nep-afr New Economics Papers
on Africa
Issue of 2021‒10‒18
seven papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Addressing the Challenges of Taxation of the Digital Economy: Lessons for African Countries By Rukundo, Solomon
  2. Climate Shocks, Migration, and Labor Markets: A Gender Analysis from West Africa By Elmallakh, Nelly; Wodon, Quentin
  3. Food insecurity, safety nets, and coping strategies during the COVID-19 pandemic: multi-country evidence from sub-saharan Africa By Dasgupta, Shouro; Robinson, Elizabeth J.Z.
  4. Can the expansion of SMEs along Africa's food supply chains improve food and nutrition security? By O. Liverpool-Tasie, Lenis Saweda; Reardon, Thomas Anthony
  5. Is financial development shaping or shaking economic sophistication in African countries? By Njangang, Henri; Asongu, Simplice; Tadadjeu, Sosson; Nounamo, Yann
  6. Addressing the Severity and Intensity of Poverty in Sub-Saharan Africa: How Relevant is the ICT and Financial Development Pathway? By Ofori, Isaac K.; Armah, Mark K.; Taale, Francis; Ofori, Pamela Efua
  7. Decarbonising Morocco’s Transport System: Charting the Way Forward By ITF

  1. By: Rukundo, Solomon
    Abstract: The rapid growth of the digital economy in many African countries has led to concerns about whether their tax regimes are equipped to deal with this new phenomenon. The shift from a traditional bricks and mortar commercial environment to one that is electronic and information-based poses serious and substantial challenges to traditional tax regimes. African revenue authorities face the daunting task of protecting their revenue base without hindering either the development and use of new technologies or the involvement of the business community in the emerging e-market place. This paper examines legislative and policy approaches to taxing the digital economy adopted by different jurisdictions around the world and the lessons that African countries can draw from these experiences. The paper argues that African countries should participate in the multilateral discussions on the reform of international taxation needed to deal with the challenges of the digital economy. However, they must also acknowledge that their challenges are different from those of developed countries and therefore their final solutions will have to be uniquely African.
    Keywords: Economic Development, Finance, Governance,
    Date: 2020
  2. By: Elmallakh, Nelly; Wodon, Quentin
    Abstract: This paper investigates the effects of shocks, predominantly climate shocks, on labor market outcomes in the West African Economic and Monetary Union (WAEMU). We focus on migration ows within the WAEMU countries to disentangle the differential effects of shocks on migrants and non-migrants. Our analysis combines survey data from Ivory Coast|as the main migrant receiving country|and from all the other 7 migrant sending countries of the WAEMU. Using an OLS fixed effects model, our results show that migration in the WAEMU is associated with a decline in female labor participation, as it is primarily motivated by marriage. However, we find an increase in female labor force participation and a narrowing of the gender gap in migrant households that are negatively affected by shocks. Our findings relate to the literature on the impact of shocks on the labor division between women and men and show that shocks may disrupt long-standing gender roles. The results are robust to accounting for the double selection into shocks and migration using a Propensity Score Matching technique that allows for a within comparison between treated and untreated units.
    Keywords: shocks,migration,climate,employment,labor market,women,West Africa
    JEL: F22 J21 J43 J61 Q54
    Date: 2021
  3. By: Dasgupta, Shouro; Robinson, Elizabeth J.Z.
    Abstract: The COVID-19 pandemic has affected food security across the world. As governments respond in different ways both with regards to containing the pandemic and addressing food insecurity, in parallel detailed datasets are being collected and analysed. To date, literature addressing food insecurity during the pandemic, using these datasets, has tended to focus on individual countries. By contrast, this paper provides the first detailed multi-country cross-sectional snapshot of the social dimensions of food insecurity during the COVID-19 pandemic across nine African countries (Chad, Djibouti, Ethiopia, Kenya, Malawi, Mali, Nigeria, South Africa, and Uganda). Econometric analysis reveals that female-headed households, the poor, and the less-formally educated, appear to suffer more in terms of food insecurity during this global pandemic. Importantly, our findings show that the negative consequences of the pandemic are disproportionately higher for lower-income households and those who had to borrow to make ends meet rather than relying on savings; impacts are country-specific; and there is considerable spatial heterogeneity within country food insecurity, suggesting that tailored policies will be required. These nine countries employ both food and cash safety nets, with the evidence suggesting that, at least when these data were collected, cash safety nets have been slightly more effective at reducing food insecurity. Our results provide a baseline that can be used by governments to help design and implement tailored policies to address food insecurity. Our findings can also be used as lessons to reshape policies to tackle the heterogeneous impacts of climate change.
    Keywords: Covid-19; food insecurity; multi-country models; socioeconomic determinants; coronavirus
    JEL: R14 J01
    Date: 2021–10–01
  4. By: O. Liverpool-Tasie, Lenis Saweda; Reardon, Thomas Anthony
    Abstract: In the last three decades, agrifood value chains (AVCs) have expanded and transformed in developing regions. AVC transformation across Africa has created huge markets for farmers, along with employment in various supply chain segments, including food processing, wholesaling, and logistics provision. Thereby, domestic food supply chains dominate Africa's food supply and SMEs move most of this food. Understanding these SMEs and their behaviours is important to be able to design policies and programs with positive impacts on food and nutrition security. This raises the question on whether the expansion of SMEs along Africa's food supply chains can improve food and nutrition security.
    Date: 2021
  5. By: Njangang, Henri; Asongu, Simplice; Tadadjeu, Sosson; Nounamo, Yann
    Abstract: This paper aims to investigate the effect of financial development on economic complexity using a panel dataset of 24 African countries over the period 1983-2017. The empirical evidence is based on two different approaches. First, we adopt the Hoechle (2007) procedure which produces Driscoll-Kraay standard errors to account for heteroscedasticity and cross–sectional dependence. Second, we implement the system Generalized Method of Moments to account for endogeneity. The results show that financial development increases economic complexity in Africa. Looking at the regional difference, the results show that this effect is less beneficial for SSA countries.
    Keywords: Financial development, Economic complexity, Panel data analysis, Africa
    JEL: E02 G20 G24 O55 P14
    Date: 2021–01
  6. By: Ofori, Isaac K.; Armah, Mark K.; Taale, Francis; Ofori, Pamela Efua
    Abstract: The study examines the effectiveness of financial development, financial access, and ICT diffusion in reducing the severity and intensity of poverty in Sub-Saharan Africa (SSA). Using data from the World Bank’s World Development Indicators, and the Global Consumption and Income Project (1980–2019), we provide evidence robust to several specifications from the dynamic system GMM and the panel corrected standard errors estimation techniques to show that, compared to financial access, ICT usage, and ICT access, ICT skills is remarkable in reducing both the severity and intensity of poverty. The results further unveil that, though ICT skills reduce the intensity and severity of poverty in SSA, the effect is more pronounced in the presence of enhanced financial development and financial access. Policy recommendations are provided in line with the region’s green growth agenda and the rise in technological hubs of the region.
    Keywords: Financial Access, Financial Development, ICT, Inequality, Poverty, Africa
    JEL: C33 D31 F63 I30 O33
    Date: 2021–10–06
  7. By: ITF
    Abstract: This paper reviews opportunities and challenges for mitigating greenhouse gas emissions from Morocco’s transport sector. It provides an overview of the transport system and reviews the country’s existing policies and future plans for reducing CO2 emissions from transport. The paper also provides an overview of the data on transport activity and emissions available for Morocco, and the tools used by government agencies for assessing them. Finally, it proposes options for further action in the context of ITF’s “Decarbonising Transport in Emerging Economies” (DTEE) project
    Date: 2021–03–17

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