Search

Begin New Search Topic Markets Political Geography Africa

31. From bear to bull? Sub-Saharan Africa and Global Capital Markets

Author:
Sam Jones
Publication Date:
01-2008
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies
Abstract:
The current boom in global commodity prices and the expansion of Chinese interests in sub-Saharan Africa are part of a general warming of external investors to the region. This policy brief examines trends in commercial financial instruments such as equities, bonds and commercial bank lending and their impact on economic development. It reviews the nature and behaviour of these instruments in developing countries compared with more traditional development finance, such as foreign aid. This provides a foundation for analysing past and present trends in sub-Saharan Africa. It is argued that, like many other low income countries in the past, sub-Saharan Africa has received negligible inflows of external commercial financing. If anything, the region has been additionally excluded from these flows due to very weak levels of financial sector development even compared to other low income countries. At the same time, recent changes in global and domestic conditions mean that the situation is evolving rapidly. There is mounting evidence to show that many economies in sub-Saharan Africa are enjoying significantly expanded access to commercial external capital flows. Given good prospects that this trend will continue, the playing field for traditional donors is likely to alter significantly. The brief concludes by reflecting on how donors might respond to these emerging policy challenges.
Topic:
Development, Markets, and Non-Governmental Organization
Political Geography:
Africa and China

32. Kumasi Marketing Strategy: Tourism

Author:
Dario Cacciatore, Andre Le, Nicholas Levi-Gardes, Antonio Lopez Reus, and Kenny Sai-Kin Hsu
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Kumasi needs to position itself strategically as a cultural destination, communicate its attributes more effectively to tourists already in Ghana and differentiate itself from other cities and attractions Position should entail marketing a larger cultural region than just Kumasi Several positioning statements can transmit Kumasi's new marketing strategy: Kumasi - Heart of the Kingdom of Ashanti. Ashanti - The Hidden Kingdom. Kumasi - Come and See! Kumasi is well placed to capitalize on the growth of tourism in Ghana due to its status as a cultural capital The financial impact of tourism growth is potentially significant for the city and its surrounding districts The creation of the Ashanti Region Marketing Corporation is fundamental to proper coordination among stakeholders.
Topic:
Development, Economics, International Trade and Finance, and Markets
Political Geography:
Africa

33. Assessing Infrastructure Constraints on Business Activity in Kumasi, Ghana

Author:
Ginger Baker
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
The development of urban infrastructure is intimately connected with the process of economic growth. Businesses depend on reliable water and electricity sources, affordable and plentiful land for expansion and modern transportation networks to reach the markets they serve. Inadequate infrastructure can deter investments and lead to a general climate of economic decline.
Topic:
Development, Economics, Markets, and Infrastructure
Political Geography:
Africa and Ghana

34. Bamboo Bicycles in Kumasi, Ghana

Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
The primary objective of this study was to assess the feasibility and investment opportunity of implementing a bamboo bicycle production facility in Kumasi, Ghana, in conjunction with the Millennium Cities Initiative (MCI) at Columbia University. For this assessment, desk-based research and interviews with industry and regional subject matter specialists were completed to assist with the following objectives: Understand the current transportation modes and bicycle market in Ghana Assess customer needs in Ghana to determine the suitability of a bamboo bicycle for rural use Identify the potential market size and demand Understand the operational considerations and costs associated with implementing a production facility Estimate the financial returns from investing in this opportunity.
Topic:
Development and Markets
Political Geography:
Africa and Ghana

35. Sugar in Kisumu,kenya

Publication Date:
11-2008
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
An investor, seeking to financially benefit from producing sugar as a commodity in Kisumu, Kenya, needs to consider the entire investment environment before making a decision. Since Kenya is a net importer of sugar, domestic demand cannot be satisfied by domestic production, which creates a potential opportunity for an investor looking to bridge the gap. As a result, an opportunity may exist for an investor who wants to play a significant role in the future of the industry. Sugar, produced as a commodity within Kisumu, may have the ability to compete on a global scale if time, investment, and governmental support align.
Topic:
Agriculture, Development, Globalization, Markets, and Foreign Direct Investment
Political Geography:
Kenya and Africa

36. Does Digital Divide or Provide? The Impact of Cell Phones on Grain Markets in Niger

Author:
Jenny C. Aker
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Due partly to costly information, price dispersion across markets is common in developed and developing countries. Between 2001 and 2006, cell phone service was phased in throughout Niger, providing an alternative and cheaper search technology to grain traders and other market actors. Weconstruct a novel theoretical model of sequential search, in which traders engage in optimal search for the maximum sales price, net transport costs. The model predicts that cell phones will increase traders' reservation sales prices and the number of markets over which they search, leading to a reduction in price dispersion across markets. To test the predictions of the theoretical model, we use a unique market and trader dataset from Niger that combines data on prices, transport costs, rainfall and grain production with cell phone access and trader behavior. We first exploit the quasi-experimental nature of cell phone coverage to estimate the impact of the introduction of information technology on market performance. The results provide evidence that cell phones reduce grain price dispersion across markets by a minimum of 6.4 percent and reduce intra-annual price variation by 12 percent. Cell phones have a greater impact on price dispersion for market pairs that are farther away, and for those with lower road quality. This effect becomes larger as a higher percentage of markets have cell phone coverage. We provide empirical evidence in support of specific mechanisms that partially explain the impact of cell phones on market performance. Robustness checks suggest that the results are not driven by selection on unobservables, nor are they solely a result of general equilibrium effects. Calculations of the four-firm concentration index suggest that the grain market structure is competitive, so the observed reductions in price dispersion are not due to greater market collusion. The primary mechanism by which cell phones affect market-level outcomes appears to be a reduction in search costs, as grain traders operating in markets with cell phone coverage search over a greater number of markets and sell in more markets. The results suggest that cell phones improved consumer and trader welfare in Niger.
Topic:
Agriculture, International Trade and Finance, Markets, and Science and Technology
Political Geography:
Africa and Nigeria

37. Rainfall Shocks, Markets, and Food Crises: Evidence from the Sahel

Author:
Jenny C. Aker
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
How do markets respond to extreme rainfall in West Africa? This paper examines the effect of weather on grain market performance in Niger, a country increasingly affected by drought and severe food crises over the past two decades. Using a dataset that combines information on rainfall, agricultural production, prices and transaction costs, I exploit rainfall variation to estimate the impact of drought on grain market performance between 1997 and 2006. Time series tests suggest that grain markets in Niger respond to supply shocks and that markets are more integrated during drought years. Exploiting the exogeneity of extreme rainfall in a difference-in-differences framework supports these findings: drought reduces grain price dispersion across markets. This impact is stronger as a higher percentage of markets are affected by drought, as was the case in 2004/2005, the year of a severe food crisis. The results suggest that early warning systems in West Africa should focus on the spatial impact of drought at the sub-regional level, as well as monitor prices in key forecasting markets during the harvest period.
Topic:
Agriculture, International Political Economy, and Markets
Political Geography:
Africa and Nigeria

38. An Accounting Method-Based Cost-Benefit Analysis of Conformity to Certified Organic Standards for Spices in Tanzania

Author:
Evelyne Lazaro and Adam Akyoo
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Certified organic farming has emerged as a market channel providing participating African small-holders with access to high value markets in the EU. The benefits may include not only a guaranteed produce market, but also premium prices, and higher net revenues. Where training in organic farming techniques is provided there may be also benefits in terms of increased yield. The major cost challenges are those for certification, although in many cases donor support to exporters is available to cover these.
Topic:
Agriculture and Markets
Political Geography:
Africa and Tanzania

39. Why Doesn't Africa Get More Equity Investment? Frontier Stock Markets, Firm Size and Asset Allocations of Global Emerging Market Funds

Author:
Vijaya Ramachandran, Scott Standley, and Todd Moss
Publication Date:
02-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper addresses the question of investment in sub-Saharan African listed securities by examining characteristics of the continent's 15 equity markets, the rise and fall of African regional funds, and the asset allocation trends for global emerging market (GEM) funds. The data shows that South Africa is now a leading destination of capital, but that few managers invest elsewhere on the continent. However, we find that African markets are not treated differently than other markets and present evidence that small market size and low levels of liquidity are a binding deterrent for foreign institutional investors. Thus, orthodox market variables rather than market failure appear to explain Africa's low absolute levels of inward equity flows. The paper then turns to new data from firm surveys to explore why African firms remain small. The implications of our findings are threefold: (a) efforts to encourage greater private investment in these markets should concentrate on domestic audiences and specialized regional funds, (b) the depth and success of the Johannesburg Stock Exchange can perhaps be better utilized to benefit other parts of the continent, and (c) any long-term strategy should concentrate on the underlying barriers to firm entry and growth.
Topic:
Government, International Trade and Finance, and Markets
Political Geography:
Africa and South Africa

40. Credit Elasticities in Less-Developed Economies: Implications for Microcredit

Author:
Dean Karlan and Jonathan Zinman
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Policymakers often prescribe that microfinance institutions increase interest rates to eliminate reliance on subsidies. This strategy makes sense if the poor are rate insensitive: then microlenders increase profitability (or achieve sustainability) without reducing the poor's access to credit. We test the assumption of price inelastic demand using randomized trials conducted by a consumer lender in South Africa. The demand curves are downward-sloping, and steep for price increases relative to the lender's standard rates. We also find that loan size is far more responsive to changes in loan maturity than to changes in interest rates, which is consistent with binding liquidity constraints.
Topic:
Development, Economics, and Markets
Political Geography:
Africa and South Africa