Growth In Africa Research Articles

Conceptualizing mobile banking and payment systems: Adoption trends and security considerations in Africa and the U.S

This paper explores the dynamic landscape of mobile banking and payment systems, focusing on the comparative analysis of adoption trends and security considerations in Africa and the U.S. A detailed review of literature and theoretical frameworks highlights the distinct pathways through which mobile financial services have evolved within these regions. The analysis reveals that while Africa's mobile banking growth is largely driven by financial inclusion efforts targeting the unbanked population, the U.S. market expands through technological innovations catering to a tech-savvy consumer base. Security challenges, ranging from fraud to cyberattacks, are examined, with region-specific vulnerabilities and countermeasures discussed. Recommendations for enhancing system security and adoption are provided, underscoring the role of regulatory frameworks, technological advancements, and consumer education. The paper concludes with suggestions for future research directions, emphasizing the need for ongoing innovation and policy development in the mobile banking ecosystem.

Going with the food flow: The contribution of urban agriculture to a growing African city

ABSTRACT Sub-Saharan Africa's rapid urban growth is causing a decline in urban agricultural land, reducing access to healthy local food for citizens. This paper quantitatively and spatially describes the contribution of urban and peri-urban producers to the availability and accessibility of fresh leafy vegetables in the growing city of Dar es Salaam, Tanzania. Based on over 700 surveys with food vendors and consumers, as well as ethnographic research with farmers, we show how a total of 70 per cent of all amaranth consumed in Dar es Salaam was found to be produced within the city. With an average distance travelled from farm to fork of 11 km, leafy vegetables have a strongly localised foodshed. The results show the ongoing significance of urban areas in meeting their own food demands, emphasising the necessity to explicitly integrate food provisioning in the planning of growing African cities.

Enhancing Food Security through Improved Regional Transportation Infrastructure in ECOWAS

Food insecurity remains a significant challenge for developing nations, prompting initiatives like the Millennium Development Goals (MDG), Sustainable Development Goals (SDG), and Agenda 2030 to prioritise food security. In this context, regional transportation infrastructure is crucial for West Africa's economic development and growth. Notable advancements have reduced transportation times for goods, yet there is an urgent need to establish reliable transport infrastructure to ensure food security. This paper uses qualitative methods and secondary sources to investigate contemporary trends in regional transport infrastructure and its impact on food security in ECOWAS. It analyses challenges, opportunities, and potential strategies for improvement. The paper concludes that a multifaceted approach, including strengthened transportation infrastructure and effective monitoring and evaluation, is essential for addressing food security challenges in West Africa.

Comparing the effectiveness of the African Growth and Opportunity Act (AGOA) and Forum on China-Africa Cooperation (FOCAC) in South Africa: An application of Keynes' Macroeconomic Theory

This study applies Keynesian macroeconomic theory in the ARDL model to compare the growth effects of the US's AGOA and China's FOCAC multilateral trading systems in South Africa from the first quarter of 2001 to the fourth quarter of 2022. The study uses South Africa's net exports with the corresponding partner as a proxy for each multilateral trading system. This quantification stems from the fact that South Africa's trade with the US and China has significantly improved since the establishment of AGOA and FOCAC in 2000. Our findings show that none of the multilateral trading systems contribute significantly to South Africa's economic growth. Rather, they appear to be used as strategic initiatives to gain access to mineral resources and facilitate the movement of mining machinery and other inputs into South Africa. To some extent, they are used as market-seeking initiatives, particularly FOCAC. It is worth noting, however, that the mineral resource preferences of these systems vary: while China prioritizes mineral products, the US prioritizes precious metals. This suggests that China and the US scramble for natural resources in South Africa, and possibly Africa in general, is complementary rather than competitive.

Re‐evaluating Africa's growth, poverty and inequality nexus

AbstractThis study evaluates the role of growth in poverty reduction within the sub‐Saharan Africa (SSA) region in direct comparison to other global regions along time‐delineated thresholds. The study's results show (i) A significant gulf in the performance of SSA economies in comparison to their global cohorts; (ii) An improved role played by growth after the mid‐2000s for poverty reduction in SSA; (iii) A less deleterious impact of rising income inequality on poverty reduction within the SSA sub‐region relative to other global regions, and (iv) An improved performance of resource‐dependent SSA economies in translating growth to poverty reduction since the mid‐2000s. The convergence in growth‐induced poverty reduction between SSA and its global cohorts energizes prospects for attaining the Sustainable Development Goal of eradicating global extreme poverty by 2030; it however also calls for renewed strategies toward improving the efficacy of growth in future poverty reduction within the sub‐region.

CHALLENGES OF THE IMPLEMENTING THE AFRICA AGENDA 2063: A SYNOPSIS

This article investigates the implementation and practicality of the Africa 2063 agenda, which is seen as Africa's roadmap and grand plan for transforming Africa into a future global superpower. Agenda 2063 includes not just Africa's Future Aspirations, but also critical Flagship Programs that may increase Africa's economic development and growth while also contributing to the continent's rapid change. The African continent is rife with problems that both current and previous governments have failed to solve. To mention a few, these issues include poverty, malnutrition, bad health care systems, low living standards, poor infrastructure, political instability, and weak economies characterized by low economic development. It cannot be contested that the Africa 2063 agenda is a critical strategy embraced by African Leaders to build a better Africa for its residents, and if executed effectively and efficiently, it has the potential to alter the African continent.

The Impact of Agricultural Productivity on Economic Growth in Africa

This study investigates the relationship between agricultural productivity and economic growth in five African countries: Tanzania, Ghana, Kenya, Morocco, and South Africa. Secondary data from reputable sources are analyzed using statistical tests and regression models. The findings indicate that agriculture significantly contributes to Africa's economic growth. South Africa exhibits the highest agricultural productivity, followed by Morocco, Kenya, Ghana, and Tanzania. However, despite their agricultural strengths, South Africa and Morocco have relatively lower contributions to economic growth due to other factors like low employment rates. Ghana and Kenya show comparable performance, while Tanzania lags behind despite experiencing economic growth and having a high employment rate. It is emphasized that economic growth is influenced by various factors beyond agriculture, and countries with high agricultural productivity should diversify their economies and address other determinants of growth. Policy measures to strengthen the agricultural sector and promote diversification are crucial for sustainable economic development in Africa.

Business Cycles in Africa: Unravelling the Dynamics of Sub-saharan Africa's Economic Growth

This research delves into the intricate dynamics of Africa's economic landscape against the backdrop of the global economic surge, surpassing rates unseen since the oil price shocks of the 1970s. The study shows a continuous period of robust global growth since 2004, characterized by low inflation and even distribution among nations, defying expectations given the increasing contribution of unstable emerging markets. The study sheds light on Africa's evolving economic scenario, marked by a growing awareness of sectoral fragmentation, oil price variation, and infrastructure development. Examining macroeconomic fundamentals in 2022, we note improvements in fiscal deficits but an increase in current account deficits, exchange rate fluctuations, and elevated inflation, driven by global factors. Moreover, the study unveils the enduring fragility of Africa's economic and social situation, affected by armed conflicts, unfavorable weather conditions, and declining trade. Despite abundant natural resources, the region contends with persistent poverty, positioning it as one of the most impoverished globally. The plots highlighted the historical economic gaps, emphasizing the formidable hurdles that have impeded Sub-Saharan Africa's growth, particularly in comparison to East Asia & Pacific and Latin America & Caribbean. The disparities underscore the need for strategic interventions, including diversifying export bases, strengthening fiscal management, and promoting inclusive growth. The study concludes with a call for coordinated efforts to address the complex challenges, fostering sustained and inclusive economic growth across the continent.

Africa’s expatriation: current context and future research agenda

PurposeThis paper presents insights on expatriates in Africa and sets out a research agenda for Africa’s expatriation. The objective of the paper is to provide background and context on expatriation in Africa and to stimulate and guide further research in this important area.Design/methodology/approachThe reviewed papers were drawn from journals and other sources that reported on expatriation to/from African countries. It also incorporates an array of literature on contextual African issues, exploring conceptually how these relate to expatriation.FindingsThe review confirmed that there is little research on the topic, particularly with respect to outward expatriation and the studies that exist are one of a kind and stand alone. There has been no attempt to build systematic theory or develop a wholistic picture. This means that the field is wide open for more research. The data provide a picture of the current expatriate situation, including numbers, demographics, host/home locations, success rates and so on, and are provide a basis for further research developing and testing hypotheses regarding individual, organizational and country/national characteristics and how these influence and relate to expatriate experiences and outcomes. Researchers can also draw on the existing expatriation literature from around the world for replication studies to identify uniquely African issues as well as similarities with other locations. As Selmer (2016) noted, replication research is widely used in the sciences and is at the core of the scientific method and thus should be considered for expatriation research.Research limitations/implicationsLimited previous research means there is a need for further research.Practical implicationsExpatriation is a critical aspect of companies operating internationally and companies are increasingly interested in doing business in African countries. Africa's economic growth and development are strong and foreign direct investment (FDI) into Africa is growing with consequent increases in the number of expatriates going to Africa. Understanding expatriation in the African context is thus very important to a variety of companies.Originality/valueManagement literature focusing on Africa is limited and this is true regarding expatriation. This means there is a need for researchers and practitioners to understand expatriation issues in this context, particularly considering economic growth on the continent, increasing interest in doing business there, along with increasing FDI and use of expatriates, as well as the expansion of African companies. This paper provides a research agenda as a guide on which researchers, including those in Africa, can build.

Kırılganlığın Ekonomik Büyüme Üzerindeki Etkisinin İncelenmesi: Sahra Altı Afrika'dan Yeni Görüşler

This research examines fragility impact on Sub-Saharan Africa's economic growth from 2006 to 2019. The variables of interest for this study include economic decline, economic inequality, human flight, brain drain, external intervention, and economic growth. The research objectives are to empirically investigate the connection between fragility indices and economic growth and determine the impact of fragility indices on economic growth. The existence of cointegration was ascertained in our variable using the Westerlund cointegration test. A fully modified ordinary least squares estimation technique was adopted for the first objective, and the findings showed that only external intervention indices positively impacted economic growth. In achieving our second objective, we adopted mean group, augmented mean group, and common correlated effect mean group estimation technique and found that the coefficients of economic decline, economic inequality, and human flight and brain drain had negative impacts on economic growth. In contrast, the external intervention had a positive impact. The research study recommends that fragile countries' governments develop corrective measures to remove these indicators to ensure progressive growth. Also, state administrations must ensure that suitable policies are implemented to encourage research and development. This will limit the problem of human flight and brain drain, which are significant problems in fragile countries.

Enhancing Project Management for SMEs: A Hybrid Approach

Objective: South Africa's economic growth and development are closely intertwined with government-prioritized infrastructure development projects. However, SMEs in this sector often grapple with insufficient project management processes, impeding their efficacy and economic contributions. The issue stems from the inadequate implementation of project management methodologies by SMEs, which adversely affects project outcomes and consequently their economic impact. Research Design & Methods: A literature review was conducted to assess the implementation of project management methodologies by SMEs in South African infrastructure development projects. The objective is to highlight areas for improvement, rectify the deficiency in project management practices among SMEs, and bolster their effectiveness and economic contributions. Findings: Preliminary findings accentuate the critical role of project management as a discipline for SMEs involved in infrastructure projects. Its absence or inadequate implementation hampers the growth and sustainability of organizations aiming to make substantial economic contributions and create employment. A hybrid project management model tailored for SMEs in infrastructure development emerges as a mechanism for effectively managing infrastructure projects. Implications and Recommendations: The conceptualization of a hybrid project management model for infrastructure development projects holds the potential to enhance project value by facilitating adaptability. By incorporating agile project management components, this model also stands to improve client engagement, consequently elevating the prospects of success in infrastructure development projects. Contribution & Value Added: This study contributes to the understanding of how SMEs can improve their effectiveness and economic contributions in South Africa's infrastructure development sector. The proposed hybrid project management model offers valuable insights for practitioners and policymakers in South Africa, ultimately fostering economic development and sustainable growth in the country.

Corruption at the Municipal Level: Insight(s) from Post-Apartheid South Africa

One of the many impediments to a country's political, social, and economic growth prospects is corruption, and this is particularly true from an African perspective post-colonial era. In recent years, corruption has manifested itself in many ways, forms, and sizes in the South African public sector, particularly post-1994, when the first democratically elected government emerged. Corruption diverts funds and resources meant to benefit the local populace, which makes some people rich and those needing essential delivery of services in turmoil. From a South African perspective, and just like most parts of Africa, corruption has manifested itself to be a stumbling block to South Africa's continuous socio-economic growth prospects, particularly for the majority of blacks who continue to remain marginalised in terms of service delivery mandates from local government. By narrowing this to the government's structures closer to the people, municipalities are mandated to provide essential services to the local people. However, post the apartheid era, many municipalities in South Africa have found themselves in turmoil due to many internal irregularities driven by corruption. Using a qualitative research methodology supplemented by secondary data resources, this article examines the dire effects of corruption at the municipal level and what consequences this has for people at the grassroots level in South Africa. Drawing from the engaged literature, the article finds that corruption is a global phenomenon, particularly in African states. More needs to be done by corruption watchdogs to curb this phenomenon, particularly in South Africa and at the local government level. Notably, individuals occupying top positions in local government must be appointed on merit; there is a need to support anti-corruption watchdogs; independent institutions must be allowed to function without fear; and whistleblowers must be protected.

Has the world survived the population bomb? A 10-year update.

Between 1960 and 2011, world population grew from 3 to 7 billion, an unprecedented rate of population growth that will never be seen again. In spite of the addition of 4 billion people in just 51years, the world experienced some of the biggest improvements in living standards in human history, with declines in poverty and improvements in food production per capita in all major regions. This paper looks at the period since 2011, during which the world added another billion people. Progress has continued in many areas, with food production continuing to grow faster than population and with continued declines in the proportion of the population in poverty in all regions. Not all trends are positive, however. Progress in food production has slowed, with recent declines in food production per capita in Africa. Prices of food and other commodities have recently hit historic highs. Climate change is a challenge to progress in combatting hunger and poverty, especially in Africa. While climate change will make it harder to meet the needs of Africa's continued population growth in this century, the paper shows that the countries with the highest population growth account for a very small share of global CO2 emissions. The record of the last six decades suggests that progress can be made to reduce poverty and hunger, even while world population continues to grow, but continued progress will require solutions to climate change that mainly target high-income and middle-income countries.

Cereal Production in the Eastern Free State, 1981 – 2007: Can Agricultural Extension Deliver Food Security?

Since 1989, South Africa's agricultural productivity growth has reached a standstill while the South African population has kept growing at 1.93% per annum. Although the country is a surplus maize producer, per capita maize production has fallen at -0.38% p.a. since 1989. A provincial breakdown of food grain production will allow the government to monitor future food security, making prompt interventions possible. In this region, we need interventions that can relieve the stresses on the already over-burned natural resources, and this can be implemented through agricultural extension by raising agricultural productivity. This paper examines the field crop production trends in the Eastern Free State province of South Africa for positive or negative trends at the district level. The data reveals a decline in cereal, legume, and oil seed production between 1981 and 2007. The negative trajectory we see in all crops in all districts is concerning. In most districts, the decline is due to fewer hectares planted, but unfavourable weather and the withdrawal of support by the government may also be contributing factors. This disastrous trend could be turned around by greater investment in farmer education and skills development in the public extension service.

Natural resource endowments and growth dynamics in Africa: evidence from panel cointegrating regression

PurposeWith heterogeneous findings dominating the growth and natural resources relations, there is a need to explain the variances in Africa's growth process as induced by robust measures of factor endowments. This study used a comprehensive set of data from the updated database of the World Bank to capture the heterogeneous dimensions of natural resource endowments on growth with a particular focus on establishing complementary evidence on the resource curse hypothesis in energy and environmental economics literature in Africa. These comprehensive data on oil rent, coal rent and forest rent could provide new and insightful evidence on obscure relations on the subject matter.Design/methodology/approachThis paper considers the panel vector error correction model (PVECM) procedure to explain changes in economic growth outcomes as induced by oil rent, coal rent and forest rent. The consideration of the PVECM was premised on the panel unit root process that returns series that were cointegrated at the first-order differentials.FindingsThe paper found positive relations between oil rent, coal rent and economic development in Africa. Forest rent, on the other hand, is inversely related to economic growth in Africa. Trade and human capital are positively related to economic growth in Africa, while population growth is negatively associated with economic growth in Africa.Research limitations/implicationsShort-run policies should be tailored towards the stability of fiscal expenditure such that the objective of fiscal policy, which is to maintain the condition of full employment and economic stability and stabilise the rate of growth, can be optimised and sustained. By this, the resource curse will be averted and productive capacity will increase, leading to sustainable growth and development in Africa, where conditions for growth and development remain inadequately met.Originality/valueThe originality of this paper can be viewed from the strength of its arguments and methods adopted to address the questions raised in this paper. This study further illuminated age-long obscure relations in the literature of natural resource endowment and economic growth by taking a disaggregated approach to the component-by-component analysis of natural resources factors (the oil rent, coal rent and forest rent) and their corresponding influence on economic growth in Africa. This pattern remains underexplored mainly in previous literature on the subject. Many African countries are blessed with an abundance of these different natural resources in varying proportions. The misuse and mismanagement of these resources along various dimensions have been the core of the inclination towards the resource curse hypothesis in Africa. Knowing how growth conditions respond to changes in the depth of forest resources, oil resources and coal resources could be useful pointers in Africa's overall energy use and management. This study contributed to the literature on natural resource-induced growth dynamics by offering a generalisable conclusion as to why natural resource-abundance economies are prone to poor economic performance. This study further asks if mineral deposits are a source or reflection of ill growth and underdevelopment in African countries.

Progress on Poverty in Africa: The Importance of Growth and Inequality

AbstractEmploying World Bank data, this paper, first, historically examines Africa's record on poverty incidence, spread and severity, as compared with other regions of the world, at the US$1.90 and US$3.20 per day (2011 PPP) poverty standards. Second, it evaluates country-specific progress on growth, poverty and inequality, and compares the ‘poverty transformation efficiency vector’ (PTEV) among African countries. Third, the study analyses the relative roles of income growth and inequality changes in explaining African countries' poverty records, through a decomposition of poverty changes using ‘optimal’ income and inequality elasticity estimates from the ‘identity’ model. The study finds that following the dismal record on poverty during the 1980s, progress on poverty has been appreciable since Africa's growth resurgence starting in the mid-1990s, and that this progress was driven mainly by income growth, consistent with the global evidence. Nonetheless, inequality often played a complementary role in most of the countries and, in a small number of cases, it was the primary driver of changes in poverty. Thus, the present study sheds light on country-specific differences in the relative roles of growth and inequality in poverty reduction on the continent, based on both qualitative and quantitative evidence. The study should, therefore, provide a useful compass to those who seek to understand country-specific situations within the African context.

Causal Relationship Between Africa's Growth and Chinese Debt Financing for Infrastructure Development

Causal Relationship Between Africa's Growth and Chinese Debt Financing for Infrastructure Development

Capital flight, tax revenue and economic growth in Sub-Saharan Africa: the role of good governance

The study examines the moderating role of good governance indicators in the capital flight, tax revenue and economic growth relationship in 28 SSA countries. The data for the study spans from 1996 to 2018, and dynamic panel estimators were employed for the data analysis. As expected, the findings indicate that capital flight hinders economic growth in SSA whiles increasing tax revenue promotes growth. However, the effects of both capital flight and tax revenue on economic growth in sub-Saharan Africa are moderated by good governance indicators. In other words, with good governance, the drainage effect of capital flight on economic growth reduces significantly and the growth enhancing effect of domestic revenue mobilisation is increased. It is concluded, therefore, that policies that strengthen good governance are essential for Africa's growth prospects.

Interrogating sub‐Saharan Africa's high economic growth rate and low poverty reduction rate: A poverty paradox?

Sub‐Saharan Africa's (SSA) high economic growth coincides with an increase in the level of poverty. In a panel of 40 SSA countries over a 30‐year period, while accounting for the potential spillover effect of poverty in the region. The study found that economic growth recorded over the years has not translated to poverty reduction, particularly, in resource‐rich economies of SSA. The result also shows that income inequality worsens the effect of economic growth on poverty and that the poverty‐reducing effectiveness of growth varies considerably across sectors, across space, and over time. The research findings suggest that governments across the region, particularly, in oil‐exporting countries in SSA must diversify the economy away from oil (toward the service sector) to reduce poverty in the region.

The need to localize energy technologies for Africa's post COVID-19 recovery and growth

Africa has limited capacity to develop its own energy technologies and has been largely dependent on importation for its economic development. It is anticipated that there will be huge challenge for the very limited manufacturing industries in the continent to respond to the increasing energy demand. This will largely require the up scaling of the local manufacturing industries in-terms of skills, design capability, engineering management, manufacturing process and other related issues. Experiences from the developed world showed that academics and industries play critical role in innovation and technology development with proper policy and focus from the policymakers. African academics and industries could play similar role but requires revitalizing with enabling policies and sufficient funding. For this reason, African governments should prioritize their policies and investments towards achieving local energy technology development and innovation in order to build resilient economy. In light of this, we provided necessary recommendations for African led development pathways and policies to promote local manufacturing of energy technologies. This will have huge implications in supporting post COVID recovery and sustainable growth of the African countries.