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1. Key Drivers of Industrial Growth: A Case Study of Botswana’s Manufacturing Sector

Author:
Johanne Motsatsi and Goitseone Khanie
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The paper examines the key determinants of industrial growth in Botswana, using manufacturing sector value added as the proxy for industrial growth. It employs the Autoregressive Distributed Lag (ARDL) cointegration approach using annual time series data for the period 1983 to 2015. Empirical results show that industrial growth is driven by financial sector development, human capital development, trade openness and foreign direct investment. Specifically, domestic credit to the private sector as a percentage of GDP and secondary school enrolment ratio are found to be significantly related to manufacturing value added as a percentage of GDP both in the long run and short run. While the relationship is limited to long run for total trade to GDP, it only exits in the short run for FDI net inflows. The study therefore recommends that policy makers should design and ensure proper implementation of financial sector development strategies that can help ease access to credit for manufacturing enterprises in the country. There is also a need for a holistic approach in the design and implementation of innovation and human resource development policies in order to provide a conducive environment for skills acquisition, innovation and technological advancements in the manufacturing sector. Trade policies and export promotion strategies should heighten productivity and value addition in the manufacturing sector, so as to make local firms internationally competitive. Finally, with regards to FDI, the Government of Botswana should create an environment that could entice multinationals to invest in the local manufacturing industry. This, however, should be coupled with protectionist policies to avoid crowding out local manufacturers and exposing them to foreign competition.
Topic:
Development, Economics, Economic growth, Manufacturing, Economic Development, and Industrialization
Political Geography:
Africa and Botswana

2. Climate Security in the Sahel and the Mediterranean: Local and Regional Responses

Author:
A. Bassou, A. Chielewska, and X. Ruiz-Campillo
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
The Mediterranean connects Europe to Africa. The Mediterranean basin is thus an area of ​​interaction between the two continents. However, there is a perception that limits the Mediterranean basin to its strictest geographical sense, that is to say the countries of southern Europe and those of North Africa, which border the Mediterranean. This traditional conception ignores the geopolitical context, which broadens the vision of the Mediterranean basin by including all the spaces that impact it. Some human phenomena, such as migration, show that Mediterranean relations do not only concern the states bordering this sea, but a much larger area including the whole European Union, on the one hand, and North African, Sahelian and Sub-Saharan countries, on the other hand. The present study takes into account the broader conception of the Mediterranean. In this sense, it not only deals with the effects of climate change on the countries bordering the Mediterranean, but extends its analysis to the whole European Union (EU), to the Maghreb and especially to the Sahel. Due to its geography, climate, demography, proliferation of conflicts or its precarious level of industrialization, the Sahel region is the most threatened in the world by climate change. Any deterioration of the situation in the Sahel countries undoubtedly has repercussions on Europe and its relations with Africa. The four authors of the study examine the impact of climate change on the stability of the Sahel and the effects that the instability of this region could have on the Mediterranean space. The authors question the potential links between climate change and security. They outline the positions and frameworks of European actions as well as the different initiatives taken by EU institutions. Finally, they put forward some recommendations on how to effectively address this phenomenon.
Topic:
Security, Climate Change, Political stability, and Industrialization
Political Geography:
Africa, Europe, Sahel, and Mediterranean

3. Leveraging the BRI for Africa’s Industrialisation and Intra-Trade (Opportunities for the AfCFTA)

Author:
Mwanda Phiri and Nakubyana Mungomba
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Two initiatives have recently gained prominence, one on the global stage and the other in Africa: China’s Belt and Road Initiative (BRI) and the African Continental Free Trade Area (AfCFTA). The former initiative’s primary aim is to build economic infrastructure in the transport, energy and telecommunications sectors in the countries through which the BRI will pass, which has come to include several African countries. Concurrently, the objective of the AfCFTA is to deepen economic integration amongst African states by creating a unified market for goods and services and in the process, propel Africa’s industrialisation and structural transformation. Although seemingly independent, these initiatives converge and present two economic diplomacy instruments that can be leveraged to address Africa’s industrialisation challenge and the bottlenecks to intra-African trade for inclusive and sustainable development. On the back of secondary data sources, this paper explores how the BRI can be leveraged to advance the objectives of the AfCFTA by addressing the financing, infrastructure and productive capacity challenges constraining Africa’s industrialisation and intra-trade
Topic:
Regional Cooperation, Belt and Road Initiative (BRI), Free Trade, and Industrialization
Political Geography:
Africa and Zambia

4. Building Capacity for Domestic Resource Mobilization: The Role of the Government

Publication Date:
10-2016
Content Type:
Policy Brief
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
Africa adopted an industrialization strategy, and committed to implement Agenda 2063 and Sustainable Development Goals (SDGs), all of which require adequate funding. Given that no African country fully achieved all the Millennium Development Goals (MDGs) largely due to funding constraints, domestic resource mobilization is therefore a very critical issue. Domestic resource mobilization is defined as the generation of savings from domestic resources and their allocation to economically and socially productive investments as well as accounting for such allocation. Africa has the capacity to adequately fund its development programmes from its own pool of resources (The Africa Capacity Report, 2015). Thus African governments are responsible for ensuring that national and continental development programmes are fully implemented, hence should mobilize sufficient resources to fund them. The public sector achieves this mandate through taxation and other forms of public revenue generation. In ensuring sustainable mobilization of domestic resources including curbing of illicit financial flows1, accountable governments are necessary.
Topic:
Development, Government, Public Sector, Capacity, and Industrialization
Political Geography:
Africa

5. Combating Energy Policy in Sub-Saharan Africa

Author:
Matthias Chika Mordi
Publication Date:
08-2012
Content Type:
Working Paper
Institution:
The Diplomatic Courier
Abstract:
With its high poverty levels and low degree of industrialization, Africa arguably faces the largest development gap of any region. Beyond the usual misery indices and welfare evaluation metrics, we have fundamental challenges that impede meaningful sustainable development. Energy is an incontrovertible challenge across sub-Saharan Africa (SSA). Data from the World Bank and International Energy Agency (IEA) on energy poverty does not make for good visuals. Two out of three of SSA households—585 million people—live without electricity. In stark contrast, 99 percent of North African households have electricity supply. Only 14 percent of rural SSA households are linked to the grid. This compares unfavorably with Latin America where 74 percent of rural households are connected to power. The figures mask a more disturbing fact about electricity supply in most SSA countries: a high frequency of blackouts and unstable power supply. The World Bank estimates that SSA households experienced 91 days of blackouts in 2007. Beyond low electrification, energy poverty extends into inefficient and perilous forms of domestic energy for cooking attributable to a lack of modern fuels and clean cookers. According to IEA reports, more than 80% of SSA households—653 million people—use biomass for cooking, with devastating consequences for people and the environment. In 2009, more than 1.45 million African lives were lost to household pollution caused by inefficient biomass cooking stoves. Fewer people died from malaria.
Topic:
Development, Energy Policy, Poverty, and Industrialization
Political Geography:
Africa and Sub-Saharan Africa

6. Uncovering Dynamics in the Accumulation of Technological Capabilities and Skills in the Mozambican Manufacturing Sector

Author:
Alex Warren-Rodriguez
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
This paper examines the formation and accumulation of skills and technological capabilities in the Mozambican manufacturing sector. To this effect, it deploys Sanjaya Lall’s technology capabilities conceptual and methodological framework to examine these issues for the Mozambican metalworking and light chemical sectors in the context of historical dynamics taking place in Mozambique in the economic and industrial policy spheres. This analysis shows that these two industries are experiencing a process of gradual technological obsolescence, combined with a progressive simplification of production processes that is leading to a weakening of their technology capability and skill base. In this context, neither foreign direct investment, nor other mechanisms of technology transfer identified in the literature as contributing to the process of technological and skills accumulation, appear to have been able to reverse these trends. In light of available evidence on recent industrial (policy) developments, this paper argues that this process can be seen as a response to a deteriorating policy and economic environment that in the past two decades has undermined investments in industrial technological development in Mozambique.
Topic:
Science and Technology, Foreign Direct Investment, Manufacturing, and Industrialization
Political Geography:
Africa, Mozambique, and Sub-Saharan Africa