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41. Fiscal Policy Letter No5: Improving Financial Inclusion To Broaden The Tax Base In Cameroon

Author:
Jean-Cedric Kouam and L.B. Bongbinsin
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
For several months, Cameroon has been facing the ravages of the pandemic caused by the coronavirus. To stop the spread of the virus, the Cameroonian authorities in April 2020 announced a series of fiscal easing measures to help companies and households in difficulty. Estimated at more than 114 billion CFA francs according to the Director-General of Taxation, the decisions taken have profoundly impacted public finances. Indeed, well before the pandemic, the country was already facing a high risk of external debt overhang (IMF, 2018) and immense security challenges in the North and the Anglophone regions. Despite this constraining socioeconomic and political context, the state must find the necessary and sufficient resources to ensure its proper functioning and territorial integrity. This fiscal policy letter proposes through analyzes a way for the government of Cameroon to increase its tax revenues in the coming years without penalizing growth: improving financial inclusion. The goal is to eliminate all constraints that exclude the most disadvantaged from full participation in the financial sector. The letter is structured around six key points. First, we provide an overview of Cameroon’s financial inclusion situation. Second, we analyze the factors that explain economic agents’ access to financial services, the transmission mechanisms between the financial and formal sectors, and the barriers to financial inclusion in Cameroon. Our results show that a deepening of the financial system would likely positively affect tax mobilization in Cameroon. Estimates show that a 10% increase in financial assets would lead to a 1.87% increase in tax revenue, equivalent to CFAF 49.70 billion – based on the level of tax revenue projected in the 2021 budget law. Similarly, a 10% increase in the number of secure servers – better access to the internet – would lead to a 1.1% increase in tax revenue, equivalent to CFAF 30.62 billion. This improvement in access to financial services for all economic agents – households, businesses – requires the public authorities to make the current regulations more flexible and increase the banking network’s density. This includes the development of payment systems, the construction of quality infrastructures, the definition of mechanisms to limit massive illicit capital flight, and the multiplication of consumer/investor protection guarantees.
Topic:
Development, Infrastructure, Governance, Finance, and Tax Systems
Political Geography:
Africa and Cameroon

42. A Look at the Legal Framework and Constraints of Credit Granting In Cameroon

Author:
Steve Tametong and Martial Nteme
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The realisation of an investment depends, in certain cases, on the use of credit. The granting of credit requires a prior credit operation. According to section 3 of Law No. 2019/021 of 24 December 2019 to lay down certain rules relating to credit activity in the banking and microfinance sectors in Cameroon, a credit operation means “the act by which a reporting institution, acting for consideration, advances or promises to advance funds to a natural or legal person, or makes a commitment by signature in the interest of the latter”. In reality, the credit applicant is faced with challenges that stem partly from his or her ignorance of the legal framework for granting credit in Cameroon. It is therefore necessary for each credit applicant to master the legal environment that governs the granting of credit. This is the first articulation of this analysis (I). The second section examines the conditions and constraints of credit granting (II). The third section sets out recommendations for improving the framework for granting credit in Cameroon (III).
Topic:
Infrastructure, Finance, Investment, and Credit
Political Geography:
Africa and Cameroon

43. China-Pakistan Economic Corridor: Integrating China with the Persian Gulf and East Africa

Author:
Adam Saud and Shabir Amhad Khan
Publication Date:
07-2021
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
China by launching the multi-trillion dollar Belt and Road Initiative (BRI) has possibly initiated the transformation of the prevailing global political system. The success of the BRI heavily depends upon the neighboring regions of China, as they will provide China with routes to integrate the international markets. In this regard, the China-Pakistan Economic Corridor (CPEC) is the key route; thus, also repeatedly termed as the flagship project of the BRI. The importance of CPEC is crucial for China as Beijing not only needs markets but imports of hydrocarbons from Persian Gulf and Africa. This paper aims to analyze the importance of the CPEC and Gwadar Port vis-à-vis securing China‟s national interests; securing multiple trade routes and attaining the much desired status of Great Power. Furthermore, the paper will shed light on the possible challenges China may face in this regard. The central question of this research is how the CPEC would help China integrate with the Persian Gulf and East-Africa? The nature of this research is critical and analytical; based on primary and secondary sources. The research is supported by theories of Neofunctionalism and Complex Interdependence.
Topic:
Foreign Policy, Infrastructure, Economy, Regional Integration, Belt and Road Initiative (BRI), and Strategic Interests
Political Geography:
Pakistan, Africa, China, South Asia, Asia, and Persian Gulf

44. Heterogeneous impacts of school fee elimination in Tanzania: gender and colonial infrastructure

Author:
Roxana Elena Manea and Pedro Naso
Publication Date:
05-2021
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
In this study, we investigate the impacts of the 2002 elimination of primary school fees in Mainland Tanzania. We explore how the magnitude of these effects depends on gender and the size of early investments in the educational infrastructure of Tanganyika. We use the 2002 and 2012 census waves as well as historical information on the location of schools in the late 1940s, and conduct a difference-in-differences analysis. We find that exposure to an average of 1.7 years of free primary education has reduced the proportion of people who have never attended primary education by 6.8 percentage points. The benefits of fee removal have been significantly larger for females compared to males, and females from districts where the size of investments in education was relatively larger during colonial rule have been the greatest beneficiaries.
Topic:
Education, Gender Issues, Post Colonialism, Infrastructure, Women, and Colonialism
Political Geography:
Africa and Tanzania

45. Obtaining Construction Permits In Cameroon: Dealing With The Law

Author:
Dinga Tambi and Henri Kouam
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
The Nkafu Policy Institute
Abstract:
Infrastructure is a prerequisite for economic development. It forms the backdrop of sustained economic progress, creates employment opportunities and improves citizens’ quality of life. To this end, the World Bank created the “Doing Business Index” to measure the performance of countries. Admittedly, construction permits comprise a sub-category of the overall index where Cameroon ranks from 166th in 2019 to 167th in 2020. This article looks at current legislation for obtaining construction permits, the various parties involved and the implications for Cameroon’s economic development.
Topic:
Infrastructure, World Bank, Business, and Economic Development
Political Geography:
Africa and Cameroon

46. Assessing The Mechanism Of The Issuance Of Construction Permits In Cameroon

Author:
Jean-Cedric Kouam
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
The Nkafu Policy Institute
Abstract:
The building permit is a preliminary declaration that allows for the verification of a construction initiative in a given locality, in line with the respect of town planning and architectural rules in force. In Cameroon, this document issued by the local council authority is mandatory for any possible new construction or modification of an existing construction. Therefore, any construction without an official permit is liable to a penalty of 30% of the estimated cost of the building. According to Law No.2004/003 of April 21, 2004 governing the Cameroonian Urban Planning Code and the decree of 23 April 2008; the process of obtaining this document has been considerably shortened. Yet, it remains quite complex. This complexity is evident in the plurality of procedures, requirements, norms, offices, conditions, actors, documents, and stakeholders involved in the process. All these are accompanied by the heavy financial burden, time-consuming processes, boycotts, administrative bottlenecks and corruption; all of which lead to unorganized and slow urban development. Moreover, within this complexity, is the reality that such mechanisms differ from one place to another across the national territory; thereby creating some sought of uncertainty, non-uniformity, and lack of trust in the system. The improvement in the issuance mechanism of Construction Permits in Cameroon is very vital for a country that has the ambition to achieve its economic emergence by 2035.
Topic:
Infrastructure, Regulation, Business, and Economic Development
Political Geography:
Africa and Cameroon

47. POST-NIGERIAN CIVIL WAR COMMUNITY RECONSTRUCTION STRATEGIES IN (ANIOMA) WESTERN IGBOLAND, 1970-1991

Author:
Daniel Olisa Iweze and Uchenna Anyanwu
Publication Date:
12-2020
Content Type:
Journal Article
Journal:
Brazilian Journal of African Studies
Institution:
Brazilian Journal of African Studies
Abstract:
The post-civil war reconstruction programme was promulgated by the Federal Military Government under General Yakubu Gowon at the end of the Nigerian Civil War for the reconstruction and rehabilitation of damaged infrastructure and reintegration of the Igbo into the matrix of the Nigerian state. The post-war policy of the Midwest State Government in its attempts at reconstructing Anioma (Western Igboland) at the end of the civil war was half-hearted and not genuine. The efforts pursued by both the Federal and Midwest State governments in assisting people to rehabilitate themselves and rebuild their social and economic infrastructure were marginal.
Topic:
Conflict Resolution, Civil War, Infrastructure, Reconstruction, and Rehabilitation
Political Geography:
Africa and Nigeria

48. 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

49. Lived Poverty on the Rise: Decade of Living-Standard Gains Ends in Africa

Author:
Robert Mattes
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
Afrobarometer
Abstract:
Economic destitution – whether measured as the frequency with which people go without basic necessities or as the proportion of people who live on less than $1.90 a day – declined steadily in Africa between 2005 and 2015. However, the findings of Afrobarometer Round 7 surveys, conducted in 34 African countries between late 2016 and late 2018, demonstrate that improvements in living standards have come to a halt and “lived poverty” is once again on the rise. To prevent squandering hard-won gains in Africans’ living standards, the data point to the necessity of a renewed commitment by citizens, governments, and international donors to defending democracy and expanding service-delivery infrastructure. Key findings Between 2005 and 2015, Afrobarometer surveys tracked a steady improvement in the living conditions of the average African. Measured as the frequency with which people go without a basket of basic necessities (food, clean water, health care, heating fuel, and cash income), “lived poverty” dropped in a sustained fashion over this period – a trend matched by consumption-based estimates of poverty by the World Bank. The most recent Afrobarometer surveys, however, suggest that Africa is in danger of squandering these gains in living standards. While the citizens of most African countries are still doing better than they were in 2005/2006, deprivation of basic necessities – captured by our Lived Poverty Index – has increased in about half of surveyed countries since 2015. The trend is similar for “severe lived poverty,” the extent to which people experience frequent shortages of basic necessities. Lived poverty varies widely across the continent. At one extreme, people rarely experience deprivation in Mauritius. At the other, the average person went without several basic necessities several times in the preceding year in Guinea and Gabon. In general, lived poverty is highest in Central and West Africa, and lowest in North Africa. Lived poverty also varies widely within societies. Reflecting the legacies of the “urban bias” of successive post-independence governments, rural residents continue to endure lived poverty far more frequently than those who live in suburbs and cities. A multilevel, multivariate regression analysis of more than 40,000 respondents across Africa reveals that people who live in urban areas, those who have higher levels of education, and those who have a job (especially in a middle-class occupation) are less likely to live in poverty, as are younger people and men. But besides personal characteristics, we locate even more important factors at the level of government and the state. First, Africans who live in countries with longer experiences of democratic government are less likely to live in poverty. Second, people who live in communities where the state has installed key development infrastructure such as paved roads, electricity grids, and piped-water systems are less likely to go without basic necessities. Indeed, the combined efforts of African governments and international donors in building development infrastructure, especially in rural areas, appears to have played a major role in bringing down levels of poverty – at least until recently.
Topic:
Poverty, Infrastructure, Inequality, and Local
Political Geography:
Africa

50. I Need You, I Don’t Need You: South Africa and Inga III

Author:
CIC Congo Research Group
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Center on International Cooperation (CIC)
Abstract:
A new report from CIC’s Congo Research Group and Phuzumoya Consulting, I Need You, I Don’t Need You: South Africa and Inga III, places South Africa’s backing of Inga III in the context of its foreign policy. The report argues that South Africa’s current Inga policy is contradictory, oscillating between the desire to project an image of being a pan-Africanist power promoting the continent’s economic development, and the reality that committing to the project makes little financial or energy policy sense. A power purchasing agreement from South Africa is critical for the dam’s construction—but buying electricity from Inga III will be risky for South Africa, especially since it may end up being expensive than other sources. The resulting uncertainty about whether South Africa will ever really be an anchor client for Inga III thus puts into question the bankability—and indeed the feasibility—of the whole project.
Topic:
Energy Policy and Infrastructure
Political Geography:
Africa, South Africa, and Congo