nep-afr New Economics Papers
on Africa
Issue of 2017‒10‒22
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Regulatory structures and challenges to developmental extractives: Some practical observations from Ghana By Toni Aubynn
  2. Corporate Effective Tax Rate in Sub-Saharan Africa: Evidence from Formal Companies of Mali By Luisito Bertinelli; Arnaud Bourgain; "Abdoul Karim Diamoutene, University of Social Sciences and Management of Bamako, Mali "
  3. Structural transformation and its relevance for economic growth in Sub-Saharan Africa By Busse, Matthias; Erdogan, Ceren; Mühlen, Henning
  4. National Level Implications of Implementing the SDGs in Tanzania By Oswald Mashindano; Solomon Baregu
  5. Working Paper 284 - Growth and Fiscal Consequences of Terrorism in Nigeria By AfDB AfDB
  6. Welfare and Environmental Impact of Incentive Based Conservation: Evidence from Kenyan Community Forest Associations By Boscow Okumu; Edwin Muchapondwa

  1. By: Toni Aubynn
    Abstract: At the heart of an effective extractive resource-based economic transformation and development is an effective regulatory framework that guides the promotion of investments into the sector, the procedure for responsible extraction, and the management of the utilization of such resources. Ghana’s endowment with significant amount of ferrous and non-ferrous minerals, including gold, bauxite, manganese, diamonds, and iron ore, as well as hydrocarbons, is well known. The country has been mining gold for over a century, ranking second in production in Africa. The country has also undergone various regulatory transformations that have resulted in improvements in the mining sector in the country. Drawing largely on the case of Ghana, this paper seeks to share the experience of a regulator and offers some perspectives on the purpose, content, and challenges of the practical regulation of an extractives sector in a lower middle-income economy. The paper looks at both the design and content of a regulatory system in the mining sector of Ghana and throws light on the practical challenges (technical and political) of implementation. In light of the increasing allure of resource nationalism in current times, the paper also briefly explores the manner in which relationships are established and maintained by the regulatory bodies with both large multinational companies and small artisanal mining operations. It also offers a brief reflection on three key international standards and arrangements (the International Finance Corporation, the Extractive Industries Transparency Initiative, and the International Council on Minerals and Metals) to highlight their impact on domestic regulations. Conclusions are drawn to underscore the importance of effective and collaborative regulations in maximizing the transformative potential of resource extraction in less developed, resource-endowed countries.
    Date: 2017
  2. By: Luisito Bertinelli (CREA, Université du Luxembourg); Arnaud Bourgain (CREA, Université du Luxembourg); "Abdoul Karim Diamoutene, University of Social Sciences and Management of Bamako, Mali " (University of Social Sciences and Management of Bamako, Mali)
    Abstract: This paper analyses the tax burden borne by a large number of Malian companies (3 474) representing the totality of the formal sector of this country. By exploiting individual firm information collected from financial statements and balance sheets, we highlight determinants of effective tax rates such as firm’s size, industry, location or other corporate attributes. Our study is in line with the surge for more transparency in national fiscal practices.
    Keywords: Effective Tax Rate; Corporate income Tax; Taxation in Sub-Saharan Africa; Tax exemption,
    JEL: H25 O17 O55
    Date: 2017
  3. By: Busse, Matthias; Erdogan, Ceren; Mühlen, Henning
    Abstract: In this paper, we analyse the role of structural transformation in view of the remarkable growth performance of sub-Saharan African countries since the mid-1990s. Our analysis covers 41 African countries over the period 1980 to 2014 and accounts for structural transformation by employing the analytical frameworks of (1) growth decomposition and (2) growth regression. Even though the low-productive agricultural sector continues to employ most of the African workforce, our results reveal that structural transformation has taken place and that it has contributed significantly to African growth in the past decades.
    Keywords: Sub-Saharan Africa,structural transformation,economic growth,growth regressions,dualistic approach
    JEL: O11 O13 O47
    Date: 2017
  4. By: Oswald Mashindano; Solomon Baregu
    Abstract: This study investigated the progress towards formulating, adopting and implementing Sustainable Development Goals (SDGs) in Tanzania. The 15 years of implementation of the Millennium Development Goals (MDGs) in Tanzania proved that the country still needs to do more to eradicate poverty. Inadequate budgetary resources had been one of the major hurdles encountered during MDGs implementation. The present study reveals that dependence on traditional sources of financing had been the major reason for the country’s failure to effectively finance its development agenda. It is therefore recommended that the government explores non-traditional revenue sources for financing of the SDGs such as public-private partnerships (PPPs). Integrating and mainstreaming the SDGs in Tanzania’s national planning process can only be effective by strengthening the capacities of all key players identified in the planning process. Thus, the government and other important stakeholders should develop the capacities of the local government officials and allocate sufficient financial resources for effective mainstreaming and integration of the SDGs to the grassroots level.
    Keywords: Tanzania, national-level challenges, SDGs, public-private partnership, monitoring and evaluation, intra-governmental coordination, mainstreaming with national plan
    Date: 2016–07
  5. By: AfDB AfDB
    Date: 2017–10–04
  6. By: Boscow Okumu; Edwin Muchapondwa
    Abstract: This paper focuses on whether the provision of landless forest-adjacent communities with options to grow appropriate food crops inside forest reserves during early stages of reforestation programmes enable vertical transition of low income households and conserves forests. We consider the welfare and environmental impact of a unique incentive scheme known as the Plantation Establishment and Livelihood Improvement Scheme (PELIS) in Kenya. PELIS was aimed at deepening community participation in forestry, and improving the economic livelihoods of adjacent communities. Using data collected from 22 Community Forest Associations and 406 households, we evaluated the mean impact of the scheme on forest cover and household welfare using matching methods and further assessed the heterogeneous impact of the scheme on household welfare using the endogenous quantile treatment effects model. The study revealed that on average, PELIS had a significant and positive impact on overall household welfare (estimated between 15.09% and 28.14%) and on the environment (between 5.53% and 7.94%). However, in terms of welfare, the scheme cannot be defended on equity grounds as it has inequitable distributional impacts on household welfare. The scheme raises welfare of the least poor than the poorest and marginalizes sections of the community through elite capture and lack of market linkages.
    Keywords: household welfare, heterogeneity, Selection Matching, QTE
    JEL: D02 Q23
    Date: 2017–08

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