemechu Ayana; Soledad Martinez Peria, Maria
    Abstract: This paper uses World Bank survey data, including about 10,000 households in five countries -- Burkina Faso, Kenya, Nigeria, Senegal, and Uganda -- to investigate the link between international remittances and households'financial inclusion in Sub-Saharan Africa. The paper finds that receiving international remittances increases the probability that the household opens a bank account in all the five countries. This result is robust to controlling for the potential endogeneity of remittances, using as instruments indicators of the migrants'economic conditions in the destination countries.
    Keywords: Access to Finance,Population Policies,Remittances,Debt Markets,Banks&Banking Reform
    Date: 2014–07–01
  12. By: Staritz, Cornelia
    Abstract: Foreign direct investment (FDI) in the apparel sector in several Sub-Saharan African (SSA) countries has experienced significant growth in the context of preferential market access. But expectations of FDI leading to spillovers to the local economy and the development of locally-embedded apparel export industries have not materialized. A shift from FDI attraction through fiscal incentives to more strategic industrial policies that target FDI spillovers, local value added and linkages is urgently needed for broader local development effects. --
    Date: 2013

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