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  • Author: Elvis Melia
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: This study asks what impact the Fourth Industrial Revolution will have on job creation and catchup development in Sub-Saharan Africa over the coming decade. Can light manufacturing export sectors still serve African development the way they served East Asian development in the past? If factory floor automation reduces the need for low-cost labour in global value chains, can IT-enabled services exports become an alternative driver of African catch-up development? I present case study evidence from Kenya to show that online freelancing has become an interesting sector, both in terms of its growth trajectory, and in terms of worker upward mobility in the global knowledge economy. As life everywhere moves further into the digital realm, and global internet connectivity between Africa and the rest of the world grows, more and more young Africans who stream onto the labour market may find work in the world of global online freelancing. I discuss the building blocks needed to make online work a sustainable vehicle for African catch-up development in the years ahead.
  • Topic: Development, Science and Technology, Labor Issues, Internet, Exports, Manufacturing, Industry
  • Political Geography: Kenya, Africa
  • Author: Sabrina Disse, Christoph Sommer
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: The vast majority of enterprises worldwide can be categorized as small and medium-sized enterprises (SMEs). They play a crucial role in providing a livelihood and income for diverse segments of the labour force, in creating new jobs, fostering valued added and economic growth. In addition, SMEs are associated with innovation, productivity enhancement as well as economic diversification and inclusiveness. However, almost half of the formal enterprises in low and middle-income countries (LMICs) are financially constrained, meaning that SMEs’ financing needs are unserved or underserved. Digitalisation is often seen as game changer that overcomes the challenges of SME finance by capitalising on the reduced transaction costs, the broader access to more and alternative data and the new customer experience shaped by convenience and simplicity. This paper aims to answer the question what the role of digital financial instruments in SME finance in Sub-Saharan Africa is. It reviews and discusses the opportunities and challenges of digital advances for SME finance in general and of three specific financing instruments, namely mobile money (including digital credits), crowdfunding (including peer-to-peer lending) and public equity. It contrasts the hype around digital finance with actual market developments and trends in Africa. Main findings indicate that even though digital advances have led to impressive growth of certain digital finance instruments, it has not triggered a remake of the financial system. Digitalisation of the financial system is less disruptive than many expected, but does gradually change the financing landscapes. Some markets have added innovative and dynamic niches shaped by digital financial services, but new digital players have in general not replaced the incumbents. Furthermore, the contributions of digital instruments to finance in general and SME finance in particular are still very limited on the African continent compared to either the portfolio of outstanding SME finance by banks or the capital raised by similar innovative instruments elsewhere in the world. Many uncertainties remain, most importantly the response of regulators and responsible authorities. They need to provide a suitable legal framework to strike a balance between the innovation and growth aspiration of the digital finance industry and the integrity and stability of markets and the financial system at large. Also regulators have to safeguard data privacy and cybersecurity and prevent illicit financial flows, bad practices around excessive data collection, intransparency and poor reporting as well as exploitation of vulnerable groups with limited financial literacy. Governments also have to address the increasing gap towards those left behind by digital finance due to issues with ownership of a digital device, mobile network coverage and the internet connection or issues of basic digital and financial literacy.
  • Topic: Development, Science and Technology, Digital Economy, Business , Economic growth, Diversification
  • Political Geography: Africa
  • Author: Frederik Stender, Axel Berger, Clara Brandi, Jakob Schwab
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: This study provides early ex-post empirical evidence on the effects of provisionally applied Economic Partnership Agreements (EPAs) on two-way trade flows between the European Union (EU) and the African, Caribbean and Pacific Group of States (ACP). Employing the gravity model of trade, we do not find a general EPA effect on total exports from ACP countries to the EU nor on total exports from the EU to ACP countries. We do, however, find heterogeneous effects when focusing on specific agreements and economic sectors. While the agreement between the EU and the Caribbean Forum (CARIFORUM), which concluded several years ahead of the other EPAs in 2008, if anything, reduced imports from the EU overall, the provisional application of the other EPAs seems to have at least partly led to increased imports from the EU to some partner countries. More specifically, the estimation results suggest an increase in the total imports from the EU only in the Southern Africa Development Community (SADC) EPA partner countries. On the sectoral level, by comparison, we find increases in the EU’s agricultural exports to SADC, Eastern and Southern Africa (ESA) and the Pacific. Lastly, in the area of manufactures trade, we find decreases of exports of the ESA and SADC countries to the EU, but increases in imports from the EU into SADC countries. While this early assessment of the EPA effects merits attention given the importance of monitoring future implications of these agreements, it is still too early for a final verdict on the EPAs’ effects and future research is needed to investigate the mid- and long-term consequences of these agreements.
  • Topic: International Relations, Development, International Cooperation, Regional Cooperation, Treaties and Agreements, Manufacturing, Trade
  • Political Geography: Africa, Europe, South Africa, Caribbean, Asia-Pacific, European Union
  • Author: Tim Stoffel
  • Publication Date: 01-2020
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: Public Procurement is a highly regulated process ruled by a complex legal framework. It comprises not only national but also, increasingly, sub- and supranational regulations, giving rise to a multi-level regulatory governance of public procurement. The integration of sustainability aspects into public procurement, as called for in goal 12.7 of the Sustainable Development Goals (SDGs) of the Agenda 2030, needs to take this multi-level character into account. This reports focuses on social considerations, which are a central part of sustainable procurement – whether with a domestic focus or along international value chains. Social considerations have been somewhat neglected in Europe, whereas they feature prominently in procurement regulations in many countries of the Global South, especially in Sub-Saharan Africa (SSA). The advanced process of regional integration in the European Union (EU) and the progress made towards integration in some regional economic communities in Sub-Saharan Africa call for deeper analyses of the influence of the higher levels of the regulatory framework on the lower levels. The question is whether public entities, from the national down to the local level, are required or at least have the option to integrate socially responsible public procurement (SRPP) into their procurement processes and tenders, or at least have the option to do so. This report is conducted as part of the project “Municipalities Promoting and Shaping Sustainable Value Creation (MUPASS) - Public Procurement for Fair and Sustainable Production”, implemented by DIE in cooperation with Service Agency Municipalities in One World (SKEW) with funds from the Federal Ministry of Economic Cooperation and Development (BMZ) and compares public procurement in Germany and Kenya. In both countries, the multi-level regulatory frameworks allow for SRPP regulations and practices ar the national and sub-national levels of government. There is, however, an implementation gap for SRPP in Germany and Kenya that appears to be independent from the specifics of the respective regulatory framework. To tackle this, supportive measures, such as capacity building, are key. Furthermore, Regional economic communities, such as the EU and the Common Market for Eastern and Southern Africa (COMESA), can play a role in promoting SRPP, even without introducing mandatory provisions. At the other end of the multi-level regulatory spectrum, municipalities in the EU had and have an important role in SRPP implementation, that might be replicable by sub-national public entities in Kenya and other contexts.
  • Topic: Development, Governance, Regulation, Sustainable Development Goals
  • Political Geography: Kenya, Africa, Europe, Germany
  • Author: Jacqueline M. Klopp, Abdullahi Boru Halakhe
  • Publication Date: 10-2019
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: Carbon politics is playing out in oil-producing African countries with lethal consequences. Countries like Nigeria, Angola, Sudan, and South Sudan are conflict-ridden and economically unequal, and, as climate change concerns clash with new fossil fuel-driven development efforts, carbon politics is taking on ever-greater significance. While the scramble for fossil fuels could increase authoritarianism as it spreads in East Africa, an ecologically-driven imperative to address climate change could reinforce stronger democratic institutions.
  • Topic: Climate Change, Development, Oil, Natural Resources, Democracy
  • Political Geography: Africa, Sudan, Nigeria, Angola, East Africa, South Sudan
  • Author: Elvis Melia
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: In the past two decades, Africa has experienced a wave of mobile telephony and the early stages of internet connectivity. This paper summarises recent empirical research findings on the impact that information and communication technologies (ICTs) have had on jobs in Africa, be it in creating new jobs, destroying old jobs, or changing the quality of existing jobs in levels of productivity, incomes, or working conditions. The paper discusses various channels in which ICTs can impact jobs: In theory, they have the potential to allow for text-based services platforms that can help farmers and small and medium-sized enterprises (SMEs) become more productive or receive better access to market information; mobile money has the potential to allow the most vulnerable workers more independence and security; and the internet could allow women, in particular, to increase their incomes and independence. This literature review examines what rigorous empirical evidence actually exists to corroborate these claims. Most of the studies reviewed do indeed find positive effects of ICTs on jobs (or related variables) in Africa. On the basis of these findings, the paper reviews policy options for those interested in job creation in Sub-Saharan Africa. The paper concludes by highlighting that these positive findings may exist in parallel with negative structural dynamics that are more difficult to measure. Also, the review’s findings - while positive across the board - should be seen as distinct for ICTs in the period of the 2000s and 2010s, and cannot easily be transferred to expect similarly positive effects of the much newer, Fourth Industrial Revolution Technologies (such as machine learning, blockchain technologies, big data analytics, platform economies), which may produce entirely different dynamics.
  • Topic: Development, Science and Technology, Labor Issues, Women, Internet, Economic growth, Political Science, Literature Review
  • Political Geography: Africa
  • Author: Irene Schöfberger
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: The European Union (EU) has been struggling to find a shared course on African migration since the entry into force of the Schengen Agreement (1995). It has done so through two interrelated processes of negotiation. Firstly, parties have negotiated narrative frames about migration and, in particular, whether migration should be interpreted in terms of security or in terms of development. Secondly, they have negotiated internal and external migration policies, that is, how migration should be managed respectively inside the EU (based on cooperation between EU member states) and outside it (based on cooperation with third states). In times in which narrative frames increasingly shape policy negotiations, it becomes very important to analyse how policymakers negotiate narrative frames on migration and how these shape policy responses. However, such an analysis is still missing. This discussion paper investigates how European states and institutions have negotiated the relation between EU borders and African mobility between 1999 and the beginning of 2019. It focusses in particular on how the process of negotiation of migration policies has been interrelated with a process of negotiation of narrative frames on migration. It does so based on an analysis of EU policy documents from 1999 to 2019 and on interviews with representatives of European and African states and regional organisations. Two major trends have characterised related EU negotiation processes: migration-security narrative frames have strengthened national-oriented and solid borders-oriented approaches (and vice versa), and migration-development narrative frames have strengthened transnational-oriented and liquid borders-oriented approaches (and vice versa). Since 1999, the European Council has mostly represented security- and national-oriented approaches, and the European Commission has mostly represented development- and transnational-oriented approaches. The two competing approaches have always been interlinked and influenced each other. However, in the last years, security-oriented national and solid border approaches have gained prominence over development-oriented transnational and liquid border approaches. In particular, the Commission has progressively mainstreamed national objectives in its transnational actions and security concerns in its development measures. Prioritising security over transnational development has augmented inequalities, in particular at the expenses of actors with scarce political representation in Africa and the EU. Such inequalities include increasing migrant selectivity and wage dumping.
  • Topic: International Relations, Development, International Cooperation, Migration, History, Negotiation
  • Political Geography: Africa, European Union
  • Author: Elizabeth Sidiropoulos
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: South Africa’s engagement in global development structures has evolved since 1994, when the country re-entered the international community. The historical philosophical underpinnings of the African National Congress, the governing party, aimed to reaffirm the country’s place in the Global South and African firmament after the end of apartheid. This understanding is necessary in the context of South Africa’s priorities over the past 25 years, not least in the development debates. The last two decades have seen significant attempts to develop global norms that tackle the serious developmental challenges faced by developing countries. The paper explores these initiatives and divides them into three streams – those undertaken by the United Nations, those begun by the Development Assistance Committee of the Organisation for Economic Co-operation and Development (OECD-DAC), and those that may be understood as part of club governance processes (such as the G20, the BRICS (Brazil, Russia, India, China, South Africa), and the India-Brazil-South Africa Dialogue Forum (IBSA). South Africa’s engagement in these global development structures is analysed, along with its contribution to the evolution of African agency on the issues of global development. South Africa has strongly criticised existing power relations while undertaking strategic engagements with the North, centred on the vision of an African renaissance and the New Partnership for Africa’s Development initiative. The country has consistently argued that Northern aid cannot be put on the same platform as South-South Cooperation as they have different origins. Other African states and continental institutions have also ramped up their engagement on global development and development cooperation in recent years, which the paper also explores. While South Africa has always identified Africa as a core pillar of its foreign policy, its interests have not always cohered with those of the rest of the continent. Lastly, the paper explores possible avenues that South Africa might pursue in the current polarised multilateral environment. Its biggest challenge is the tension regarding its Global South identity, which has to balance its commitment to African issues and institutional processes, and its positioning via its membership of the BRICS as an emerging power that seeks to contest the current global power configurations.
  • Topic: Development, United Nations, Multilateralism, Economic Development
  • Political Geography: Africa, South Africa
  • Author: Clare Castillejo
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: German Development Institute (DIE)
  • Abstract: Establishing free movement regimes is an ambition for most African regional economic communities, and such regimes are widely understood as important for regional integration, growth and development. However, in recent years the EU’s migration policies and priorities in Africa - which are narrowly focused on stemming irregular migration to Europe – appear to be in tension with African ambitions for free movement. This paper examines how the EU’s current political engagement and programming on migration in Africa is impacting on African ambitions to establish free movement regimes. It focuses first on the continental level, and then looks in-depth at two regional economic communities: The Intergovernmental Authority on Development (IGAD) in the Horn of Africa, and the Economic Community of West African States (ECOWAS). The paper begins by examining how free movement has featured within both EU and African migration agendas in recent years, describing how this issue has been increasingly sidelined within the EU’s migration policy framework, while receiving growing attention by the African Union. The paper then discusses the impact of EU migration policies and programmes on progress towards regional free movement in the IGAD region. It finds that the EU is broadly supportive of efforts to establish an IGAD free movement regime, although in practice gives this little priority in comparison with other migration issues. The paper goes on to examine the EU’s engagement in the ECOWAS region, which is strongly focused on preventing irregular migration and returning irregular migrants. It asks whether there is an innate tension between this EU agenda and the ambitions of ECOWAS to fully realise its existing free movement regime, and argues that the EU’s current engagement in West Africa is actively undermining free movement. Finally, the paper discusses the differences between the EU’s approach to migration and free movement in these two regions. It offers recommendations regarding how the EU can strengthen its support for free movement in both these regions, as well as more broadly in Africa.
  • Topic: Development, Migration, Regional Cooperation, Economic growth
  • Political Geography: Africa, Europe, European Union
  • Publication Date: 03-2019
  • Content Type: Special Report
  • Institution: Advocates Coalition for Development and Environment (ACODE)
  • Abstract: This is a Training Manual to be used for building capacity in gender analysis and monitoring of district budgets. Development of this manual is part of a larger project titled ‘Building Capacity for Gender Responsive Budgeting in Uganda’ funded by the International Development Research Council (IDRC) and implemented by the Center for Budget and Economic Governance (CBEG) at ACODE. The project aims at building capacity in gender responsive budgeting of actors at national and local government levels. Implementation of the project will cover three districts of Soroti, Mukono and Mbarara and will put special emphasis on the agriculture and health sectors.
  • Topic: Agriculture, Development, Gender Issues, Health, International Development, Capacity
  • Political Geography: Uganda, Africa
  • Author: Susan Namirembe Kavuma, Florence K. Muhanguzi, George Bogere, Kiran Cunningham, Irene Achola
  • Publication Date: 03-2019
  • Content Type: Special Report
  • Institution: Advocates Coalition for Development and Environment (ACODE)
  • Abstract: The project on Supporting Business Opportunities for Rural Women in East and Southern Africa was implemented in Zimbabwe, Uganda and Kenya as a collaborative and cross-country project by three institutions. In Zimbabwe, project was implemented by The Institute of Environment Studies (IES), in Uganda by Advocates Coalition for Development and Environment (ACODE) and the Collaborative Centre for Gender and Development (CCGD) in Kenya. The overall aim of the project was to support the economic empowerment of rural women in value addition businesses through identifcation and Sromotion of YiaEle Eusiness enterSrises tKat lead to tKe creation of decent and sustainaEle MoEs 6Secifcall\ tKe SroMect sougKt to i e[amine tKe structural barriers that constrain women from becoming more innovative and their ability to take advantage of the opportunities available for business development; ii) Identify and explore the opportunities that exist off-farm for rural women, including activities that tend to be male-dominated and of higher value; iii) Contribute to evidence based policy advocacy on designing innovative interventions to empower rural women in business enterprises; iv) Build and enhance the entrepreneurial capacity of women owned/managed small and medium enterprises in selected rural areas; and v) Document and disseminate best practices for empowering rural women to participate in business enterprises.
  • Topic: Agriculture, Development, Gender Issues, Budget, Women, Business , Rural
  • Political Geography: Uganda, Africa
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: Advocates Coalition for Development and Environment (ACODE)
  • Abstract: The need to provide affordable and good quality healthcare is shared by Uganda and many other countries across the world. This is reflected in the third Sustainable Development Goal (SDG 3), which aims “to achieve universal health coverage, and provide access to safe and affordable medicines and vaccines for all.” In domesticating SDG 3, the overall goal of Uganda’s Health Sector Development Plan (HSDP 2015/16 – 2019/20) is to accelerate movement towards Universal Health Coverage with essential health and related services needed for promotion of a healthy and productive life. The provision of universal health coverage is what has come to be defined as Primary Health Care (PHC) in many countries globally.
  • Topic: Development, Health, Governance, Health Care Policy, Sustainable Development Goals
  • Political Geography: Uganda, Africa
  • Publication Date: 01-2019
  • Content Type: Special Report
  • Institution: The African Capacity Building Foundation (ACBF)
  • Abstract: The Africa Capacity Report 2019 (ACR 2019), with Foreword authored by President Paul Kagame of Rwanda and chair of the African Union until this January 2019, provides a snapshot of leadership capacity in Africa based on independent survey data from over 46 African countries. ACR 2019 addresses the capacity dimensions of transformative leadership both in public and private sectors. It looks at the major elements of transformative leadership in Africa, highlights the leadership capacity gaps related to achieving sustainable development on the continent, and identifies strategies for addressing them. Most importantly, ACR 2019 offers concrete recommendations for improving performance, combining both technical elements and the mindset changes that are necessary for success. Finally, the Report calls for increased investment in leadership capacity development at all levels, especially in government service.
  • Topic: Development, Leadership, Public Sector, Capacity, Private Sector, Sustainability
  • Political Geography: Africa