nep-afr New Economics Papers
on Africa
Issue of 2024‒01‒22
three papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus

  1. Energy Accessibility and Green Energy Cooperation in East Africa By KANG, Munsu
  2. The IMF, Africa, and Climate Change—Making Sense of an Implausible Trilogy By Daniel Citrin; Daouda Sembene
  3. Blockchain, Cryptocurrency, and the Quest for Financial Stability in Morocco Blockchain. By Chaimae Hmimnat; Mounir El Bakouchi

    Abstract: While energy accessibility in East Africa is still low, global agenda on energy transition brings African countries moving towards increasing green energy supply such as solar and wind power. East African countries are cooperating in the energy sector to improve energy access and power generation through EAC Vision 2050 and EAPP. One of the key message of those policies is that diversifying energy mix by increasing the share of green energy is essential. For this reason, Korea and East African countries could cooperate on improving policy environment on the energy sector, scaling up green energy projects, diversifying the energy cooperation, and promoting private sector to enter East African market.
    Keywords: Green energy; East Africa; Energy cooperation
    Date: 2023–11–30
  2. By: Daniel Citrin (Formerly IMF Director of Budget and Planning and independent consultant); Daouda Sembene (Center for Global Development)
    Abstract: Evidence suggests that Africa is the most vulnerable continent to climate change. While African countries contribute relatively little to global emissions, they remain significantly vulnerable to the devastating economic effects of this phenomenon. This paper reviews IMF activities and explores how best the IMF could support efforts by African countries to cope with macroeconomic policy and structural challenges associated with climate change. To this end, while recognizing the relative significance of the overall IMF contribution to addressing this global challenge, we make several recommendations about potential ways to strengthen the role of IMF surveillance, capacity development and financing. First, IMF staff should ensure that policy advice in the context of global, regional and country surveillance fit specific circumstances and institutional capacity of African countries as well as their economic vulnerabilities to climate change. To enable timely response to climate-related crises, staff teams should also be prepared to provide advice on a flexible basis, without being tied to formal periodic work schedules. Additionally, the IMF could facilitate adaptation and mitigation by engaging in intensive outreach activities about the economic impact of climate change. Second, there is merit in developing comprehensive IMF capacity development strategies in close collaboration with the authorities in climate-vulnerable countries. For effective implementation, the IMF will need to identify and actively seek adequate financing for capacity development activities on climate issues. Finally, while the Resilience and Sustainability Trust (RST) is a welcome addition to the IMF toolkit and represents a potentially significant source of financing for some sub-Saharan African countries, specific amendments could be considered notably with a view to limiting the potential cost for low-income borrowers to access its resources. Moreover, successful operationalization of the RST hinges on careful and flexible design of conditionality and how programs under the new facility will be linked to concurrent upper-credit tranche programs.
    Date: 2022–06–30
  3. By: Chaimae Hmimnat (FEG, UIT - Faculté d’Economie et de Gestion, Université Ibn Tofail, Kénitra); Mounir El Bakouchi (FEG, UIT - Faculté d’Economie et de Gestion, Université Ibn Tofail, Kénitra)
    Abstract: The study explains how blockchain and cryptocurrency are transforming the Moroccan financial landscape. It tries to comprehend how these developing technologies, with their promises of decentralization and increased efficiency, may shape Morocco's future financial stability. The article begins by introducing the reader to the fundamental ideas of blockchain and cryptocurrency. A thorough literature analysis recounts past and contemporary studies on the subject, providing a context against which Moroccan progress is judged. Morocco's approach to blockchain and cryptocurrencies has been cautious yet forward-thinking. While these technologies offer prospects for increased transparency, diversification of financial assets, and transactional efficiency, they also create problems. Notably, the volatile nature of bitcoin prices, along with a nascent regulatory structure, poses serious challenges to financial stability. The paper reveals significant gaps in current research, specifically the scarcity of studies contextualized within Morocco's distinct socioeconomic setting. These deficiencies provide a direction for future academic and policy-oriented research. To fully realize the potential of blockchain and cryptocurrencies in Morocco, a balanced strategy is required-one that actively supports innovation while remaining within a regulated legal framework. The realities of such a strategy are investigated, providing policymakers and industry stakeholders with actionable insights. This study is one of the first to look into the complexities of blockchain and cryptocurrencies in Morocco, filling a critical knowledge gap. While many studies investigate these technologies on a worldwide basis, this study takes a different approach, concentrating on their consequences within Morocco's distinct socioeconomic fabric.The findings are valuable to both academics and practitioners, providing a road map for navigating Morocco's young but developing crypto-financial sector.
    Keywords: Blockchain, Cryptocurrency, Financial Stability, Moroccan financial ecosystem
    Date: 2023–11–30

This nep-afr issue is ©2024 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.