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  • Author: Benjamin Augé
  • Publication Date: 12-2019
  • Content Type: Policy Brief
  • Institution: Institut français des relations internationales (IFRI)
  • Abstract: East Africa has the potential to experience a gas and liquefied natural gas (LNG) export boom in the coming years due to several projects that have been released. Mozambique has approved two projects totaling more than 15 million tons per year (Mt/yr.) of liquefied gas and a third should be started by the end of 2019. The first ENI Floating Liquefied Natural Gas plant (FLNG) will come onto the market in 2022 and four other onshore liquefaction trains, two of which will produce 6.44 Mt (Anadarko/Total) and two of which will produce 7.6 Mt (ExxonMobil/ENI), will be available around 2025. However, with the recoverable reserves, the companies involved are counting on 50 or even 60 Mt/yr. by 2030. This volume will help this East African country to achieve the world’s fourth-largest LNG export capacity in the medium term after the United States, Qatar and Australia. As for Tanzania, no development should be approved before 2020 in the best-case scenario.
  • Topic: Security, Development, Oil, Gas
  • Political Geography: Uganda, Kenya, Africa, Mozambique, Tanzania, East Africa
  • 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: 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: Eelco Kessels, Christina Nemr
  • Publication Date: 02-2016
  • Content Type: Policy Brief
  • Institution: Fourth Freedom Forum
  • Abstract: It is well documented that economic and social development are better attained in the absence of violent conflict. Relatedly, a consensus is building that violent extremism and terrorism are both international security and development issues. However, a gap remains between the policies, practices, and tools used by those concerned with international security and those responsible for stabilization and development cooperation. The gap exists at an organizational level within governments and other bureaucracies and in implementation of programming on the ground. An integrated approach has the potential to play a stronger role in strengthening community resilience against violent extremism and reducing many of its enabling factors. This policy brief examines the nexus between countering violent extremism and development assistance, looking specifically at opportunities and risks, different approaches taken by donor organizations, and the impact on programs and implementers. It highlights lessons learned and emerging practices, and provides recommendations that could increase their efficiency and impact.
  • Topic: Development, International Security, Violent Extremism, Counter-terrorism, Islamic State
  • Political Geography: Africa, United Kingdom, Middle East, Norway, Denmark, United Nations, Australia, United States of America, European Union
  • Publication Date: 06-2015
  • Content Type: Policy Brief
  • Institution: The Soufan Group
  • Abstract: • A multinational joint task force consisting of Nigeria, Chad, Cameroon, and Niger has driven Boko Haram from key territorial strongholds in northeastern Nigeria; on June 18, the Chadian military conducted airstrikes against six Boko Haram bases in Nigeria • But the terror group continues to launch deadly, near-daily attacks throughout the region—including on June 15 with twin suicide bombings in Chad—using guerrilla tactics rather than conventional warfare • Nigeria’s newly-inaugurated president, Muhammadu Buhari, has moved quickly to support regional counter-Boko Haram efforts, insisting on Nigerian leadership in the task force and pledging $100 million in financial support • Despite the nascent successes of the joint task force, Islamic State gains in North Africa and, in particular, Libya, could impact the flow of weapons and fighters into Nigeria; Boko Haram pledged allegiance to the Islamic State in March of this year.
  • Topic: Development, Islam, Terrorism, Insurgency, Governance
  • Political Geography: Africa
  • Author: Thomas Lassourd
  • Publication Date: 09-2015
  • Content Type: Policy Brief
  • Institution: Natural Resource Governance Institute
  • Abstract: This briefing note is an effort to help frame the main tradeoffs and assess four potential funding models for the newly created national oil company of Uganda. It is based on NRGI’s international experience and understanding of the local context. Uganda’s national oil company will have a critical role. It is expected to professionally manage all aspects of state participation in the sector and act as a center of expertise for the government. It is also expected to play a strong role as a minority equity partner in the USD 4.3 billion Hoima refinery project and potentially in a USD 4 billion export pipeline. Under all possible funding options, strong audit and reporting processes should be required, as well as parliamentary oversight. The chosen funding model will also need to balance the needs of the national oil company with national development needs in Uganda. Funding model options can be adapted to meet Uganda’s unique situation. NRGI is at the disposal of Uganda’s government and parliament to discuss these models.
  • Topic: Development, Energy Policy, Oil, Natural Resources, Governance
  • Political Geography: Uganda, Africa