nep-afr New Economics Papers
on Africa
Issue of 2014‒09‒25
seven papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Benchmarking the financial performance, growth, and outreach of greenfield microfinance institutions in Sub-Saharan Africa By Cull, Robert; Harten, Sven; Nishida, Ippei; Bull, Greta
  2. Does Economic Integration Stimulate Capital Mobility? An Analysis of Four Regional Economic Communities in Africa. By Saten Kumar; Rahul Sen; Sadhana Srivastava
  3. Estimating poverty in the absence of consumption data : the case of Liberia By Dabalen, Andrew; Graham, Errol; Himelein, Kristen; Mungai, Rose
  4. Revenue Sharing of Natural Resources in Africa : Reflections from a Review of International Practices By Giorgio Brosio; Raju Jan Singh
  5. Technical and Institutional Capacities of AET Institutions in Southern Africa: Are there Lessons for the Rest of Africa? By Madakadze, Casper; Masamvu, Tane; Terreblanche, Fanie; Minde, Isaac
  6. Technology adoption and the multiple dimensions of food security: the case of maize in Tanzania By Magrini, Emiliano; Vigani, Mauro
  7. The African financial development and financial inclusion gaps By Allen, Franklin; Carletti, Elena; Cull, Robert; Jun Qian; Senbet, Lemma; Valenzuela, Patricio

  1. By: Cull, Robert; Harten, Sven; Nishida, Ippei; Bull, Greta
    Abstract: In recent years there has been a rapid increase in the presence and growth of greenfield microfinance institutions in Sub-Saharan Africa. This paper uses regressions to benchmark those African greenfields relative to other microfinance providers and finds that greenfields grew faster in terms of deposits and lending, improved their profitability to levels comparable to the top microfinance institutions, and substantially increased their lending to women. The effects were especially strong for greenfields that followed a consultant-led model to establish a deep retail banking presence spanning multiple countries, including the creation of extensive branch networks. Although their loan sizes are somewhat larger than those of most African microfinance institutions, indicating less outreach to the poorest market segments, greenfields have achieved rapid gains in financial inclusion on a broad scale.
    Keywords: Access to Finance,Banks&Banking Reform,Debt Markets,Corporate Law,Bankruptcy and Resolution of Financial Distress
    Date: 2014–09–01
  2. By: Saten Kumar (Department of Economics, Faculty of Business and Law, Auckland University of Technology); Rahul Sen (Department of Economics, Faculty of Business and Law, Auckland University of Technology); Sadhana Srivastava (Department of Economics, Faculty of Business and Law, Auckland University of Technology)
    Abstract: It is well known that high levels of regional integration enable portfolio risk diversification and capital mobility. While there have been a number of empirical attempts to verify the presence of capital mobility using the Feldstein-Horioka (FH) approach, none of them to the best of our knowledge have explicitly examined capital mobility changes across regional economic groupings rather than individual countries in Africa, and analyzed sub-samples to compare effects of pre-versus post integration. Filling this gap in the literature, this paper analyzes how some major regional economic integration initiatives, such as SACU (South African Customs Union), UEMOA (West African Economic and Monetary Union), COMESA (Common Market for Eastern and Southern Africa) and ECOWAS (Economic Community of West African States)) have influenced capital mobility in their member countries. To estimate the investment and savings relationship, we use Pedroni’s (2004) fully modified ordinary least squares (FMOLS) panel cointegration method, applying to a sample of 25 African countries for which annual data is available from 1960-2009. To assess robustness of our results, we also employ the fixed effects, random effects and Mark and Sul’s (2003) dynamic OLS (DOLS) methods. Our findings suggest that international capital mobility has only slightly increased in the African countries due to these agreements.
    Keywords: Regional economic integration; Feldstein-Horioka puzzle; Cointegration; International capital mobility
    Date: 2014–05
  3. By: Dabalen, Andrew; Graham, Errol; Himelein, Kristen; Mungai, Rose
    Abstract: In much of the developing world, the demand for high frequency quality household data for poverty monitoring and program design far outstrips the capacity of the statistics bureau to provide such data. In these environments, all available data sources must be leveraged. Most surveys, however, do not collect the detailed consumption data necessary to construct aggregates and poverty lines to measure poverty directly. This paper benefits from a shared listing exercise for two large-scale national household surveys conducted in Liberia in 2007 to explore alternative methodologies to estimate poverty indirectly. The first is an asset-based model that is commonly used in Demographic and Health Surveys. The second is a survey-to-survey imputation that makes use of small area estimation techniques. In addition to a standard base model, separate models are estimated for urban and rural areas and an expanded model that includes climatic variables. Special attention is paid to the inclusion of cell phones, with implications for other assets whose cost and availability may be changing rapidly. The results demonstrate substantial limitations with asset-based indexes, but also leave questions as to the accuracy and stability of imputation models.
    Keywords: Rural Poverty Reduction,Regional Economic Development,E-Business,Statistical&Mathematical Sciences
    Date: 2014–09–01
  4. By: Giorgio Brosio; Raju Jan Singh
    Keywords: Environmental Economics and Policies Macroeconomics and Economic Growth - Subnational Economic Development Economic Theory and Research Finance and Financial Sector Development - Debt Markets Public Sector Economics Public Sector Development Environment
    Date: 2014–04
  5. By: Madakadze, Casper; Masamvu, Tane; Terreblanche, Fanie; Minde, Isaac
    Abstract: This paper takes an inventory of technical and institutional capacities of some selected tertiary agricultural education and training institutions (AET) in southern Africa. Data were gathered on key selected areas such as student enrolment, physical infrastructure, teaching staff, curricula, level of research and outreach, and relationship between these institutions and the communities and private sector. The objective was to learn about best practices in the management of the AET institutions which can then potentially be applied to other AET institutions. South Africa demonstrated the greatest degree of diversity in their AET institutions. What is even more remarkable is that South Africa arguably has the most market driven, demand oriented AET-sensitive curricula in southern Africa. Different institutions target different segments in the job market. This is a great lesson for many African countries who are vying to increase job opportunities for their graduates.
    Keywords: agricultural education, Africa, Agricultural and Food Policy,
    Date: 2014–05
  6. By: Magrini, Emiliano; Vigani, Mauro
    Abstract: The paper analyses the impact of adopting new agricultural technologies on the multiple dimensions of food security for maize farmers in Tanzania. Relying on matching techniques, we use a nationally representative dataset collected over the period 2010/2011 to estimate the causal eects of using improved seeds and inorganic fertilizers on four dimensions: availability, access, utilization, and stability. We nd an overall positive and signicant impact on all the dimensions of food security even if substantial dierences are observed. In particular, improved seeds show a stronger eect on food availability and access while inorganic fertilizers guarantee higher stability. In terms of utilization, both technologies increase the diet diversity while only improved seeds reduce the dependence on staple food. The study supports the idea that the relationship between new agricultural technologies and food security is a complex phenomenon which requires a deeper and more thorough investigation.
    Keywords: Food Security, Technology Adoption, Propensity Score Matching, Tanzania, Agricultural and Food Policy, Food Security and Poverty, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, Q12, Q16, Q18, O13,
    Date: 2014
  7. By: Allen, Franklin; Carletti, Elena; Cull, Robert; Jun Qian; Senbet, Lemma; Valenzuela, Patricio
    Abstract: This paper investigates the African financial development and financial inclusion gaps relative to other peer developing countries. The paper uses a set of variables related to financial development and inclusion. It first estimates the gaps between African countries and other developing countries with similar degrees of economic development. Then, it explores the determinants of financial development and inclusion. The analysis finds that population density is considerably more important for financial development and inclusion in Africa than elsewhere. Finally, the paper shows evidence that a recent innovation in financial services, mobile banking, has helped to overcome infrastructural problems and improve financial access.
    Keywords: Economic Theory&Research,Access to Finance,Emerging Markets,Debt Markets,E-Business
    Date: 2014–09–01

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