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1. African Jobs in the Digital Era: Export Options with a Focus on Online Labour

Author:
Elvis Melia
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
This study asks what impact the Fourth Industrial Revolution will have on job creation and catchup development in Sub-Saharan Africa over the coming decade. Can light manufacturing export sectors still serve African development the way they served East Asian development in the past? If factory floor automation reduces the need for low-cost labour in global value chains, can IT-enabled services exports become an alternative driver of African catch-up development? I present case study evidence from Kenya to show that online freelancing has become an interesting sector, both in terms of its growth trajectory, and in terms of worker upward mobility in the global knowledge economy. As life everywhere moves further into the digital realm, and global internet connectivity between Africa and the rest of the world grows, more and more young Africans who stream onto the labour market may find work in the world of global online freelancing. I discuss the building blocks needed to make online work a sustainable vehicle for African catch-up development in the years ahead.
Topic:
Development, Science and Technology, Labor Issues, Internet, Exports, Manufacturing, and Industry
Political Geography:
Kenya and Africa

2. Digitalisation and its Impact on SME Finance in Sub-Saharan Africa: Reviewing the Hype and Actual Developments

Author:
Sabrina Disse and Christoph Sommer
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
The vast majority of enterprises worldwide can be categorized as small and medium-sized enterprises (SMEs). They play a crucial role in providing a livelihood and income for diverse segments of the labour force, in creating new jobs, fostering valued added and economic growth. In addition, SMEs are associated with innovation, productivity enhancement as well as economic diversification and inclusiveness. However, almost half of the formal enterprises in low and middle-income countries (LMICs) are financially constrained, meaning that SMEs’ financing needs are unserved or underserved. Digitalisation is often seen as game changer that overcomes the challenges of SME finance by capitalising on the reduced transaction costs, the broader access to more and alternative data and the new customer experience shaped by convenience and simplicity. This paper aims to answer the question what the role of digital financial instruments in SME finance in Sub-Saharan Africa is. It reviews and discusses the opportunities and challenges of digital advances for SME finance in general and of three specific financing instruments, namely mobile money (including digital credits), crowdfunding (including peer-to-peer lending) and public equity. It contrasts the hype around digital finance with actual market developments and trends in Africa. Main findings indicate that even though digital advances have led to impressive growth of certain digital finance instruments, it has not triggered a remake of the financial system. Digitalisation of the financial system is less disruptive than many expected, but does gradually change the financing landscapes. Some markets have added innovative and dynamic niches shaped by digital financial services, but new digital players have in general not replaced the incumbents. Furthermore, the contributions of digital instruments to finance in general and SME finance in particular are still very limited on the African continent compared to either the portfolio of outstanding SME finance by banks or the capital raised by similar innovative instruments elsewhere in the world. Many uncertainties remain, most importantly the response of regulators and responsible authorities. They need to provide a suitable legal framework to strike a balance between the innovation and growth aspiration of the digital finance industry and the integrity and stability of markets and the financial system at large. Also regulators have to safeguard data privacy and cybersecurity and prevent illicit financial flows, bad practices around excessive data collection, intransparency and poor reporting as well as exploitation of vulnerable groups with limited financial literacy. Governments also have to address the increasing gap towards those left behind by digital finance due to issues with ownership of a digital device, mobile network coverage and the internet connection or issues of basic digital and financial literacy.
Topic:
Development, Science and Technology, Digital Economy, Business, Economic growth, and Diversification
Political Geography:
Africa

3. October 2020 Issue

Author:
Michael Knights, Stephen Hummel, Paul Cruickshank, Don Rassler, Tim Lister, Pete Erickson, Seth Loertscher, David C. Lane, and Paul Erickson
Publication Date:
10-2020
Content Type:
Journal Article
Journal:
CTC Sentinel
Institution:
The Combating Terrorism Center at West Point
Abstract:
In this month’s feature article, Michael Knights assesses the future of Kata’ib Hezbollah (KH) and Iran’s other proxies in Iraq. He notes that in the wake of the death of KH’s founder and leader Abu Mahdi al-Muhandis in a U.S. airstrike on January 3, 2020, “KH is still the engine room of anti-U.S. attacks in Iraq but it is less politically agile and operates in a more hostile counterterrorism environment where deniability and secrecy have become more important again.” He assesses that the “the Islamic Revolutionary Guard Corps Quds Force is also leaning on a more diversified model in Iraq, drawing on non-KH factions like Saraya al-Jihad and Saraya al-Ashura, and engaging more directly with Iraq’s minorities, including Sunni communities and the Shi`a Kurdish Faylis and Turkmen. History may be repeating itself as Iran develops new smaller and more secure Iraqi cells that are reminiscent of the formation of Kata’ib Hezbollah itself.” Our interview is with Drew Endy, Associate Chair, Bioengineering, Stanford University, who has served on the U.S. National Science Advisory Board for Biosecurity. He argues the United States urgently needs a bio strategy to take advantage of rapid advances in biotechnology, protect against the growing danger posed by its potential malevolent use, and prevent the United States from permanently falling behind as a biopower. “First, we need to demonstrate operational mastery of cells by learning to build them. Second and third, we need to build and secure the bio net. And we have to do this now, within the decade, so that we can translate these advances as infrastructure undergirding a uniquely American bio economy that projects power while advancing life, liberty, pursuit of happiness. If we do this, then we have a chance of taking infectious disease off the table. If we don’t develop and implement a coherent bio strategy, it’s game over, not to be dramatic.” In early August 2020, fighters loyal to the Islamic State captured the town and port of Mocimboa da Praia in Mozambique’s northernmost province of Cabo Delgado. They have yet to be dislodged from the town. Tim Lister examines a jihadi insurgency in Mozambique that has grown in sophistication and reach. This month marks 20 years since al-Qa`ida’s attack on the USS Cole, which killed 17 American sailors. Lieutenant Colonel Pete Erickson, Seth Loertscher, First Lieutenant David C. Lane, and Captain Paul Erickson assess the search for justice.
Topic:
Science and Technology, Insurgency, Counter-terrorism, Hezbollah, Justice, Jihad, Proxy War, and USS Cole
Political Geography:
Africa, Iraq, Iran, Middle East, and Mozambique

4. Countering Misinformation Via WhatsApp: Evidence from the COVID-19 Pandemic in Zimbabwe

Author:
Jeremy Bowles, Horacio Larreguy, and Shelley Liu
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
We examine how information from trusted social media sources can shape knowledge and behavior when misinformation and mistrust are widespread. In the context of the COVID-19 pandemic in Zimbabwe, we partnered with a trusted civil society organization to randomize the timing of the dissemination of messages aimed at targeting misinformation about the COVID-19 virus to 27,000 newsletter WhatsApp subscribers. We examine how exposure to these messages affects individual beliefs about how to deal with the COVID-19 virus and preventative behavior. The results show that social media messaging from trusted sources may have substantively large effects on not only individual knowledge but also ultimately on related behavior.
Topic:
Science and Technology, Internet, Social Media, Pandemic, COVID-19, Misinformation, and WhatsApp
Political Geography:
Africa and Zimbabwe

5. The Impact of Information and Communication Technologies on Jobs in Africa: A Literature Review

Author:
Elvis Melia
Publication Date:
01-2019
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
In the past two decades, Africa has experienced a wave of mobile telephony and the early stages of internet connectivity. This paper summarises recent empirical research findings on the impact that information and communication technologies (ICTs) have had on jobs in Africa, be it in creating new jobs, destroying old jobs, or changing the quality of existing jobs in levels of productivity, incomes, or working conditions. The paper discusses various channels in which ICTs can impact jobs: In theory, they have the potential to allow for text-based services platforms that can help farmers and small and medium-sized enterprises (SMEs) become more productive or receive better access to market information; mobile money has the potential to allow the most vulnerable workers more independence and security; and the internet could allow women, in particular, to increase their incomes and independence. This literature review examines what rigorous empirical evidence actually exists to corroborate these claims. Most of the studies reviewed do indeed find positive effects of ICTs on jobs (or related variables) in Africa. On the basis of these findings, the paper reviews policy options for those interested in job creation in Sub-Saharan Africa. The paper concludes by highlighting that these positive findings may exist in parallel with negative structural dynamics that are more difficult to measure. Also, the review’s findings - while positive across the board - should be seen as distinct for ICTs in the period of the 2000s and 2010s, and cannot easily be transferred to expect similarly positive effects of the much newer, Fourth Industrial Revolution Technologies (such as machine learning, blockchain technologies, big data analytics, platform economies), which may produce entirely different dynamics.
Topic:
Development, Science and Technology, Labor Issues, Women, Internet, Economic growth, Political Science, and Literature Review
Political Geography:
Africa

6. TechWomen Evaluation Report Year 7

Author:
Institute of International Education
Publication Date:
02-2019
Content Type:
Special Report
Institution:
Institute of International Education
Abstract:
This report presents findings from a TechWomen program evaluation conducted in 2018 by IIE’s Research, Evaluation, and Learning team. The evaluation assessed change in participants’ professional skills and capacities. The evaluation team utilized Social Network Analysis methodology to measure development of the participants’ professional networks with each other and with STEM professionals in the U.S. The report also outlines how the program impacted participants’ and mentors’ cross-cultural understanding and exchange of professional best practices. Finally, the report highlights program’s impact on participants’ and mentors’ communities and specifically on women and girls. TechWomen is an initiative of the U.S. Department of State’s Bureau of Educational and Cultural Affairs implemented by IIE. Launched in 2011, the program supports the United States’ global commitment toward advancing the rights and participation of women and girls around the world by enabling them to reach their full potential. TechWomen empowers, connects and supports the next generation of women leaders in science, technology, engineering and mathematics (STEM) from Africa, Central and South Asia, and the Middle East by providing them the access and opportunity needed to advance their careers, pursue their dreams, and inspire women and girls in their communities.
Topic:
Education, Government, Science and Technology, Culture, Women, and Higher Education
Political Geography:
Africa, South Asia, Central Asia, Middle East, North America, and United States of America

7. Impacts of Access to ICTs on Employment Status in Botswana

Author:
Masedi K. Tshukudu
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
It is clear that technology has brought about significant changes in the livelihoods of people, creating new forms of employment and advancing the traditional forms of employment for individuals. Many countries continue to invest in Information and Communication Technologies (ICTs) with the view to tackling some of the economic challenges such as unemployment. Botswana like other African countries has made annual budgetary allocations towards ICT Infrastructure. Despite, the Government’s efforts to invest and improve access to ICT, the country still faces a high unemployment rate, particularly for the youth. This study therefore, investigates the impact that access to ICTs has on the employment of individuals in Botswana. In order to provide a detailed analysis of the impact of ICTs on employment we apply a probit model for binary choice responses to being employed or not being employed, using the data from the 2014 Botswana Household Access and Individual use of Information Communication Technology Survey carried out by the Statistics Botswana. The empirical results provide evidence that access to ICTs collectively has a positive impact on employment in Botswana. However, disaggregating the ICTs forms presents slightly different results, e-skill training and access to the internet in Botswana are not significant in explaining an individual’s employment status, this may be associated with low uptake of internet and ICTs skills by individuals in Botswana. The policy message from this study is that there is a need for aggressive implementation of collective ICT. [In addition, there is need to improve collective ICTs infrastructure to create more employment].
Topic:
Development, Economics, Science and Technology, Communications, Information Age, and Economic Development
Political Geography:
Africa and Botswana

8. Why “Leapfrogging” in Frontier Markets Isn’t Working

Author:
Bright Simons
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Just before the yuletide of 2018, I arrived in my native Ghana after one of my long spells away. I flipped out my phone, opened Uber, and tried to flag a ride from inside the shiny new terminal of Accra’s international airport. After a couple of false starts I gave up, walked out, and headed for the taxi stand. In the many days that followed, this ritual repeated itself with remarkable regularity. Sometimes I got the Uber, but on as many occasions, I couldn’t. The reasons for the frequent failure ranged from curious to bizarre. The “partner-drivers” would accept the request. Then they would begin to go around in circles. Sometimes they would start heading in the opposite direction. On a few occasions they would call and announce that they were “far away,” even though their registered location was visible to me on the app and their estimated time of arrival had factored into my decision to wait. It would take me a whole week to figure out that the problem wasn’t always that many Ghanaian Uber drivers couldn’t use GPS all that well, or that they were displeased with fares. There were other issues that I’d left out of my calculation, such as my payment preference, which was set to “bank card” instead of “cash.” The drivers want cash because it allows them to unofficially “borrow” from Uber and remit Uber’s money when it suits their cashflow. Though Uber offers two tiers of service, the difference in quality appeared negligible. Even on the upper tier, it was a constant struggle to find an Uber whose air conditioner hadn’t “just stopped working earlier today.” As something of a globetrotter used to seamless Uber services in European and American cities, I found the costs of onboarding onto Uber as my main means of mobility in Accra onerous. Why is a powerful corporation like Uber, reportedly valued by shrewd investment bankers at $120 billion, with $24 billion in capital raised, unable to maintain even a relative semblance of quality in its product in Ghana? And in other African cities I have visited? It may seem bleedingly obvious why heavily digitalised Facebook, Twitter, Microsoft, and Google manage to deliver fairly uniform standards of product quality regardless of where their customers are based, whilst Uber, because of its greater “embeddedness in local ecosystems” and lower digitalisation of its value chain, fails. But in that seemingly redundant observation enfolds many explanations for why the innovation-based leapfrogging narrative in frontier markets, especially in Africa, unravels at close quarters.
Topic:
Development, Science and Technology, Governance, Digital Economy, and Emerging Technology
Political Geography:
Africa

9. Fuel Subsidy Reform and Green Taxes: Can Digital Technologies Improve State Capacity and Effectiveness?

Author:
Alan Gelb and Anit Mukherjee
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Reforming inefficient and inequitable energy subsidies continues to be an important priority for policymakers as does instituting “green taxes” to reduce carbon emissions. Simply increasing energy prices will have adverse impact on poorer consumers, who may spend substantial budget shares on energy and energy-intensive products even though the rich typically appropriate more of the price subsidy. Equitable pricing reforms therefore need to be accompanied by programs to transfer compensation: depending on the situation, this can be targeted or universal. Successful reforms require measures to raise awareness-of the subsidies and the problems they cause, effective dissemination of the reform to the population, and rapid feedback loops to facilitate mid-course corrections. Digital technology, including for unique identification and payments, as well as general communications, can help build government capacity to undertake such reforms and respond to changes in fuel markets. The paper outlines the use of digital technology, drawing on four country cases. The technology is only a mechanism; it does not, in itself, create the political drive and constituency to push reform forward. However, it can be employed in a number of ways to increase the prospects for successful and sustainable reform.
Topic:
Climate Change, Energy Policy, Environment, Science and Technology, Reform, and Digitalization
Political Geography:
Africa, Middle East, India, and Latin America

10. April 2019 Issue

Author:
Aaron Edwards, Paul Cruickshank, Stephen Hummel, Douglas McNair, F. John Burpo, James Bonner, Audrey Alexander, Bennett Clifford, and Caleb Weiss
Publication Date:
04-2019
Content Type:
Journal Article
Journal:
CTC Sentinel
Institution:
The Combating Terrorism Center at West Point
Abstract:
The murder earlier this month of journalist Lyra McKee in Northern Ireland on the night before Good Friday illustrates the fragility of peace in a region in which terrorist violence has persisted. In our cover article, Aaron Edwards writes that this was “the latest in a series of incidents that have raised the specter of a surge in terrorist violence in Northern Ireland.” In examining the evolution of the threat from militant groupings on both sides of the sectarian divide, he notes there has been a “blurring of the concepts of terrorism and criminality that challenges orthodox perspectives on the security landscape in Northern Ireland.” Our interview is with Edmund Fitton-Brown, the Coordinator of the ISIL (Daesh)/Al-Qaida/Taliban Monitoring Team at the United Nations. This issue features the concluding article of a two-article series focused on IED and WMD network convergence. The first article, published in our February 2019 issue, warned there was a high risk that profit-minded suppliers within vast, transnational IED networks may expand in the future into WMD proliferation. In the second article, Major Stephen Hummel, Lieutenant Colonel Douglas McNair, Colonel F. John Burpo, and Brigadier General James Bonner examine in greater detail the ways this could happen. Audrey Alexander and Bennett Clifford examine the threat posed by Islamic State-affiliated hackers and hacking groups. Through “analysis of several U.S. prosecutions of Islamic State-affiliated hackers and their networks, proficiencies, and activities,” they argue that “very few of these actors demonstrate advanced hacking or cyberterrorism capabilities.” Caleb Weiss examines the evolution of the threat posed by the Islamic State in Somalia, noting the group, “which is believed to only number in the low hundreds of fighters, appears to have significantly expanded its operations across Somalia, albeit from a relatively low base.” He argues the resulting reignition of tensions with the much larger al-Qa`ida affiliate al-Shabaab means “it is far from clear whether the Islamic State in Somalia will be able to sustain its operational expansion.”
Topic:
Science and Technology, Terrorism, United Nations, Taliban, Counter-terrorism, Al Qaeda, Islamic State, Al Shabaab, and Doxxing
Political Geography:
Africa, Europe, Middle East, Ireland, and Somalia