|
on Africa |
| By: | Joubert, Clement (World Bank); Beegle, Kathleen (World Bank) |
| 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. |
| Keywords: | business associations, Africa, microenterprises, productivity |
| JEL: | D22 O16 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17887 |
| By: | Rim Berahab; Karim El Aynaoui |
| Abstract: | The demand for energy in Africa is growing rapidly, driven by population growth, urbanisation and industrialisation. Nevertheless, over 600 million Africans still lack access to electricity, which represents a significant energy gap for the continent. At the same time, Africa is endowed with vast renewable-energy potential, including abundant solar and wind resources, along with emerging technologies such as green hydrogen. It is crucial to unlock this potential to meet Africa’s energy needs and to foster sustainable economic development. Africa is well-placed to capitalise on the global drive for clean energy technologies and supply chain development, as renewable energy offers the dual benefits of expanding energy access and promoting green industrialisation across the continent. Nevertheless, achieving this transformation will be complex, involving a range of challenges in relation to governance, policy, financing, costs, domestic markets and competitiveness. Effective governance is vital to guarantee a coordinated and inclusive transition. However, many African countries are confronted with political instability, regulatory uncertainties and fragmented institutions, which make the implementation of ambitious renewable energy policies more challenging. Robust governance frameworks are thus essential to secure the investment required to scale-up renewable energy projects across the continent. It is equally important to consider the policy environment, which should strike a balance between the urgent need for energy access and specific challenges faced by Africa and the sustainability and climate goals. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_04-25-ch |
| By: | Anis Foresto; Monique Reid; Jeffrey Rakgalakane |
| Abstract: | The post-pandemic inflationary surge again challenged our views on the Phillips curve. International evidence that the Phillips curve is non-linear is supported by micro-evidence that agents are attentive to inflation once it passes a threshold. Beyond this threshold, inflation expectations are slow to fall, steepening the Phillips curve. Using a self-exciting threshold autoregressive model, we determine that the slope of the Phillips curve in South Africa is state dependent (20002024). The threshold is best described as a range between 4.28% and 9.29%, with a mean of 5.55%. We find low-inflation regimes to be self-stabilising as the probability of remaining in this regime exceeds the probability of transitioning to a high-inflation regime. Our findings have implications for discussions about the appropriate level of the inflation target. We recommend that the inflation target should fall low enough that a routine-sized supply shock does not push inflation deep into the threshold range (red zone). Considering the size of oil price shocks typically experienced in South Africa, we argue that a target of 3.37% would be just low enough to offer a buffer to accommodate the direct effect of standard-sized shocks without entering the red zone. Our results therefore support the position of Honohan and Orphanides (2022) that the South African Reserve Bank should target inflation of 3%. |
| Date: | 2025–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:rbz:wpaper:11080 |
| By: | Anne-Sophie Robilliard |
| Abstract: | This paper examines income inequality in the West African Economic and Monetary Union (WAEMU) region, using recent harmonized household survey data across eight member countries. The study explores the levels and drivers of inequality by assessing the differences between income- and consumption-based measures and measuring the contributions of various income sources. Findings indicate that income inequality is substantial in WAEMU, with the top 10% capturing 43.2% of total income on average, significantly higher than the top 10% consumption share. Income from non-agricultural self-employment and wage employment are key drivers of inequality, while agricultural income and transfers exhibit equalizing effects. The study also investigates the role of education, revealing that high returns to education in countries with low tertiary attainment—such as Niger and Burkina Faso—further exacerbate income disparities. Despite their cultural and geographical proximity and similar institutional frameworks, the eight WAEMU countries display diverse inequality patterns, pointing to the influence of country-specific factors.Measurement challenges, including the predominance of informal employment, underscore the need for supplementary data sources to enhance accuracy.This analysis emphasizes the importance of policies focused on equitable education access, economic diversification, and improved data collection to address inequality effectively across the region. |
| Keywords: | Bénin, Burkina Faso, Côte d'Ivoire, Guinée-Bissau, Mali, Niger, Sénégal, Togo |
| JEL: | Q |
| Date: | 2025–03–21 |
| URL: | https://d.repec.org/n?u=RePEc:avg:wpaper:en17986 |