Category: Africa

Africa, Covid-19, New social contract

Well-designed tax policy reforms are key to successful post-Covid fiscal consolidation in Africa

By Daniel Prinz, Research Economist and Country Programme Manager at the Institute for Fiscal Studies (IFS) Centre for Tax Analysis in Developing Countries (TaxDev)

Given the massive impact of the COVID-19 pandemic on public finances globally, it is little surprise that the IMF’s October 2021 forecasts of debt and debt servicing costs in sub-Saharan Africa are substantially higher than was projected in October 2019 (Figure 1). Many countries in sub-Saharan Africa may need to impose fiscal consolidation measures to enhance the sustainability of their public finances even before their economies have fully recovered from the pandemic. The need for higher public revenues is an opportunity for countries to make their tax systems more efficient and equitable, particularly through well-designed green taxes, property taxes and rationalised tax expenditures. Getting these reforms right will be essential to ensure they do not slow the recovery and that they are socially and politically acceptable.

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Africa, Green transition

Africa must be at the heart of COP26

By Dr Penny Byrne, Climate Research Analyst at Standard Bank & Simon Freemantle, Senior Political Economist at Standard Bank

The COP26 summit presents a vital opportunity for global leaders, particularly those representing developed economies, to place Africa’s unique and pressing needs and demands at the centre of a more equitable framework for future climate mitigation and adaptation. The reason for Africa’s centrality in these discussions is simple: though its contribution to climate change has been negligible (in all, Africa contributed just 4% of total emissions in 2019 despite being home to over 17% of the world’s population), the continent will be powerfully, indeed disproportionately, affected by its long-term consequences.

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Africa, Green transition

Not all walls are built to divide us: In Africa, the world’s longest wall is setting its people free

By Tina Birmpili, Deputy Executive Secretary, United Nations Convention to Combat Desertification (UNCCD)

Across Africa, the world’s longest wall is being built. Not a wall to keep immigrants out or oppressed people in. Rather, a wall to unlock the potential of millions of people in the Sahel.

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Africa, Français, Green transition

Les réserves de biosphère : outils au service des objectifs de développement durable

Par Dimitri Sanga, Directeur et Enang Moma, Officier national du programme en sciences naturelles, Bureau régional de l’UNESCO pour l’Afrique de l’Ouest

Considérées comme des « lieux d’apprentissage pour le développement durable », les réserves de biosphère sont aussi des lieux de test des approches interdisciplinaires pour comprendre et gérer les changements et interactions entre les systèmes économiques, sociaux et écologiques. Elles comprennent les écosystèmes terrestres, marins et côtiers et favorisent des solutions conciliant conservation et durabilité de la biodiversité.

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Africa, Building resilience

How can research help Least Developed Countries achieve sustainable development?

By Kunal Sen, Director of United Nations University – World Institute for Development Economics Research (UNU-WIDER)

The next decade is a make-or-break for the world’s most vulnerable countries. To tackle the unprecedented confluence of COVID-19, climate, and economic crises, new solutions are desperately needed. Scientific research is one key for finding long-lasting solutions.

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Africa, Building resilience, Français

Interconnexion des infrastructures de transport : clé de succès de l’intégration régionale ouest-africaine

Par Alain Tchibozo, Chef Économiste de la BOAD, avec la collaboration de l’équipe des Économistes chargés de la Stratégie et des Études

Une approche fondée sur une plus grande intégration régionale, visant à pallier les contraintes liées à l’étroitesse des économies de chaque État membre dès sa création en 1994, l’Union Économique et Monétaire Ouest Africaine (UEMOA) s’est fixé pour objectifs : i) le renforcement de la compétitivité des activités économiques et financières dans le cadre d’un marché ouvert et concurrentiel, et d’un environnement juridique rationalisé et harmonisé ; ii) la mise en œuvre de politiques et actions communes notamment sur les transports, l’aménagement du territoire, l’agriculture, l’énergie, les télécommunications. Au cours de ses 26 premières années d’existence, l’UEMOA a ainsi bénéficié d’un développement d’infrastructures dites structurantes, en particulier dans le domaine des transports avec un effet amplificateur sur l’expansion des échanges intra-régionaux.

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Africa, Building resilience, Français, Reviving multilateralism

Enjeux et défis du financement du développement dans la zone de l’Union économique et monétaire ouest-africaine post-COVID-19

Par Alain Tchibozo, Chef Economiste, Banque Ouest Africaine de Développement – BOAD

Endettement accru par les dépenses liées à la Covid-19

Le recours à l’endettement pour financer les plans de riposte et de relance économique explique principalement le fait que le déficit budgétaire des pays de l’Union Économique et Monétaire Ouest Africaine (UEMOA) se soit accru. Au plan des finances publiques, même en tenant compte d’un redémarrage de l’activité autour de 5.5% cette année (contre 1,5% en 2020), le déficit budgétaire global représenterait en 2021 près de 5,0% du PIB, après 5,4% en 2020. L’accumulation de déficits publics liés au financement de dépenses de fonctionnement des États apparaît de fait comme le principal facteur d’endettement public. Or la détérioration des finances publiques restreint l’accès futur des États à de nouveaux financements. En 2021, le service de la dette intérieure (paiement des intérêts et amortissement du principal) représentera plus de 50% du service total de la dette dans sept des huit États membres de l’UEMOA. En outre, la part des recettes publiques consacrée au service de la dette représente depuis 2020 plus d’1/3 des recettes totales dans sept États. Aussi, la question de la soutenabilité de la dette sera un enjeu crucial pour les États de la zone ces prochaines années.

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Africa, Building resilience, Covid-19, New social contract

Divergent recoveries from COVID-19 in Africa require intentional action

By Anzetse Were, Senior Economist FSD Kenya

The COVID-19 pandemic has had divergent impacts within and between economies. 2021 is already being defined by multispeed and divergent recoveries. Rich economies with USA in the lead, and China, are set for a strong recovery, mainly linked to their willingness to support incomes and deploy unprecedented fiscal and monetary support and quick COVID-19 vaccine rollouts. Low-income countries however face grimmer economic prospects due to limited access to COVID-19 vaccines and weak public finances; they will suffer more significant medium-term losses, especially affecting countries that rely on tourism and commodity exports, and those with limited policy space to respond.

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Africa, Building resilience, Covid-19, Education, New social contract

COVID-19 impact on higher education in Africa

By Peter Koninckx, Strategic and Commercial Advisor, Cunégonde Fatondji, Analyst Intern, and Joel Burgos, Senior Project Manager, ShARE

Beyond the death toll and illness of millions of people due to COVID-19, businesses, healthcare, culture and education have had to cope with severe disturbances. But in our opinion, one could argue that higher-education students are amongst the most affected populations, particularly those in Africa. Although Africa is the continent with the least reported cases, the closure of higher education institutions was more widespread, and mitigation measures less effective than in other regions, according to a survey we conducted with more than 165 students across 21 African countries. No quick-fix solution exists, but the current crisis has highlighted the weaknesses in higher education in Africa, indicating where governments, international institutions, NGOs, and the private sector should focus their efforts.

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Africa, New social contract

Time to accelerate debt relief to finance Africa’s recovery

By Marin Fouéré, Policy Analyst, OECD Development Centre and Daniele Fattibene, Research Fellow at Istituto Affari Internazionali (IAI)

The COVID-19 pandemic continues to take a heavy toll on African economies, home to the fastest growing population in the world. The burden of the crisis adds to the fact that Africa’s per capita real GDP growth over the period 2009-2019 was 1.3% per year, which is half the global average of 2.5%.

Ahead of tomorrow’s Summit on Financing African Economies, gathering African and other world leaders and international organisations, President Emmanuel Macron called for a New Deal for financing Africa’s sustainable recovery through profoundly innovative solutions.

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