nep-afr New Economics Papers
on Africa
Issue of 2022‒02‒21
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Climate Challenges: Making the Transition in Africa a Success By François-Xavier Bellocq,; François-Xavier Duporge,; Mathilde Gauthier,; Annabelle Laferrère,; Bertrand Reysset
  2. Labor-related knowledge transfers from Chinese foreign direct investment in Ethiopia and Tanzania By Ellis, Mia; McMillan, Margaret S.; Sovani, Manali
  3. Macroeconomic risks after a decade of microeconomic turbulence: South Africa (2007-2020) By Ricardo Hausmann; Federico Sturzenegger; Patricio Goldstein; Frank Muci; Douglas Barrios
  4. The legacies of armed conflict: insights from stayees and returning forced migrants By Isabel Ruiz; Carlos Vargas-Silva
  5. Financial Access and Value Added in Sub-Saharan Africa: Empirical Evidence from the Agricultural, Manufacturing and Service Sectors By Simplice A. Asongu; Nicholas M. Odhiambo
  6. What role for social policies in the framework of the just transition in South Africa? By Wendy Annecke; Peta Wolpe

  1. By: François-Xavier Bellocq,; François-Xavier Duporge,; Mathilde Gauthier,; Annabelle Laferrère,; Bertrand Reysset
    Abstract: Africa has many advantages that will enable it to keep a low carbon footprint while achieving economic take-off. A just transition pathway that reconciles socioeconomic and climate imperatives is possible. However, it will require a strong commitment to climate issues from African and international stakeholders. Increased technical and financial mobilization of African governments, African and international donors and public development banks, and all financial players on the continent will make it possible to finance and support the continent’s fast-growing climate innovation.
    Keywords: Afrique
    JEL: Q
    Date: 2022–01–26
  2. By: Ellis, Mia; McMillan, Margaret S.; Sovani, Manali
    Abstract: We examine worker training by Chinese manufacturing firms using nationally representative firm-level data from both Ethiopia and Tanzania. While Chinese firms make up a relatively small portion of the manufacturing industry in both Ethiopia and Tanzania, at the firm-level they contribute significantly to both domestic employment and labor training. In both countries more than 85 percent of the workers employed by Chinese firms are local, and Chinese firms (and other foreign firms) are more likely to offer labor training than their domestic counterparts. However, we find evidence that Chinese firms underperform relative to other foreign firms in the share of local workers employed, and in Tanzania the difference is especially large for managerial positions.
    Keywords: ETHIOPIA; EAST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; TANZANIA; labour; training; knowledge; investment; manufacturing; foreign investment; Foreign Direct Investment (FDI); Chinese FDI; labour training; local employment
    Date: 2021
  3. By: Ricardo Hausmann; Federico Sturzenegger; Patricio Goldstein; Frank Muci; Douglas Barrios
    Abstract: This study analyses the performance of macroeconomic policy in South Africa in 2007-2020 and outlines challenges for policy in the coming decade. After remarkable economic growth in 1997-07, South Africa's progress slowed dramatically in 2009 with the global financial crisis. Real GDP growth decelerated more than in other emerging markets and mineral exporting peers and never recovered pre-crisis levels. In addition, the budget deficit that provided counter-cyclical support to the economy was never reigned in, leading to a rapidly rising public debt load.
    Keywords: Macroeconomic policy, Economic growth, Emerging markets, South Africa
    Date: 2022
  4. By: Isabel Ruiz; Carlos Vargas-Silva
    Abstract: How does conflict, displacement, and return shape trust, reconciliation, and community engagement? And what is the relative impact of exposure to violence on these indicators? In this paper we explore these questions by focusing on the legacies of armed conflict and the differences between those who stayed in their communities of origin during the conflict (stayees) and those who were displaced internally and internationally and who returned home over time (returnees).
    Keywords: Trust, Conflict, Forced migration
    Date: 2022
  5. By: Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: This research assesses the importance of financial access on value added in three economic sectors in 25 countries in Sub-Saharan Africa using data for the period 1980-2014. The empirical evidence is based on the Generalised Method of Moments. Financial access is measured with private domestic credit, while the three outcome variables are: value added in the agricultural, manufacturing, and service sectors, respectively. Enhancing financial access does not significantly improve value added in the agricultural and manufacturing sectors, while enhancing financial access improves value added in the service sector.An extended analysis shows that in order for the positive net incidence of enhancing credit access on value added to the service sector to be maintained, complementary policies are required when domestic credit to the private sector is between 77.50% and 98.50% of GDP. Policy implications are discussed.
    Keywords: Economic Output; Financial Development; Sub-Saharan Africa
    JEL: E23 F21 F30 O16 O55
    Date: 2022–01
  6. By: Wendy Annecke; Peta Wolpe
    Abstract: This paper explores the extent to which social policies in South Africa might serve as mechanisms to enhance the transition to a low carbon economy and contribute to mitigating some of the negative impacts towards ensuring a holistic and just transition. It attempts to contribute to the fluid and contested nature of the debate on a just transition in South Africa by mapping the entrenched historical implications of coal use, overlaying these with a description of some of the policies developed to address energy and climate change and analysing the extent to which current social protection policies, designed to facilitate well-being, might be harnessed towards a more equitable society and a just transition.
    Keywords: Afrique du Sud
    JEL: Q
    Date: 2022–02–11

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