nep-afr New Economics Papers
on Africa
Issue of 2019‒12‒02
four papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. South African gold mining and local procurement in Tanzania and Ghana By Michael Nassen Smith; Osborne Carilee; Moola Zunaid; Turok Ben
  2. Precautionary Savings and Shock-Coping Behaviors: The Effects of Promoting Mobile Bank Savings on Transactional Sex in Kenya* By Kelly Jones; Erick Gong
  3. Identifying the Roadblocks for Energy Access: A Case Study for Eastern Africa’s Gas By Rami Shabaneh; Anne-Sophie Corbeau; Fernando Tomas Nhantumbo
  4. Corruption and tax morale in Africa By Boly, Amadou; Konte, Maty; Shimeles, Abebe

  1. By: Michael Nassen Smith; Osborne Carilee; Moola Zunaid; Turok Ben
    Abstract: We examine the extent to which two of Africa's leading gold mining economies, Ghana and Tanzania, have adopted transformative local procurement policies to enhance backward linkages from the minerals sector.We assess the impact that evolving legislation in the gold industry has had on industrialization and development in each country. South Africa’s gold mining investments in Ghana and Tanzania are used to illustrate policy impact and the state–capital relations that shape policy formulation and implementation. We conclude this study with concrete policy recommendations for host country governments and South African policy makers on how to deepen backward linkages emerging out of South African gold mining operations in each country.We propose that this research forms the beginning of in-depth assessments of the impact of South African mining investment on the continent and its potential role in realizing the minerals-based industrialization agenda of Africa’s resource-rich economies.
    Date: 2019
  2. By: Kelly Jones; Erick Gong
    Abstract: For the vulnerable, even small shocks can have significant short-and long-term impacts. Beneficial shock-coping mechanisms are not widely available in sub-Saharan Africa. We test whether individual precautionary savings can reduce a shock-coping behavior common in SSA that has negative spillovers: transactional sex. Among a set of vulnerable women, we randomly assigned an intervention that promoted savings in a mobile banking account labeled for goals and emergency expenses. We find that the intervention led to an increase in total mobile savings, reductions in transactional sex as a risk-coping response, and a decrease in symptoms of sexually transmitted infections. Changes are sustained in the medium-term.
    Keywords: Shock-coping; Savings; Sexual behavior; Kenya; Africa
    JEL: O12 D14 I15 J16
    Date: 2019
  3. By: Rami Shabaneh; Anne-Sophie Corbeau; Fernando Tomas Nhantumbo (King Abdullah Petroleum Studies and Research Center)
    Abstract: Natural gas resources in Tanzania and Mozambique have emerged as a new source of gas supply. While they are poised for export to global gas markets, they can also provide a key source of energy to the rest of Eastern Africa (defined in this paper to include Burundi, Ethiopia, Kenya, Malawi, Mozambique, Rwanda, South Africa, Tanzania, and Uganda), where millions of inhabitants are currently living without access to electricity and clean cooking. Natural gas could also potentially be a driver for industrialization and economic growth. But before delving into the potential gas demand and opportunities for gas utilization in the region, it is important to take a step back to analyze the current energy picture in Eastern Africa and look into the social and development plans in place in the region. Despite large natural resource potential across the region of Eastern Africa (except South Africa), low electricity access and energy access rates have hampered economic growth and increased dependency on traditional biomass. This scoping study investigates energy access issues in the residential, industrial and transport sectors.
    Keywords: Coal, Electricity, Electricity access, Energy access, Energy efficiency, Energy mix, Industrial sector, Infrastructure development, Infrastructure Investment, Natural gas, Natural resource development, Population growth, Power capacity, Prepaid meters, Renewable energy, Transportation, Uranium, Urbanization, Utility Revenues
    Date: 2018–05
  4. By: Boly, Amadou (African Development Bank); Konte, Maty (UNU-MERIT); Shimeles, Abebe (African Development Bank)
    Abstract: This paper analyses the effect of the quality of governance (proxied by perceived corruption) on attitude towards paying tax. Using the Afrobarometer surveys from 36 African countries over the period 2011-2015, we find that low perception of corruption of different levels of the Executive branch (President Office, Government Officials or Tax Authorities) has a significant and positive impact on tax morale. To account for possible reverse causality between a citizen's perception of governance quality and attitude towards tax payment, we also propose an IV approach, using the ethnicity of the country's leader as instrument for perceived level of corruption. The IV results confirm that an individual's positive perception of governance has a positive impact on its willingness to pay tax.
    Keywords: Corruption, Taxation, Governance, Africa
    JEL: D73 H71 O23 O55
    Date: 2019–10–31

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