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1. Urbanized and Savvy – Which African Firms are Making the Most of Mobile Money?

Author:
Charles Ackah, Aoife Hanley, Lars Hecker, and Michael Kodom
Publication Date:
09-2024
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Our analysis of over 500 Ghanaian firms sheds light, for the first time, on how certain firms managed to extract value from mobile money. Our regressions point to the usefulness of this form of cashless payments in stabilizing sales during the COVID pandemic. Perhaps the most important message from our analysis is the recognition that the benefits from mobile money extend beyond its purpose as a tool for transacting cashless payments. We reveal that firms using these additional tools supported by MoMo (e.g. for planning or saving purposes) report higher sales resilience, all things equal. Our findings appear to echo the literature on private householders (e.g. Jack and Suri, 2014). However, while the latter report a positive effect due to remittances, our finding is more likely driven by enhanced ability of businesses to streamline their planning and sales.
Topic:
Emerging Markets, Globalization, Urbanization, Money, Innovation, and Digitalization
Political Geography:
Africa

2. Illicit Financial Flows in the age of Digitalisation in Africa : Opportunities and Challenges

Author:
Adeline Nembot
Publication Date:
11-2024
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
In recent years, countries have witnessed the widespread adoption of new digital technologies for financial transactions, including electronic payments, mobile and online banking, e-commerce, cryptocurrencies, and gambling services. African nations are not exempt from these financial activities, particularly illicit ones. In fact, Africa is losing approximately $88.6 billion annually due to illicit financial flows (IFFs), a sum regarded as a significant loss of development opportunities (1). Such circumstances threaten the African Union’s Agenda 2063, which aims to achieve inclusive and sustainable development across the continent (2). Illicit Financial Flows (IFF) occur when money or capital is illegally earned, utilized, and transferred across borders. Typically, this mechanism is employed with the intent to evade taxes related to trade and fiscal records. While digital technologies can be leveraged to investigate, detect, and disrupt these unlawful transfers of funds, the evolving landscape of online business can exacerbate IFFs by enabling the movement of illegal funds to fraudulent e-commerce companies and online enterprises. Therefore, it is essential to examine the extent to which digital technologies can serve as tools to either mitigate or facilitate IFFs in Africa. This article aims to explore the opportunities and challenges presented by digital technologies and digitalization in relation to IFFs in Africa. To accomplish this, I will utilize secondary data sources from existing literature, including articles, books, and reports from international organizations with expertise in this area.
Topic:
Economics, Finance, Digitalization, and Illicit Financial Flows
Political Geography:
Africa

3. De-risking Digitalization via Joint Ventures: The Case of Togo

Author:
Leslie N. L. Mills
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
The benefits of public-private partnerships in the delivery of non-digital infrastructure and services have been well documented. However, for the digital sector, the joint-venture model of public-private partnerships could offer African governments a way to accelerate digital transformation with both the advantages provided by public ownership and the efficiency offered by the private sector. Well-structured joint ventures enable African governments to de-risk digital projects, attract qualified talent, build trust among stakeholders to accelerate uptake of the joint venture’s output and promote local ownership and participation. For this model to be successful, governments need to work on strengthening rule of law, take on the burden of first loss from the private sector, negotiate for the private partner to contribute to building local talent and create opportunities for local ownership by enabling local investment in the joint venture.
Topic:
International Cooperation, Geopolitics, Digitalization, and Public-Private Partnership
Political Geography:
Africa and Togo

4. Visa Digitalization and Tourism in Cameroon: A Promising Future?

Author:
Yollande Meli Tankeu and Boris Andzanga Ndzana
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Cameroon is endowed with a culture rich in natural reserves and breathtaking landscapes, making it a popular destination for tourists from all over the world. However, the cost and hassle of obtaining a visa have long been one of the main obstacles to the growth of tourism in Cameroon. In order to respond to the growing interest of travelers and to make Cameroon a preferred destination for tourists, the government has recently made significant progress by switching from the manual visa procedure to the electronic visa procedure. By Decree No. 2023/147 of March 2, 2023 (1), the electronic visa application came into force on April 30, 2023, in diplomatic missions, consular posts, international airports, air, land, and sea borders. It could be a potential solution to boost tourism in Cameroon. This transition to a digital visa procedure has many advantages. This article analyses the impact visa digitalization on the tourism sector in Cameroon. In the first part, the paper will present an overview of tourism in Cameroon, and in the second part, the expected effects of visa digitalization on the tourism sector in Cameroon.
Topic:
Economics, Tourism, Visa, and Digitalization
Political Geography:
Africa and Cameroon

5. The Role of Egyptian Female Entrepreneurship in the Digital Era post-COVID-19

Author:
Doaa Salman Abdou
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
The current “cloud revolution” accelerates the digitalisation of economies as it expands business opportunities, thus boosting the economy and enhancing business activities. During the COVID-19 pandemic, digital economy countries had the opportunity to sustain many activities remotely, while many developing countries fell into poverty and were forced to face a surge of unemployment. There were more unemployed females than males, and the female participation rate was lower than for males. Digitalisation can accelerate female entrepreneurs’ participation in the labour market and allow them to increase their productivity growth. It can therefore help increase their standard of living, decreasing poverty and creating economic stability (Van Praag & Versloot, 2007). COVID-19 challenges the dreams of many entrepreneurs across the globe to sustain their business using technology but even more so in developing countries as their access to technology is lower than in developed countries because it is not affordable and in some rural areas not available. In this context, not all countries have been affected in the same way. As a result of the epidemic, women’s employment decreased the most throughout the Americas (a reduction of 9.4%). The Arab States saw the second-largest drop in the number of employed women, with women’s employment falling by 4.1% and men’s by 1.8% between 2019 and 2020 (ILO, 2021). The pandemic widens the gender gap rather than closing it. Such a shock urges a reduction of the digital divide, as it is considered a necessary tool and not a luxury. Such a tool can keep businesses going and help them recover after the global shock, especially for women who had to stay at home with their children. Women, youths and people with medium and low skills experienced a decline in employment worldwide in 2020. Female workers were disproportionately affected compared to male workers, with unemployment accounting for 38.9% of total employment before the COVID-19 crisis but rising to 47.6% of the total workforce (ILO, 2020). The lockdown due to the pandemic pushed women to learn how to benefit from digitalisation as it has a direct link to both poverty alleviation and women’s empowerment, especially in developing countries, where it plays a significant role in gender equality and economic development.
Topic:
Entrepreneurship, Feminism, Pandemic, COVID-19, Digitalization, and Gender
Political Geography:
Africa and Egypt

6. Identifying Binding Constraints on Digital Payment Services in Ethiopia: An Application of a Decision Tree Framework

Author:
Getnet Alemu, Tadele Ferde, and Alejandro Fiorito
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
While several comparable countries in sub-Saharan Africa have seen a significant increase in financial inclusion, mainly driven by digital financial services, Ethiopia still performs poorly. Even digital payment and transfer services, which lower-income and less literate segments of the population could benefit from, are rarely used. Given the low development level of Ethiopia, numerous supply and demand factors could explain this disappointing outcome. We use a decision tree framework to isolate and analyze potential constraints to find which are binding—that is, which constraints limit the expansion of digital payment services in Ethiopia. Our analysis indicates that supply-side problems are pervasive, and we find that competition problems in the essential digital infrastructure market and in the financial sector are responsible for the inadequate provision of digital payment services in Ethiopia. However, the root cause of inadequate competition, and therefore of low financial inclusion through digital payment services, is institutional deficiencies. The two key institutional deficiencies are the lack of capacity of regulatory and supervisory institutions, and the unwillingness of the central government to enable and promote competition. The dominance of public enterprises, Ethio Telecom and the Commercial Bank of Ethiopia, has kept the prices of digital payment services high, particularly for low-income populations, as fees charged for undertaking low-value transactions are very high and the cost of digital infrastructure (mobile phones and plans) is also substantial. Unless these institutional binding constraints are removed, digital payment services in Ethiopia, and digital financial services more generally, will hit a very short ceiling that limits their enormous potential to improve livelihoods in the country.
Topic:
Development, Finance, Digital Economy, and Digitalization
Political Geography:
Africa and Ethiopia

7. E-Democracy In Africa: Issues, Challenges and Perspectives

Author:
Youmssi Eya Yvan Lionnel
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The term democracy, which comes from the combination of demos, meaning “people“, and krátos, meaning “power“, refers to a mode of governance in which the people hold power and participate in its exercise. For this reason, the definition popularised by Abraham LINCOLN is that of “government of the people by the people and for the people”. In contact with the New Information and Communication Technologies (NICT), classical democracy is gradually turning into “e-democracy“, which GARSON defines as being: “the use of ICT by governments to improve the efficiency, equity, and quality of democratic participation”. (Garson, G. David. (2006) Public Information Technology and E-Governance: Managing the Virtual State. Sudbury, MA: Jones & Bartlett.) E-democracy is therefore involved in all aspects of democracy, including the electoral process (e-voting), which is seen as the most important in ensuring fair elections. For the OSCE, fair elections imply that “the electoral process is conducted in a transparent and accountable manner and that the electorate is able to make a real and informed choice, – these conditions ensuring voter confidence in the electoral process”. OSCE, Election Observation Handbook, fifth edition, ISBN 83-60190-02-X, (2005) This is the challenge of e-democracy in Africa, which has been marked for decades by a crisis between political actors in the electoral process, which generates more or less devastating post-electoral conflicts. Therefore, it is possible to ask the question whether e-democracy can address the limitations of traditional democracy in Africa. To this question, it can be said that e-democracy provides solutions to the limits of democratic practice in Africa. However, shortcomings in its application must be addressed if it is to be a real alternative to the traditional practice of democracy in Africa. Therefore, it seemed appropriate to present e-democracy as a solution to the limitations of the traditional practice of democracy in Africa (I) provided that the limitations in its application are corrected (II) so that it constitutes a real political alternative.
Topic:
Civil Society, Politics, Democracy, and Digitalization
Political Geography:
Africa

8. Africa’s Digital Divide and the Promise of E-learning

Author:
Matthias Krönke
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Afrobarometer
Abstract:
According to UNESCO (2020), approximately 1.2 billion students and youth worldwide are affected by school and university closures because of the COVID-19 pandemic. To adjust to these new circumstances, governments must develop innovative solutions to ensure inclusive learning opportunities during this period of unprecedented educational disruption. This is especially true in African countries, where despite recent progress traditional education has faced infrastructural challenges and struggled to develop the human resources necessary to address students’ educational needs (Krönke & Olan’g, 2020; United Nations, 2019; UNESCO Institute of Statistics, 2016. This policy paper uses Afrobarometer survey data to look at digital infrastructure, the availability of digital devices at the household level, and digital literacy among African adults. While rates of digital literacy among children are likely to differ, it is important to understand these dynamics among adults for at least two reasons. First, adults are likely to shape children’s access to and experience with technology. Second, understanding current levels of access to devices and levels of digital literacy among adults provides a baseline against which future assessments can measure progress over time. Survey findings from Afrobarometer Round 7 (2016/2018) show a substantial digital divide both across and within countries, reflected in uneven access to resources such as electricity and unequal access to and use of smartphones and computers. The results suggest that government efforts to redress widespread inequalities need to be increased drastically to avoid the widening of an education gap among their citizens. The paper also discusses the potential benefits of providing smartphones and computers to those who currently do not have access to such devices.
Topic:
Education, Infrastructure, Inequality, Digital Economy, and Digitalization
Political Geography:
Africa

9. Digital ID and Risk of Statelessness

Author:
Grace Mutung'u and Isaac Rutenberg
Publication Date:
12-2020
Content Type:
Journal Article
Journal:
Statelessness & Citizenship Review
Institution:
Peter McMullin Centre on Statelessness, Melbourne Law School
Abstract:
tate issued digital identity is trending in sub-Saharan Africa,1 and Kenya has not been left behind. The government of Kenya launched the National Integrated Identity Management System (‘NIIMS’) in March 2019.2 Dubbed ‘Huduma Namba’, which translates to ‘service number’ in Swahili, the programme envisages a centralisation of identity programmes and the issuance of new unique personal identifiers to all citizens and registered foreigners in Kenya, but it has not been without problems. The legal situation for NIIMS is defined by an Executive Order, an amendment to the national ID law, Huduma Namba Regulations and a judgement from the High Court. Through Executive Order No 1 of 2018, the President directed the development of NIIMS to create and manage a central master population database, to be the ‘single source of truth’ on all Kenyan citizens and foreign nationals residing in Kenya.3 NIIMS was to serve as a reference point for personal data for Ministries, Departments and Agencies (MDAs) and other approved stakeholders.
Topic:
Governance, Identity, Digitalization, and Stateless Population
Political Geography:
Kenya and Africa

10. Assessing Digitalization and Data Governance Issues in Africa

Author:
Adedeji Adeniran and Idris Ademuyiwa
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
The growth of digitalization and digital technology adoption in Africa holds the key to strengthening and diversifying economies across the continent. Although these developments offer potentially life-changing benefits for consumers, businesses and governments, the inherent flaws in the digital market mean these benefits are not guaranteed. As most gains from the digital economy are largely concentrated in the United States and China, the digital divide may widen the gap between the Global North and the Global South.
Topic:
Economics, Governance, Digital Economy, and Digitalization
Political Geography:
Africa and Global South