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on Africa |
| By: | Welde, Andualem Assefa |
| Abstract: | What triggered the widespread public backlash against tax reforms in Sub-Saharan Africa, echoing the scale and intensity of the Arab Spring? Economic factors, such as income and inequality, appear to be weak predictors of public attitudes toward redistribution. This study empirically examines corruption as a key factor shaping perceptions of tax burden and redistributive preferences. The analysis draws on newly available data from the 8th round of the Afrobarometer survey (2019–2021), which includes relevant questions for the first time. This period coincided with a wave of anti-tax protests across several African countries. The findings suggest that corruption is strongly associated with higher perceived tax burdens. The results also indicate that corruption diminishes the demand for and willingness to support redistributive taxation. The policy implications include tax compliance, inequality and governance issues on the continent. |
| Keywords: | Corruption, Preference for Redistribution, Tax Burden, Sub-Saharan Africa |
| JEL: | D73 H26 O12 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:320555 |
| By: | Michael Chui; Leonardo Gambacorta; Emanuel Kohlscheen; Han Qiu |
| Abstract: | Africa is not immune from trade challenges. Its direct exposure to new US tariffs is relatively limited, but indirect effects through slower global demand and financial conditions may be larger. Strengthening regional trade integration through initiatives like the African Continental Free Trade Area (AfCFTA) can help build regional supply chains and reduce reliance on commodity exports. Africa's young workforce, digital innovation and rich natural resources provide longer-term growth tailwinds. Unlocking these opportunities requires investment in skills, infrastructure and financial integration to boost trade and value-added. |
| Date: | 2025–07–18 |
| URL: | https://d.repec.org/n?u=RePEc:bis:bisblt:109 |
| By: | Samantha Borkhoche; Miss Eman Abdulla; Mr. Edward R Gemayel; Vidhi Maheshwari; Faten Saliba |
| Abstract: | Africa is vulnerable to the impacts of climate change despite its minimal contribution to global greenhouse gas emissions. The continent’s burden manifests in shifting weather patterns which threatens food security and economic stability, compounded by a growing population. This paper is a novel attempt at understanding whether trade in “green goods" and engaging in “green practices" can reduce negative environmental outcomes in the region. Using local projections methods, we find that increasing trade in “green goods" decreases the harmful effect on the environment in the medium-term. In the medium-term, there are cumulative improvements in ecological footprint by about 4%, decreases in net CO2 emissions embedded in trade by about 60-100% of total domestic production, and decreases in PM2.5 air pollution by about 1%. We also construct a novel Green Practices Index for Sub-Saharan Africa to benchmark individual country performance and facilitate regional cooperation on green practices. We find that engaging in green practices decreases harmful environmental outcomes by about 0.3-1.5% in the medium-term. |
| Keywords: | Development strategy; production practices; regional cooperation; externalities; resource use; growth resilience; local projection methods; Sub-Saharan Africa |
| Date: | 2025–07–04 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/131 |
| By: | Rachid Maghniwi (Université Mohammed 5 RABAT); Mustapha Oukassi (Université Mohammed 5 RABAT) |
| Abstract: | This study examines the ethical integration of artificial intelligence (AI) in the Moroccan banking sector and itsimpact on the evolution of skills and professional roles, providing insight into the challenges and opportunities forthe African banking sector as a whole. In a context of rapid digital transformation, Morocco positions itself as aregional leader in the adoption of financial technologies, making it a relevant case study for understanding thedynamics at work across the continent. The main objective of this research is threefold: to analyze the modalitiesof ethical AI integration in Moroccan banks, to assess its impact on skills and professional roles, and to examinethe broader implications for financial inclusion and the country's economic development.The adopted methodology combines quantitative and qualitative approaches. Preliminary results indicate rapid AIadoption in the Moroccan banking sector, with a 60% increase in AI investments between 2018 and 2023. Thisadoption has led to a significant transformation of required skills, with 72% of surveyed banking professionalsreporting major changes in their roles. The study reveals the emergence of new positions such as "Banking AIEthicist" and "AI Customer Experience Manager", reflecting a growing awareness of ethical issues.In terms of financial inclusion, AI has enabled the extension of banking services to 30% new customers in ruralareas, through alternative credit scoring solutions and interfaces in Moroccan dialect. However, ethical challengespersist, particularly in terms of personal data protection and algorithmic transparency, with only 35% of the studiedbanks having established AI ethics committees. The implications of this research are manifold for Morocco andAfrica. It provides concrete recommendations for ethical and inclusive integration of AI in the banking sector, emphasizing the importance of a balanced approach between technological innovation and preservation of localcultural values |
| Keywords: | Artificial Intelligence, Moroccan Banking Sector, AI Ethics, Financial Inclusion, Skills Transformation, Professional Roles, Economic Development, Technological Innovation, Banking Regulation, Africa |
| Date: | 2025–04–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05060945 |
| By: | Wrobel, Ralph |
| Abstract: | This paper examines the European Union's (EU) Global Gateway initiative, launched in December 2021, analysing its role in shaping EU-Africa relations and its strategic shift from traditional development aid to a more investment-driven approach. The initiative aims to mobilize €300 billion in infrastructure de-velopment, particularly in Africa, as an alternative to China's Belt and Road Initiative. By comparing the Global Gateway with conventional EU Official Development Assistance (ODA), the paper explores its geopolitical implications, funding structures, and African perceptions. It concludes that the initiative represents a hybrid model, balancing development goals with geopolitical ambitions, while posing questions about its longterm impact and transparency. |
| Keywords: | Global Gateway, Official Development Assistance (ODA), EU, Africa |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:opodis:320421 |
| By: | Britz, Wolfgang; Olekseyuk, Zoryana; Vogel, Tim |
| Abstract: | With President Trump's return to office, United States (US) trade and development policy has undergone a decisive shift - marked by sweeping cuts to the United States Agency for International Development (USAID), shifting alliances, escalating trade tensions, and a broader retreat from multilateralism. The expiration of the Generalized System of Preferences (GSP) in 2020 and the scheduled end of the African Growth and Opportunity Act (AGOA) in 2025 had already raised concerns among sub-Saharan African (SSA) countries. Recent shifts under the renewed "America First" agenda - particularly the introduction of new tariffs - have now effectively brought AGOA to an early end. This policy brief examines the potential effects of the shift from duty-free treatment under the US GSP and AGOA to the new Trump-era tariffs, including a universal 10% tariff applied to all US trading partners and so-called "reciprocal" tariffs announced for 57 countries on "Liberation Day". Applying a multi-region Computable General Equilibrium (CGE) model, we find the following: • Notable adverse effects for specific SSA eco-nomies, such as Lesotho, Madagascar, Chad, Botswana, Nigeria, South Africa, Mauritius, and Malawi. • Limited aggregate impact on AGOA-eligible countries with overall exports declining by up to 1.1% and real gross domestic product (GDP) largely unchanged. • Most affected sectors include wearing apparel, leather products, and other manufacturing. • The US and China would bear the largest losses under the new tariff regime. Given the relatively weak ties of SSA to the US as well as declining utilisation rates of US preferential trade programmes over time, the limited aggregate effects for all AGOA-eligible countries are not surprising. However, empirical results likely understate the full impact of new Trump-era tariffs and do not capture the indirect effects like reduced foreign investment, weakened supply chains, rising poverty, or the loss of capacity-building linked to AGOA. Moreover, our simulations do not account for potential retaliatory measures, so an intensified global trade war and economic downturn might further harm SSA economies. For these countries, the risks are compounded by limited fiscal space and growing debt vulnerabilities. This underscores the importance for SSA countries of continuing to build more resilient and diversified trade structures, deepening regional integration through the African Continental Free Trade Area (AfCFTA), and pursuing value chain upgrading. At the same time, the European Union (EU) must reaffirm its role as a reliable, development-friendly partner by defending World Trade Organisation (WTO)-based rules, renewing its GSP ahead of 2027, and avoiding retaliatory tariffs that harm vulnerable countries. Strategic engagement with the Global South - through initiatives like Clean Trade and Investment Partnerships (CTIPs) or Sustain-able Investment Facilitation Agreements (SIFAs) - offers a timely opportunity to strengthen trust and promote sustainable, inclusive trade. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:320459 |