African Economies Research Articles

IoT-Enabled Smart Agriculture: a Pathway to Nigeria's Economic Recovery and Sustainable

As Africa's largest economy, Nigeria has the potential to become a leading nation in economic recovery and sustainable development. The rapid growth of the Internet of Things (IoT) and the introduction of smart agriculture present an opportunity for Nigeria to create meaningful economic growth and improve livelihoods. This study is aimed at examining the potential of IoT-enabled smart agriculture to provide a pathway to economic recovery and sustainable development in Nigeria. The specific objectives are to review an overview of Nigeria's current agricultural sector and the challenges it faces, including security, privacy, cost, data management, energy, lack of access to knowledgeable farming techniques, and oversight of land use. The method adopted in this study was the incremental descriptive model (IDM). It then provides the potential solutions of IoT-enabled smart agriculture to address these challenges and provide Nigeria's agricultural sector with the resources it needs to both increase yields and improve environmental sustainability. Then it outlines the potential economic impacts of IoT-enabled Smart Agriculture, including increased productivity, improved farmers' access to modern technologies and services, and increased job opportunities for rural populations. It also focuses on the potential of the system to reduce greenhouse gas emissions, providing crucial support for Nigeria's ambitious climate ambitions. In conclusion, with the right policies and measures put in place, the system can provide a pathway for economic growth and environmental sustainability. Moreover, the potential of the system to reduce poverty and provide job opportunities for rural populations offers a crucial opportunity for Nigeria to remain competitive in the global economy while simultaneously supporting its environmental goals.

Characterization of mosquito host-biting networks of potential Rift Valley fever virus vectors in north-eastern KwaZulu-Natal province, South Africa

BackgroundRift Valley fever virus (RVFV) is a zoonotic mosquito-borne virus with serious implications for livestock health, human health, and the economy in Africa, and is suspected to be endemic in north-eastern KwaZulu-Natal (KZN), South Africa. The vectors of RVFV in this area are poorly known, although several species, such as Aedes (Neomelaniconion) mcintoshi, Aedes (Neomelaniconion) circumluteolus, Aedes (Aedimorphus) durbanensis, and Culex (Lasioconops) poicilipes may be involved. The aim of the study was to determine the vertebrate blood meal sources of potential RVFV mosquito vectors in north-eastern KZN and to characterize the host-biting network.MethodsBlood-fed mosquitoes were collected monthly from November 2019 to February 2023 using a backpack aspirator, CO2-baited Centers for Disease Control and Prevention (CDC) miniature light traps and tent traps, in the vicinity of water bodies and livestock farming households. The mosquitoes were morphologically identified. DNA was extracted from individual mosquitoes and used as templates to amplify the vertebrate cytochrome c oxidase I (COI) and cytochrome b (cytb) genes using conventional polymerase chain reaction (PCR). Amplicons were sequenced and queried in GenBank and the Barcode of Life Data systems to identify the vertebrate blood meal sources and confirm mosquito identifications. All mosquitoes were screened for RVFV using real time reverse transcription (RT)-PCR.ResultsWe identified the mammalian (88.8%) and avian (11.3%) blood meal sources from 409 blood-fed mosquitoes. Aedes circumluteolus (n = 128) made up the largest proportion of collected mosquitoes. Cattle (n = 195) and nyala (n = 61) were the most frequent domestic and wild hosts, respectively. Bipartite network analysis showed that the rural network consisted of more host-biting interactions than the reserve network. All mosquitoes tested negative for RVFV.ConclusionsSeveral mosquito species, including Ae. circumluteolus, and vertebrate host species, including cattle and nyala, could play a central role in RVFV transmission. Future research in this region should focus on these species to better understand RVFV amplification.Graphical

Decolonisation and Downshift-Knowledge Reproduction in Africa

Colonialism established a system of racial oppression, both mentally and physically, by impeding pre-colonial African education, which was originally intended to reflect the realities of pre-colonial African societies. Before the colonial administration, Africans were already developed people with different educations for different age groups, making them functional and inclusive within the larger political sphere. Decolonisation only reflects a shift in political power and the withdrawal of colonialists from African territories, but it has not resulted in any fundamental shift in the mentality of political leaders and nation-building in the decolonised nations. The education curriculum left behind by colonial governments was designed to make African nations economically and technologically dependent on developed nations. Such a pattern of education was not geared toward African technological development, but rather conditioned African nations to be consumers rather than producers, with the resulting loss of initiative among the Africans. The curriculum is insidious in terms of principles and implementation across all levels of educational institutions, slowly destroying the economies of African nations that were once ahead of European nations during the pre-colonial epoch. Instead of accelerating the socio-economic development of decolonised African nations, the curriculum based on Western principles and ideas further subjugates African economies to imperialist influence and hegemony through the instrumentality of international financial institutions, which frequently dictate exploitative asymmetric relationships between the developed and developing African nations. African nations must therefore look inward for an African-oriented and culturally appropriate educational curriculum to meet the demand for socioeconomic advancement and growth.

Africa's Manufacturing Puzzle: Evidence from Tanzanian and Ethiopian Firms

Abstract Recent growth accelerations in Africa are characterized by declining shares of the labor force employed in agriculture, increasing labor productivity in agriculture, and declining labor productivity in modern sectors such as manufacturing. To shed light on this puzzle, this study disaggregates firms in the manufacturing sector by average size, using two newly created firm-level panels covering Tanzania (2008–2016) and Ethiopia (1996–2017). The analysis identifies a dichotomy between larger firms with superior productivity performance that do not expand employment and small firms that absorb employment but do not experience much productivity growth. Large, more productive firms use highly capital-intensive techniques, in line with global technology trends but significantly greater than what would be expected based on these countries’ income levels or relative factor endowments.

The environmental repercussions of financial development and green energy in BRICS economies: From the perspective of new composite indices

This study is significant because it fills the gap in future literature by looking at the panel of 5 Brazil, Russia, India, China, and South Africa (BRICS) economies regarding the important role of financial development (FD) in environmental deterioration under the holistic measures of FD and environmental quality, something that has been largely overlooked in preceding studies. Consequently, this study explores the environmental effects of FD, employing a composite environmental quality proxy (CEQP) and a composite FD proxy (CFDP). In pursuit of this objective, the continuously updated fully modified (Cup-FM) and continuously updated bias corrected (Cup-BC) procedures are applied. These procedures enabled us to comprehensively explore the dynamic interactions between the combined index for FD and CEQP controlling agricultural activities, economic growth, renewable energy consumption, and nonrenewable energy consumption (NREC) in the panel of 5-BRICS economies from 2005 to 2019. The empirical results show that CFDP appeases environmental deterioration and thus improves environmental quality. The agricultural activities intensify environmental deterioration. The analysis also reveals a U-shaped relationship between the CEQP and economic growth (inverted U-type environmental Kuznets curve hypothesis) for the BRICS nations. Additionally, renewable energy improves environmental quality, whereas NREC decreases it. As supported by the results of the study, BRICS policymakers should encourage the financial sector to support green energy initiatives and achieve environmental stability.

Challenges of Smallholder Farmers in Sub-Saharan Africa: A Perspective from Roger Thurow's, The Last Hunger Season

Small holder farmers are the small-scale farmers who own the land from one hectare to less than ten hectares. These farmers often depend on the family labour for farming activities, and a significant portion of their production is used to support their own livelihoods. Africa is a region where eighty percent of the farmland is cultivated and food is produced by small holders, yet they face multiple obstacles in sustaining their routine. The death rate of children is increasing due to poverty and malnutrition. Major challenges include the lack of sustainable agricultural practices, insufficient planting techniques, inadequate access to fertilizers and markets, water scarcity, and the impacts of climate change. The author aims to raise awareness about global hunger and the importance of long-term viability and economic development. He delves into the lives of small farmers, revealing the complexities of market failures, food insecurity, and the inability to access modern agricultural tools. The author also highlights the efforts of organizations and initiatives, such as One Acre Fund, which provide farmers with high-quality seeds and fertilizers on credit, and require them to attend local farming classes. This paper focuses on the challenges faced by smallholder farmers in Africa, as depicted by Roger Thurow in "The Last Hunger Season”. The objective of the study is to emphasize the need for awareness and policy interventions, including family planning and literacy programs, to empower rural communities, achieve food security and improve economic resilience in the face of population growth and agricultural challenges.

Structure, tree diversity, and aboveground carbon stocks of smallholder farms with push-pull technology in western Kenya

Push-pull technology is a companion cropping system whose success in soil fertility improvement and management of agricultural pests has been established in cereal-based systems. Push-pull has also been proposed as a template for the sustainable intensification of agriculture in Africa. However, the application of the technology has remained on a field scale and is restricted to cereal-based systems. Trees in agricultural landscapes are considered a strategy for climate change mitigation by storing carbon in soils and woody biomass. However, their potential has not been quantified in push-pull systems. This study characterized 45 smallholder farms in western Kenya to establish the land use categories within which push-pull is integrated, the diversity and structure of perennials on the farms, and the aboveground carbon stored within those farms. The area of each land use category varied depending on the size of the land use category on each farm. The amount of carbon stored in aboveground biomass was estimated using an existing allometric equation. This study found that trees are integrated on farms with push-pull in homesteads (45), cropland (38), woodlots (26), boundaries (4), and grazing land (2) farms. A total of 9159 trees from 97 different species were recorded over 34 ha. Farms in Vihiga and Kisumu had more trees (38 % and 37 % of all trees recorded) than those in Siaya (25 %). There were more trees in woodlots (total=4518) and homesteads (total=3327), and the least in grazing land (total=18). Overall, the highest species richness, Shannon, and Simpson diversity were observed in the homestead (86 species, H’=2.52 and D = 0.86). Farms in Kisumu, Vihiga, and Siaya stocked an average of 12.1, 9.4, and 7.3 Mg C ha−1 in aboveground biomass respectively. Variations were observed in land use categories, where woodlots had the greatest amount of carbon (55.5 Mg C ha−1) while grazing land had the least (2.4 Mg C ha−1). Eucalyptus spp., Grevillea robusta, and Markhamia lutea were the most dominant trees in abundance at 50 %, 16 %, and 11 % respectively. Conservation of trees on farms should be encouraged, as they protect biodiversity and store carbon thus contributing to climate change mitigation. This study's findings contribute to knowledge valuable to farmers and policymakers in making decisions on tree species and land use categories that have a high potential to sequester carbon in agroforestry systems.

Analysing COVID-19′s impact: Gold, oil, and stock markets in African oil-exporting economies

This article employs quantile regressions to investigate the link between oil prices, gold prices, and stock market returns in five African oil-exporting nations: Nigeria, Ghana, Egypt, Algeria, and Tunisia. The analysis utilises daily data spanning from January 1, 2017, through September 30, 2021. Before the onset of COVID-19, oil played a pivotal role as a hedge in Tunisia, Egypt, Algeria, and Ghana, providing stability in both normal and bullish market conditions. Furthermore, it functioned as a diversifier in Egypt and Ghana during bearish market phases. However, as the pandemic unfolded, oil took on the characteristics of a safe haven in Egypt, Ghana, Nigeria, Algeria, and Tunisia, particularly notable during bearish and normal market conditions. Gold, prior to the pandemic, served as a hedge in Egypt, Ghana, Nigeria, and Tunisia, while also acting as a diversifier across both bearish and bullish market conditions in these economies. Conversely, during the pandemic, gold predominantly functioned as a diversifier in most oil-exporting African economies, with significant hedge properties observed specifically in Algeria and Ghana. The practical implications of these findings are significant for various stakeholders, including oil exploration and production firms, businesses in the transport and hospitality sectors, policymakers, and investors with stocks sensitive to oil and gold prices.

Macrofinancial linkages and income distribution in the South African economy

ABSTRACT This study examines the impact of financial factors and income distribution on aggregate demand and growth in South Africa, using data spanning 1980–2019. We applied the autoregressive-distributed-lag bounds-testing procedure to uncover the effects over the short-and-long-run horizons. Additionally, we estimated impulse response functions to reveal further dynamic interactions. Our findings indicate that the key financial factors affecting the South African real economy are credit growth, interest rates, house prices and exchange rates. House prices play an important role, via the collateral channel, in driving consumption demand. Meanwhile, credit growth stifles investment demand in the long run. Interest rates constrain demand and growth, while the strengthening of exchange rates improves investment for firms. However, exchange rates impact negatively on GDP, presumably, through the trade-channel. We also found that income inequality suppresses consumption and investment demand, as well as GDP. This suppression appeared to be relatively pronounced in the short run for investment and growth, while for consumption, the suppressive impact was persistent. Therefore, we recommend that any policy framework aiming to galvanise growth should not overlook the problem of inequality. Otherwise, any headway made on growth will be back-pedalled by the demand-reducing impact of high-income inequality.

Comparing the financial benefits of different grain production systems in South Africa’s summer rainfall region

There is growing evidence that soil degradation, among other factors, has led to both the decline and constraint of agriculture in southern Africa. Conservation and regenerative agriculture (CA/RA) have been proposed as a grain crop production system that could slow down, halt or even reverse some of these disturbing trends. But the question remains whether it is financially viable. We sought to find an answer to this question by comparing the financial returns of a CA/RA system over a 20-year period to its alternatives, namely conventional tillage (CT) and no-tillage (NT) production systems. The cumulative free cash flow (CFCF) of the average between the realistic and conservative CA/RA scenarios in year 20 is considerably higher than that of the other systems under investigation. The CFCF for CA/RA in year 20 in Mpumalanga is estimated to be R86 million, compared to -ZAR51 million for CT and about ZAR4 million for NT. That is a net difference between ZAR137 million (compared to CT) and ZAR82 million (compared to NT). In the Maluti area, the CFCF for the CA/RA production system is estimated at ZAR26 million, compared to -ZAR66 million for CT and -ZAR19 million for NT. In the North-West production area, the CFCF for the CA/RA production system is estimated at ZAR35 million, compared to -ZAR9 million for CT and about ZAR21 million for NT. The differences between the CFCF of the CA/RA system and the other systems represent the financial opportunity cost of not converting to the CA/RA system.

Tapping imaginaries: Guinness, masculinity, and the promise of Africa Rising

ABSTRACT This article interrogates masculinity and the consumer politics of late capitalism in urban Africa. Engaging scholarship on racialized masculinities, branding, and African cities with special attention to the Nigerian context, it conducts a media analysis of three Guinness Africa advertising campaigns: Made of More, Michael Power, and Greatness. Building off of its centuries-long ties between the African male consumer and European capital, in 1998 Guinness created the fictional Michael Power in a marketing coup that was to elevate the brewery to unrivaled dominance over the continent’s beer import market. Subsequent campaigns were to glorify everyday heroes: Greatness declaring a ‘drop of greatness in each man’ and Made of More extolling the sartorial elegance of Congolese dandies. This representational shift reflected the brewery’s recognition of changing models of accumulation in the African urban informal economy and the corresponding aspirations that they ignited in its men. Bypassing scripts of hegemonic masculinity, this new era of Guinness advertising showcased self-made men in a laissez-faire economy, simultaneously celebrating and depoliticizing the racialized global inequalities and gendered politics of contemporary African urbanization. Guinness’s successful appeal to twenty-first-century African male consumers provides a case study of multinational marketing in bottom billion capitalism.

Public Expenditure in the Fastest Growing and Emerging Market Economies in Africa: The Role of Institutional Quality

Emerging and fastest-growing markets in Africa are developing their financial environment to attract investors and position themselves as an upcoming generation of strong and influential markets. The subject of this study is public expenditure outlays used to stimulate economic activity in emerging markets in Africa. The purpose of this study is to isolate the main determinants of government spending and the role of institutional quality. The relevance lies in the significance of maintaining such expenditures at optimal levels to benefit the economy. The scientific novelty lies in the analysis of the main factors explaining government spending to support policy formulation in emerging markets. This study applied the autoregressive distributed lag (ARDL) model to test both long-term and short-term dynamics. Based on the results, the study demonstrated both joint and long-run causality between the selected variables and government expenditure. Short-term causality is not confirmed. The study concluded that the Wagner law still holds, in which economic growth is coupled with an increase in expenditure. The Economic freedom index is more effective in controlling government expenditure than the POLITY 2 variable. This study offers some policy implications.

Nonlinear network connectedness: Assessing financial risk transmission in MENA and influence of external financial conditions

This study investigates the influence of global financial market conditions on financial risk connectedness and transmission among the Middle East and North Africa (MENA) economies. Utilizing weekly realized stock market volatilities as a measure of risk and employing a smooth transition threshold vector autoregressive (STVAR) model to analyze risk transmission under varying levels of financial stress, the authors also examine the impact of external macroeconomic conditions on the risk connectedness of MENA economies. The results indicate that the overall connectedness, based on a standard VAR model, is moderate at 48.34%. However, in the low financial stress regime, overall connectedness increases to 52.79%, and in the high financial stress regime, it rises to 72.94%, indicating stronger risk interdependency among MENA countries during times of high stress. In the high financial stress regime, Kuwait, Oman, Qatar, Saudi Arabia, Turkey, and the United Arab Emirates are identified as net risk transmitters among MENA countries. The study also reveals that risk transmission across MENA is more pronounced in the regime-dependent model compared to the overall mean-based VAR model.

Internal determinants of financial performance among listed food supermarkets in the South African economy

This study aims to examine the internal determinants of financial performance of food supermarkets listed on the South African stock exchange. Food supermarkets play an integral role in socio-economic development of the country. The study employed an econometric approach utilizing fixed effect panel data. Drawing information from audited financial statements, data were gathered from four major listed food supermarkets in South Africa covering the period from 1994 to 2022, resulting in a total of 116 observations over 29 years. The robust longitudinal statistics obtained from balanced data revealed a significant positive correlation between equity financing, size of corporate governance, and current debt with financial performance, as measured by sales revenue at 0.0000, 0.054, and 0.000 significance levels, respectively. The findings indicate that as these variables increase, the financial performance of the studied food supermarkets (Shoprite, Woolworths, Spar, and Pick n Pay) also increases. Conversely, a negative and significant relationship is noted between company age, current assets, and financial performance at significance levels of 0.007 and 0.002, respectively. This suggests that as these variables increase, financial performance will decrease. As per the research findings, it is imperative for supermarkets to uphold a well-rounded blend of equity and debt and adopt inventive business approaches as they mature to improve financial outcomes. Therefore, the study proposes a framework focusing on internal factors that impact the financial performance of listed food supermarkets in South Africa.

Government size, institutional quality and economic welfare in Africa

PurposeMost African countries operate large government sizes but with little corresponding economic outcomes. Institutional economics however, show that strong institution is fundamental in promoting economic growth. This study examines the linkages between government size, institutional quality and economic welfare in Africa.Design/methodology/approachThis study deploys the System Generalized Method of Moments estimation strategy on panel data of 52 African economies from 2000–2018.FindingsThe result shows that government size has a negative impact on economic welfare, while institutional quality has a positive impact on economic welfare. The interaction of government size and institutional quality shows a positive impact on economic welfare, signifying synergy and complementarity. Thus, strong institutions counteract the adverse effects of large government size on economic welfare.Practical implicationsTo promote human development and economic welfare, and attain key Sustainable Development Goals such as good health and well-being, quality education, decent work and economic growth, African policy makers need to keep their government sizes at optimal levels and promote strong institutions.Originality/valueThis paper provides first-hand empirical evidence of the relevance of institutional quality in counteracting the adverse influence of large government size in Africa. It determines the thresholds of government size and uses a composite index as proxy for same. In addition, this study uses the World Governance Indicators and the Fraser Institute Economic Freedom Index as alternative measures of institutional quality and Gross Domestic Product per capita and Human Development Index as proxies for economic welfare.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0075

Productivity Paradox in Africa: Does Digitalization Foster Labor Productivity in African Economies?

AbstractHow the advancement of information and communications technologies (ICT) and digitalization affect labor productivity is subject of an ongoing debate. While parts of the literature find the expected positive effects, other studies have found no effect, resulting in the so-called productiviy paradox. As most of the studies have focused on economically advanced economies such as OECD countries, evidence for less developed economies has been sparse. We use a digitalization composite index from a balanced panel of 40 Sub-Saharan African (SSA) economies, using data from 2006 to 2021, to assess the effect of digitalization on aggregate labor productivity in SSA economies. We employ generalized least squares (GLS) and system generalized methods of moments (GMM) methods to capture the effects of digitalization on labor productivity levels in agriculture, manufacturing, and service sectors. Our results show a weak association between digitalization and overall labor productivity. However, when sectors are analyzed separately, digitalization has a positive effect on labor productivity in agriculture and manufacturing sectors, whereas we find evidence for the productivity paradox in the service sector, with even a negative effect of digitalization on labor productivity.

Two are Better Than One but Three is Best: Fast-Tracking the Attainment of the Sustainable Development Goals (SDGs) Among In-School Adolescents in Nigeria

BackgroundWith 60% of Africa’s population under the age of 25 years, investing in youth will accelerate progress towards achieving the Sustainable Development Goals (SDGs). The United Nations concept of ‘Development Accelerators’ is operationalized by examining factors associated with multiple SDGs among adolescents in Nigeria.MethodologyThrough data collected on the health of 1800 adolescents in Southwest Nigeria (Ibadan), ten SDG targets were identified. Accelerator protective factors that could lead to the attainment of two or more SDG targets were identified. Associations were assessed using multivariable logistic regression adjusting for sociodemographic covariates and multiple testing. Cumulative effects were tested by marginal effects modelling.ResultsParticipants’ mean age was 15.02 years (SD = 2.27). Family (parenting support), environmental (no survival work and food security) and school (safe schools) related factors emerged as development accelerators. For seven of the identified SDG-aligned targets, a combination of two or more accelerator factors showed cumulative positive associations, suggesting accelerator synergies with a combination of three accelerators showing the greatest increase. For instance, perceiving the school environment as safe, being food secure and having optimal mental health was associated with an 67% chance of not using psychoactive substances. While with safe school alone it was 39% (29%-51%), with food security alone it was 42% (31%-54%) and with optimal mental health alone it was 54% (42%-66%).ConclusionSeveral development accelerators related to family, environmental and school factors can have additive effects on the attainment of the SDGs amongst adolescents in Nigeria. This has practical and policy utility in the fastest growing economy in Africa.

West African Pidgin: World Language Against the Grain

West African Pidgin (“Pidgin”) is a cluster of related, mutually intelligible, restructured Englishes with up to 140 million speakers in Nigeria, Cameroon, Ghana, Sierra Leone, Equatorial Guinea, and The Gambia. Spoken by just few thousand people two centuries ago, “modernisation” and “shallow social entrenchment” have driven the transformation of Pidgin into a “super-central” world language. Demographic growth, migration, the expansion of West African cultural industries and economies, and people-to-people contacts are likely to expand Pidgin further. Already the largest language of West Africa, Pidgin may be spoken by 400 million people by 2100. The rise of Pidgin goes against the grain. World languages like English, French, Chinese, or Arabic mostly spread through colonisation, elite engineering, and state intervention. The trajectory of Pidgin, therefore, holds great potential for exploring the dynamics of large-scale natural language evolution in the twenty-first century.

THE MODERATING EFFECT OF EDUCATION LEVEL ON THE RELATIONSHIP BETWEEN TRADE OPENNESS AND EMPLOYMENT IN NORTH AFRICAN ECONOMIES

Objective: This study explores how education level moderates the relationship between trade openness and employment in North African economies, examining whether higher education levels enhance or mitigate the employment effects of trade openness. Theoretical Framework: The research draws on economic and educational theories to examine the interplay between human capital and economic policies. It uses trade openness theories to assess the impact of economic integration on employment, and human capital theories to analyze the role of education. Method: The study uses a quantitative approach with panel data from North African economies (2000-2020). PLS-SEM models with interaction terms evaluate the moderating effect of education on the trade openness-employment relationship, using data from international trade databases and national educational statistics. Results and Discussion: Findings indicate that trade openness positively influences employment, with the effect amplified by higher education levels. Economies with better education systems benefit more from trade openness in terms of employment. The discussion underscores the importance of educational investment for maximizing these benefits and addresses issues like differing educational quality and labor market conditions across countries. Research Implications: The study suggests that North African policymakers should enhance educational systems to maximize the employment benefits of trade openness, offering practical insights into how education can help address globalization challenges and drive economic growth. Originality/Value: This study uniquely combines education and economic policy perspectives to examine the moderation of trade openness effects on employment in North Africa, providing valuable implications for academic research and policy formulation.

Exploring the Relationship Between Trade Openness, FDI, and Economic Complexity in Africa

ABSTRACT This study analyzes the relationship between trade openness, foreign direct investment (FDI), and economic complexity in 32 African economies from 1995 to 2018. Using pooled OLS, fixed effects, random effects, and GMM methods, it finds that trade openness negatively affects economic complexity, while FDI positively impacts it by fostering technology transfer and innovation. However, increased trade openness reduces the positive effect of FDI on economic complexity. These findings highlight the need for nuanced trade and investment strategies in Africa.