nep-afr New Economics Papers
on Africa
Issue of 2022‒01‒31
seven papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. African migrants plight in India: Afrophobia impedes India's race for Africa's resources and markets By Kohnert, Dirk
  2. Exploring the correlation between cost perception and uptake of solar energy solutions in the Zambia Housing Sector By Sambo Zulu; Ephraim Zulu
  3. A Framework for Financing Housing Development and Ownership in Africa By Jonathan Oladeji; Joseph Yacim; Benita Zulch
  4. E-Money and Deposit Insurance in Kenya By Defina, Ryan; Van Roosebeke, Bert; Manga, Paul
  5. Exploring Occupants’ Comfort and Indoor Environmental Qualities in Green Office Buildings By Thabelo Ramantswana; Yamkela Blou; Ntombi Mtshali; Kabelo Modise
  6. Trade shocks and labour market Resilience in Sub-Saharan Africa: Does the franc zone Response Differently? By Tii N. Nchofoung
  7. Examining Zimbabwe’s Expropriation and Compensation Process through the Lens of Procedural Fairness By Joseph Awoamim Yacim; Partson Paradza; Benita Zulch

  1. By: Kohnert, Dirk
    Abstract: Africa and India share a long history of trade, investment and slavery. The Portuguese alone brought up to 80,000 slaves from Mozambique to India since the 16th century. Unlike slaves in other parts of the world, African slaves, soldiers, and traders had a strong military and cultural influence on India's culture and society. Some of the slaves even held privileged positions. Today India competes with other global players, especially China, for African resources and markets. Growing racism and Afrophobia towards African migrants, however, could hamper the ambitions of the New-Delhi government. India's social networks and political leaders are increasingly looking for scapegoats and “strangers” to blame for their failures due to religious, racist and linguistic prejudice. Racism and Afrophobia did not appear first under Modi's administration, but they have become more daunting and contagious. The famous Indian writer and political activist, Arundhati Roy, rated Indian racism towards black people as almost worse than white peoples‟ racism. For example, Africans, who were often summarily disqualified as „Nigerians‟, were generally accused of being drug dealers and even suspected of „cannibalism‟. Yet, Indian authorities at all political levels did not effectively counter this. On the contrary, they not infrequently encouraged these prejudices. Modi, for example, compared breakaway Indian regions to „Somalia‟.
    Keywords: India, Africa, international migration, xenophobia, Afrophobia, racism, violence, Afro-Indian relations, informal sector, illegal migration, forced migration, slave-trade, minorities, remittances
    JEL: E26 F62 F66 N35 N95 Z13
    Date: 2021–12–14
  2. By: Sambo Zulu; Ephraim Zulu
    Abstract: Purpose: Like many countries, Zambia is challenged to adopt clean energy solutions to meet its ever-increasing energy demand. The perceived cost of adoption is argued to be a potential hindrance to residential solar energy uptake. A review of the literature suggests that, while there is an increase in research on solar energy transitioning in sub-Sahara Africa, no such studies have been undertaken in Zambia. It is argued that solutions to promote the use of solar energy in the owner-built residential sector in Zambia are crucial to solve this energy dilemma, as over 50% of residences in urban areas are self-build housing. Considering that a significant proportion of houses are owner-built, households must clearly understand their financial commitments when considering solar energy solutions. Therefore, this study aimed to explore the extent to which the perception of the cost of adopting solar energy solutions was an influencing factor in the uptake of solar energy in the residential sector in Zambia.Design/Methodology: Data was collected through a questionnaire survey from 83 households in the Lusaka and Copperbelt provinces of Zambia.Findings: While the findings did not show a significant correlation between cost perception and adoption of solar energy solutions, the households who had adopted solar energy solutions had a relatively higher income than those who had not adopted solar energy.Limitations: The study focused on a small number of potential explanatory variables for solar energy adoption. Future studies should explore the inter and intra relationships between the variables and solar energy adoption.Practical implications: The findings have practical and policy implications as they help understand factors that can increase the uptake of solar energy solutions in the housing sector. Originality: The study contributes to the understanding of factors impacting on solar energy adoption in the Zambian housing sector
    Keywords: Solar Energy; sustainable development, renewable energy, the housing sector
    JEL: R3
    Date: 2021–09–01
  3. By: Jonathan Oladeji; Joseph Yacim; Benita Zulch
    Abstract: Purpose: There is a need for the modification of mortgage finance to embrace new innovative finance options that will facilitate access to housing by low- and middle-income earners in Africa. Thus, this paper seeks to evaluate the suitability of informal finance options for incremental housing development in Africa.Design / methods followed/ approach: A desktop survey of the literature was carried out to consider mortgage financing in contrast to other housing financing options. The approach was used to critically appraise and consolidate existing studies on innovative financing (informal finance option) in Africa. The Mendeley app was used to collate and organize the literature chronologically spanning 24 years of 1994-2018. Thematic content analysis was used to appraise positions, gaps, and lapses in the implementation of different informal housing financing solutions.Findings: In most African countries like Kenya, Rwanda, Nigeria, and Malawi, mortgage finance research continues to grow as a major part of affordable housing finance. However, there are considerable interests in innovative affordable housing finance tools and incremental housing for the low-income groups.Research limitations / implications: This study is limited by the low volume of quantitative literature and data gaps about incremental housing in the African context. However, this motivates the need for a more elaborate exploration of the research and knowledge available.Practical implications: This study adds to the growing discussion of exploring available research on innovative housing finance in Africa.Originality / Value of work: To our knowledge, this study provides insight into the opportunities for a diverse pool of formal and informal financing options to build an acceptable house finance framework for the African housing market.
    Keywords: Affordability; Africa; developing; economies; Finance; Framework; housing; Incremental; loans; Mortgage
    JEL: R3
    Date: 2021–09–01
  4. By: Defina, Ryan; Van Roosebeke, Bert; Manga, Paul
    Abstract: E-money is widespread in Kenya, especially through MPESA, a form of e-money stored on mobile phones and issued by Safaricom, a mobile network operator (MNO). Integration between the MPESA platform and the traditional banking system is increasing. Given the very high use-grade of MPESA throughout the population, it has reached critical importance in Kenya. In Kenya, e-money issuers must back their e-value with bank balances at commercial banks (float), through trust accounts. Deposit insurance does not cover a default of the e-money issuer. However, the Kenya Deposit Insurance Corporation aims at offering pass-through coverage in case of a default of the deposit-taking commercial bank holding the trust accounts. Pass-through coverage is confronted with a number of challenges, including regarding data on the identity of e-money users and their balances held. Also, the critical importance of MPESA raises questions as to how to deal with a potential default of the MNO and the role of deposit insurance in such a scenario. Looking forward, there is merit in further coordination amongst safety net participants as well as in the management of trust accounts and the strengthening of data-availability requirements to e-money issuers.
    Keywords: deposit insurance; bank resolution
    JEL: G21 G33
    Date: 2021–12–09
  5. By: Thabelo Ramantswana; Yamkela Blou; Ntombi Mtshali; Kabelo Modise
    Abstract: Purpose: People spend about 80% to 90% of their time indoors, and studies have shown that a range of comfort and health-related effects are related to building's features. The idea around green buildings is to ensure that the indoor environment is favourable to the occupants. Green buildings have been increasing in the US, Australia, and Europe for several years. However, in South Africa, green building is still a relatively new concept although its direct impact on occupants' safety, well-being, and efficiency on problems of both physical and non-physical indoor environmental quality (IEQ) (thermal, acoustic, visual, and air quality, etc.) has been studied. Although there are several studies conducted focussing on different aspects of Green Buildings, there is still not enough consideration given to IEQ of green buildings on occupants’ comfort in South Africa. This paper explores the effects of IEQ in green office buildings on occupants' comfort.Design/Methodology: This study targets all (69) GBCSA certified green office buildings in South Africa. The respondents were all employees of green accredited buildings. The survey was used to gather information on the occupants' satisfaction regarding the IEQ factors of the green office building space they are usingFindings: The results show that many participants developed sicknesses from the buildings they work from, and they were not satisfied with the ability to alter the lighting in their workspace. Regardless of these factors, the overall perception of occupants in green office buildings regarding IEQ factors is that they are satisfied. The results show that occupants may not be overly satisfied with some IEQ factors in their green offices, but they are still satisfied with their workspace in general.Practical implications: This research will assist in identifying IEQ factors that have an effect on occupants’ comfort and well-being in South African certified green office buildings. The findings might help designers incorporate IEQ factors into their design plan and life cycle of the building and use the study results to improve on the IEQ areas where the occupants were dissatisfied.
    Keywords: Green Buildings; Indoor Environmental Quality; occupant satisfaction; Post Occupancy Evaluation; Wellbeing
    JEL: R3
    Date: 2021–09–01
  6. By: Tii N. Nchofoung (University of Dschang, Cameroon)
    Abstract: The objective of this paper is to evaluate the impact of commodity terms of trade (CTOT) shocks on the labour market resilience of Sub-Saharan Africa (SSA) countries, comparing the franc zone countries on one hand, from the non-franc zone countries on the other hand. The results from the PVAR estimation indicate a positive impact of commodity terms of trade shocks on labour market resilience in SSA countries, a result that was replicated in both the franc zone and the non-franc zone countries. When robustness was checked through the PSTR, this positive relationship was established to be non-linear. The policy implications of the study invite the policy makers to diversify their economies to limit their heavy reliance of their economies on commodities.
    Keywords: commodity terms of trade; resilience; franc zone; PVAR; PSTR
    JEL: F16 F14 C23
    Date: 2022–01
  7. By: Joseph Awoamim Yacim; Partson Paradza; Benita Zulch
    Abstract: Purpose: This paper is an addition to the sparse academic works on the procedural fairness in compulsory acquisition and compensation of land and properties in Zimbabwe. Discovering a pragmatic way of resolving the centuries-long compensation disputes in Zimbabwe is the main motivation for this study.Design / methods followed / approach: The existing expropriation and compensation process was examined using the principles of procedural fairness which include representativeness, neutrality, accountability, consistency, correctability and grievance management. Data were collected through literature and questionnaire surveys. Content analysis was used to analyse the collected data with the aid of Atlas.ti8 and thematic analysis was done on data from questionnaires survey.Findings: The result of this paper shows that the current expropriation and compensation process fall short to meet the standard of procedural fairness which include but not limited to representativeness, consistency, neutrality, accountability, correctability and grievance management. To correct the observed gaps in the existing expropriation and compensation procedure in Zimbabwe, a novel expropriation and compensation framework (ECF) was designed for Zimbabwe to bring fairness in the current process.Research limitations / implications: The major limitation of this study was that data collection coincided with the COVID-19 induced lockdowns inhibited the planned face-to-face interviews. This would have made it possible for the researchers to make more enquiries as follow-up to preceding questions. This however did not impede the quality of research because the online platform was used to distribute questionnaires to the targeted research subjects.Practical implications: Results of this study came at the most appropriate time, given the fact that the GCA has just been signed and is about to be implemented. Furthermore, the time can be considered ripe since the Parliament of Zimbabwe is currently working on aligning existing statutes with the 2013 constriction. While the new Zimbabwean government is making appreciable progress, it is hoped that the contributions made in this study would lead to lasting solutions to age-long crisis.Originality / Value of work: Several studies exist on the subject matter; however, this is the first study that focuses on procedural fairness in compulsory acquisition and compensation in Zimbabwe. This study designed an ECF to operationalise the proposed legal amendments and bring transparency and consistency in property valuation for expropriation in Zimbabwe and improve the level of satisfaction of affected people.
    Keywords: Compensation; Expropriation; Fairness; Procedure; Zimbabwe
    JEL: R3
    Date: 2021–09–01

This nep-afr issue is ©2022 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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.