African Economies Research Articles

The influence of different tree species and age on the surface water balance of a small commercial forestry catchment

Acacia mearnsii and Eucalyptus dunnii plantations play an important role in the South African economy as a source for a variety of wood products. However, these species are commonly associated with high evapotranspiration (ET) which may cause streamflow reduction, affecting downstream water users who are reliant on the stream for survival. The potential future increase in exotic plantations worldwide necessitates understanding the impact of these different species on the water balance, hence the streamflow. At the Two Streams research catchment in South Africa, intense hydrological observations (streamflow, ET and weather) have been conducted on A. mearnsii for almost two decades. In 2018, the catchment was clear-felled with subsequent replanting of E. dunnii and hydrological measurements continued. This provided an opportunity to present observations of the surface water balance of the catchment. However, gaps in the data at various times prevented a compilation of a continuous hydrological record. Therefore, three window periods, with complete records of streamflow, ET and precipitation, and with similar weather conditions, were compared. Only the interception loss (Il) was estimated using the Von Hoyningen-Huene method. First window, A. mearnsii trees were three years old (Amear3), second window, A. mearnsii trees were seven years old (Amear7) and the third window, E. dunnii trees were three years old (Edun3). Results indicated a negative catchment surface water balance for all window periods. During the Amear7 window period, the Il was highest compared to the young crops, which reduced effective precipitation, in turn contributing to the lowest measured streamflow. The negative surface water balance and high ET, suggests that trees were accessing water not quantified in the surface water balance. Crops of all three window periods were found to have the potential to significantly reduce the streamflow, which may in turn affect downstream water users. Further research using isotopes to trace the sources of water used by trees in the system is suggested.

The effect of taxation on Moroccan FDI in African countries: an empirical analysis using panel data

ABSTRACT The paper aims to analyse the impact of taxation policies in African countries on Moroccan foreign direct investment (FDI) using panel data from 29 African countries spanning the period 2005–2021, employing the Estimated Generalized Least Squares estimation method. The findings suggest that high total tax, profit tax, and other tax rates deter Moroccan multinational enterprises (MNEs) from investing in African countries. Conversely, fiscal incentives and reduced tax rates positively influence Moroccan FDI in African countries. Additionally, the results indicate that a high score for tax payment and tax rates positively influences Moroccan FDI in African countries, implying that high-quality taxation policies encourage Moroccan MNEs to invest in African economies. Furthermore, the study finds that the GDP of African economies positively moderates the effect of taxation on Moroccan FDI behaviour. This suggests that the larger the market size of a country, the less severe the negative impact of taxation on FDI.

Impact of Overseas Development Assistance on Economic Growth in Nigeria (1981-2021)

Nigeria currently has the largest economy in Africa with a GDP of $477.38 billion (Michael, 2023). However, the country’s great fortune, which is majorly driven by petroleum exports, has not successfully translated into a sustained economic development, as the nation continues to endure widespread poverty and income inequality for decades due to many contributing factors, including rapid population growth, low standard of education, and corruption. Consequently, Nigeria has looked to Overseas Development Assistance (ODA) as one of many means to address its economic problems, and this ODA phenomenon has raised debates among scholars with regards to its positive or negative impact, and the significance of such impact on the Nigerian Economy. This study investigated the amount of ODA received by Nigeria for the period 1981-2021, and the changes that such assistance has effected on the GDP of the nation. The study examined the empirical research by other scholars, for the same study, under a spectrum of economic, geographic and political climates. The Auto Regressive Distributed Lag (ARDL) Bounds Cointegration Test and the Granger Causality test were adopted for this study, and the results revealed that ODA impacted Nigeria’s GDP significantly and positively in the period of study. This study therefore recommends that the Federal Government of Nigeria, as well as other stakeholders, should pursue and maintain more favourable relationships with the international multilateral and bilateral donors, in order to boost economic growth in Nigeria.

Self-employment, financial access and economic welfare: empirical evidence from Africa

Purpose This study aims to investigate the empirical linkages between self-employment, financial access and economic welfare in Africa. It particularly examines the moderating role of financial access in the self-employment-economic welfare nexus and determines relevant thresholds. Design/methodology/approach The paper samples 52 African economies from 2000 to 2018 and deploys the fixed effects and bootstrap quantile regression estimators. Findings The results show that self-employment has a negative and significant relationship with economic welfare, while access to finance has a positive and significant relationship with welfare. More notably, the conditional effect of self-employment and finance is significant and positive, confirming a synergetic effect. The result suggests that pushing more people into self-employment does not necessarily enhance economic welfare, other than the avoidance of unemployment, due to the large number of replicative and necessity entrepreneurs. However, granting the self-employed more access to affordable finance that boosts entrepreneurial activities enhances economic welfare. Practical implications African governments and relevant policymakers must recognize that deepening the financial sector is crucial in creating sustainable opportunity entrepreneurs and boosting general economic welfare. Originality/value The uniqueness of this paper centers on the exposé of the relevance of financial access/development in promoting the economic welfare of self-employed persons and entrepreneurs. It also determines relevant thresholds at which finance is most significant in procuring positive impacts on economic welfare. In addition, the simultaneous quantile regression is used to show snapshots of human development index at which this impact is paramount.

The South African economy: Its growth and change

The South African economy: Its growth and change

Disaster induced displacement and durable solutions in Africa

AbstractClimate change represents a significant challenge to the sustainability of the global economy. Many African countries have suffered the repercussions of environmental and climate deterioration, most notably internal displacement. This article sought to examine the impact of climate change within the context of internal displacement in Africa and to preview and describe the trends of internally displaced people in Africa. The study used a mixed methods approach. Qualitative data was obtained from online repositories, and it was analyzed using content analysis. Quantitative data was obtained from World Bank portal and it was analysed using descriptive statistics. Research findings have shown that Africa is plagued by a high number of internally displaced people. It was also established that climate change leads to income inequality, the exposure of people to poverty, and the destruction of infrastructure. These adverse effects affect the capacity of African economies to attain selected Sustainable Development Goals. In terms of policy recommendations, it was suggested that there is a need to strengthen the regional and continental bodies, invest in climate change adaptation measures, broaden the definition of refugees to include climate refugees, and promote robust research and capacity building.

Digital Economy and Poverty Reduction in Africa: The Role of Governance Quality

Digital Economy and Poverty Reduction in Africa: The Role of Governance Quality

Resilience and adaptation of third sector organizations (TSOs) during crisis situations: Insights from a West African economy

Resilience and adaptation of third sector organizations (TSOs) during crisis situations: Insights from a West African economy

Do institutions matter for agri-food imports and exports between China and Africa? A gravity model analysis

This paper aims to study the role of institutional quality on agri-food trade (import and export) between China and 48 African countries during the 2001-2021 period. The gravity model of trade was employed by estimating the Generalised Least Square (GLS) and the Poisson Pseudo-Maximum Likelihood (PPML) estimators, which include zero trade flows for panel data. The main results show that voice and accountability, control of corruption, and the rule of law all enhance agri-food trade flows. While political instability encourages agri-food exports to China. In addition, the economic size of China, the trade cost (distance), and the population of African countries also encourage agri-food trade between China and African economies. Moreover, access to the sea, exchange rate policy, and the economic size of African nations deplete China’s agri-food imports from Africa. We showed the mechanism through which each institutional variable affects China’s agri-food trade flows to African nations.

Smallholder livestock farming in the face of climate change: Challenges in the Raya Alamata district of Southern Tigray, Northern Ethiopia

AbstractSmallholder livestock farming is a crucial component of African economies, particularly south of the Sahara, sustaining millions of farmers and bolstering food security continent‐wide. Our study investigates into the effects of climate change on smallholder livestock farmers in northern Ethiopia's Raya Alamata district, investigating how farmers are adapting to evolving conditions. A field survey encompassing 177 households within three rural communities, coupled with statistical analysis, revealed that droughts strike once every three seasons, causing water and forage shortages, rangeland deterioration and a surge in livestock diseases and deaths. In seasons marked by dryness and heat, the incidence of livestock illness increased markedly, and daily milk yield per cow plummeted from 4 to 1.66 litres. In response, local farmers have transitioned from open grazing to stall‐feeding, heavily dependent on costly market‐bought feeds. Other significant adaptive measures include providing shelter, bathing livestock during heatwaves and practicing transhumance. To enhance resilience to these issues, we advocate for improved environmental conservation, better access to climate data and resources, better animal health care, and subsidized and readily available feed. Our research underscores the profound adversities confronting smallholder livestock farmers in northern Ethiopia due to climate change, implications that extend to food security and the economic equilibrium of the area and beyond.

African Data Banks: How They Promulgated African Economy?

African Data Banks: How They Promulgated African Economy?

Decarbonization Efforts in Africa: Successes, Opportunities, and Challenges for Promoting the use of Renewable Energy by Social Economy

Background: While Africa contributes minimally to global warming, it remains disproportionately vulnerable to the adverse impacts of climate change, including reduced agricultural productivity and erratic rainfall patterns. In response, African governments and policymakers have devised strategies aimed at mitigating climate change effects and promoting renewable energy adoption, decarbonization, and sustainable development pathways. Research objectives: This article aims to explore the intersection of decarbonization and the social economy sector in Africa, particularly in promoting renewable energy utilization. It seeks to examine the challenges and opportunities associated with integrating decarbonization efforts within social economy frameworks on the continent. Research design and methods: The study employs a narrative methodology coupled with content analysis to investigate the dynamics of decarbonization within the context of the social economy in Africa. It assesses the existing initiatives, policies, and challenges related to promoting renewable energy adoption and decarbonization strategies. Results: The findings indicate that while there is a growing recognition of the importance of decarbonization and renewable energy in Africa’s social economy sector, challenges such as limited access to technology, funding, and infrastructure persist. Conclusions: Addressing these obstacles is crucial for advancing decarbonization and climate change mitigation efforts across the continent.

African Continent Free Trade Area Development Strategy Analysis

The establishment of the African Continental Free Trade Area (AfCFTA) will promote the agglomeration of industries in the African region, the extension of the industrial chain and the growing economies of scale, and promote the participation of African countries in the global supply chain. From the perspective of how Africa should deal with the difficulties in the development process of the free trade area, this paper discusses how the development strategy and strategy of the free trade area on the African continent can help its stable development from the aspects of the construction of the free trade area on the African continent should learn from China's experience, promote the development of African port economy, help the development of agriculture and industrialization in Africa, increase and improve the investment in infrastructure, and connect the development of urbanization in Africa.

African Continent Free Trade Area Development Strategy Analysis

The establishment of the African Continental Free Trade Area (AfCFTA) will promote the agglomeration of industries in the African region, the extension of the industrial chain and the growing economies of scale, and promote the participation of African countries in the global supply chain. From the perspective of how Africa should deal with the difficulties in the development process of the free trade area, this paper discusses how the development strategy and strategy of the free trade area on the African continent can help its stable development from the aspects of the construction of the free trade area on the African continent should learn from China's experience, promote the development of African port economy, help the development of agriculture and industrialization in Africa, increase and improve the investment in infrastructure, and connect the development of urbanization in Africa.

Is artificial intelligence helping to empower women in agriculture in Africa?

Is artificial intelligence helping to empower women in agriculture in Africa?

Gendered Gaps in the Adoption of Climate-Smart Agriculture in Africa and How to Overcome Them

In Africa, the agricultural sector contributes approximately 10–20% of the total anthropogenic greenhouse gas (GHG) emissions. It presents rapid growth as a result of rising food demand in Africa, which is being driven by population growth. Consequently, climate change can negatively affect crop yields and livestock production, thus threatening food security. This review highlights the existing gender gaps in African agriculture and discusses the drivers and barriers that maintain gender gaps in climate-smart agriculture (CSA) adoption in African countries. Moreover, the review offers a comprehensive roadmap for the essential measures required to facilitate the widespread uptake of CSA practices among female farmers. Several CSA practices were reported, such as agricultural practices, forest and cropland regeneration practices, water resources, and the use of weather and climate information services. The gender gap in the adoption of CSA practices was influenced by policy legislation, financial resources, social and cultural taboos, and technical determinants such as climate information access. To address this gender gap, scientific-outcome-based research should be used to address gender gaps among female small farmers. In conclusion, to overcome the gender gap in CSA adoption in Africa, this review recommends the use of a gender-responsive approach, the development of scientific research-driven measures, and the prioritization of gender equality in governments’ agendas in the context of climate change uncertainty.

Supply chain management of micro, small, and medium enterprises (MSMEs) in Africa: a bibliometric analysis

This study examines the supply chain management of micro, small, and medium enterprises (MSMEs) in Africa, aiming to demonstrate the patterns of publication in this field. An extensive examination of bibliometric analysis has been conducted using 338 published works obtained from the Dimensions database over the last 20 years. The study was conducted based on publications, sources, authors, and institutions as the primary units of analysis. The study determined the leading journals, prolific authors, partnering countries, and organizations involved in research on supply chain management specifically focused on micro, small, and medium enterprises (MSMEs) in Africa. Furthermore, it has been uncovered that the investigation of supply chain management in MSMEs in Africa needs to be revised in comparison to that of larger organizations. Moreover, publications in the field are not only insufficiently accessible, but also authored by scholars who are not of African descent. Given the crucial role of MSMEs in the African economy, scholars in this field are encouraged to prioritize research on the supply chain management of MSMEs as a critical issue for the twenty-first century. Furthermore, researchers are recommended to do additional analyses utilizing alternative databases such as Web of Sciences and Scopus.

The nexus between information sources, gender and adoption of fall armyworm management practices in Southern Ghana

The impact of Fall Army Worm (FAW) infestation on the livelihood outcomes of farmers in Africa is an issue of critical concern. Specificities of information sources and their efficacy in the management of Fall Armyworm remain crucial. Yet still, the nexus between farmers’ information sources and the management of Fall Armyworm appears scarce in the related literature pertaining to the global south. This article answers the research question: What is the relationship between specific information sources and the management practices of Fall Army Worm in Ghana? Using cross-sectional data on 340 smallholder farmers, the findings showed that information derived from peer farmers, Agricultural extension officers, and the media related to the adoption of fall armyworm management practices. Additionally, information from agricultural extension agents has a significant relationship with the use of pesticides, handpicking, and frequent weeding. Generally, the majority (97%) of smallholder farmers remained aware of the presence of FAW and had been negatively affected. We recommend that peer-to-peer extension be harnessed and scaled up in the dissemination of useful agricultural information given the shortfall in adequate agricultural extension officers in Ghana and most countries in Sub-Saharan Africa.

Seasonal Maize yield forecasting in South and East African Countries using hybrid Earth observation models

Climate change still adversely affects agriculture in the sub-Saharan Africa. There is need to strengthen early action to bolster livelihoods and food security. Most governments use pre- and post-harvest field surveys to capture statistics for National Food Balance Sheets (NFBS) key in food policy and economic planning. These surveys, though accurate, are costly, time consuming, and may not offer rapid yield estimates to support governments, emergency organizations, and related stakeholders to take advanced strategic decisions in the face of climate change. To help governments in Kenya (KEN), Zambia (ZMB), and Malawi (MWI) adopt digitally advanced maize yield forecasts, we developed a hybrid model based on the Regional Hydrologic Extremes Assessment System (RHEAS) and machine learning. The framework is set-up to use weather data (precipitation, temperature, and wind), simulations from RHEAS model (soil total moisture, soil temperature, solar radiation, surface temperature, net transpiration from vegetation, net evapotranspiration, and root zone soil moisture), simulations from DSSAT (leaf area index and water stress), and MODIS vegetation indices. Random Forest (RF) machine learning model emerged as the best hybrid setup for unit maize yield forecasts per administrative boundary scoring the lowest unbiased Root Mean Square Error (RMSE) of 0.16 MT/ha, 0.18 MT/ha, and 0.20 MT/ha in Malawi's Karonga district, Kenya's Homa Bay county, and Zambia's Senanga district respectively. According to relative RMSE, RF outperformed other hybrid models attaining the lowest score in all countries (ZMB: 25.96%, MWI: 28.97%, and KEN: 27.54%) followed by support vector machines (ZMB: 26.92%, MWI: 31.14%, and KEN: 29.50%), and linear regression (ZMB: 29.44%, MWI: 31.76%, and KEN: 47.00%). Lastly, the integration of VI and RHEAS information using hybrid models improved yield prediction. This information is useful for NFBS bulletins forecasts, design and certification of maize insurance contracts, and estimation of loss and damage in the advent of climate justice.

Migrant labour in South Africa's mining economy: the struggle for the gold mine's labour supply, 1890-1920

Migrant labour in South Africa's mining economy: the struggle for the gold mine's labour supply, 1890-1920