African Economies Research Articles

A review of the intersection between climate change, agriculture, health, and nutrition in Africa: costs and programmatic options

BackgroundClimate change adversely affects Africa’s agriculture which would worsen the widespread food insecurity and nutritional deficiencies. Vulnerable populations, especially female farmers, women, and children are disproportionately affected.MethodsThe paper synthesizes available peer-reviewed and grey literature on the intersections of climate change, food insecurity, agriculture, gender disparities, health, child nutrition, and micronutrient deficiencies in Africa. It explores the economic ramifications of these factors, particularly their impact on public health and economic stability. The work aggregates insights into the current and future challenges of agricultural sustainability and the expected human capital development and economic costs of climate variations.ResultsThe prevalence of hunger and undernourishment in Africa is notably higher compared to other regions. Climate change directly threatens agriculture, with anticipated reductions in crop and livestock yields, compounded by the negative impact of greenhouse emissions on the nutritional quality of staple foods. Female farmers contribute notably to agriculture, but their labor share is less dominant than previously assumed. Exposure to high temperatures, especially for outdoor workers and pregnant women, presents significant health risks, further impacting agricultural and economic output. These interdependencies are presented in a framework along with suggested interventions that could be contextualized to address the climate drivers and interconnectivity across agriculture, health, and livelihoods.ConclusionThe interdependence between food, agriculture, health, nutrition, and human productivity, all of which are exacerbated by the impacts of climate change in Africa, form a complex challenge with profound health and economic implications. A multifaceted strategy is needed, encompassing climate-resilient farming practices, gender-sensitive interventions, health-focused measures like micronutrient supplementation, and comprehensive economic policies.

Catalysing Environmental Action: a Governance Framework for Enhancing Individual Participation in Sub-Saharan Africa's Plastic Circular Economy.

Plastic waste poses a significant challenge to achieving sustainable production and consumption of resources, particularly in sub-Saharan Africa where effective governance and waste management systems are lacking. In this paper, we develop an empirical understanding of the influence of public governance system on promoting circular economy (CE) for plastic actions among individuals. Through a survey of 1475 participants across five sub-Saharan African countries, we tested five hypotheses drawing on New Governance Theory and CE Action Recipe to explore the relationship between governance and individual's actions supporting CE for plastic. We found that a governance system that supports CE practices and exhibits governance efficiency is positively associated with individuals' actions supporting CE for plastic. The awareness of government policies, laws and regulations, institutions, processes, and programmes have a significant impact on individuals' engagement in plastic circularity practices. The paper's theoretical and governance implications highlight the relevance of public governance in shaping action towards a CE for plastic at the individual level.

Development strategy, infrastructure, and premature deindustrialization: Comparing Asian, African, and Latin American economies

AbstractThis paper investigates the phenomenon of premature deindustrialization in developing countries, with a focus on Latin America and sub‐Saharan Africa, and examines why this trend primarily occurs in these regions rather than in East Asia. Through a comparative analysis of industrialization experiences across different economies since the 1960s, the paper argues that premature deindustrialization results from a combination of liberalization shocks, development strategies that defy comparative advantage, and inadequate infrastructure supply due to the lack of active state involvement in its provision driven by prevailing neoliberal ideas. This study empirically validates this hypothesis using country‐sector‐level data from 40 economies.

A comparative analysis of the spillover effects from human capital skill and infrastructural development on industrial sector growth across sub-regional economies in sub-Saharan Africa

A comparative analysis of the spillover effects from human capital skill and infrastructural development on industrial sector growth across sub-regional economies in sub-Saharan Africa

On Opposite Sides of the World – South African Expats’ Observations of the Society, Economy, Education and Ethics in South Korea

Abstract In this paper, a Comparative Historical Analysis (CHA) is made between South Korea and South Africa for the improvement of the South African politics, economy, society, and ethos. Through a mixed-methods approach, this study is making use of four case studies and a literature study to learn from the most prominent differences between RSA and ROK experienced by South African expats living in ROK (confirmed by other expats in ROK). The issues that form the basis of discussion of prominent differences between South Africa and South Korea are 1) the respect basis of society (the Korean focus on respect for others is viewed as a counter for racial superiority theories in RSA), 2) work ethics (the strong Korean commitment to hard work and proper remuneration corrects the lack of work ethics in small RSA enterprises), 3) education and innovation (the educational system in Korea is under less strain than in RSA because it receives high priority funding and support from the government), and 4) national cohesion (RSA’s diversity can be detrimental if leads to a lack of cohesion in the society). These issues are discussed from a CHA perspective for the purpose of contributing to the ongoing debate for the improvement of the South African society, economy and politics. By presenting case studies, this paper is limited in scope but makes an invaluable contribution to the wider debate on the improvement of RSA. The novel contribution of this paper is that it adds to the debate the observations of expatriates living in a country that has some similarities with RSA, but different from RSA, managed to improve their economy since their democratization in 1987.

Comparing the nutritional, phytochemical, and anti-microbial potential of wild and cultivated Tetragonia decumbens mill.: A promising leafy vegetable for bio-saline agriculture in South Africa

Tetragonia decumbens is a neglected edible halophyte that grows naturally in coastal areas of South Africa. Its underutilisation is due to the limited literature on its nutraceutical potential. So, this research was designed to assess the nutritional value, secondary metabolites, and anti-microbial potential of wild and greenhouse cultivated T. decumbens to further support its consumption and potential medicinal use. Samples of T. decumbens were collected from three coastal areas (Strand beach, Muizenberg beach and Blouberg beach) during the dry and wet seasons in Cape Town, and the greenhouse cultivated were subjected to varying salinity doses (0, 50, 100, 150, 200 and 250 mM). Results revealed a considerable increase in minerals (N, P and Mg) and proximate composition (Ash, moisture, and carbohydrates) in greenhouse cultivated plants subjected to 50 mM of salinity while the highest crude fat and neutral detergent fibre were recorded in wild samples. Moreover, heavy metal accumulation (Zn and Fe), phytochemicals, anti-nutrients and anti-microbial activities were more pronounced in wild plants than in cultivated samples. Wild plants collected at Blouberg beach had more heavy metals, anti-nutrients, phytochemicals, and anti-microbial activity. These findings validate for the first time, the relevance of nutritional quality of T. decumbens in assessing its suitability as a source of nutrients and antioxidants with possible medicinal value as shown by the inhibition of harmful bacteria and fungal strains.

Migration policies and labor mobility in Africa

Labor migration appears to be one of today's solutions to the socio-economic and cultural imbalance in Africa. Its contribution to the growing interconnection of the world over the last century through the commercialization of raw materials is undoubtedly significant, given the relief it has brought to most economies in Africa and beyond. Unfortunately, a panoramic look at the legal atmosphere that hangs over labor migration in Africa leaves one wondering. The aim of this study, which complements many others already carried out on the subject, is to determine the appropriate legal interpretation of migration policies and labor mobility in Africa. According to the results of the analysis and comparison of regional and sub-regional policy frameworks and the various state practices developed in the field of labor migration, a mixed reading reveals that the genuine political will to encourage labor mobility, affirmed at supra-state level, remains inconsistent at state level.

Entrepreneurs in Africa – the agenda for Business History in Africa: Complexity and continuity

Abstract Africa has been the location of centuries of business activity. African business displays a complex development path through early indigenous kingdoms, colonial control and post–1950 independence. The historiography on these developments is unbalanced in favour of the role performed by enterprises embedded in capitalist metropolitan economies. Complex and dynamic African entrepreneurial activity persisted but adapted to global market changes. Business historians have not systematically explored African agencies in business, the management systems and the organisational evolution of enterprise in Africa. As market liberalisation provided new business opportunities, African businesses emerged to complement and compete with foreign-owned enterprises. As market liberalisation stimulated globalisation, multi-national companies returned to African markets, fostering competition and collaboration. Changes in the political economy of many African states gave rise to more dynamic regulatory contexts and public-private partnerships in different sectors of developing African economies. These trends appear in the Business History of Africa from the perspective of African business, owned by Africans from diverse ethnic origins as proof of the complex trends and processes in African enterprise development. This contribution seeks to refine the focus on business and entrepreneurs in Africa as agents in the continent’s business landscape. The manuscript acknowledges the diversity among African entrepreneurs and the dynamically changing state-business nexus through history. Can one identify a distinct «African» nature of enterprise? This manuscript addresses aspects of conceptual clarity on what constitutes African business in an attempt to map the agenda for Business History in Africa.

Impact of globalization on income inequality in South Africa

Income inequality has been a major issue in South Africa. The 1994 transition from apartheid to democracy and global economic integration presented opportunities and challenges, fostering economic development while exacerbating existing inequalities. Therefore, this study aims to analyze how globalization affects income inequality in the South African economy. It utilizes the autoregressive distributed lag (ARDL) approach on a set of chosen variables. These variables include the Gini index, the Konjunkturforschungsstelle (KOF) globalization index, Gross Domestic Product (GDP) per capita, unemployment rate, inflation rate, and government expenditure. The study covers the period from 1980 to 2022, allowing for a comprehensive examination of the relationship between globalization and income inequality over time. The results obtained from the ARDL bounds test indicate that globalization has a positive long-run equilibrium relationship with income inequality. This means that as globalization progresses, it tends to be associated with higher levels of income inequality. In the short run, globalization exhibits a positive and statistically significant relationship with income inequality. The results of the Granger causality test indicate a unidirectional relationship between globalization and income inequality. This suggests that changes in globalization directly influence income inequality. Consequently, it is crucial to implement short- and long-term policies that address the adverse effects of globalization on income distribution. Policies could include providing support and retraining for workers in vulnerable industries, implementing social safety nets to protect those adversely affected by rapid economic changes, and ensuring equitable access to opportunities created by globalization.

Analyzing the Dynamics: Asymmetric Effects of Economic Growth, Technological Innovation, and Renewable Energy on Carbon Emissions in Africa

This study examines the interactions among economic growth, technological innovation, renewable energy consumption, and carbon emissions in Africa using advanced econometric methods. Panel data analysis reveals both symmetric and asymmetric impacts on carbon emissions, showing how economic and technological variables contribute to environmental outcomes. The augmented mean group (AMG) and common correlated effects mean group (CCEMG) estimators address cross-sectional dependence and heterogeneity, ensuring robust results. Findings indicate that positive economic growth increases emissions, while economic downturns significantly reduce emissions. The study underscores the need for strategic policies that leverage technological innovations and renewable energy to promote sustainable development in African economies, balancing economic growth with environmental protection.

Revisiting democracy-growth nexus in Sub-Saharan Africa with macroeconomic variables modelling

PurposeA popular convention in the political-economy literature is that causality runs from democracy to economic growth. That thinking has continued to evoke significant debates among scholars. This study aims to propose a new research experiment by investigating whether macroeconomic variables cause democratisation.Design/methodology/approachThe study uses a panel data set of 48 carefully selected economies in Sub-Saharan Africa spanning 1991 to 2020 and uses the PVAR system generalised method of moment (GMM) approach.FindingsWith the application of three macroeconomic indicators: economic growth, full employment and balance of payment equilibrium, the study suggests that economic growth has a negative implication on the democratisation process and that the incentives that increase national income provide in the global South enable autocratic rulers to impede democratic growth. The Granger causality test demonstrates a unidirectional effect from economic growth to democracy. The eigenvalue stability condition, impulse response function and forecast-error variance decomposition all confirmed the validity of the findings with the PVAR system GMM. Finally, the study proposed policy and theoretical implications for the political stakeholders.Social implicationsRobust development of economic institutions (particularly the anti-corruption and rule of law) in the global South is required to tame the potential for the state actors to turn public resources into personal use to further their parochial political interest in the form of perpetuating themselves in office which negates the ideals of democracy and social norms. Strong institutions could prevent the misuse of national income and enhance a good quality of life for the citizenry, making them grow confidence in the democratisation process.Originality/valueThe research paper makes an insightful contributions from the methodological perspective and the sampling perspective. The author uses a new research method, the PVAR system GMM becoming the first attempt of such a method to be applied in determining the causal effects of macroeconomic variables on democracy in the literature. Another relevant contribution of the study relates to the sample technique of selecting economies from the Sub-Saharan Africa with notable weak or slow democratisation process.

Shadow economy-income inequality nexus: a panel analysis of West African countries

ABSTRACT This paper examines the nexus between shadow economy and income inequality in the West African region. The study applies second-generation panel estimation techniques to analyze the effect and the direction of causation between the variables. The results reveal that the shadow economy reduces income inequality in the region in both short-run and long-run estimations. A similar result is documented when alternative estimation techniques are employed. In addition, the panel causality results show a bidirectional relationship between shadow economy and income inequality in the West African economy. The implications of the study are discussed.

The role of public-sector-led inclusive instant payment systems for growing the digital payments industry in Africa

Digital payments are the most popular financial service in Africa, having been adopted by half of all adults. Nevertheless, there remain significant barriers to access in Africa’s digital payment sector, stymieing growth. Cost and distance to a branch or agent are chief among them, exacerbated by the fact that many economies in Africa have small financial services markets, with payment sectors dominated by private sector financial service and payment system providers that have invested in proprietary, closed-loop digital payments processing infrastructure. These closed-loop systems can be inefficient and therefore expensive to operate, leaving payment services out of reach for millions of end users. With the goal of calling out fruitful approaches for expanding and maturing Africa’s payments market, this paper highlights lessons from four public or public–private instant payment systems (IPS) initiatives that aimed to build affordable and inclusive digital public infrastructure to enable broader access and therefore growth in Africa’s digital payments sector. Using case studies from Ghana, Malawi, Zambia and the Central African Economic and Monetary Community, this paper highlights lessons from these initiatives, including the need for enabling regulations, the need to craft a compelling business case for incumbent payment service providers, central bank involvement to ensure a focus on inclusive access, and customer-centricity to ensure the IPS can process high-demand payment types through the channels that end users prefer.

Modeling the dynamic nexus between climate change, ICT, and agriculture in sub-Saharan Africa: a panel quantile ARDL

Modeling the dynamic nexus between climate change, ICT, and agriculture in sub-Saharan Africa: a panel quantile ARDL

A Critical Examination of Globalization's Impact on the Economies of Sub-Saharan African Countries

This essay critically examines the impacts of globalization on the economy of Sub-Saharan Africa. Through the method of literature review, this paper explores the impact of globalization on international trade, foreign investment, and local development trends, while also emphasizing the negative consequences, such as economic disparities and cultural shocks. The analysis delves into theories including Friedman's "The World is Flat" and Wallerstein's world systems theory, comparing their global perspectives with the realities in Sub-Saharan Africa. Case studies illustrate the dual nature of globalization: its contribution to economic growth and the emergence of socioeconomic obstacles. The essay provides policy recommendations to effectively utilize the advantages of globalization while mitigating its negative effects, aiming to achieve inclusive economic growth and save the local cultures and traditions in Sub-Saharan Africa. The significance of this paper is to claim that although there are negative impacts of globalization, the benefits it brings are more important and that globalization should occur in Sub-Saharan Africa.

The impact of financial regulations on bank lending in emerging economies in Sub-Saharan Africa

The aim of this study is to investigate the impact of financial regulations on bank lending in emerging economies in Sub-Saharan Africa. The dynamic system-generalized method of measures (GMM) is used to address difficulties such as unexplained periods and nation-specific implications, besides the endogeneity of the variables in question. Spanning from 2012 to 2022, the research used data from 80 banks in 20 sub-Saharan African nations. The findings show that expansive financial regulation, which includes a boost in the amount of cash in circulation, induces bank lending. At the same time, restrictive financial regulations, with the value as an improvement in interest rates by central banks, lead to credit contractions, albeit with little impact because of the attainable poverty of banking sectors, organizational limitations, bank-focused attention, and additional system rigidity typical of developing nations, which compromises the efficiency of the system. Other characteristics that substantially impact bank lending routes include capital sufficiency ratios and the scale of economic activity. Sub-Saharan African countries may boost the efficiency of financial regulations propagation on bank lending by making better use of the transfer process of fluctuations in cash supplies and interest rates.

Effect of dependence on natural resources on employment quality: Insights from African countries

AbstractThis study evaluates the effect of natural resource dependence on employment quality in Africa, analysing data from 2002 to 2020. Our findings indicate that resource dependence is positively and significantly linked to poor employment quality. Specifically, a one‐percentage‐point increase in resource rent dependence results in a 0.026‐percentage‐point rise in vulnerable employment and a 0.282‐percentage‐point increase in working poverty rates. However, this effect of resource rents on employment quality occurs only when institutional quality is low. Once institutional quality surpasses a certain threshold, this adverse effect is reversed. These results highlight the need for policies that diversify economic structures to reduce African economies' overreliance on natural resource rents and enhance institutional quality.

Does capital flight set Africa as the seat of darkness? Linking capital flight and energy poverty

Despite the fact that capital flight is a scourge for African economies, no study, to the best of our knowledge, has analyzed its effects on energy poverty. This study aims to fill this gap in the literature by providing one of the first empirical studies of the effects of capital flight on energy poverty. The present study focuses on a panel of 30 countries in Africa over the period 2000–2018. We use Principal Component Analysis (PCA) to construct an energy poverty indicator. Results suggest that capital flight increases energy poverty in Africa. This result is robust when controlling for endogeneity. Additionally, good institutional quality helps mitigate the negative effects of capital flight on energy poverty. Further analysis allows us to identify income inequality, government spending and unemployment as the channels through which capital flight influences energy poverty. Policy wise, better control of capital flows based on appropriate institutional settings should reduce energy poverty in Africa.

The environment for a digitally enabled circular plastics economy in Africa: lessons from cross-sectional stakeholder engagements

PurposeThis paper aims to provide insights into the environment needed for advancing a digitally enabled circular plastic economy in Africa. It explores important technical and social paradigms for the transition.Design/methodology/approachThis study adopted an interpretivist paradigm, drawing on thematic analysis on qualitative data from an inter-sectoral engagement with 69 circular economy stakeholders across the continent.FindingsThe results shows that, while substantial progress has been made with regard to the development and deployment of niche innovations in Africa, the overall progress of circular plastic economy is slowed due to relatively minimal changes at the regime levels as well as pressures from the exogenous landscape. The study highlights that regime changes are crucial for disrupting the entrenched linear plastic economy in developing countries, which is supported by significant sunk investment and corporate state capture.Research limitations/implicationsThe main limitation of this study is with the sample as it uses data collected from five countries. Therefore, while it offers a panoramic view of multi-level synergy of actors and sectors across African countries, it is limited in its scope and ability to illuminate country-specific nuances and peculiarities.Practical implicationsThe study underlines the importance of policy innovations and regulatory changes in order for technologies to have a meaningful contribution to the transition to a circular plastic economy.Originality/valueThe study makes an important theoretical contribution by using empirical evidence from various African regions to articulate the critical importance of the regime dimension in accelerating the circular economy transition in general, and the circular plastic economy in particular, in Africa.

“Oh no! all my money is gone”: the detrimental consequences of participating in stokvels among women entrepreneurs within the South African township economy

PurposeThe purpose of this study was to investigate the detrimental consequences of participating in stokvels among women entrepreneurs within the South African township economy.Design/methodology/approachThe research used the Gioia methodology, involving the implementation of a qualitative inquiry with an inductive approach. Semi-structured interviews served as the primary method for data collection. The study had a sample comprising 20 women entrepreneurs located in Johannesburg, South Africa.FindingsNarratives on the detrimental consequences of participating in stokvels among women entrepreneurs within the South African township economy included fraudsters, misunderstanding and dishonesty among stokvel partners, year-end robbery and theft, stokvels being dominated by men, operating outside of formal regulatory frameworks, exclusion and limited funding.Research limitations/implicationsSample size challenges feature as a notable limitation, including the research being conducted in only one province of South Africa. Caution should be exercised when seeking to generalize the findings in other contexts.Originality/valueWhile there is an array of literature on the impact of stokvels on entrepreneurship, there are deficiencies in studies that have looked at the detrimental consequences of stokvels on women entrepreneurs. As a result, the goal of this research is to add to the present corpus of African entrepreneurship literature, specifically in the context of South Africa.