Development In sub-Saharan Africa Research Articles

Crop yields fail to rise in smallholder farming systems in sub-Saharan Africa

Drawing on a harmonized longitudinal dataset covering more than 55,000 smallholder farms in six African countries, we analyze changes in crop productivity from 2008 to 2019. Because smallholder farmers represent a significant fraction of the world's poorest people, agricultural productivity in this context matters for poverty reduction and for the broader achievement of the UN Sustainable Development Goals. Our analysis measures productivity trends for nationally representative samples of smallholder crop farmers, using detailed data on agricultural inputs and outputs which we integrate with detailed data on local weather and environmental conditions. In spite of government commitments and international efforts to strengthen African agriculture, we find no evidence that smallholder crop productivity improved over this 12-y period. Our preferred statistical specification of total factor productivity (TFP) suggests an overall decline in productivity of -3.5% per year. Various other models we test also find declining productivity in the overall sample, and none of them finds productivity growth. However, the different countries in our sample experienced varying trends, with some instances of growth in some regions. The results suggest that major challenges remain for agricultural development in sub-Saharan Africa. They complement previous analyses that relied primarily on aggregate national statistics to measure agricultural productivity, rather than detailed microdata.

Does global economic and climate policy uncertainty affect private investment? Evidence from sub‐Saharan Africa

AbstractThis study investigates how uncertainty in climate and global economic policies affects private investment in sub‐Saharan Africa (SSA). Using panel data from 41 countries over the period 2000–2022, the study employs a dynamic panel model to estimate the effects of these two types of uncertainty on the private investment‐to‐gross domestic product ratio. The study finds that both global economic policy uncertainty (EPU) and climate policy uncertainty have a negative and significant influence on private investment, implying that higher levels of uncertainty discourage private investors from undertaking long‐term projects in the sub‐region. The study also finds that the effect of uncertainty on climate policy is stronger than that of EPU, suggesting that private investors are more sensitive to the lack of clarity and coherence in the global climate policy framework. The findings are robust to different estimation techniques. The study concludes that reducing policy uncertainty, especially in the area of climate change, is crucial for enhancing private investment and promoting sustainable development in SSA.

Review of Invasive Plant Functional Traits and Management Using Remote Sensing in Sub-Saharan Africa

Biodiversity and sustainable development in Sub-Saharan Africa (SSA) are considerably impacted by invasive alien plants (IAPs). Increasing plant invasions in SSA threaten agricultural productivity, biodiversity conservation, and other socioeconomic activities, which in turn put the United Nations Sustainable Development Goals (SDGs) in peril. In order to effectively combat IAPs, understanding their functional traits (morphological, physiological, and phenological traits) and integrating them into remote sensing (RS) is vital. While functional traits influence IAPs’ fitness to invade and establish in a new geographical range, RS aids in studying them remotely, delineating and mapping them, and predicting their potential invasions. The information on this study topic was gathered by reviewing various existing studies published between 2000 and 2024. Based on this review, it was deduced that the majority of IAPs are fast-growing (or acquisitive), with a shorter leaf lifespan, bigger leaves, and higher plant height, ultimately resulting in a higher resource acquisition ability. We established further that in SSA, there are limited studies on IAP functional traits and their integration in RS. Many studies conducted in the region focus mostly on IAP distribution. Evidence from prior studies revealed that functional trait remote sensing (FTRS)-based research not only improves detection and mapping but also predicts whether a certain alien plant can become invasive or expand its distribution range. Thus, using the FTRS approach could help IAP management in SSA, ultimately achieving the SDGs. Our review discusses IAP implications in SSA (e.g., Angola, Tanzania, Benin, Kenya, Uganda, Rwanda, Zambia, Burundi, Zimbabwe, Botswana, Malawi, etc.) and for the achievement of SDGs; functional traits and their impact on alien invasions; and the importance of incorporating functional traits into RS.

Role of financial openness in Ghana’s financial sector development episode

PurposeThis paper aims to reexamine the relationship between financial openness and financial development in Ghana.Design/methodology/approachThe study applied maximum likelihood estimation and autoregressive distributed lag approach and tested Granger causality using quarterly data from 1990:1 to 2020:4.FindingsThis study revealed a long-run equilibrium relationship between financial openness and development, indicating that financial openness is a critical factor in Ghana’s financial development. Therefore, the study recommends with caution that policies aimed at promoting financial openness could be an effective way to encourage sustainable financial development in Ghana, as financial openness alone may not bring the desired outcome.Research limitations/implicationsThe study contributes to the existing body of knowledge by providing empirical evidence of the link between financial openness and financial sector development in Ghana. Future research could delve deeper into the mechanisms through which financial openness affects financial development, exploring potential channels and transmission mechanisms.Practical implicationsThe findings suggest that policymakers, particularly the Ministry of Finance and the Bank of Ghana, should prioritize policies aimed at promoting financial openness. This includes continued efforts toward financial liberalization and creating an environment conducive to domestic and international financial transactions. Moreover, policies aimed at increasing trade openness, boosting real GDP and maintaining moderate real interest rates are essential for fostering financial sector development.Social implicationsEnhancing financial sector development can have significant implications for society, including increased access to financial services, improved economic opportunities and enhanced overall economic stability. By promoting financial openness and development, policymakers would contribute to poverty reduction, job creation and overall socio-economic development. The study bridges the gap between theory and practice by providing empirical evidence supporting the theoretical proposition that financial openness stimulates financial sector development.Originality/valueThis study fills a crucial gap in the literature on the effects of financial openness on Ghana’s financial sector development. It focuses on Ghana, which liberalized its financial sector in 1988 as part of the overall economic reforms in 1983, and this justifies the starting point of this paper in 1990, as there are no adequate data before 1990. The study uses principal component analysis to construct an index that measures financial development. The study considers the recent financial crises in Ghana in 2017 and underscores the importance of understanding the link between financial openness and financial development, which becomes useful for policymakers and researchers studying financial system development in sub-Saharan Africa which includes Ghana.

International capital flows and sustainable development goals: The role of governance and ICT diffusion

Achieving the Sustainable Development Goals (SDGs) in developing economies, especially in sub-Saharan Africa (SSA), has become a focal point of discussion. This study contributes to this discourse by investigating the effects of international capital flows on SDGs in SSA, with a specific focus on the moderating mechanisms that influence these effects. Using data from 41 SSA countries spanning 2000 to 2018, the findings emphasize the crucial role of governance quality and ICT diffusion as effective factors moderating the nexus between international capital flows and SDGs. The study reveals a nuanced impact of international capital flows on sustainable development, encompassing both positive and negative effects across economic, social, and environmental dimensions. However, the presence of good governance practices and widespread diffusion of information and communication technologies (ICTs) serves as crucial conditional factors, enhancing the positive effects of international capital flows on economic and social sustainability while simultaneously mitigating their potential adverse effects on environmental sustainability. Through improvements in governance structures and the promotion of ICT diffusion, policymakers can create an environment conductive to maximizing the benefits of international capital flows while minimizing their adverse repercussions, thereby fostering sustainable development in sub-Saharan Africa.

Effect of energy policies on industrial development in sub-Saharan African countries

Energy is a key factor in the production and industrialization process in developing countries. This article aims to analyse the effect of energy policies on industrial development across 25 sub-Saharan African countries from 1996 to 2020. For this purpose, a new industrial development indicator and the Driscoll–Kraay estimation method are used. Results reveal that the implementation of energy policies promotes industrial development. Indeed, public energy policies and, more specifically, public investments in energy capital have a positive impact on the growth rate of the industrial sector’s value added per capita. These results remain robust when using the generalized method of moments. In terms of policy implications, the results of this research suggest that the strengthening of existing public energy policies and the implementation of new policies with a focus on investments in energy capital accumulation are necessary to drive sustainable industrial sector development in sub-Saharan Africa.

Inclusive Human Development in Sub-Sahara Africa: Does the Environmental Quality Matter?

The improvement of human well-being is the fundamental objective of the scramble for environmental sustainability. This study aims to investigate the effect of environmental sustainability on inclusive human development in Sub-Saharan Africa. Through the application of a system-GMM to a sample of 49 Sub-Saharan African countries from 2010 to 2017, we found a positive and statistically significant effect of environmental sustainability on inclusive human development in Sub-Saharan countries. Thus, by growing environmentally friendly trees, employing organic manure, and refraining from farming methods that contaminate the environment and expose the soil to erosion, the people of Sub-Saharan Africa should join the global fight for environmental sustainability.

Ethnicity, Inequality and Economic Development in Sub-Saharan Africa: The Influence of Ethnicity in Political Mobilization and Resource Distribution: The Case of 2013 Presidential Elections in Kenya

Ethnicity, Inequality and Economic Development in Sub-Saharan Africa: The Influence of Ethnicity in Political Mobilization and Resource Distribution: The Case of 2013 Presidential Elections in Kenya

Every farmer is a farmer? A critical analysis of the emergence and development of Peasant Farmers Association of Ghana

Smallholder farmer-based rural social movements have been heralded as a promising source of political power with the potential to effectively promote sustainable trajectories of agricultural development in Sub-Saharan Africa and beyond. However, the very early stages of rural social movement building remain understudied, including under what conditions such nascent efforts are likely to lead to effective political influence and foundations for broader collective action. Drawing on insights from organizational studies and resource mobilization theories, we provide an analytical narrative of the emergence and development of a smallholder farmer-based policy advocacy organization, the Peasant Farmers Association of Ghana (PFAG). Through analysis of organizational documents and an extensive open-ended focus group interview with PFAG’s founders, long-term members, and current staff, we discuss how PFAG managed to overcome the “liability of newness” faced by new organizations, and how its resulting organizational structure influences its modes of resource mobilization and thus type and coverage of its advocacy and service delivery activities. Considering this developmental narrative, we elaborate several challenges that PFAG faces in pursuit of its ambitions to expand its influence in Ghanaian agricultural policy and practice. Our findings indicate the need for PFAG to address emerging contradictions in project activities and uneven geographical coverage, manage tensions between advocacy and service delivery objectives and to work towards establishing an umbrella agenda capable of providing for the diverse and evolving needs of their membership base.

The effect of financial development and legal institutions on financial inclusion in Sub-Saharan Africa

Purpose of the studyThis study examines the impact of financial development on financial inclusion and the moderating role of legal institutions in enhancing the effect of financial development on financial inclusion in sub-Sahara Africa. The previous literature does not explain how financial development could improve financial inclusion even though the systems theory of financial inclusion argues so. Design/methodology/approachUsing data from WDI for 41 sub-Sahara Africa countries between, 2000–2020, a two-step system GMM and quantile regression models are used to estimate the objectives of the study. The study takes into consideration the exceptional impact of COVID-19 and the importance of internet usage, along with other macroeconomic factors. FindingsThe sys-GMM shows that financial development positively influences financial inclusion. Across diverse measures of financial development and estimation techniques, a consistent and significant positive relationship is observed. Furthermore, the quantile regression approach reveals that at the 25th,50th, and 75th quantile of financial inclusion, the effect of financial development is positive. In both the sys-GMM and quantile regression, the effect of institutions on financial inclusion is positive and also positively moderate the association between financial development and inclusion. Financial is influenced by other key macroeconomic variables. Recommendations/valueThe study recommends that Governments and policymakers prioritize initiatives aimed at advancing financial development in sub-Saharan Africa. Additionally, enhancing the legal and regulatory environment governing financial services, encompassing aspects such as contract enforcement, property rights protection, and corruption reduction, is crucial for sustained financial inclusion. ImplicationsOpen innovation in the financial sector, particularly in mobile payments, can benefit from the positive impact of financial development on inclusion. Also, open innovation in delivery services can benefit from financial inclusion initiatives, ensuring that individuals and businesses across diverse economic strata have access to efficient and affordable financial delivery services.

Unfulfilled promises: reconsidering World Bank assistance projects as drivers of inclusive development in sub-Saharan Africa

ABSTRACT ‘Urban bias’ has been a common criticism of World Bank (WB) assistance, but to what extent this will lead to non-inclusive development remains unclear. Measuring the multidimensional poverty gap of rural individuals in 31 sub-Saharan Africa (SSA) countries compared to the average level of urban areas in their respective first-order administrative divisions, we introduce a spatial-temporal estimation strategy and explore whether and how the WB assistance projects from 2000 to 2014 can impact SSA’s inclusive growth. Our findings suggest that while WB assistance promotes local economic growth and reduces poverty, it widens the poverty gaps between urban and rural, and even among different income groups within urban areas. Furthermore, our mechanism analysis reveals that the expanding opportunity gap between rural and urban residents is a critical channel for the non-inclusiveness of WB assistance.

The Impact of China's “Stadium Diplomacy” on Local Economic Development in Sub-Saharan Africa

The Impact of China's “Stadium Diplomacy” on Local Economic Development in Sub-Saharan Africa

The anatomy of crises in Sub- Saharan Africa economic underdevelopment: A literature review

Political upheaval, economic crisis, corruption and food insecurity are the bane for economic underdevelopment in sub–Saharan Africa; these have caused many lives to face some difficulties and to witness unpalatable experiences. This paper looked into this issue and brought out some factors that likely aggravate the difficulties, crises and insecurity in sub–Saharan Africa especially. A few internal factors that contribute to food insecurity include poor leadership, conflict and subconscious of political administration. It is believed that outside factors contributed in a subtle, occasionally overt manner to the solution of the issue. This paper explained how political crisis, economic crisis, insecurity and food insecurity as a bane of economic underdevelopment of the sub-Saharan African country. The political crisis ranges from an underdeveloped political system, frequent changes in government, political instability, frequent change in government policies, abandonment of economic programs, and banditry and pirate activities at sea. Economic crises such as inflation, debt servicing, bogus foreign exchange regime, infrastructural decay, wrong economic policies are part of the bane of underdevelopment in sub-Saharan Africa. While on Food insecurity, drought, pest and diseases, pandemic outbreak (COVID19), Ukraine crisis/war, storage inadequacy, and seasonality of produce was part of the predicament that hinders development in sub-Saharan Africa. Also, suggestions were made to improve both the political and economic issues regarding food security and the development of sub-Saharan Africa.

Informal Sector and Financial Development in Sub-Saharan Africa

Since a persistent increase is seen in the size of the informal sector and its continuous coexistence alongside the formal sector and institutional development, this study empirically examines the effect of informal sector size on the financial development in Sub-Saharan Africa for the period 1996-2019. The study represents financial market development by the financial market depth, which is regressed against informal sector size, growth rate of GDP, interest rate, trade openness, and institutional quality index. The study relied on the estimates of the Discroll-Kraay and IV-2LS. Results indicate that informality repressed financial development, while trade openness, growth rate of gross domestic product, interest rate, and institutional quality have a positive impact on financial development. It is therefore recommended for policymakers to reduce the size of informality to improve the financial sector.

Discretionary Accrual Earnings Management in a Sub-Saharan African Economy

This paper investigates the existence of discretionary total accrual earnings management and working capital accrual earnings management in Nigeria which is Sub-Saharan Africa's largest economy. Unlike previous studies that use the Ordinary Least Squares (OLS) technique that does not control for endogeneity that can invalidate results, our empirical methodology implements the maximum likelihood estimation that controls for endogeneity to estimate economically plausible levels of discretionary accrual earnings management. Our results find that discretionary accrual earnings management in Nigeria is characterized by statistically significant, tax-induced income-reducing discretionary accruals. This study contributes to the literature as it is the first emerging market, African and Sub-Saharan African economy study to the best of the researchers’ knowledge that estimates discretionary accrual earnings management for listed non-financial firms using various models based on the maximum likelihood estimation technique to control for endogeneity. The findings inform the political economy of economic development in Sub-Saharan Africa, particularly as it relates to how firms, especially multinationals, are motivated to extract rents from African economies. The results have policy implications for accounting regulatory interventions by policy and standard setting bodies that mitigate and/or eliminate capital flight, tax evasion, aggressive tax avoidance and financial corruption practices in Sub-Saharan African economies.

Maternal stimulation and early child development in sub-saharan Africa: evidence from Kenya and Zambia

BackgroundDespite major improvements in child survival over the past decade, many children in low and middle-income countries (LMICs) remain at risk of not reaching their developmental potential due to malnutrition, poor health, and a lack of stimulation. Maternal engagement and stimulation have been identified as some of the most critical inputs for healthy development of children. However, relatively little evidence exists on the links between maternal stimulation and child development exists in sub-Saharan Africa (SSA). This current paper aims to identify the associations between maternal stimulation and child development in Kenya and Zambia, as well as the activities that are most predictive of developmental outcomes in these settings.MethodsWe conducted a descriptive study using data from a prospective study in Kenya and Zambia. The study included three rounds of data collection. Children were on average 10 months old in round one, 25 months old in round two, and 36 months old in round three. The primary exposure variable of interest was maternal stimulation activities, which we grouped into cognitive, language, motor, and socio-emotional activities. The outcome of interest was child development measured through the Third Edition of the Ages and Stages Questionnaire (ASQ-3). Linear regression models were used to estimate the associations between overall maternal stimulation and domain-specific maternal stimulation and child development across the three rounds of the survey.ResultsHigher maternal stimulation scores were associated with higher ASQ scores (effect size = 0.25; 95% CI: 0.19, 0.31) after adjusting for other confounders. For domain specific and child development (ASQ scores), the largest effect size (ES) was found for language stimulation (ES = 0.15) while weakest associations were found for socio-emotional domain activities (ES= -0.05). Overall maternal stimulation was most strongly associated with gross motor development (ES = 0.21) and the least associated with problem-solving (ES = 0.16).ConclusionOur study findings suggest a strong positive link between maternal stimulation activities and children’s developmental outcomes among communities in poor rural settings.Trial registrationNA (not a clinical trial).

Institutions and venture capital market development in sub‐Saharan Africa

AbstractWe investigate the critical interplay between economic institutions and political institutions and assess their influence on venture capital market development in sub‐Saharan Africa (SSA). To address endogeneity concern in our model specification, the two‐step system generalised method of moments was employed on a sample of 34 SSA countries from 2007 to 2018. The findings reveal that strengthening disaggregated measures of economic institutions, comprising legal system and property rights, size of government, sound money, regulations, and freedom to trade internationally spur venture capital market development in SSA. Finally, the evidence indicates that political institutions condition the influence of economic institutions on venture capital market development. The implications for policy are further discussed.

Resilience and spillover effects on bank financing for the private sector development in sub-Saharan Africa

Resilience and spillover effects on bank financing for the private sector development in sub-Saharan Africa

Understanding the Efficiency in Generating Human Development in Sub-Saharan Africa: A Two-Stage Network DEA Approach

Understanding the Efficiency in Generating Human Development in Sub-Saharan Africa: A Two-Stage Network DEA Approach

Foreign direct investment and renewable energy development in sub-saharan Africa: Does governance quality matter?

Existing studies have been separated, considering the foreign direct investment (FDI) and renewable energy development (RE) nexus and the governance quality-renewable energy development relationship. However, the study regarding the moderation of governance quality on the FDI-renewable energy nexus is quite scarce. To fill the gap in the literature, the study therefore examines the moderation of governance quality on the influence of FDI on RE in 37 sub-Saharan African economies over the period 1996–2020. To achieve this goal, the panel corrected standard errors (PCSE) estimation technique has been adopted. The results show that FDI has a positive and significant effect on RE, meaning that an increase in foreign direct investment could lead to a 0.05 increase in RE. Moreover, the results unveil that governance quality is positively and significantly associated with RE. This means that an unit increase in control of corruption, governance effectiveness, rule of law, and voice and accountability leads to a 9.64, 9.10, 10.10 and 9.08 increase unit in the renewable energy sector, respectively. Most importantly, the results indicate that the interaction between FDI and governance quality has a positive and significant effect on RE. Policy implications are discussed based on the findings revealed by this study.