Economic Development In Africa Research Articles

Labor differentiation and cotton productivity in Burkina Faso

AbstractAgriculture is a very important sector in Africa's economic development, particularly in Burkina Faso, as it employs a large proportion of the population. Given the importance of labor in this sector, a good allocation of the different types of labor could help increase agricultural productivity in Burkina Faso. This research contributes to the literature by determining the specific contributions of each type of labor in enhancing cotton productivity. The sample of this research is 477 cotton farms, and a semiparametric stochastic frontier model has been used in the analysis. The results show that the proportion of wage labor has a nonlinear effect and contributes to improving cotton productivity when the number of educated people in the household increases. But family labor decreases cotton productivity when the number of educated people in the household increase. The comparison between the findings of the semiparametric and parametric frontier shows that technical efficiency is 72.44% when education is used as the channel through which production factors affect cotton productivity. However, this technical efficiency is 54.96% when production factors directly affect cotton productivity in the parametric frontier model. Promoting education in rural areas will help to increase the number of people educated and consequently improve cotton productivity.

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.

A REVIEW OF SMALL BUSINESS GROWTH STRATEGIES IN AFRICAN ECONOMIES

This comprehensive review delves into the dynamic landscape of small business growth strategies within the diverse economies of Africa. Small and medium-sized enterprises (SMEs) play a crucial role in driving economic development and fostering job creation across the continent. However, the challenges faced by these enterprises are multifaceted, ranging from limited access to finance and market constraints to regulatory hurdles. This review examines a spectrum of strategies employed by small businesses to overcome these challenges and achieve sustainable growth. The study analyzes various financial mechanisms that facilitate small business growth in African economies. From traditional banking channels to innovative fintech solutions, the review explores the evolving landscape of financial inclusion and assesses its impact on SME development. Additionally, the role of government policies and interventions in creating an enabling environment for small businesses is scrutinized, shedding light on successful models that have spurred entrepreneurial growth. Market access is a critical determinant of small business success, and this review investigates the strategies employed by SMEs to penetrate local and international markets. From leveraging digital platforms to forming strategic partnerships, the examination reveals the importance of adaptability and innovation in overcoming market entry barriers. Furthermore, the study explores the impact of technology adoption on small businesses, highlighting the transformative power of digital tools in enhancing efficiency, reaching new customers, and optimizing operational processes. In the context of the African continent's unique socio-cultural and economic diversity, the review also delves into the significance of knowledge transfer and skills development. Collaborative initiatives, mentorship programs, and educational interventions are assessed for their role in equipping entrepreneurs with the capabilities required for sustainable growth. In conclusion, this review synthesizes current literature on small business growth strategies in African economies, offering valuable insights for policymakers, practitioners, and researchers alike. The findings underscore the importance of a holistic approach that integrates financial inclusion, policy support, technological innovation, and capacity building to foster a vibrant small business ecosystem and contribute to overall economic development in Africa. Keywords: Small Business, Growth, Strategies, Economies, Development.

Digital Tools for Boosting the Impact of Fiscal Decentralization in Africa's Local Economies

Background Fiscal decentralization offers potential for stimulating local economic development in Africa, empowering subnational governments to control revenue and spending. However, challenges such as urbanization, poverty, inequality, insufficient infrastructure, and governance issues hinder the successful implementation of the core tenets of fiscal decentralization. This paper explores the role of digital technologies in promoting greater fiscal decentralization and revenue enhancement, as a strategic response to these local economic development challenges in Africa. Method Through a systematic literature review, this study explores the role of fiscal decentralization in driving local economic development, with a focus on leveraging digital technologies to boost revenue generation and strengthen governance and institutional capacity at the subnational level. Results The research underscores the importance of investing in digital infrastructure, skill development, and regulatory frameworks, while addressing data privacy and security concerns. Conclusion By emphasizing the transformative impact of digital technologies fiscal decentralization and property taxation, this paper contributes to the existing literature and highlights avenues for promoting local economic development across Africa.

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.

Determinants of illicit capital movement in China‐Africa trade: Evidence of trade misinvoicing

AbstractIllicit financial flows have been an issue of great concern over the past decades due to the challenge they present for economic development in Africa. Illicit financial flows undermine the productivity and growth of African economies as countries lose foreign exchange and tax revenues. Countries lose financial resources needed for development programs, hence undermining social service delivery and retarding poverty reduction. To effectively combat illicit financial flows, it is imperative to examine their determinants. This study seeks to examine the determinants of illicit capital movement in the China‐Africa trade through the mechanisms of trade misinvoicing over the period 1990–2019. The IMF's Direction of Trade Statistics (DOTS) database is used to estimate trade misinvoicing. Estimates using mirror trade data indicate that both exports of Africa to China and imports from China to Africa are mainly underinvoiced. The net effect shows that trade misinvoicing in the China‐Africa trade results in net illicit capital outflow for about 44% of countries in Africa. The results from panel data regressions indicate that tax evasion is one of the major factors behind misinvoicing in China‐Africa trade. In addition, corruption control is found to reduce export underinvoicing, while political stability reduces both export overinvoicing and import overinvoicing. Export misinvoicing increases with the presence of natural resources in the exporting country. Other factors associated with trade misinvoicing in China‐Africa trade include openness to trade, current account deficit, and real exchange rate. The study suggests ways to reduce trade misinvoicing in China‐Africa trade.

Nurturing Development Administration in South African Local Government

This paper aims to unpack the relationship between the development administration and local government in fostering socio-economic development. the paper argues that the effective implementation of the development administration sufficiently contributes to local government productivity in delivering government development-oriented services and programs. Development administration includes strengthening administrative capabilities. Development administration covers a wide range of techniques used by large organizations, most notably the government to implement plans and policies that are meant to assist them in achieving their developmental objectives. The main goal of development administration is to create a better social, political, and economic environment. The local government plays a crucial role in Africa's economic development trajectory.  the paper is conceptual in nature as relies heavily on secondary data and existing literature to address the answer to the inherent argument. from the literature, authors derived findings such as a lack of adequate political capability and politicization of development, corruption, lack of accountability, low priority of quality assurance, poor monitoring, and evaluation of socioeconomic policies, excessive political control, poor capacity development, nepotism, lack of community participation, resources constraints, inter alia. the study recommends that further research should be conducted in all municipalities within South Africa to detect the problem associated with development administration for effective enhancement of socio-economic development as well as reinforcing and easing the sustainable development in local government. since public administration is regarded as a social science discipline the study contributes to the field of public administration and development as it deals with assessing and resolving the social, political, and economic problems that affect day to day life of communities. Development administration also contributes to the National Development Plan as it enhances the social, political, and economic arena.  the study can also influence public officials to be equipped with more skills to meet the socio-economic needs of the communities.

Infrastructure and Structural Change in Africa

Abstract Past investments in electricity, Internet, and road infrastructure, in isolation and bundled, have contributed to structural transformation and economic development in Africa. Using new data on the expansion of the road, electricity, and Internet networks over the past two decades, the paper shows that having access to both paved roads and electricity has led to a significant reallocation of labor from agricultural to both manufacturing and services. Adding access to fast Internet has had a major impact on structural change, with an even larger impact on reallocating labor away from agriculture. The paper then uses a spatial general-equilibrium model to quantify the impacts of future regional transport investments, bundled with electricity and Internet investments, on economic development in countries in the Horn of Africa and Lake Chad region.

The Full Enforcement of Socio-economic Rights in Africa: A Dream or a Reality?

The adoption of the African Charter on Human and Peoples’ Rights (African Charter) on 27 June 1981 in Nairobi, Kenya was recorded as historic step towards the protection of human rights in Africa. However, to date, Africans’ socio-economic rights are not fully or at all enforced. The author argues that Africa must take a new approach, a strategic one towards economic development in Africa and consequently the enforcement of socio-economic rights. He submits that several strategic approaches, such as development of new laws on the natural resources, producing quality products and services, image related strategies which involve great marketing of Africa, its products, and services. The author is of opinion that there is a link between economic development and the enforcement of socio-economic rights. It is further argued that intra-African trade will enhance sustainable development and economic growth and it is important. It is submitted that African countries must focus more on intra-African trade, which will accelerate sustainable economic development and consequently the enforcement of socio-economic rights, which will in turn reduce poverty and better the lives of millions of Africans who are in dire need of socio-economic rights to be enforced due to the living conditions they are in. Keywords: Africa; socio-economic rights; natural resources, strategic economic development.

Women's engagement in agriculture and income inequality in sub-Saharan Africa

Women play a significant role in economic development in Africa, notably in agriculture, where their engagement is substantial. This study analyses the effect of women's engagement in agriculture (WEA) on income inequality in sub-Saharan Africa, using data sourced from the World Development Indicators and the Standard World Income Inequality Database for the period 1991–2018. Pooled ordinary least squares and instrumental variable two-stage least squares are employed to analyze the data. Results show that WEA effects are heterogeneous across African regions. Specifically, the study finds that WEA decreases income inequality in southern and western Africa but increases income inequality in central and eastern Africa. Policies aimed at reinforcing women's rights in agriculture by increasing their access to credit and to land, and by giving them a better education, will help to reduce the income gap that exists between women and men.

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.

THE CONTRIBUTIONS OF WILDLIFE TO PEOPLE’S LIVELIHOODS AND ECONOMIC DEVELOPMENT IN SUB-SAHARAN AFRICA

Wildlife has the potential to support people’s livelihoods and economic development in many African countries. The objective of the review was to evaluate the potential contribution of wildlife to people’s livelihoods and economic development in Africa. Several databases were searched to identify articles that have explored the contributions of wildlife to people’s livelihoods and economic development. The results indicate that wildlife contributes both consumptive and non-consumptive resources towards people’s livelihoods, with bush meat being the greatest consumptive contribution and employment the greatest non-consumptive contribution. Revenue collected from tourists, trophy hunting, and game viewing have been used for infrastructure and rural development. However, wildlife has declined in many African countries due to land redistribution, drought, habitat fragmentation, human population growth, and illegal hunting. Setting up law enforcement agents and creating community-based wildlife management could restore the benefits of wildlife.

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.

Renewable Energy and Inclusive Economic Development: An African Case Study

Climate change constitutes a major challenge to economic growth and development across the globe as it negatively affects most sectors of the economy. Hence, there has been a global clamour for countries to invest in climate change mitigations. In developing regions like Africa, however, there are high resource limitations, and as such, there is a general opinion that funding climate change mitigation will have a huge opportunity cost of low investment in other development infrastructures, with the likelihood of decreasing economic development. On this premise, this study investigates the impact of renewable energy consumption and output on economic development in Africa. The study employed panel data analysis estimated using the System Generalised Method of Moments for a sample of 43 Sub-Saharan African countries. The results show that an increased share of renewable electricity in total electricity production increased significantly and contributed positively to economic development in Africa. Also, the ratio of renewable electricity to the total electricity consumed had a positive but insignificant effect on economic development. The study thus concludes that an increase in renewable electricity production and consumption does not only mitigate climate change but could also contribute marginally to the economic growth and development of African economies.   

Gender inequality facing women in leadership as the hindrance to achieving sustainable development in Africa

The study examined the impact of the gender inequality gap in administration which serves as a interference to achieving sustainable social and economic development in Africa. The existence of gender differences has been overlooked in management and leadership research; hence it remains a reality that women are underrepresented in leading management positions in general on the ground, and particularly in leadership roles. The main question is if women’s call to occupy leadership positions is a complete reality or if it is purely a pursuit for political acceptability. Gender gaps in the workforce over the last two decades remained largely unaffected, notwithstanding the increased number of women who have acquired education. Qualitatively, data was primarily collected through secondary content. The need to improve the education systems in low and middle-income countries is recommended, as all countries can reap the benefit of optimizing their deployment of female-skilled professionals and leverage their talent.

Determinants of Micro, Small and Medium Enterprises (MSMEs) Sustainable Development in Africa

Micro, small and medium enterprises (MSMEs) accelerate economic growth by creating new products and services; they stimulate new employment, which ultimately results in the acceleration of sustainable economic development in Africa. So, public policy that encourages and supports entrepreneurship and MSMEs’ sustainable development should be considered important for the economic growth of Africa. The purpose of this study was to examine factors contributing to the sustainable development of MSMEs in Africa. In order to achieve this objective, the researchers have used a correlational research design and quantitative research approach in which six hypotheses have been tested. Both primary data were collected from 340 MSMEs operating in Africa through survey questionnaires. Both descriptive and inferential statistics have been used to analyze the data. According to the regression analysis, this study revealed that access to finance, infrastructure, and institutional cooperation, access to business information, government support, and information technology utilization led to Micro, small and medium enterprises’ sustainable development in Africa. Based on the findings of the study, a recommendation was forwarded to the concerned bodies who are responsible for improving the sustainability of Micro, small, and medium enterprises in Africa while working on those variables contributing to the MSMEs’ sustainable development.

Post-colonial development in Africa – Samir Amin’s lens

ABSTRACT The paper is an attempt at applying Samir Amin’s lens in the analysis of socio-economic development in Africa. Social and economic development in Africa has been substandard, largely because of the economic system followed and because effective structural transformation has not taken place – Samir Amin’s works explained what needed to be done to transform Africa (and the broader global south). It is in this context that the paper posits that post-colonial Africa has had to contend with disruptive socio-economic and political realities instituted by European colonialism, slave trade and inappropriate integration of Africa to the so-called global economy. The fundamental explanation for the poor socio-economic development in Africa is global capitalism, and one of the possible solutions is in Samir Amin’s delinking proposal as well as the restructuring of the African economies.

A spatial-demographic analysis of Africa’s emerging urban geography

We examine Africa’s emerging urban geography from a demographic perspective and discuss implications for development policy. We adopt an approach that defines urbanisation purely in spatial-demographic terms in recognition of the decoupling of urbanization (as a spatial-demographic process) from economic development in Africa. Our analysis uses the most up-to-date gridded population data (WorldPop) to analyse diverse patterns of “urban” settlement emerging on the continent and to show that the crucial variable influencing urbanization estimates is population density. Our analysis confirms that increased population density and concentration are only weakly linked to income in Africa and argue that the profound spatial-demographic changes underway are driving implicit demand for “urban” development interventions, including changes in governance and planning practice. We conclude that a spatial-demographic approach to measuring and monitoring changing patterns of human settlements is both conceptually and empirically robust and suggest improvements to current UN statistical practice.

Higher Education and Africa's Economic Development: Challenges for the Nigerian Economy

The paper tried to determine the impact of higher education and Africa's economic development: challenges for the Nigerian economy. It was observed from the study that high quality and of course market relevant education is capable of providing a genuine cure to economic problems. The paper employed the Solow growth model where on the process to promote economic growth and development, factors of production like capital and labour are employed. However the efficient use of these factors (capital and labour) demands that the workers are well trained and skillful through education. This study assumes a straight forward production function in which changes in output are due to changes in the quantity and quality of inputs, economies of scale and advances in knowledge. The findings of the study suggest that some of the chosen variables conform to theoretical predictions and as such affect economic development. The researcher recommends governments can induce changes in labour demand and supply through specific labour market policies and social protection programmes  and offering opportunities for workers to upgrade their skills, and offering education and training at an affordable cost, help raise a corporation's and an economy's productivity and also Educational budget allocation stakeholders should focus more on increasing capital expenditure, recurrent expenditure, and human capital development to foster economic growth in the country.

Africa-China Relations: A Case of Foreign Direct Investment and the Democratic Republic of Congo’s Mining Sector

Abstract Since independence, Foreign Direct Investment has been central to African Development and economic expansion. Herein, this paper traces the role and impact of the FDI in the mining sector of DRC. The analysis is based on the institutional FDI fitness theory coined by Saskia Wilhelm in 1998, which suggests that states with good governance, strong state institutions, and stable political capacity attract the most FDI in emerging economies. However, China’s mining investment in the DRC has refuted Wilhelm’s theory. As such, this research will analyze the role and impact of FDI in the mining sector of the DRC, with a focus on China’s mining investment and its impact on the country’s economic development. The institutional FDI fitness theory will serve as the conceptual framework for the research. Data collection will involve a thorough literature review and analysis of secondary data sources, such as academic journals, reports, and government documents. Furthermore, the mining profile, type of investment, and investment achievements will be assessed to provide a comprehensive understanding of the topic. The data will be analyzed using content and thematic analysis to identify patterns and themes that emerge from the data. Overall, a qualitative case study approach will be appropriate for this research as it will allow for an in-depth analysis of the role and impact of FDI in the mining sector of the DRC. It will also provide insights into the complexities of the relationship between FDI, governance, and economic Development in Africa. One significant finding has conceded that government fitness does not necessarily attract investment. Instead, a weak state capacity and domestic policy create easy access to investment that does not align with the host country’s development. This finding has affirmed the argument that African countries should engage in trade rather than aid since aid has kept African economies in a circle of dependency.