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  • Author: Benjamin Augé
  • Publication Date: 12-2019
  • Content Type: Policy Brief
  • Institution: Institut français des relations internationales (IFRI)
  • Abstract: In 2017, the coming to power of João Lourenço put an end to nearly four decades of rule by the former head of state, José Eduardo Dos Santos. João Lourenço’s first objective was to strengthen his authority by appointing people close to him and cadres from the old regime, who had professed loyalty to him, to high office. The speed of the takeover of all the decision-making centers – army, intelligence services, state-owned companies, oil industry and above all the MPLA (Popular Movement for the Liberation of Angola) party-state – by the new “Comrade Number One” surprised the leaders of the Dos Santos era, some of whom were abruptly dismissed or even sentenced to prison. Now firmly established in Angola’s command centers, João Lourenço is however facing a serious economic crisis, the most worrying for the country since the end of the civil war in 2002.
  • Topic: Economics, Politics, Governance
  • Political Geography: Africa, Angola
  • Publication Date: 01-2019
  • Content Type: Policy Brief
  • Institution: Advocates Coalition for Development and Environment (ACODE)
  • Abstract: Chinese investment is flowing fast into Uganda, and spreading into the agriculture and forestry sectors. The government needs to keep pace with these developments so the benefits can be shared by Ugandans. A new analysis shows that, while the jobs and new businesses created are well received, the working conditions and environmental practices of Chinese companies are often poor. Many people evicted from their land to make way for new projects have not been compensated. To hold Chinese companies to account, government agencies, with support from NGOs, must share information about these investments and introduce stronger regulation — in particular to uphold community rights. In turn, Chinese companies must be more transparent, responsible and legally compliant. With a proactive and accountable strategy for Chinese investment management, Uganda could make major gains for sustainable development.
  • Topic: Development, Economics, International Trade and Finance, Foreign Direct Investment, Business , Accountability, Investment, NGOs
  • Political Geography: Uganda, Africa, China
  • Author: Ebaidalla M. Ebaidalla
  • Publication Date: 11-2019
  • Content Type: Policy Brief
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: Despite the importance of non-farm income in the livelihood of the rural population in Sudan, information available on its size and determinants is scant. This study examined the patterns and determinants of decisions to participate in non-farm activities in rural Sudan. It also investigates whether the determinants of participation in non-farm activities vary across agriculture sub-sectors and income groups as well as among males and females. The data for this study was sourced from the Sudanese National Baseline Household Survey (NBHS) conducted by Sudan’s Central Bureau of Statistics in 2009. The results show that non-farm income is a crucial source of livelihood, contributing about 43% to household income in rural Sudan. The results of multinomial logit and probit estimation methods indicate that educational level, mean of transportation, lack of land and lack of access to formal credit are the most significant factors that push rural farmers to participate in non-farm activities. Surprisingly, the effect of household income was positive and significant, implying that individuals from rich households have higher opportunity to engage in non-farm activities compared to their poor counterparts. Moreover, the analysis revealed some symptoms of gender and location disparities in the effect of factors that influence participation in non-farm activities. The study concluded with some recommendations that aim to enhance the engagement in non-farm activities as an important diversification strategy to complement the role of the agriculture sector in improving rural economy in Sudan.
  • Topic: Agriculture, Economics, Gender Issues, Income Inequality, Rural
  • Political Geography: Africa, Sudan
  • Author: Isaac Bentum-Ennin
  • Publication Date: 08-2019
  • Content Type: Policy Brief
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: Given Ghana’s endowments such as attractive sites; more than 500km of beaches, and World Heritage forts and castles, tourism is seen as an important tool for promoting the socio-economic development in that it generates many economic benefits such as incomes, employment and tax revenue, both within the sector and through linkages with other sectors. This study first, analyses the factors influencing the upward trends in international tourists’ arrivals and receipts and second, quantifies the impact of the tourism sector on the Ghanaian economy. The objective of this policy brief is to inform the Ministers of Interior, Tourism and Finance that the most important factor influencing international tourists’ arrivals in Ghana is the prevailing civil liberties and political rights and that Nigeria is a significant substitute destination. Also, that the tourism sector has had the greatest impact on the whole Ghanaian economy when compared to sectors such as agriculture, industry and other services sectors. It is hoped that appropriate legislations will be passed to deepen these liberties and rights and that policy measures will be put in place to ensure macroeconomic stability in order not to lose competitiveness to Nigeria. Also, it is hoped that the Tourism Ministry would lobby for more investment and more resources from the Finance Ministry in order to expand the sector since it has a huge potential to stimulate economic growth.
  • Topic: Agriculture, Development, Economics, International Political Economy, Tourism, Economic growth, Macroeconomics
  • Political Geography: Africa, Ghana
  • Author: Ibrahim Okumu, Faizal Buyinza
  • Publication Date: 11-2019
  • Content Type: Policy Brief
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: Using the 2013 World Bank Enterprise Survey data for Uganda, this paper employs the quintile estimation technique to explain the relationship between innovation and firm performance in small and medium-sized enterprises (SMEs). Innovation involves the introduction of a new or significantly improved production process, product, marketing technique or organizational structure. Our results indicate that individual processing, product, marketing and organizational innovations have no impact on labour productivity as proxied by sales per worker. However, the results indicate the presence of complementarity between the four types of innovation. Specifically, the effect of innovation on sales per worker is positive when an SME engages in all four types of innovation. Even then the complementarity is weakly positive with incidences of a negative relationship when using any combination of innovations that are less than the four types of innovation. Policy-wise the results suggest that efforts to incentivize innovation should be inclusive enough to encourage all four forms of innovation.
  • Topic: Development, Economics, International Political Economy, Economic growth, Economic Policy
  • Political Geography: Uganda, Africa
  • Author: Janvier Mwisha-Kasiwa
  • Publication Date: 11-2019
  • Content Type: Policy Brief
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: Health is both a direct component of human well-being and a form of human capital that increases an individual’s capabilities and opportunities to generate income and reduces vulnerability. It is argued that these two views are complementary, and both can be used to justify increased investment in health in developing countries. Therefore, investment in child health constitutes a potential mechanism to end the intergenerational transmission of poverty. This paper examines the empirical impact of household economic well-being on child health, and the gender differences in effects using the Demographic and Health Survey conducted in 2014. A series of econometric tools are used; the control function approach appears to be the most appropriate strategy as it simultaneously removes structural parameters from endogeneity, the sample selection and heterogeneity of the unobservable variables. Results suggest a significant positive effect of household economic well-being on child health. However, the magnitude of the effect varies by gender of household head; children from households headed by males appear healthier compared to those from female-headed households. In the context of DR Congo, female-headed households often have a single parent, therefore, the economic well-being effect on child health in the male sub-sample can be considered to include the unobserved contribution of women. These results have implications for public interventions that enable women to participate in paid labour market activities as a means of improving household economic well-being, which in turn could improve child health.
  • Topic: Development, Economics, Gender Issues, Health, Health Care Policy, Children
  • Political Geography: Africa, Democratic Republic of Congo
  • Author: Lassana Cissokho
  • Publication Date: 11-2019
  • Content Type: Policy Brief
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: This paper investigates the productivity effects of power outages on manufacturing Small Scale Enterprises (SMEs) in Senegal, using a panel data on manufacturing firms. Productivity is estimated using stochastic frontier models, and power outages measured by their frequency or their duration. We controlled for firms owning a generator as well. The main results are drawn from random effects in a linear panel model. Nonetheless, the results remain consistent to the robustness checks using different models: a double-sided truncated data model and a generalized linear model, and different productivity measures: data envelopment analysis. We find that power outages have negative significant effects on the productivity of SMEs; for example, the manufacturing sector lost up to around 11.6% of the actual productivity due to power outages in 2011, and small firms appear to be affected more than medium ones, 5% against 4.3%. Further, firms with a generator were successful in countering the adverse effect of power outages on productivity. Besides, another outstanding result is the significant positive effect of access to credit on productivity. At last, it appears that productivity increases with firms’ size.
  • Topic: Development, Economics, International Political Economy, Economic structure, Economic growth, Macroeconomics, Manufacturing
  • Political Geography: Africa, Senegal
  • Author: Eme Dada
  • Publication Date: 08-2019
  • Content Type: Policy Brief
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: The objective of this policy brief is to inform the Ministers of Trade and Investment of Economic Community of West African State (ECOWAS) countries about the importance of the linkage between Foreign Direct Investment (FDI) and trade for developing countries. FDI is considered an important means of promoting export of the host countries. This is true of inward FDI, which comes for efficiency reasons. Conversely, there is concern that large flows of outward FDI results in a decline in the host country’s exports and loss of jobs. This in turn assumes that the exports of the source country will fall as FDI substitutes for trade.
  • Topic: Development, Economics, International Trade and Finance, Foreign Direct Investment, Economic growth
  • Political Geography: Africa, Liberia, Sierra Leone, Senegal, Mali, Guinea, Guinea-Bissau, Cape Verde, Gambia
  • Author: Mirriam Muhome-Matita, Ephraim Wadonda Chirwa
  • Publication Date: 07-2018
  • Content Type: Policy Brief
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: Agriculture remains the most important sector in sub-Saharan Africa and is a dominant form of livelihood for a majority of the population that resides in the rural areas. In Malawi, agriculture accounts for 35 percent of GDP and generates more than 80 percent of foreign exchange. In addition, agriculture is the most important occupation for 71 percent of the rural population in which crop production accounts for 74 percent of all rural incomes. However, agriculture has failed to get Africa out of poverty, and most countries are experiencing low agricultural growth, rapid population growth, weak foreign exchange earnings and high transaction costs (World Bank, 2008).
  • Topic: Agriculture, Economics, Political Economy, Poverty, World Bank, Economic growth, Rural
  • Political Geography: Africa, Malawi
  • Author: John Baptist D. Jatoe, Ramatu Al-Hassan, Bamidele Adekunle
  • Publication Date: 12-2017
  • Content Type: Policy Brief
  • Institution: African Economic Research Consortium (AERC)
  • Abstract: Ghana’s post adjustment growth and poverty reduction performance has been hailed as impressive, albeit with spatial disparities in the distribution of welfare, especially between the north and south of the country. Researchers generally agree that economic growth does not always reduce poverty. Indeed, the effectiveness of growth in reducing poverty depends on the level of inequality in the population. Growth that increases inequality may not reduce poverty; growth that does not change inequality (distribution-neutral growth) and growth that reduces inequality (pro-poor growth) result in poverty reduction. Policy makers can promote pro-poor growth by empowering the poor to participate in growth directly. Policy makers can focus on interventions that improve productivity in smallholder agriculture, particularly export crops, increasing employment of semi-skilled or unskilled labour, promoting technology adoption, increasing access to production assets, as well as effective participation in input and product markets. Also, increasing public spending on social services and infrastructure made possible by redistribution of the benefits of growth benefits the poor, indirectly.
  • Topic: Agriculture, Economics, Poverty, Labor Issues, Economic growth, Labor Policies, Economic Policy, Macroeconomics
  • Political Geography: Africa, Ghana