Pan-Africanism was a vital force in the decolonisation and liberation struggles of the African continent. Today, some regional integration initiatives are part of the legacy of Pan-Africanism. Nevertheless, a retreat in Pan-Africanist consciousness justifies the on-going reform of the African Union and other related platforms for African regional integration, peace and development.
The current global green mineral boom is driving increased mining exploration in Africa. The African Union has outlined shared visions to leverage the continent’s mineral reserves and youth boom in pursuit of sustainable development and socio-economic transformation. Achieving these goals requires mineral-rich African economies to transition from commodity export to manufacture of higher value-added products. To do so, they need to invest in their youthful population, and in research and innovation.
One of the most efficient ways of promoting long-term inclusive development is to ensure domestic financing through a stable, broad-based and fair tax system. At the present moment, as policy makers across the world are preparing post-pandemic policies, there is an opportunity to open the way to tax reform and to boost inclusive development in many African countries – provided the correct measures are chosen.
The Coronavirus crisis hit Africa at a time when many of the continent’s economies were already at risk of debt distress. Multiple shocks caused by the pandemic have increased their need for new loans. The increasing complexity of the loan market makes it hard to achieve debt relief settlements. The way forward is instead diversification of the export industry, reform of the tax systems, investment in human development and closing the digital divide.
As public debts are increasing in many African countries, we see a new type of debt distress, where short-term commercial loans and bonds have replaced some of the long-term multi- and bilateral loans. This policy note highlights two topical questions: what lies behind increasing levels of debt in Africa, and what are the challenges when financing development projects through loans?
Policy recommendations (in short):
How can African governments mobilise additional tax revenue in support of an inclusive development agenda? Improved tax revenue performance goes hand-in-hand with broader development of the economy. A well-designed tax system can support a structural transformation process that includes job creation and higher incomes. Conversely, poor tax system design can tilt this process towards generating low-paid jobs.
In order to ensure that social protection programmes can be sustained over time, with less dependence on aid, this report recommends a systematic approach to tax design reform. While heterogeneity between African countries, both in terms of administrative structure and fiscal capacity, means that tax policy advice must be highly contextualised, there are a number of lessons to be learnt from past successes and mistakes.
Africa’s countries have agreed to form the world's largest free trade area, the African Continental Free Trade Area (AfCFTA). The purpose is to create a single market by eliminating trade and labour barriers. This is expected to increase trade both within Africa and with other regions. However, past trade reforms have not been very successful. Moreover, the effects of the AfCFTA may vary greatly from country to country due to differences in political will, capacity and economic structure. The key to making it work is to facilitate trade and reduce non-tariff trade barriers, while taking into account the diversified political and economic context.
Afrikanska länder söder om Sahara har de senaste två decennierna haft en relativt god ekonomisk tillväxt. Även om andelen fattiga i befolkningen minskade från 56 procent till 36 procent mellan åren 2000 och 2022, kommer emellertid fler än hälften av Afrikas länder misslyckas med att nå målet att halvera fattigdomen till 2030. I den här artikeln diskuterar vi hur den ekonomiska tillväxten kan bli mer fattigdomsinriktad. I stora drag handlar det om grundläggande faktorer som ökad produktivitet och investeringar i humankapital och realkapital, vilket i kombination med väl fungerande institutioner kan påskynda Afrikas strukturomvandling. Men Afrikas 54 länder har olika förutsättningar att lyckas.
This article discusses barriers to women’s economic empowerment and opportunities for households headed by women to diversify incomes in the rural parts of Kenya. The study analyzes the full range of income-generating activities at the household level and also accounts for the different types of female-headed households, each of which face different constraints. The findings show that not only do female-headed households diversify and combine their incomes differently than male-headed households but also that there are differences among different groups of female-headed households.