Financing Sustainable Development in Africa

Acknowledgements

Contents

List of Figures

List of Tables

Introduction

1 Introduction

References

Part I Financing in Africa for Sustainable Development

Financing Mechanisms African Governments Should Pursue in Financing Sustainable Development in the Next 20 Years

1 Introduction

2 Traditional Sources of Financing Sustainable Development in Africa

3 A Changing Global Context and Challenges Faced by Traditional Sources of Financing Development

4 Solutions for Financing Sustainable Development in Africa

4.1 Sovereign Wealth Funds

4.2 Private Financing

4.3 Blended Finance

5 The Role of Local Government

5.1 The Relationship Between Business and Local Government

6 Conclusion

References

Financial Inclusion and Foreign Market Participation of Firms: A Quasi-experiment from Nigeria

1 Introduction

2 Theoretical Framework and Empirical Validations

3 Research Method

3.1 Data

3.2 Methods

4 Result and Discussions

5 Concluding Implications, Caveats and Future Research Directions

References

Business Regulations and Foreign Direct Investment in Sub-Saharan Africa: Implications for Regulatory Reform

1 Introduction

2 FDI and Doing Business in SSA

2.1 Recent Trends of FDI Inflows in SSA

2.2 World Bank’s Doing Business in SSA

3 Theoretical and Empirical Literature on the Determinants of FDI

3.1 FDI and Its Traditional Determinants

3.2 Recent Empirical Studies

4 Variables, Hypotheses, and Model Specification

4.1 Variables

4.2 Foreign Direct Investment

4.3 The World Bank’s Doing Business Indicators

4.4 Other Variables

4.5 Hypotheses

4.6 Model Specification

5 Estimation Results and Policy Implications

6 Conclusion

References

Broadening Financial Intermediation in Sub-Saharan Africa

1 Introduction

2 The Current Financial Configuration in Sub-Saharan Africa

3 The Need for an Improved Financial System for Sustainable Development in Africa

4 Instruments, Actors, Financial System Characteristics for Sustainable Development in Africa

4.1 Addressing Developmental Challenges Through a Broader Financial System

4.2 Key Pillars for Broadening the Financial Systems in Africa

5 Conclusions

References

Institutions, Fiscal Performance, and Development Trajectories in ECOWAS: Implications for Sustainability

1 Introduction

2 Some Insights from Extant Literature

3 Empirical Model and Data

4 Results and Discussions

4.1 Descriptive Analysis

4.2 Implications of Result for Sustainable Development

5 Conclusions and Recommendations

References

Part II Domestic or Foreign Investment for African Development

Capital Flows and Economic Growth: Does the Role of State Fragility Really Matter for Sustainability?

1 Introduction

2 Theoretical Framework

3 Empirical Models and Data Description

4 Data Analysis

4.1 Time-Series Properties of Data, Lag Selection and Co-integration Estimates

4.2 Long-Run Relationships

4.3 Short-Run Dynamics

4.4 Model Diagnostic Test

4.5 Further Discussions

5 Conclusion

Appendices

References

Changing Patterns of the Official Development Assistance to Sub-Saharan Africa

1 Introduction

2 Foreign Aid to SSA Compared to ODA to Other Developing Regions

3 Foreign Aid from Non-DAC Countries to SSA Region vs. Aid from DAC

4 Foreign Aid Flow from “Emerging” DAC Donors vs. The Largest DAC Donors

5 Declining Importance of Foreign Aid to the National Budgets of Recipient Countries

6 Growing Allocation of Foreign Aid Towards Economic and Production Sectors

7 Conclusion and Policy Recommendations

References

Financing Sustainable Energy Access with Oil Revenues in Sub-Saharan Africa: Trends and Strategies

1 Introduction

2 Energy Access—The African Situation

3 Energy Production and Consumption in Africa

4 Sustainable Development Goal 7 and Africa’s Energy Policy

5 Financing Electricity Access and Managing Petroleum Revenue for Renewable Energy in Africa

6 Managing Petroleum Revenues Sustainably to Finance Energy Access

6.1 Petroleum Revenue Management Experience in Africa

6.2 Strategies for Improved Revenue Management for Energy Access

7 Conclusions and Recommendations

References

Maximizing the Gains from Natural Resources

1 Introduction

2 Natural Resources and Sustainable Development: Theory and Evidence

2.1 Theory

2.2 Empirical Evidence

3 Natural Resources and Economic Development in Africa: Trends and Patterns

4 Challenges of Maximizing Gains from Natural Resources to Finance Sustainable Development

5 Strategies to Optimize the Benefits of Natural Resources

6 Country Case Studies and Imminent Lessons

6.1 Country Case Studies

6.2 Lessons from Success Stories for Africa’s Development

7 Conclusion

Appendix 1

References

Part III Human Development in Africa for Sustainability

Does the Implementation of Social Safety Net Intervention Affect Indigenous Social Capital Systems for Coping with Livelihood Shocks? Ethnographic Evidence of Agro-pastoral Communities in Eastern Ethiopia

1 Introduction

2 Overview of the Productive Safety Net Program (PSNP) in Ethiopia

3 Theoretical Framework

3.1 Formal and Informal Risk Coping Strategies

3.2 Social Capital and Social Safety Net Theory

3.2.1 Social Capital

3.2.2 Social Safety Nets

3.3 Actor-Oriented Theory

3.4 The Interlock Between Formal Safety Net and Social Capital

4 Research Methodology

4.1 Description of the Study Sites

4.2 Research Design

4.3 Sampling, Data, and Methods

4.4 Data Analysis

4.5 Analysis Variables

5 Result and Discussions

5.1 Prevalence of Shocks in the Case Study Community

5.2 Household Coping Mechanisms

5.3 Networks, Groups, and Collective Action in the Case Study Community

5.4 Indigenous Mutual Support Practices in the Case Study Community

6 Interactions of Safety Net with Indigenous Practices

6.1 Influence of Quantity Transfer on Household Social Networks

6.2 Influence of Payment Predictability on Household Social Networks

6.3 Influence of Targeting on Household Social Networks

6.4 Do Social Safety Net Transfers Crowd Out Informal Arrangements?

7 Conclusions

References

Issues in Sustainable Development: The Environment–Income Relationship

1 Introduction

2 Literature Review

3 Methodology

3.1 Model Specification

3.2 Estimation Technique

4 Empirical Results

4.1 Verification of the EKC Hypothesis in Nigeria

5 Conclusions

References

Microcredit, Child Education, and Health Outcomes: A Case Study from Ghana

1 Introduction

2 Previous Related Studies

3 Methodology

3.1 Study Areas and the Microcredit Institution

3.2 Data and Sampling Procedure

3.3 The Model

3.4 Description and Measurement of Variables

4 Results and Discussion

4.1 Participation in Microcredit Programme

4.2 Microcredit and Child School Attendance

4.3 Mean Differences in School Attendance

4.4 Microcredit and Child Health

4.5 Regression Results for Child Health Outcome

4.6 Differences in Mean Health Outcome

5 Conclusions and Limitations

References

Part IV Industrial Development in Africa for Sustainability

Financial Inclusion and Growth of Non-farm Enterprises in Ghana

1 Introduction

2 Measurements and Data

2.1 Measuring Firm Growth

2.2 Measuring Financial Inclusion

2.3 Data

3 Estimation Technique

4 Analysis and Discussion

4.1 Regression Analysis

5 Conclusion and Recommendation

Appendix

References

The Role of Cooperative Organizations in Tanzania’s Industrialization

1 Introduction

2 Industrialization and the Context of Cooperative Development in Tanzania

2.1 Saving Mobilization for Capital Accumulation

2.2 Providing Extension Services

2.3 Agro-processing Industries for Value Addition

3 Industrialization and the Future of Cooperatives in Tanzania

3.1 Invest in Science and Technology

3.2 Investment in R&D

3.3 Strengthening Institutions

3.4 Invest in Human Capital and Innovation

3.5 Learn from Past Mistakes Which Undermined the Cooperative Sector

4 Conclusion and Recommendations

References

Textile and Clothing Sector, and the Industrialization of Sub-Saharan Africa

1 Introduction

2 An Account of Industrialization in Sub-Saharan Africa

3 Industrialization, Economic Growth, and Development: A Brief Discussion

3.1 Stages of Industrialization

3.2 Why Did Industrialization Fail in Africa?

4 Textile and Clothing Sector as a Trigger of Industrialization

4.1 The Experience of the Textile and Clothing Industry in Selected Countries

5 Can Textile and Clothing Sector in SSA Become a Trigger of Industrialization?

5.1 Textile and Clothing Sector in Selected African Countries

5.1.1 Mauritius

5.1.2 South Africa

5.1.3 Nigeria

6 Conclusion

References

Index