Development In sub-Saharan African Countries Research Articles

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.

The impact of foreign investment in financing sustainable development in Sub‑Saharan African countries

This study outlines the features of financing investment development in Sub-Saharan African countries. Using the financial determinants of GDP, a model was developed based on the method of least squares employing data covering 2004–2018. It was revealed that a positive correlation exists between economic growth and bank loans as well as official development assistance. The results of the model indicate that bank loans and remittances significantly increase economic growth. However, both foreign direct investment and official development assistance (ODA) were found to be ineffective in promoting development, and this is attributable to its investment model (resource-seeking) and the conditions under ODA financing, respectively, in the region. Bank loans were found to be the most influential in promoting sustainable growth in the region. Hence, it is instructive that the reforms are needed and incentives are to be developed to improve the level of the region’s financial and banking sector development and facilitate the sustainable socioeconomic development of these economies.

Determinants of digital technology development in sub-Saharan African countries: evidence from panel data analysis

The primary objective of this research is to explore the elements that shape the progression of digital technology in Sub-Saharan African nations. The study employs data obtained from 16 countries, covering the period between 2000 and 2020. Employing fixed effect panel regression analysis, our research indicates that various non-technological factors significantly impact digital technology development in the region. The results highlight that variables including general government final consumption expenditure, inflation rate, employment growth rate, financial development, ease of doing business index, logistics performance index, international migration, access to electricity, and access to safe drinking water have a positive impact on the development of digital technology. Conversely, international trade is identified as a negative influence, primarily due to insufficient infrastructural development. These findings underscore the significance of non-technological elements, encompassing aspects like globalization, economic conditions, favorable digital ecosystems, and the fulfillment of basic human needs, in shaping the landscape of digital technology in the region. The study, while acknowledging limitations in terms of selected indicators, years, and countries, emphasizes the need for broader investigations in future research. Practically, the study suggests that governments in the region should prioritize addressing these non-technological factors to fully leverage the potential of digital technology development. The originality and value of this research lies in its exploration of non-technological determinants, shedding light on their pivotal role in shaping the digital technology landscape in sub-Saharan Africa.

Remittance inflows and financial development in Sub-Saharan African countries: Does governance matter?

BackgroundThe surge in remittances in most sub-Saharan African countries motivated this study to establish whether remittance inflows enhance financial development and whether governance plays any significant mediating role in the nexus between financial development and remittance inflows. PurposeThe study examines the impact of remittance inflows on bank-based financial development in 26 sub-Saharan African (SSA) countries using three proxies of bank-based financial development. The study also examines whether government regulatory quality and effectiveness modulate the impact of remittance on bank-based financial development. MethodThe generalised method of moments (GMM) estimation technique is used to examine this linkage. ResultsThe results show that when financial development is proxied by liquid liabilities and bank deposits, remittance inflow is found to have an unconditional positive impact on bank-based financial development, while governance is found to reinforce the positive relationship between remittance and financial development. However, when financial development is proxied by deposit money bank assets, remittance is found to have no profound effect on bank-based financial development, but it was found to interact with government effectiveness to yield a positive influence on financial development. ConclusionOverall, remittance inflows were found to have an overwhelming positive impact on the banking sector development. It was also found that good governance generally tends to reinforce the positive impact of remittances on banking sector development. NoveltyThis study adds value to the extant literature by providing answers to the role that governance plays in enhancing the impact of remittances on financial development in sub-Saharan African countries.

Infrastructure development in sub-Saharan African countries: does insurance matter?

Infrastructure development in sub-Saharan African countries: does insurance matter?

A multidimensional appraisal of domestic investment, external debt and economic development nexus: evidence from SSA

PurposeThis study examines the effect of external debt and domestic capital formation on economic development in Sub-Saharan African (SSA) economies.Design/methodology/approachUsing the Dynamic Common Correlation Effects (DCCE) technique and the Driscoll and Kraay fixed-effect technique, this paper conducts a multidimensional assessment of external debt and domestic investment on economic development across a panel of 35 SSA countries from 1995 to 2018. The data utilized are sourced from the World Development Indicators (2021) and the United Nations Development Program (UNDP) database (2021).FindingsThe results reveal that domestic investment has a positive impact on economic development in SSA countries, consistent across all three dimensions of the human development index (income, education and life expectancy). However, external debt exhibits an adverse effect on economic development, consistently yielding negative outcomes for life expectancy, education and income.Practical implicationsBased on these findings, the authors recommend that SSA economies implement appropriate policies, such as reducing bureaucratic requirements and addressing corruption, to enhance domestic capital investment. Additionally, efforts should be directed toward channeling contracted debt into productive sectors like road construction and electricity provision.Originality/valueThis study is among the first to assess the impact of domestic investment and external debt on the three dimensions of human development outlined by the UNDP. Furthermore, it employs a robust econometric method that considers cross-sectional dependence (CD).

Accessing the impact of poverty age groupings on carbon neutrality targets: scenarios from developing Sub Sahara African countries.

Sustainable development aims to both alleviate poverty and protect the environment. Previous research has explored the connection between poverty and carbon emissions. However, in Sub-Saharan Africa, nearly half of the population lives below the international poverty line, hindering economic growth and sustainable development. Therefore, this current study aims to further explore different age groupings of poverty and economic growth relates to environmental pollution, in 43 Sub-Saharan African nations. This study addresses existing gaps by employing the Driscoll-Kraay (D-K) standard error technique and the method of moments quantile regression to examine the connections between variables, yielding significant findings. The results indicate that youth and middle age poverty has an inverse relationship with environmental pollution. In conclusion, this study emphasizes the critical importance of addressing poverty in the formulation of policies aimed at mitigating environmental pollution and promoting sustainable development in Sub-Saharan African countries. Insights from this research can inform policymakers and other stakeholders in designing more effective interventions, programs, and initiatives to combat both poverty and environmental degradation, ultimately leading to a better and more equitable environment.

Renewable energy, agriculture, and carbon dioxide emissions nexus: implications for sustainable development in sub-Saharan African countries

Sub-Saharan Africa (SSA) has experienced a high economic growth rate over the last two decades, which has been accompanied by concerns about increasing carbon dioxide (CO2) emissions. This study aims to find out whether renewable energy and agriculture can help reduce CO2 emissions for selected SSA countries. A balanced dataset incorporating CO2 emissions, renewable energy consumption, agricultural land per capita, GDP per capita, urbanization level and energy intensity of 38 SSA countries covering the period 2000–2019 is utilized. The differentiated-generalized method of moments (GMM) is employed as a benchmark estimation method to estimate the effects of renewable energy and agriculture on CO2. The regional heterogeneity analysis of countries at different income levels is then carried out. The moderating role of government governance in the energy-agriculture-environment nexus is also investigated. The following conclusions are highlighted: (1) the consumption of renewable energy can reduce CO2 emissions, while agriculture increases them; (2) the mitigating effect of renewable energy on CO2 emissions is relatively larger in countries at a low income level countries than in high-income countries, while agriculture aggravates CO2 emissions in lower middle-income and low-income regions, but mitigates emissions in upper middle-income regions; and (3) governance quality turns the mitigating role of renewable energy use on CO2 emissions into an increasing one, and exaggerates the polluting effect of agriculture. Finally, the study proposes policy implications for improving renewable energy use and green agricultural growth to achieve sustainable development in SSA.

Does financialization enhance renewable energy development in Sub-Saharan African countries?

This study examines the influence of financial development, fiscal policy, and foreign capital on renewable energy development in 21 Sub-Saharan African nations from 2000 to 2021. The aim is to address the dearth of information on how the financial sector affects renewable energy. Using panel data and the Panel Quantile Autoregressive Distributed Lag (PQARDL) technique, we analyze the short- and long-term impacts of these factors while considering industrialization and institution quality. Our findings indicate that financial development and fiscal policy pose significant obstacles to renewable energy development across all quantile distributions in the long run. However, foreign capital positively contributes to renewable energy development across most quantiles, except the 70th quantile. We also observe a declining trend in Sub-Saharan Africa's share of renewable development due to industrialization and institutional quality in the long term. Furthermore, the interactive roles of fiscal policy and institutional quality hinder renewable advancement in the region over time. These empirical outcomes provide valuable insights on how to attract foreign capital and allocate investments in renewable development. By doing so, we can offer consumers cost-competitive choices and strive towards extending high-value-added facilities within a sustainable environment.

Tsetse flies (Glossina morsitans morsitans) choose birthing sites guided by substrate cues with no evidence for a role of pheromones.

Tsetse flies significantly impact public health and economic development in sub-Saharan African countries by transmitting the fatal disease African trypanosomiasis. Unusually, instead of laying eggs, tsetse birth a single larva that immediately burrows into the soil to pupate. Where the female chooses to larviposit is, therefore, crucial for offspring survival. Previous laboratory studies suggested that a putative larval pheromone, n-pentadecane, attracts gravid female Glossina morsitans morsitans to appropriate larviposition sites. However, this attraction could not be reproduced in field experiments. Here, we resolve this disparity by designing naturalistic laboratory experiments that closely mimic the physical characteristics found in the wild. We show that gravid G. m. morsitans were neither attracted to the putative pheromone nor, interestingly, to pupae placed in the soil. By contrast, females appear to choose larviposition sites based on environmental substrate cues. We conclude that, among the many cues that likely contribute to larviposition choice in nature, substrate features are a main determinant, while we failed to find evidence for a role of pheromones.

Institutions in the development of Sub-Saharan African countries in 2004–2019

Motivation: Institutions play a significant role in development processes, contributing to understanding the economic backwardness of Sub-Saharan Africa. There is no consensus in the literature on the specific set of institutions that significantly influence developmental processes. Furthermore, there is no convincing evidence that institutions create the proper environment for long-term growth or result from increased development due to advances in human capital and investments. Therefore, the article examines overcoming the developmental backwardness of those countries following sustainable development.Aim: The article aims to analyze whether institutions contribute to the development processes of Sub-Saharan African countries. The paper identifies the differences in channels of institutions’ impact on the two development measures, GDP per capita and the Human Development Index (HDI). Regarding the high diversity in the level of development of countries in the region and the differences in their institutional systems, thirty-two countries in Sub-Saharan Africa were grouped regarding HDI level.Results: The heterogeneous panel Autoregressive Distributed Lags (ARDL) models revealed that in the lower developed countries, financial aid in the form of grants or very low-interest loans from the World Bank and OECD is of particular importance. They show that increased use of CO2 is a proxy for driving forces of African economies (production, investments, etc.). Indicators referring to institutions’ measurement like government effectiveness, political stability, economic freedom, or the number of days for establishing a business play important roles in continuing development.

Spatial spillover effects of official development assistance on environmental pressure in sub-Saharan African (SSA) countries

Impoverished sub-Saharan Africa (SSA) is under increasing environmental pressure from global environmental changes. It is now generally accepted in academic circles that economic development in SSA countries can cause environmental pressure in other countries. However, there is research gap on the impact of economic assistance on environmental pressure in SSA countries and whether economic assistance causes spatial spillovers of environmental pressure between SSA countries. To better understand the impact of economic assistance on environmental pressures in SSA, a dynamic spatial Dubin panel model was developed. It helped us explore the spatial spillover effects of economic assistance on environmental pressures in recipient countries based on the panel data from 34 SSA countries. The results show that economic assistance had a positive stimulating effect on environmental pressures of recipient countries, which means that the degree of human disturbance to the environment has deepened. Due to the regional correlation effect, neighboring countries were saddled with environmental pressures from the target country. Moreover, environmental pressures have time inertia, which can easily produce a snowball effect. The decomposition of effects shows that the impact of economic assistance on environmental pressures is relatively minor. Environmental pressures have spillover effects, so to deal with diffuse risks, joint regional prevention and control policies should be developed.

How Catalytic Is Digital Technology in the Nexus between Migrants’ Remittance and Financial Development in Sub-Saharan African Countries?

Given the indisputable roles of remittance and financial development in countries’ economic performance, enhancing the nexus between the two variables has become pertinent. The remittance–financial development literature has surged, with a growing argument that making the relationship work is conditioned on mediating roles of certain economic indicators. Despite the overwhelming evidence of the transformative roles of digital technology, the assessment of its possible mediating role in the remittance–financial development nexus is lacking in the literature. Hence, using pooled data of 35 Sub-Saharan African (SSA) countries sourced from the World Bank’s Development Indicators, this study examined the mediating effect of digital technology in the relationship between remittance inflows and financial development. Using two indicators of ICT—fixed broadband and mobile cellular subscription—the results of the generalized method of moment analysis suggest that digital technology spurs remittance inflows to promote financial development in SSA. The results are consistent for both measures. These findings imply that remittance and digital technology are complementary in promoting financial development in the sub-region. Based on these outcomes, the study therefore advances the enactment of policies aimed at fostering diffusion of digital technology and achieving the sustainable development goal’s recommendation of lower transaction cost of remittances.

The importance of Banking sector in the growth of Nation economy: A case study of Stanbic bank in South Sudan

The banking industry is essential to supporting other institutions and general economic development in sub-Saharan African countries, acting as a vital support system for other institutions and overall economic development. This research aims to examine the correlation between banking sector assets, bank deposits, and liquid liabilities and their implications for the economy. A comprehensive survey was conducted, targeting all commercial banks in South Sudan. The questionnaire was completed by 50 directors, managers, and senior officers. The findings showed a tenuous inverse link between consumer deposits and economic expansion. To address these concerns, it is imperative for the government to establish a stable political system, exercise fiscal discipline, and establish effective information infrastructure within the banking sector. Policymakers should also prioritize tackling tax evasion and avoidance to bolster bank profitability and effectively deal with the challenges faced by the economy.

The Impact of Governance on Financial Institution and Financial Market Development: Empirical Evidence from Emerging Markets

Abstract The overall objective of the study is to investigate the impact of governance on financial development in Sub-Saharan African countries. To achieve the stated objective, the study employed balanced data of 43 Sub-Saharan African countries during the year 2002 to 2018. To analyze the data, the study used both the fixed and random effect estimation approaches and explored the relationship between the three dimensions of governance and three pillars of financial development in Sub-Saharan African countries. The study also applied the Principal Component Analysis (PCA) to create indexes for the political, economic, and institutional dimensions of governance taking the six world governance indicators. The overall findings of the study indicate that the political, economic, and overall governance composite index has a positive and significant impact on the overall financial developments of sub-Saharan African countries. The development of financial institutions in the region is influenced significantly and positively by political, institutional, and overall governance. In addition, the economic dimension of governance has had a significant and positive impact on the development of the financial markets in sub-Saharan Africa. Furthermore, trade openness, real interest rate, inflation, real GDP, and access to electricity are all major macroeconomic predictors of financial development, according to the study. As a result, all aspects of governance quality in the Sub-Saharan African countries must be improved. This can be achieved by policies aimed at strengthening voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, corruption control, and overall macroeconomic reform.

Hypertension and Socioeconomic Status in South Central Uganda: A Population-Based Cohort Study.

Background:Limited studies exploring the impact of socioeconomic status (SES) on hypertension in Africa suggest a positive association between higher SES and hypertension. The economic development in sub-Saharan African countries has led to changes in SES and associated changes in lifestyle, diet, and physical activity, which may affect the relationship between hypertension and SES differently compared with higher income countries. This cross-sectional study from a large population-based cohort, the Rakai Community Cohort Study (RCCS), examines SES, hypertension prevalence, and associated risk factors in the rural Rakai Region in south-central Uganda.Methods:Adults aged 30–49 years residing in 41 RCCS fishing, trading, and agrarian communities, were surveyed with biometric data obtained between 2016 and 2018. The primary outcome was hypertension (systolic blood pressure (BP) ≥ 130 mmHg or diastolic BP ≥ 80 mmHg). Modified Poisson regression assessed the adjusted prevalence ratios (PR) of hypertension associated with SES; body mass index (BMI) was explored as a potential mediator.Results:Among 9,654 adults, 20.8% had hypertension (males 21.2%; females 20.4 %). Participants with hypertension were older (39.0 ± 6.0 vs. 37.8 ± 5.0; p < 0.001). Higher SES was associated with overweight or obese BMI categories (p < 0.001). In the multivariable model, hypertension was associated with the highest SES category (aPR 1.23; confidence interval 1.09–1.38; p = 0.001), older age, male sex, alcohol use, and living in fishing communities and inversely associated with smoking and positive HIV serostatus. When BMI was included in the model, there was no association between SES and hypertension (aPR 1.02; CI 0.90–1.15, p = 0.76).Conclusion:Hypertension is common in rural Uganda among individuals with higher SES and appears to be mediated by BMI. Targeted interventions could focus on lifestyle modification among highest-risk groups to optimize public health impact.Key Messages What is already known about this subject? Hypertension is an important modifiable risk factor for cardiovascular disease.There are few large epidemiological studies that investigate the relationship between hypertension and socioeconomic status in low-income countries. What are the new findings? Hypertension is common among adults in rural South–Central Uganda, particularly among those with higher socioeconomic status.BMI is a mediator of the relationship between hypertension and socioeconomic status. How might it impact on clinical practice in the foreseeable future? These findings suggest that public health interventions and community efforts to prevent chronic cardiovascular disease and hypertension should focus on lifestyle modification by elucidating obesity risk perception and health risk awareness, particularly among those of higher socioeconomic status.

The Effect of Resource Endowment and Governance on Human Capital Development of Sub-Saharan African Countries

Human capital development is a process of enhancing the level of human capital capacity through attaining school and provides incentive-based training. The study helps to analyze the interaction between governance, resource and human capital in the study area. To conduct this study panel data type from 2005-2018 has been used, the data obtained from the World Bank database and the Penn world database and for analysis, both descriptive and system GMM panel data analysis have been used. The main reasons enforce to conduct this study is to checkup whether the resource endowment and governance important for human capital? Results of this study show that except for lag of human capital and voice and accountability other variables like resource endowment, labor participation rate, foreign direct investment, rule of law, and regularity quality are statistically and negatively affected human capital development. Given these results, the researcher recommended as, a responsible bodies in sub-Saharan African countries should be attained on the expansion of FDI that has to be especially concentrated on the manufacturing sector; an institution for good governance first should develop than formulate good governance principles, and finally develop resource merit institution in the favor of human capital development.

Transmission Mechanism of Globalization and Its Impact on Human Welfare Development in Sub-Saharan African Countries

The increased intensity of globalization across borders integrated the sub-Saharan African (SSA) countries into the world economy as shown by the increasing degree of trade openness (from 55.4% in 1980–1984 to 65.6% in 2000–2015) and foreign direct investment as a percentage of GDP (from 0.3% in 1980–1984 to 2.85% in 2000–2015). The quality of life of the people in the region improved marginally regarding access to basic needs. However, the effects of globalization on access to basic needs such as water, sanitation, healthcare services have received little attention. Thus, this study investigates the impact of globalization on human welfare in sixteen SSA countries over the period 1980-2015. Using a panel fixed effect approach, the findings revealed that globalization through its various channels (trade openness, capital and financial flows and labour mobility and information technology), improves human welfare indicators in sub-Saharan Africa. However, the low level of good governance in the region deteriorates the development of human wellbeing. Thus, there is a need to improve the quality of overnance to enhance the welfare of the people through global interactions.

The question of school language in multilingual societies: the example of Ghana

The language used in school represents a crucial and polemic question in multilingual societies. Sub-Saharan Africa represents a world region with a significant linguistic diversity. Until recently, most of these countries were European colonies. During colonial times, the colonizer language generally dominated in schools. After their independence, many countries have continued using that language as the instructional language. It is observed that quite often, children are schooled in a second language, and teachers must teach in a foreign language. This situation results in potentially negative consequences affecting school learning. The specific example of Ghana is examined. It is pointed out that in Ghana during recent years frequent changes have been introduced in school language. Commonly, English is used as the primary school language. Because this association between language and school learning, speaking English provides not only significant social prestige, but also results in better working opportunities. The question of so-called “international schools” in Ghana is also examined; most of these schools do not teach any of the Ghanaian languages, but a foreign language, such as French, Spanish, or Portuguese. It is argued that these international schools may have adverse consequences on Ghanaian children who attend them. Ghana, however, has been a strong advocate of the so-called “African personality” and the use of English as the medium of instruction is in overt opposition to this ideology. It is concluded that children schooled in a second language, and teachers teaching in language that they do not master well enough may represent a potential barrier for the social, scientific, and economic development of sub-Saharan African countries, such as Ghana.

DOES REMITTANCE INFLOW PROMOTE HUMAN DEVELOPMENT IN SUB-SAHARAN AFRICA? AN EMPIRICAL INSIGHT

This paper examines the relationship between human development, remittances and other macroeconomic variables like life expectancy, human capital, FDI, inflation, economic growth and financial development by considering 31 Sub-Saharan African (SSA) countries during the period of 1990–2018. Kao and Fisher residual cointegration tests are applied to check the cointegration among the variables in the long-run. We apply fully modified OLS (FMOLS) and DOLS to show the long-run elasticity of explanatory variables on dependent variable. The result indicates that remittances have a positive and statistically significant effects on human development in SSA region. Similarly, government expenditure, human capital, inflation and economic growth have positive effects on human development in the region. Dumitrescu–Hurlin panel granger causality tests were observed such that there is a unidirectional causality between remittance and human development in SSA countries. However, human development and inflation rate show bi-directional relationship with each other. This paper suggests that public policies can be conceived to promote health, education and income, thereby encouraging and enhancing human development. Policymakers should also rely on other macroeconomic factors, such as government spending and financial development, to stimulate human development in SSA region.