nep-afr New Economics Papers
on Africa
Issue of 2025–01–27
seven papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus


  1. Industrialisation in Africa: How Can the G20 Assist? By Hinh T. Dinh
  2. E-Commerce in Africa: Divergent Impacts on Rural and Urban Economies By Jaelyn S. Liang; Rehaan S. Mundy; Shriya Jagwayan
  3. Public Agricultural Expenditure Efficiency and Food Security in Sub-Saharan African Countries: Cash Crops or Food Crops? By Arrouna Keita
  4. Unions and Collective Bargaining in Sub-Saharan Africa: Some Insights from Quantitative Studies By Jirjahn, Uwe
  5. Cryptocurrencies: Opportunities and Challenges for the African Economies By Fabien Clive Ntonga Efoua; Françoise Okah Efogo; Yanick Fredy Mvodo
  6. Revamping African and the United States Economic Ties: A Quest for More Trade and Investment By Policarpo Gomes Caomique; Fatimata Belem; Jules Sampawende
  7. Estimating the prevalence of child labour in the cocoa industry via indirect elicitation methods: a mixed-methods study By Aurelia Lepine; Ariane Ndiore; Carole Treibich; Henry Cust; Laurent Foubert; Megan Passey; Selina Binder

  1. By: Hinh T. Dinh
    Abstract: This paper was originally published on The South African Institute of International Affairs (SAIIA) In order for Africa to raise living standards, create employment for youth and diversify exports, it must industrialise. Until recently, sub-Saharan African (SSA) countries made limited progress in manufacturing value addition and employment, mirroring the de-industrialisation trend seen in many developing countries. To propel industrialisation, SSA countries should adopt flexible strategies that foster structural transformation and boost productivity in both large and small enterprises, whilst taking into account the environmental impact of industrialisation, given Africa’s susceptibility to climate change. The G20 has long recognised the importance of industrialisation on the continent. This policy insight examines the Indonesian and Indian G20 presidencies and assesses how they have addressed Africa’s priorities and concerns in terms of industrialisation. It also sets out recommendations for upcoming G20 presidencies.
    Date: 2024–01
    URL: https://d.repec.org/n?u=RePEc:ocp:pbtrad:pbnn_38
  2. By: Jaelyn S. Liang; Rehaan S. Mundy; Shriya Jagwayan
    Abstract: E-commerce is rapidly transforming economies across Africa, offering immense opportunities for economic growth, market expansion, and digital inclusion. This study investigates the effects of e-commerce on select African regions. By utilizing readiness factors, including mobile money deployment, GDP per capita, internet penetration, and digital infrastructure, the preparedness of African countries for e-commerce adoption is quantified, highlighting significant disparities. Through case studies in urban and rural areas, including Lagos, Kano, Nairobi, and the Rift Valley, the study shows e-commerce's significant effects on small and medium-sized enterprises (SMEs), employment, and market efficiency. Urban centers demonstrated significant gains in productivity and profitability, whereas rural regions experienced slower growth due to limited internet access and infrastructural barriers. Despite these challenges, localized solutions such as mobile money systems and agricultural e-commerce platforms are bridging gaps. This study highlights the significant potential of e-commerce in Africa while emphasizing the need for targeted investments and strategies to address existing regional disparities.
    Date: 2024–12
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2412.03879
  3. By: Arrouna Keita (University of Orl´eans)
    Abstract: This study investigates the Public Agricultural Expenditure Efficiency (PAEE) in Sub-Saharan African (SSA) countries, focusing on the impact of the proportion of cash crops production on this efficiency. We first compute the Bias-corrected Technical Efficiency (BTE) Scores of 39 SSA countries from 2003 to 2017, using the Bootstrap Data Envelopment Analysis method, with per capita public agricultural expenditure as input, and food security indicators as output. Second, we assess the effect of cash crops share in harvested land (CSHL) on the PAEE using Beta regression. (i) our results show that in most SSA countries(79%), CSHL is on average less than 15%. (ii) findings indicate a significant positive effect of CSHL on the PAEE, suggesting that a higher proportion of cash crops in agricultural production enhances food security. (iii) results for SSA countries where CSHL is high are in line with the aim of the commitments made by African countries in Maputo (2003) declarations to fight hunger by allocating at least 10% of their public spending to agriculture—aligning with the Sustainable Development Goal of Zero Hunger by 2030. Our results are robust to a battery of robustness tests.
    Keywords: Public agricultural spending efficiency, food security, zero-hunger SDG, Sub- Saharan Africa, DEA-Bootstrap
    JEL: Q
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:inf:wpaper:2024.17
  4. By: Jirjahn, Uwe (University of Trier)
    Abstract: This article reviews quantitative research on unions and collective bargaining in Sub-Saharan Africa. It discusses the consequences of unions for wages, inequality, economic performance and employer-employee relations. The article also highlights the role of unions in society, a role that goes beyond the economic sphere. Moreover, the article discusses evidence on how the specific situation in Sub-Saharan Africa influences unionization and collective bargaining. The informal sector, ethnic divide and globalization entail serious threats to workers' unionization. The increasing influence of China and neoliberal policy prescriptions by the International Monetary Fund and the World Bank are challenging factors, too.
    Keywords: Africa, industrial relations, political spillover, informal sector, ethnic diversity, globalization
    JEL: J51 J52 F66 O10 O55
    Date: 2025–01
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17597
  5. By: Fabien Clive Ntonga Efoua (FSEG, UYII-Soa - Faculty of Economics and Management, University of Yaounde II - Soa, CEDIMES - CEDIMES - Centre d'Etudes sur le Développement International et les Mouvements Economiques et Sociaux, CEREG - University of Yaoundé II-SOA, Centre d'Etudes et de Recherche en Economie et Gestion); Françoise Okah Efogo (Faculty of Economics and Management, University of Ebolowa); Yanick Fredy Mvodo (UDa - Faculty of Economics and Applied Management, University of Douala)
    Abstract: This paper proposes a reflection on the opportunities and the challenges of the use of digital means of payment (decentralised and regulated ones) in the African economies. In this perspective, we structure our reasoning around three axes. First, we try to show that digital currencies can serve as a lever for financial inclusion and the revolution of means of payment in an increasing digitalization context. Second, we discuss the technical and the infrastructural constraints (deployment of the blockchain, electricity and Internet access) which condition the effective use of digital currencies. Third, we discuss the trade-offs and the possible implications that arise from the circulation of the Bitcoin, the Altcoins and the Stablecoins on the one hand, and the Govcoins on the other. In our view, the African authorities should first focus on overcoming infrastructural and institutional obstacles, rather than rushing the adoption of cryptocurrencies. Some policies implemented in this direction would in fact offer the continent the opportunity to anchor itself once and for all to progress.
    Keywords: Cryptocurrencies, Govcoins, Central Bank Crypto Currencies, African economies
    Date: 2024–11–01
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-04784299
  6. By: Policarpo Gomes Caomique (UFSM - Universidade Federal de Santa Maria = Federal University of Santa Maria [Santa Maria, RS, Brazil]); Fatimata Belem (United Nations); Jules Sampawende (FERDI - Fondation pour les Etudes et Recherches sur le Développement International)
    Abstract: This paper examines United States-African economic relations, focusing on trade and investment. It reviews historical and contemporary interactions, arguing that the engagement of the United States in Africa has largely been constrained by geopolitical factors, resulting in trade and investment levels that fall short of expectations. To enhance these connections, American and African policymakers need to reevaluate strategies, including developing policy frameworks to make Africa more attractive for investment and trade, leveraging the African Continental Free Trade Area (AfCFTA), aligning with existing initiatives, and mobilizing resources from the African diaspora in the United States.
    Keywords: Trade, Investment, United States, Africa
    Date: 2024–11–30
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-04817255
  7. By: Aurelia Lepine (UCL - University College of London [London]); Ariane Ndiore (UFHB - Université Félix Houphouët-Boigny [Abidjan, Côte d'Ivoire]); Carole Treibich (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Henry Cust (UCL - University College of London [London]); Laurent Foubert (International Cocoa Initiative, Geneva,); Megan Passey (International Cocoa Initiative, Geneva,); Selina Binder (Barry Callebaut, Zurich)
    Abstract: Data from children suggest that the prevalence of child labour in the cocoa industry in Côte d'Ivoire is a worrying 38%. However, while surveying children has the potential to reduce sensitivity biases such as social desirability bias, it presents significant ethical dilemmas and may also be associated with other reporting biases, making accurate estimates of child labour difficult. To address this, we collected data from 1741 cocoa producers to assess whether parents could provide more accurate estimates using indirect survey methods. We compared direct questioning with a list experiment and a novel non-verbal method (‘colorbox'). We found higher prevalence rates of child labour using indirect elicitation methods, but lower than those obtained from children's surveys. Qualitative in-depth interviews revealed motivations for underreporting, including fear of legal consequences and mistrust of stakeholders. Indirect methods alone are not sufficient to correct for underreporting when child labour is collected from parents. Future research should prioritise direct data collection from children and address ethical concerns to obtain more accurate estimates of child labour.
    Keywords: Child labour, Sensitive bias, Measurement error, Cocoa, Sustainable development goals
    Date: 2024–11–11
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-04791105

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