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on Africa |
| By: | Dhammika Dharmapala; Marvin Suesse |
| Abstract: | A vast literature across several academic disciplines studies the impact of colonial rule, but less attention has been paid to the consequences of decolonization. This paper uses a recently-constructed dataset on the fiscal history of African countries from 1900 to 2015 to analyze the impact of decolonization on fiscal capacity (defined as revenue from taxes that are relatively difficult to collect and that require more administrative infrastructure). The analysis adopts a staggered difference-in-difference approach, implemented using a stacked event study. It finds no discernible pre-trends prior to decolonization, and a substantial increase in fiscal capacity starting about 5-6 years after decolonization. This result – which implies substantial state-building activity in postcolonial Africa – is robust to tests for a variety of alternative explanations, the use of alternative control groups, and the use of generalized synthetic control methods. We also show that this effect is not explained by democratization or improved public goods provision. Our conceptual framework instead posits that post-colonial states were able to increase tax revenues from hard-to collect sources because their higher degree of legitimacy improved citizens’ tax morale. We offer historical evidence that is consistent with this channel. Our finding – that colonial rulers invested less in fiscal capacity than did post-independence governments – sheds new light on the consequences of colonial rule, and on the determinants of variation in governments’ fiscal capacity. |
| Keywords: | taxation, colonialism, decolonization, fiscal capacity, legitimacy |
| JEL: | H20 O12 N47 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12059 |
| By: | Suvangi Rath (Indian Council for Research on International Economic Relations (ICRIER)); Tanay Suntwal (Indian Council for Research on International Economic Relations (ICRIER)); Aarushi Bhargava |
| Abstract: | India and Africa maintain a dynamic and expanding agricultural trade relationship, driven by strategic agreements and joint initiatives focused on food security, technology transfer, and sustainable development. Over the years, India has significantly increased exports of agricultural commodities such as rice, bovine meat, sugar, tea, spices, cereals, fruits, and vegetables to African nations, while importing raw materials, minerals, and petroleum products, creating a complementary trade framework. Regional trade agreements have played a crucial role in shaping this partnership. The African Continental Free Trade Area (AfCFTA), the largest free trade zone globally, presents India with expanded market access by reducing tariff and non-tariff barriers. India actively collaborates with Africa through bilateral agreements and forums aimed at improving agricultural productivity and value addition. Despite efforts to ease trade restrictions, challenges such as infrastructural deficits, regulatory complexities, and sanitary and phytosanitary (SPS) measures persist. India and Africa are working together to overcome these hurdles through capacity building, digital trade facilitation, and harmonization of standards.With bilateral trade reaching USD 243 billion in 2022-23 and agricultural exports showing strong potential for growth, this partnership continues to evolve, fostering economic diversification and strengthening trade cooperation between both regions. This report provides an in-depth and specialized analysis of the expanding agricultural trade dynamics, through focussed strategies, between India and various African nations (like Egypt, Ghana, Morocco, Tunisia, Angola, South Africa, Algeria, Nigeria, Kenya, and Ethiopia). |
| Keywords: | Agricultural trade, export, free trade, AfCFTA, bilateral trade, Africa-India |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:bdc:report:25-r-14 |
| By: | Xu, Tao Louie; Zhou, Shengjie |
| Abstract: | This perspective critically examines the global alignment of good governance as a crusader complex to ideologically universalise Western market-oriented institutions across the South. With the case of Sub-Saharan Africa, the essay interrogates the historical, sociopolitical, and economic implications of imposing one-size-fits-all governance standards without sufficient contextualisation. The political settlements approach is called to recognise diverse power structures and local realities. Scanning South Africa, Mauritius, Senegal, and Botswana, it demonstrates the necessity of tailoring governance to specific contexts with pragmatic political settlements. |
| Keywords: | good governance; political settlements framework; Africa |
| JEL: | B5 B52 Z1 Z13 Z18 |
| Date: | 2024–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122765 |
| By: | Ezeofor, Vivian Kaife |
| Abstract: | This article explores how the mineral wealth of the Democratic Republic of Congo’s (DRC), particularly its critical raw materials such cobalt, coltan and tantalum, compounded with the proliferation of demand for this minerals due to the green transition has exacerbated local conflict, environmental decadence and gross human rights abuses in the DRC. It also traces the historic genesis of armed conflict and the smokescreen behind the militarization of mining sites and thus critiques existing policy responses such as the OECD Due Diligence Guidance, Dodd-Frank Act, and ICGLR Certification Mechanism, contending that they constitute an over- focus on militarization while neglecting corruption and abuse by state actors. The article calls for more holistic, inclusive policies that address structural governance failures and protect both people and the environment amid the rush for green energy resources. |
| Date: | 2025–07–12 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:q39ph_v1 |
| By: | Isaac Otchere; Zia Mohammed; Witness Simbanegavi |
| Abstract: | In this paper we examine the relationship between fintech formations and the default risk and performance of incumbent financial institutions in South Africa. We find that the development of fintech startups is associated with lower bankruptcy risk, credit risk and stock return volatility among banks and other financial institutions. Fintech startup formations are also associated with improvement in incumbent institutions performance. Further analysis shows that the risk reduction effect of fintech development is more pronounced for smaller banks. Overall, our results are consistent with the assertion that fintech formations generally improve risk management efficiency and reduce incumbent financial institutions default risk. However, the relationship is nonlinear, suggesting that the initial collaboration, which reduces default risk, can turn into increased competition as more fintech startups enter the market. From a policy standpoint, efforts to promote more collaboration should be encouraged, but regulators need to be cautious of potential systemic risk. |
| Date: | 2025–08–04 |
| URL: | https://d.repec.org/n?u=RePEc:rbz:wpaper:11082 |