nep-afr New Economics Papers
on Africa
Issue of 2025–05–05
five papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus


  1. Fragmentation or Inequality? Ethnic Divisions and Conflict in Sub-Saharan Africa By Boris Gershman; Ameesh Upadhyay
  2. How Organized Is the Informal Sector ? The Role of Business Associations in Microenterprises in West Africa By Clement Joubert; Kathleen G. Beegle
  3. Agent-based modeling at central banks: recent developments and new challenges By Carro, Adrian; Hinterschweiger, Marc; Uluc, Arzu; Borsos, András; Kaszowska-Mojsa, Jagoda; Glielmo, Aldo
  4. Ethical consumerism and boycott movements in Morocco : Analyzing the Starbucks case By Hanane Nafaa; Amina Aomari; Hind Ghilane
  5. Business development in Africa's water sector: strategies, growth opportunities, and challenges By Mekkewi, Ahmed

  1. By: Boris Gershman; Ameesh Upadhyay
    Abstract: This paper examines the relationship between local ethnic divisions and conflict in Sub-Saharan Africa. Using census subsamples and large-scale household surveys, we construct a new subnational dataset on ethnic inequality capturing group-level differences in education, asset ownership, and access to basic amenities for several hundred regions in thirty-five countries. To distinguish between deep-rooted and more recent ethnic divisions, we incorporate groups from our sample into Ethnologue's linguistic tree model and generate alternative measures of both ethnic fragmentation and inequality based on ancestral languages. Our analysis, leveraging within-country variation and accounting for numerous regional characteristics, reveals a robust positive relationship between ethnic fractionalization and conflict, especially when using deeper linguistic cleavages to define distinct groups. In contrast, ethnic inequality shows no systematic association with conflict frequency or severity. These findings suggest the primacy of ethnic identity over socioeconomic disparities between groups as a driver of local conflict.
    Keywords: conflict, ethnolinguistic diversity, ethnic inequality, Sub-Saharan Africa, subnational analysis
    JEL: D31 D74 O10 O15 Z13
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:amu:wpaper:2025-01
  2. By: Clement Joubert; Kathleen G. Beegle
    Abstract: Although microenterprises are the most prevalent employer in Africa, boosting their productivity remains a development challenge. Theoretically, microenterprise business associations could foster technology, improve access to inputs, pool risk, ensure coordination, and facilitate credit for businesses. However, basic facts about their scope and roles are missing from the literature. This study establishes descriptive results to shed light on the nature of these networks in West Africa. First, fewer than 10 percent of informal business owners are members, although there is large industry variation. Second, members tend to be older and larger incumbent businesses with male owners, potentially stifling competition and entrenching gender gaps. Third, most associations are more aptly described as providers of excludable, industry-specific services than as vehicles for collective action and advocacy. Fourth, membership helps explain performance differences among observably similar businesses. Members are more productive, profitable, and financially included relative to similar non-members, although such premia only materialize in a few industries.
    Date: 2025–04–14
    URL: https://d.repec.org/n?u=RePEc:wbk:wbrwps:11101
  3. By: Carro, Adrian; Hinterschweiger, Marc; Uluc, Arzu; Borsos, András; Kaszowska-Mojsa, Jagoda (Institute for New Economic Thinking, University of Oxford); Glielmo, Aldo (Bank of Italy)
    Abstract: Over the past decade, agent-based models (ABMs) have been increasingly employed as analytical tools within economic policy institutions. This chapter documents this trend by surveying the ABM-relevant research and policy outputs of central banks and other related economic policy institutions. We classify these studies and reports into three main categories: (i) applied research connected to the mandates of central banks, (ii) technical and methodological research supporting the advancement of ABMs; and (iii) examples of the integration of ABMs into policy work. Our findings indicate that ABMs have emerged as effective complementary tools for central banks in carrying out their responsibilities, especially after the extension of their mandates following the global financial crisis of 2007-2009. While acknowledging that room for improvement remains, we argue that integrating ABMs into the analytical frameworks of central banks can support more effective policy responses to both existing and emerging economic challenges, including financial innovation and climate change.
    Keywords: Agent-based models, household analysis, financial institutions, central bank policies, monetary policy, prudential policies
    JEL: C63 E37 E58
    Date: 2025–02
    URL: https://d.repec.org/n?u=RePEc:amz:wpaper:2025-05
  4. By: Hanane Nafaa (FSJES Souissi RABAT - Faculté des Sciences juridiques, économiques et sociales Souissi RABAT); Amina Aomari (FSJES Souissi RABAT - Faculté des Sciences juridiques, économiques et sociales Souissi RABAT); Hind Ghilane (FSJES Souissi RABAT - Faculté des Sciences juridiques, économiques et sociales Souissi RABAT)
    Abstract: The boycott of Starbucks, in the current context of the Israeli-Palestinian conflict, highlights the intersection of geopolitical issues, consumer responsibility, and corporate accountability. This boycott, which falls within the broader framework of the Boycott, Divestment, and Sanctions (BDS) movement, targets Starbucks due to allegations of associations with Israeli policies. Despite the company's denials of any involvement, this movement symbolizes international solidarity with the Palestinian cause. The analysis explores the economic, social, and political dimensions of this boycott, with a focus on its impact in Morocco. The Moroccan context reflects increased consumer awareness changes in purchasing habits, and a strengthened collective identity around ethical consumerism. Additionally, this mobilization has led Starbucks to reassess its business strategies and respond to consumer concerns. Key consequences include reputational risks for Starbucks, economic effects on franchisees, and a broader debate on corporate responsibility in conflict zones. By analyzing the motivations, amplification through social media, and the symbolic significance of consumer activism, this study highlights the power of collective action to influence multinational corporations and promote social justice agendas on a global scale. This article aims to illustrate the evolving role of consumers in geopolitical conflicts and how their choices influence corporate strategies. It sheds light on the growing impact of boycott movements as tools of economic and political pressure, as well as their effect on consumers' emotional intelligence. Finally, it raises questions about the sustainability of such social actions (CSR) and their long-term effects.
    Abstract: Le boycott de Starbucks, dans le contexte actuel du conflit israélo-palestinien, met en lumière l'intersection entre les enjeux géopolitiques, la responsabilité des consommateurs et la redevabilité des entreprises. Ce boycott, qui s'inscrit dans le cadre plus large du mouvement de Boycott, Désinvestissement et Sanctions (BDS), cible Starbucks en raison d'allégations d'associations avec les politiques israéliennes. Malgré les démentis de l'entreprise quant à son implication, ce mouvement symbolise une solidarité internationale avec la cause palestinienne. L'analyse explore les dimensions économiques, sociales et politiques de ce boycott, en mettant l'accent sur son impact au Maroc. Le contexte marocain illustre une sensibilisation accrue des consommateurs, des changements dans les habitudes d'achat et une identité collective renforcée autour du consumérisme éthique. De plus, cette mobilisation a conduit Starbucks à réévaluer ses stratégies d'entreprise et à répondre aux préoccupations des consommateurs. Parmi les conséquences clés figurent les risques pour la réputation de Starbucks, les effets économiques sur les franchisés et un débat élargi sur la responsabilité des entreprises dans les zones de conflit. En analysant les motivations, l'amplification par les médias sociaux et la portée symbolique de l'activisme des consommateurs, cette étude met en évidence le pouvoir de l'action collective pour influencer les multinationales et promouvoir des agendas de justice sociale à l'échelle mondiale. Cet article vise à illustrer l'évolution du rôle des consommateurs dans les conflits géopolitiques et la manière dont leurs choix influencent les stratégies des entreprises. Il met en lumière l'influence croissante des mouvements de boycott en tant qu'outils de pression économique et politique, mais aussi leur impact sur l'intelligence émotionnelle des consommateurs. Enfin, il soulève des questions sur la durabilité de ces actions sociales (RSE) et leurs effets à long terme.
    Keywords: Israeli-Palestinian conflict - Starbucks boycott - Boycott, Divestment and sanctions (BDS) - Consumer activism - Corporate responsibility - Ethical consumerism, Conflit israélo-palestinien - Boycott de Starbucks - Boycott, Désinvestissement et sanctions (BDS) - Activisme des consommateurs - Responsabilité des entreprises - Consommation éthique
    Date: 2025–03–19
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-04999394
  5. By: Mekkewi, Ahmed
    Abstract: Globally, water is necessary for life, the environment, and development. Yet, most African countries still experience water challenges due to infrastructure deficits, financial constraints, regulatory and policy issues, environmental and climatic factors, and technological limitations. This problem will continue to increase drastically due to economic activities in the industrial and agricultural sectors unless appropriate policies are implemented. Public-private partnerships (PPP), investment and financing models, technological innovation and adoption, capacity building and skills development, and community engagement and stakeholder collaboration are the strategies and opportunities suitable for business development in the African water sector. The government, international organizations, and private sectors have a vital role in facilitating growth and development in the water sector. The government should retain its operations by creating a suitable environment and regulations with empowerment and decentralization, providing a radical shift from top-down to centralized implementation and administration. The international organization provides the financial resources, technical guidance, and capacity building to ensure sustainable management practices in utilizing water resources and the development of infrastructure. At the same time, the private sector has a role in rendering management at the slightest level and establishing institutional arrangements allowing full participation of stakeholders.
    Keywords: African countries, water sector, public-private partnerships, investment, financing models, technological, innovation, adoption, government, policies, infrastructure, business development
    JEL: F20 F21 F23 F35 O19
    Date: 2023–08–31
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:124563

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