Economies Of African Countries Research Articles

Forestry in the Congo Basin Countries and Measures to Improve its Efficiency

The article offers insight into the main stages of the formation of forestry into an independent branch of the economy in African countries, the forest areas of which constitute a common ecosystem, one of the largest in the world. The features of the system of relations between the main subjects of economic activity in the forest sector, that developed during the colonial period, and its subsequent evolution after the transition to the planned formation of the forest management sphere are characterized. The results of the implementation of forest management plans in concessions are analyzed, it being the necessary condition for the logging companies which aim to obtain an official confirmation of compliance of their activities with international standards subject to local conditions and provisions of national laws. One of the generally accepted, by the African countries as well, and authoritative evidence of responsible logging, which at the same time confirms the legality of the origin of the wood offered to the buyer, is a certificate issued by the international commercial organization Forest Steward Council (FSC). The introduction of a certification system is seen as an incentive to promote sustainable forest management and sustainable forest management in timber supplying countries to foreign markets. However, there are examples of unscrupulous companies continuing to harvest wood on the principle of “forest mining”, while resorting to illegal cutting of trees outside the concessions. This negatively affects the competitiveness of companies that strive to maintain a reputation as a supplier of legally harvested and environmentally friendly wood. They are forced to reduce the scope of their activities in the region. The article also notes the gradual reorientation of timber supplies from the countries of the region to the Asian markets, which is characteristic of recent years, where demand for this product is growing, regardless of the sources of its origin. At the same time, its purchases by its traditional buyers, European countries, were declining. Nevertheless, Asian companies, primarily from China and Vietnam, are beginning to show an increasing interest in purchases of certified wood, hoping at the same time to expand export supplies of finished products to countries with strict bans on the import of wood (and wood products) harvested illegally. Gabon’s experience in using the resource potential of forests to create the basic foundations of its own timber industry was also noted.

A Review of Energy Demands and its’ Implication on Climate Change in Africa

Climate change is one of the most pressing issues facing the world today. Communities around the world are already feeling its effects, and the situation is only expected to get worse in the future. One of the sectors particularly vulnerable to climate change's effects is the energy sector. In many African countries, the energy sector is heavily reliant on fossil fuels. This makes African countries particularly susceptible to the effects of climate change, as the availability of fossil fuels is expected to decrease in the future because of climate change. This could lead to higher energy prices and a decrease in the availability of energy. In addition, climate change is expected to have a significant impact on hydropower, which is another important source of energy in many African countries. Changes in rainfall patterns could lead to lower river levels and reduced hydroelectric power generation. This could have a severe impact on the availability of energy in African countries. The effects of climate change on the energy sector are likely to have a knock-on effect on the wider economy. Higher energy prices could lead to inflation and a decrease in the availability of energy which could lead to blackouts and a decrease in production. This could have a devastating impact on the economies of African countries. The effects of climate change on the energy sector are likely to be very damaging for African countries. These countries need to take action to mitigate the effects of climate change and to adapt their energy systems to cope with the changes that are expected to occur. This review outlines the climate change impacts on the energy sector in African countries and recommendations to mitigate the effects of climate change impacts.

Does economic complexity reduce the size of the shadow economy in African countries?

Does economic complexity reduce the size of the shadow economy in African countries?

Impacts of Taxation on Economic Growth in Africa in 2008-2018 - Panel Data Analysis

The debate over the effectiveness of taxes as a tool for promoting economic growth still needs to be solved, with several studies indicating mixed effects of taxes on economic growth. The purpose of this research is to assess the impact of taxation on economic growth in Africa. The study spans eleven years, from 2008 to 2018, and includes multiple variables for 21 African countries. GDP is a dependent variable used as a proxy for economic growth. Numerous GDP-determining predictors were utilized as independent variables; these variables were categorized into three groups: The supply side consists of human capital (population and literacy rate) and economic activities (trade and services). Demand side variables include consumption, government expenditures, net exports, and gross capital formation. Lastly, taxation variables consist of tax revenue, corporate tax rate, number of tax payments, personal income tax, and taxes on income, profits, and capital gains. The study conducted preliminary tests, including descriptive statistics, correlation matrix, and pooled least square estimations for panel data. Based on the results, all macroeconomic determinants have statistically significant effects on GDP except trade. Tax revenue and corporate tax rate positively affect GDP, while personal income tax rate and tax on income, profit, and capital gain negatively affect GDP. In general, taxation has a favorable effect on the economy of African countries because emerging countries use taxation as an internal key to generate revenue and improve economic growth.

Does infrastructure development matter for the shadow economy in African countries?

ABSTRACT Understanding the determinants of the informal economy is a crucial issue in economic development due to its far-reaching effects on development efforts. Previous studies focused exclusively on factors that can potentially reduce the relative size of the shadow economy. However, these attempts have not enjoyed much success to date in Africa, where informality has continued to thrive. We contend that realistic medium-term goals, as opposed to obligatory formalisation, could increase the output of informal businesses by providing enough infrastructure and a welcoming business climate, which would at the same time foster formalisation. Using OLS, FE and system GMM with data on 42 African countries covering 2003–2018, we find that infrastructure development reduces the relative size of the shadow economy in African countries. Our results remained consistent when we controlled for the effects of other determinants of the informal economy, employed other estimators, and used an alternative measure of the informal economy.

Internet Penetration’s Impact on Gross Domestic Product per Capita of African Countries

The internet has become an essential part of everyday life and is impacting various aspects of society. One field of interest is how internet usage affects economic growth, particularly in terms of GDP per person. This article aims at highlighting the effect of internet penetration on Africa countries gross domestic product per capita (GDP per capita). To achieve this, we used panel data for African countries over the period 1996 to 2019. The study conducted various statistical tests, such as causal effect, co-integration, and mediation tests, to identify which variables are useful in predicting GDP per capita. The findings show that the internet has a significant impact on the economy of African countries. Findings suggest that internet significantly impacts GDP per capita in African countries, whether evaluating within-effect (over time) or between-effect (across countries at a given time). In addition, the result reveals that Secure internet servers are fundamental if a country is to rely on the internet to boost its economy. The study highlights the need to invest in internet infrastructure and increase internet penetration to promote economic growth in Africa, due to the importance of the internet in today's world. Keywords: Internet penetration, GDP per capita, Africa countries, Panel model. DOI: 10.7176/JESD/14-5-03 Publication date: March 31 st 2023

Unlocking the Green Economy in African Countries: An Integrated Framework of FinTech as an Enabler of the Transition to Sustainability

The emergence of new transformational technology, known as the fourth industrial revolution, has crucially opened a new window to green economic growth. The transition to low carbon, green economy, and green sustainability has gained momentum simultaneously in developed and developing countries. The greening policy echoes the pending climate change and its entrenching disruptions. Financial technology, or FinTech seems to be a promising direction in unlocking the green dilemma; to be concrete, FinTech and the green economy are separately documented in the literature. Against this background, the current study investigates the intersection between green economic growth and FinTech by conducting a systematic-cum-bibliometric analysis of published papers in the Scopus database with the goal of first examining the role and opportunities of implementing green FinTech as a stimulus for transition towards green economic growth in African countries and, second, identifying knowledge gaps and future policy and research directions by developing an integrated framework to help African countries in the transition to green economic growth and green FinTech. The results illustrate an increasing trend in research attention towards the green FinTech concept and its relationship with green economic growth, climate change, and greening rules and standards. A deep inspection of the mined papers indicates that future research trajectories are oriented into five different mainstreams: technology and instruments in digital finance; regulation, policies, and green FinTech; climate risk mitigation through FinTech; FinTech and environmental quality; green finance and climate change mitigation. Based on these research directions, an integrated framework was conceptualised that aims to deliver green economic growth using FinTech as a vehicle of transition for African countries.

Does poverty increase COVID-19 in Africa? A cross-country analysis

BackgroundMost economies in African countries are informal. As such, households in these countries tend to face higher levels of informality coupled with a lack of social protection, and have no replacement income or savings in the event of unexpected external shocks, such as COVID-19. Thus, the COVID-19 shock and its negative economic effects triggered a cascade of income losses and bankruptcies that pushed a significant share of households in African countries into poverty. This research analyzes the effect of poverty on the spread of COVID-19 using a sample of 52 African countries.MethodsTo achieve the objective of this research, this paper uses a multiple linear regression model and a sample of 52 African countries observed in 2020 to conduct a cross-country analysis. More importantly, two COVID-19 indicators (total number of officially reported cases and disease severity) and six poverty indicators (average poverty, poverty incidence, poverty depth, poverty severity, multidimensional poverty index, and extreme poverty) were used in this research.ResultsThe results show a positive and significant relationship between poverty and the spread of COVID-19.ConclusionsThese results suggest that more attention needs to be paid to poor populations in African countries during the pandemic. These populations are generally vulnerable, and there is a need for support programs targeting them to be put in place quickly. These programs may include food aid, distribution of supplies, health care support, fee waivers, and interest deferrals. In addition, sensitization of these disadvantaged groups on vaccination against COVID-19 to achieve herd immunity is strongly encouraged.

Does digitalization limit the proliferation of the shadow economy in African countries? An in‐depth panel analysis

AbstractWe investigate the relationship between digitalization and the shadow economy in 42 African countries using unbalanced panel data from 2003 to 2016. We begin by drawing on modernization theory to hypothesize that digitalization efforts in African economies represent an augmentation of public service delivery as well as a channel through which the size of the continent's informal economic activity might be reduced. We employ the fixed effects estimation technique as its baseline estimator while correcting for potential endogeneity concerns using an instrumental variable two‐stage least squares technique. We show compelling evidence that digitalization is associated with a decrease in the size of the shadow economy in Africa. However, evidence of a larger influence is driven by the availability of telecommunications infrastructure and the expansion of government online services. These findings suggest that policymakers should invest more in digital technology to formalize Africa's hidden economic activity, particularly to fill the post‐COVID‐19 financing gap.

Respiratory pathologies in small ruminants and factors contributing to their outbreak

Pneumopathy embraces all diseases relating to the lungs. However, this name is more often used to refer to a lung infection. There are several types of lung disease: infectious, interstitial, inhalation and hypersensitivity. It should be noted that pneumopathies of infectious origin are the most frequent. Indeed, a pneumopathy designates an inflammation of the lungs and more generally the respiratory system. It can be of various origins, viral for example, but most of the time, it is bacteria (pasteurella, streptococcus, pneumococcus, mycoplasma, etc.) that are involved. Globally, pneumonia remains the dominant pathology in small ruminants in sub-Saharan Africa. They generally evolve during the dry- cold and rainy season causing many mortalities. Although small ruminants contribute a lot to the national economy in African countries, their development is hampered by various infectious factors such as peste des petits ruminants, pasteurellosis, mycoplasma, etc. Apart from these factors there are also the non-infectious factors, namely climate change, stress, the farming method and the production system. In fact, small ruminants could contribute more to the well-being of pastoralists if they do not pay a heavy price for pathologies. The presence of respiratory pathology, where infectious agents are strongly involved, is reported all over Africa, but very little quantified assessment is made about its prevalence and even less about its economic impact. The objective of this manuscript is to summarize from bibliographic references the different respiratory pathologies of small ruminants, the factors contributing to their appearance, the different pathogens involved, their diagnosis, treatment and prophylaxis.

مقارنات دولیة فى ضوء المؤشرات التنمویة الاقتصادیة العالمیة

الملخص العربى : تهدف الدراسة الى سکب الضوء على تأثير المؤشرات التنموية الاقتصادية العالمية على أداء اقتصادات الدول المتقدمة والتى تصدرت أعلى المراکز في المعايير التى تقوم عليها المؤشرات التنموية الاقتصادية العالمية ، وهو الأمر الذى يبرز أهمية الإعتداد بتلک المعايير فى علاج الإختلالات الهيکلية باقتصادات الدول النامية والمتخلفة ، وبدراسة تلک المعايير في ذاتها اتضح أنها من الأهمية بمکان بحيث يکون نهوض الاقتصاد القومى في تلک المعايير والمؤشرات دليلا ومؤشرا على قوة الاقتصاد وکفاءته وقدرته على مواجهة الإختلالات الهيکلية به . واسفرت الدراسة عن عدة نتائج وتوصيات أهمها : 1- أهمية دراسة المعايير التى يقوم عليها عمل المؤشرات ودراسة تجارب الدول الناجحة والمتقدمة ذات الاقتصادات سريعة التقدم والنمو والتى أحرزت أعلى المراتب فى معايير المؤشرات ، خاصة تلک الدول شبيهة الظروف بالاقتصاد المصرى ، والعمل على محاکاة تلک التجارب . 2 – أن يکون الهدف من محاکاه تجارب اقتصادات الدول المتقدمة هو جعل مصر فى مقدمة أفضل عشر أو عشرون دولة فى المؤشرات التنموية الاقتصادية العالمية وليس مجرد التحرک مرتبة أو اثنتين للأمام أو الخلف فى ترتيب الدول بالمؤشرات . 3 - أهمية التعاون الاقتصادى بين مصر مع الدول العربية خاصة صاحبة الترتب الأقوى بالمؤشرات محل الدراسة ، وذلک لامکانيات وفرص استفادة الاقتصاد المصرى من خلال الشراکة الاقتصادية مع تلک الدول في إطار تکتلات اقتصادية . 4 - أهمية قيام الاقتصاد المصرى بالمجهودات اللازمه للإنضمام لتجمعات وتکتلات الدول ذات الإقتصاديات الناشئة سريعة النمو مثل تجمع بريکس ( BRICS ) . 5 – ضرورة قيام تعاون بين الاقتصاد المصرى واقتصادات دول القارة الأفريقية فى إطار شراکة اقتصادية ناجحة مع تصب في مصلحة الجميع (الإقتصاد المصرى واقتصاد الدول الاقريقية)، وعلى الخصوص تلک الدول التى يرتبط معها بروابط ذات بعد جغرافي اقتصادى مؤثر على الموارد الاقتصادية المصرية – علم الجغرافيا الاقتصادية – مثل دولة ( اثيوبيا ) والتى تتشابه إقتصاديا وتعدادا سکانيا مع مصر والتى تعانى من مشاکل اقتصادية حادة . 6 - في ظل تفوق وتقدم الاقتصاد الإسرائيلى وتوغلة داخل اقتصادات الدول الأفريقية خاصة الدول التى يرتبط معها الاقتصاد المصرى بروابط ذات بعد جغرافي اقتصادى مؤثر على الموارد الاقتصادية المصرية مثل دولة ( اثيوبيا ) والتى تعانى من مشاکل اقتصادية حادة – فيجب على الاقتصاد المصرى المسارعة للتعاون مع اقتصادات تلک الدول خاصة ومحاولة تقديم يد العون والمساعدة في إطار ما تعانيه من مشاکل . الملخص الانجليزى : The study aims to shed light on the impact of global economic development indicators on the performance of the economies of developed countries. The study resulted in: 1- The importance of studying the criteria on which the indicators work and the experiences of successful and developed countries. 2 - That the aim of simulating the experiences of developed countries ’economies is to place Egypt in the forefront of the ten or twenty best countries in the global economic development indicators. 3 - The importance of economic cooperation between Egypt and the Arab countries. 4 - The importance of the Egyptian economy making the necessary efforts to join the groupings and blocs of countries with rapidly growing emerging economies. 5 - The need for cooperation between the Egyptian economy and the economies of the African continent 6- In light of the progress of the Israeli economy and its incursion into the economies of African countries, especially the countries with which the Egyptian economy is linked with ties with a geographical and economic dimension affecting the Egyptian economic resources such as the country (Ethiopia), which suffers from severe economic problems - the Egyptian economy must rush to cooperate with the economies Those countries in particular and try to provide a helping hand in the context of their problems.

Africa at the world tourism market in the context of globalization

Tourism is a promising industry in the countries of African continent. It contributes to their economic growth and improves the living conditions of the population. The subject of the study is the tourism market in Africa. The purpose of the article is to show Africa’s place at the world tourism market and to analyze trends of tourist activity in the region in the context of globalization. To achieve the goal, the following tasks were solved: to show factors affecting tourism activities in Africa, to analyze main parameters and trends of international tourism development in the region and its subregions in comparison with the world, to identify the impact of tourism on the economy of African countries. The following methods were used: comparative; historical – to identify trends in development of international tourism in Africa, statistical – to study the interdependence between quantitative indicators of tourism development in African countries; analysis and synthesis – to identify the relationship of processes occurring in tourism markets, systematic approach – to reveal the features of international tourism development in the context of globalization. The following results were obtained: periods of decline and growth of tourism activity in the continent as a whole, its macroregions and individual countries were identified; main areas of tourism and travel, main problems of tourism development were identified; connection between GDP and tourism development indicators in African countries was calculated; impact of COVID-19 on tourism business development in Africa was shown. Conclusions: international tourism is actively developing in Africa, making a significant contribution to GDP and employment. However, level of tourism development depends on a number of internal and external factors and lags behind the world average and other tourism subregions. There is a need to develop effective tourism policies in each country of the continent and its subregions.

Paris vs. Beijing: Confrontation on the African Continent

The subject of this study is the competitive relations in the political and economic spheres that have developed on the African continent in the 21st century between the French Republic and the People’s Republic of China. The author focuses on the main conflict-generating factors that caused the latent confrontation between the two countries that arose in the face of a changing geopolitical situation in the world in general and in Africa in particular. The methodological basis of this study is the comparative historical method; the work is based on the principles of historicism, reliability and scientific objectivity. Using the method of historical reconstruction allowed the author to trace the dynamics of relations between France and China over the past two decades. The work is based on the study of factual historical material, a chronicle of the events of the last decade; analytical materials published on the pages of French and Russian mass media were used. The author concludes that the basis of the conflict between Paris and Beijing lies in the desire of the Champs Elysees not only to preserve the political, economic and military-strategic preferences of France in the countries that were formerly colonies of the French Empire, but also to protect French interests in the English-speaking countries of East Africa. The rapid growth of China’s influence on the African continent, the ever more obvious expansion of the Heavenly Empire into the economies of African countries, forces France to change the paradigm of its foreign policy. If the predecessors of E. Macron, denying in words the policy of “Françafrique”, relied on the use of military force and covert operations of the French security services then the current head of the Fifth Republic in his relations with African countries prefers to use his resources on “soft power” politics. The experience gained by E. Macron during his first (not very successful) African tour in 2017 prompted him to change the tone of communication with the leaders of African countries from patronically arrogant to friendly and trusting.

The impact of terrorism on formal and informal economy in African countries

AbstractThis study examines the impact of terrorist attacks on the formal and informal economy for 47 African countries during the period 1996–2015. Four terrorism indicators are used, namely, domestic, transnational, uncertain and total terrorism. The empirical results are based on the two‐step Generalized Method of Moments in system. Three key findings are established. First, all terrorist indicators affect negatively the formal economy and positively the informal economy. This effect may be due not only to the size and maturity of the African economy, but also to the adoption of less conservative public policies. Second, an aggregate analysis identifying the impact of terrorism on various macroeconomic variables sheds light on the impact of terrorism on the overall situation of the African economy. Third, compared to domestic terrorism, transnational terrorism more significantly and negatively affects the formal economy and positively affects the informal economy. Political implications are discussed.

Chances and challenges of African entrepreneurial activity in times of crisis

ABSTRACT This special issue looks in new ways at the relationship between small-scale entrepreneurship, economic (and political) crisis, and the outcomes of neoliberal market economy in African countries. In other words, it studies entrepreneurial activities particularly of young people in crisis situations in contemporary African economic contexts through close-to-the-ground ethnography and an anthropological perspective. The contributions examine from the vantage point of the specific circumstances in their country – Rwanda, Kenya, Cameroon/South Africa, Southern Algeria, Burkina Faso, Nigeria – how young people work on their futures as entrepreneurial agents navigating between local settings, governmental regulations and (global) market relations.

Новая эпоха в развитии российско-африканского сотрудничества

The article contains an analysis of the current state of trade and economic relations between Russia and African countries, as well as the prospects for their development after the first Russia-Africa Summit and the Economic Forum in Sochi in October 2019. The author notes a large surplus in Russia’s trade with Africa and explains the reasons for the dominance of the countries of North Africa, and especially Egypt, in its geographical structure. The main product groups are listed, through which Russia can increase exports to Africa; Russia’s main competitors in trade with the continent as well as state support measures for exporters are described. However, the main contribution to the development of Russian-African economic ties in the future will be made not by foreign trade, but by economic cooperation. Its flagships are now three major projects worth more than $1 billion each, all of which are carried out in Egypt. Among Russian companies investing in the economies of African countries, mining ones are currently dominant. Of these, Rosneft made the biggest investments. This company develops the largest gas field in Egypt – Zohr, and implements projects also in Mozambique. Exploration, finance and the IT technology sector are also of particular interest to Russian companies in Africa. The author indicates the most promising areas for the development of Russian- African industrial cooperation and the transfer of Russian technologies to this continent. In addition, in recent years, Russia and African countries have increasingly regarded security as an important area of bilateral relations. The article reveals the main threats to the security of African countries, the ability of Russian companies to strengthen it and Russia’s contribution to UN peacekeeping operations in Africa, in comparison with contributions of the other permanent members of the Security Council. It describes a number of measures that can contribute to the development of Russian-African partnership in the context of the Sochi consensus.

FDI in Africa: potential implications of Brexit on South Africa’s financial sector

Purpose This paper aims to investigate whether any potential weakening of the UK’s financial sector, as a result of Brexit, will have a negative impact on South Africa’s financial sector given the close ties between the countries’ financial systems. This paper seeks to also argue that Brexit may provide an opportunity for South Africa to pursue new trade linkages with other countries in Africa and Asia. Design/methodology/approach This paper is a review of relevant sources from foreign direct investment (FDI) and international economic literature. It analyses comparative and cross-disciplinary research and examines the current trends in the legal and economic climate in South Africa – within the context of economic growth and FDI inflows patterns. Findings This paper finds that Brexit does not pose a systemic risk to South Africa’s financial system. This paper also finds that South Africa’s recent policy changes may serve as obstacles to South Africa attracting new FDI. Research limitations/implications The implications of Brexit on the investment in the economy of African countries are under-researched, and this paper provides an additional contribution to the euro-centric discussion of the ramifications of Brexit on the economic developments in the financial sector after Britain’s exit. Originality/value This paper argues for an enhanced FDI system for South Africa and its policy proposals can be used to further the independence of African countries from European investment streams.

Growth factors and the importance of the shadow economy in African countries

The factors, causing the rapid expansion of the shadow economy (informal economy) in developing countries, especially in sub-Saharan Africa have been considered in the article. The shadow economic sector is the largest and fast growing sector in the region, therefore, it is necessary to study and make policy recommendations for development. The authors have studied some definitions of the shadow economy of well-known authors and outlined the essence and background of these definitions. Furthermore, the factors, dragging the development of the sector have been considered. The reasons behind low financial access among these enterprises have been studied. It has been revealed, that information asymmetry is one of the main problems, which limits access to finance by firms of the shadow economy. Consequently, small, (lower) access to finance limits the innovation activities of small and medium-sized enterprises, through which these firms produce goods and services to address (meet) local needs.However, the role of the shadow economy cannot be overlooked as the sector provides more than 55 % of employ and also contributes more than 50 % of the region’s gross domestic product. Thus, it is more able to stifle small and medium-sized enterprises in the informal sector of the economy and their innovative projects, which can slow down the technological industrialization and economic development of the region. The author’s position on measures to solve the problems of financial accessibility and access of shadow small and medium-sized enterprises to financial resources in the region has been substantiated. Thus, there is need of great attention of policy makers and the business community in tackling the problems, designated in this article, because it contributes to the economic and innovative development of the region.

PROBLEMS OF TRANSFORMATION OF ECONOMY OF THE AFRICAN COUNTRIES IN THE CONDITIONS OF REFORMING AND GLOBALIZATION

The problem of globalization can be analyzed as a self-regulating process and the dominant of the world development, its impact on the economy of African countries and in particular Nigeria. The main scenarios for achieving sustainable development, overcoming backwardness and transition to catch-up development are considered.

Effects of globalization on peace and stability: Implications for governance and the knowledge economy of African countries

We argue that there exists an indirect link between globalization and the knowledge economy of African countries in which globalization influences ‘peace and stability’ and peace and stability affects governance, and through governance the knowledge economy. We model the link as a three-stage process in four testable hypotheses, which permits an empirical analysis without sacrificing economic relevance for statistical significance. The results indicate that the impacts on governance of peace and stability from globalization defined as trade are stronger than those of peace and stability resulting from globalization taken to be foreign direct investment. We conclude that foreign direct investment is not a powerful mechanism for stimulating and sustaining the African knowledge. However, since the effects of globalization on peace and stability can influence governance both positively and negatively, we also conclude that the prospect for the knowledge economy in African countries may be realistic and attainable, as long as these countries continue to engage in the kind of globalization that enhances peace and stability.