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on Africa |
| By: | Simon Azuelos (AFD - Agence française de développement); Julien Gourdon (AFD - Agence française de développement); Peter Kuria Githinji (UoN - University of Nairobi); Cecília Hornok; Alina Mulyukova (University of Göttingen); Zakaria Ouari; Sid Boubekeur |
| Abstract: | This study evaluates the role of Special Economic Zones (SEZs) in Africa using newly compiled datasets covering over 230 zones across 43 countries. It examines SEZ impacts on export diversification, technological sophistication, market penetration, and integration into global value chains, while also assessing their influence on local household welfare. Findings show that SEZs significantly improve export sophistication and market access, but their contribution to product diversification and regional value chain participation remains limited. Empirical evidence from household-level data reveals that proximity to SEZs correlates with measurable wealth gains, better access to services, and improved housing quality. These benefits are broadly distributed, suggesting that SEZs can enhance welfare without exacerbating inequality. However, job creation —particularly for women— varies by sector and zone design. The study concludes that governance structure, incentive strength, and alignment with regional and sustainability goals are key to maximizing SEZ performance. Next-generation SEZs embedded in broader economic frameworks, including ESG principles and the AfCFTA, hold promise as inclusive and transformative development tools for African economies. |
| Keywords: | Export Sophistication, Global Value Chains (GVCs), Household Welfare, Industrial Policy, Trade Policy, ESG, African Continental Free Trade Area (AfCFTA), Export Diversification, Africa, geography Special Economic Zones (SEZs) |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05521092 |
| By: | Geoffrey Heal; Claudio Rizzi; Simon Xu |
| Abstract: | Human-driven degradation of ecosystems threatens both global biodiversity and the livelihoods of communities that depend on natural systems for production and income. Yet empirical evidence on the economic returns to restoring nature remains scarce. We examine whether nature-enhancing interventions can generate measurable improvements in household wealth, in addition to environmental benefits. We study a large-scale agroecological intervention implemented by Trees for the Future (TREES) across farms in sub-Saharan Africa, combining detailed household surveys with high-resolution satellite imagery. We show that quasi-exogenous increases in natural capital lead to substantial gains in household wealth, proxied by livestock ownership, of about 75% by the third year of treatment. Each dollar invested in the intervention returns about $2.28 in direct wealth benefits for participating farmers, before accounting for positive health impacts and carbon sequestration. We further document dramatic increases in tree cover and crop diversity, significant improvements in food security and dietary diversity, and detectable enhancements in vegetation indices measured from space. Together, these results demonstrate that restoring natural capital generates both ecological and economic returns, offering a scalable pathway for nature-positive development in rural economies where biodiversity remains a critical productive asset. |
| JEL: | O13 Q01 Q13 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34929 |
| By: | David Mensah Otoo (University of Cape Coast [Ghana]); Michael Danquah (GIMPA - Ghana Institute of Management and Public Administration [Accra]); Bazoumana Ouattara (University of Manchester [Manchester]); Emmanuel Fourmann (AFD - Agence française de développement) |
| Abstract: | In this study we incorporate the economic resources of countries and measure how countries are combining their resources to reduce income inequality. We also examine the effects of climate — temperature and rainfall — on effort by countries to reduce income inequality. We use an unbalanced panel of 160 countries from 1990 to 2020, and Stochastic Frontier Analysis (SFA) for this exercise. We find that on average, countries have exerted only 50 percent of their effort in reducing income inequality, but this effort differs from region to region. Sub Saharan Africa recorded the least average effort of 39 percent, albeit this varies across countries. This is an indication that the potential and scope for improvement to reduce income inequality differs across SSA countries. The findings show that introducing temperature and precipitation in the frontier model reduced the effort of countries in several regions. This implies the negative effects of climate as countries combine their economic resources to reduce income inequality. The direct effect of climate on countries' efforts to reduce inequality shows that both temperature and rainfall decrease the effort for developing countries. In the SSA sample, the negative effect of temperature on effort was significant whilst that of rainfall was negligible. |
| Keywords: | Income Inequality, Climate Change, Developing Countries, Sub Saharan Africa, Efficiency |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05521129 |
| By: | Nara Monkam; Panashe G. Taruvinga |
| Abstract: | This paper examines how asymmetric decentralisation shapes municipal governance in South Africa. Building on fiscal federalism perspectives, it analyses how differentiated powers, functions, and revenue capacities among municipalities at the same constitutional tier affect service delivery. The study uses a qualitative case study that synthesises secondary evidence from national audit findings, intergovernmental financial reports, and policy and oversight documents. Findings indicate a multi-speed local state. Metropolitan municipalities benefit from broader own-revenue bases and stronger administrative systems, enabling more reliable infrastructure investment and service provision. Many local municipalities remain transferdependent with uneven delivery, while district municipalities operate under rigid mandates that are not matched by commensurate revenue instruments. These asymmetries reinforce vertical and horizontal inequalities in the country. The study argues for capacity-linked functional assignments, targeted equalisation, clearer and enforceable mandate definitions, and the disciplined use of conditional grants and performance contracts. Such measures would align responsibilities with capability, mitigate regressive effects of asymmetry, and support more equitable and accountable local governance. |
| Keywords: | asymmetric decentralisation, fiscal federalism, local government, municipal finance, equalisation, service delivery, South Africa |
| Date: | 2026–02–12 |
| URL: | https://d.repec.org/n?u=RePEc:ida:wpaper:wp2608 |