nep-afr New Economics Papers
on Africa
Issue of 2020‒01‒20
seven papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. How mining is threatening the sustainability of the South African nature tourism sector and civil society response By Llewellyn Leonard
  2. Mobile Money access and usage among the rural communities in Zimbabwe By Dube, Thulani; Chummun, Bibi Zaheenah
  3. Networks, Start-up Capital and Women’s Entrepreneurial Performance in Africa: Evidence from Eswatini By Brixiová, Zuzana; Kangoye, Thierry
  4. State History and State Fragility: Evidence from Sub-Saharan Africa By Kodila-Tedika, Oasis; Khalifa, Sherif
  5. Are African exports that weak ? A trade in value-added approach By NJIKE, ARNOLD
  6. Manufacturing Export and ICT Infrastructure in West Africa: Investigating the Roles of Economic and Political Institutions By Ibukun Beecroft; Evans S. Osabuohien; Uchenna R. Efobi; Isaiah Olurinola; Romanus A. Osabohien
  7. Fertility after The Drought: Theory and Evidence from Madagascar By Dessy, Sylvain; Marchetta, Francesca; Pongou, Roland; Tiberti, Luca

  1. By: Llewellyn Leonard (University of South Africa)
    Abstract: South African tourism geography studies have largely ignored how issues of industrial pollution and development such as for mining have affected nature tourism and conservation sites. It is argued in this chapter that South Africa?s transition to democracy has not necessarily resulted in improved governance and protection of nature tourism destinations from industrial developments, with the government approving mining licenses in these sites. Historical and new mining operations in South Africa are affecting nature tourism sites and sustainable tourism development. This chapter explores selected cases to examine how mining is affecting and/or has the potential to impact on nature tourism sites. It also examines civil society response to address mining development impacts in such areas. Results indicate that despite government apathy to protect nature tourism sites and enforce regulations, civil society has the potential to halt mining development and protect nature tourism resources. However, inter and intraracial/class conflict in local communities over mining development versus tourism needs to be addressed, in addition to the lack of tourism employment opportunities for local communities. Education about sustainable tourism development is essential to ensure long-term sustainable tourism and local development over mining
    Keywords: Nature tourism, Civil society, Conservation, Sustainable tourism development
    JEL: D63
    Date: 2019–10
  2. By: Dube, Thulani; Chummun, Bibi Zaheenah
    Abstract: The study sought to determine the level of mobile money access and usage among the rural households in Zimbabwe. A descriptive research design was employed in a mixed method research approach. The study population comprised of all rural districts in the Midlands Province and the target population was 8258 rural households. A sample size of 367 household heads was determined in the Kwekwe Rural District. A questionnaire was used as a data collecting instrument. The results of the study revealed a moderate use of mobile money by rural households. The widely used service was the funds transfer services (sending and receiving) with a mean score of 1.81. Mobile money was used as a vehicle of remitting funds. More over mobile money had improved access to financial services as indicated by the reduced distances walked to access the nearest mobile money agents. Majority of the users were walking distances of less than 10km to access the service. When assessing the demographic influences on the use of mobile money, an association between education and mobile money use was supported by a Pearson Chi-Square value of 62.803 at p value 0.000.
    Keywords: Mobile money, low-income rural households, access, usage
    JEL: O1
    Date: 2019–12–03
  3. By: Brixiová, Zuzana; Kangoye, Thierry
    Abstract: This paper analyzes the role of networks in the access of female entrepreneurs to start-up capital and firm performance in Eswatini, a country with one of the highest female unemployment rates in Africa. The paper first shows that higher initial capital is associated with better sales performance for both men and women entrepreneurs. Women entrepreneurs start their firms with smaller start-up capital than men and are more likely to fund it from their own sources, which reduces the size of their firm and sales level. However, women with higher education start their firms with more capital than their less educated counterparts. Moreover, women who receive support from professional networks have higher initial capital, while those trained in financial literacy more often access external funding sources, including through their networks.
    Keywords: networks,start-up capital,women’s entrepreneurship,multivariate analysis,Africa
    JEL: L53 O12
    Date: 2019
  4. By: Kodila-Tedika, Oasis; Khalifa, Sherif
    Abstract: This paper examines the association between the length of experience with statehood, or state history, on the likelihood of state fragility. The argument is that the accumulation of knowledge by state personnel, and the build up of experience within state institutions, allows the state to avoid the exposure to recurrent crises, which is considered a symptom of weakness. The paper focuses on sub-Saharan African countries and uses Probit estimation techniques. The analysis shows that state history has a negative and statistically significant effect on the state fragility index. This result is robust after the inclusion of a variety of economic, political, institutional and historical variables. We also use extreme fragility as our dependent variable. The Probit and Relogit estimations also show a statistically significant negative effect of state history on extreme fragility. This is the case even after the inclusion of control variables
    Keywords: history, institutions, fragility, Africa
    JEL: N00 O55 P5
    Date: 2019–12–30
    Abstract: African countries are known to export less than any other group of countries in the world. Numerous studies have pointed out the high level of transport costs related to the lousy quality of transport infrastructures in the African continent to be the main explanation of this situation. We first show that depending on the estimator used, African countries on aggregate do not trade necessary less than the average country in the world when it comes to gross exports, even if they underperform clearly as regards final goods exports. We also formulate a model for trade in value-added by adapting the Anderson and Van Wincoop’s gravity equation to take into account the structure of value-added exports. The proposed model highlights the importance of indirect trade costs, which are trade costs of third countries through which the exported value-added of the origin country passes to reach its final destination. When we control for these indirect trade costs, it appears that the penalty on the direct trade costs between African countries’ and their partners is at least two times lower for value-added exports than what is predicted for gross exports and even six times lower in comparison to final goods exports.
    Keywords: Global value chains, Gravity model, trade costs, African trade
    JEL: F1
    Date: 2019–09–02
  6. By: Ibukun Beecroft (Covenant University, Ota, Nigeria); Evans S. Osabuohien (CEPDeR, Covenant University, Ota, Nigeria); Uchenna R. Efobi (Covenant University, Ota, Ogun State, Nigeria); Isaiah Olurinola (Covenant University, Ota, Ogun State, Nigeria); Romanus A. Osabohien (Covenant University, Ota, Ogun State, Nigeria)
    Abstract: Investment in ICT infrastructure development is crucial to international trade through its provision of reliable interconnectedness via communication. This can be augmented via institutional intervention, which addresses opportunistic or rent-seeking behaviours of ICT infrastructure providers and reduces operational costs, among others. However, ICT infrastructural provision in West Africa remains low, necessitating the current drive by the regional economic community (ECOWAS) to make some advancement in this regard for enhanced trade outcomes of members. With the aim of unbundling institutional framework in the infrastructure-export nexus, this study empirically examines the relationship between manufacturing export and ICT infrastructure and articulates how economic and political institutions influence such interaction. Focusing on 14 West African countries, the study uses the Systems Generalised Method of Moments (SGMM) technique to address possible issues of endogeneity and reverse causality. The results reveal that in the face of improved economic and political institutions, particularly those related to enforcement of contracts, the influence of ICT infrastructure in strengthening the exporting capacity from the manufacturing sector is greater. In addition, some measures of economic and political institutions matter more than others. The study recommends that ECOWAS countries promote better institutional quality, particularly in terms of transparency, accountability, corruption control, regulatory quality and the rule of law.
    Keywords: Dynamic panel data; Infrastructural provision; Infrastructural development; Institutional framework; Institutional quality; Manufacturing export; Manufacturing value added
    JEL: F14 O14 O17 O43 P45
    Date: 2019–01
  7. By: Dessy, Sylvain; Marchetta, Francesca; Pongou, Roland; Tiberti, Luca
    Keywords: Environmental Economics and Policy, Food Security and Poverty
    Date: 2019–12–30

This nep-afr issue is ©2020 by Sam Sarpong. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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