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1. Place-based Policies and Household Wealth in Africa

Author:
Matthew Amalitinga Abagna, Cecília Hornok, and Alina Mulyukova
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper provides empirical evidence on the impact of a prominent place-based policy - Special Economic Zones (SEZs) - on the economic well-being of African households. We compile a novel dataset on repeated cross-sections of households living in various distance bands around SEZs in 10 African countries over the period of 1990 to 2020. Exploiting time variation in SEZ establishment, the estimation yields that households in the vicinity of SEZs become significantly wealthier compared to the national average after SEZs are established. The effect is most pronounced for households within 10 km and decays rapidly with distance. We show that this result is not driven by the residential sorting of wealthier households in SEZ neighbourhoods. The rise in wealth is strongest towards the middle of the wealth distribution and goes hand in hand with increased access to household utilities, higher consumption of durable goods, higher levels of education, and a shift away from agricultural activities - patterns that we interpret as indicative of an urbanization trend and the strengthening of the middle class.
Topic:
Migration, Economic Growth, Special Economic Zones, Labor Market, Wealth, Opportunity, and Household Income
Political Geography:
Africa

2. All That Glitters is Not Gold: Turmoil in Zimbabwe’s Mining Sector

Author:
International Crisis Group
Publication Date:
11-2020
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
In 2019, killings by machete-wielding gangs at Zimbabwe’s gold mines jogged the government into preventive action. But police sweeps alone cannot make the sector safe. Harare should adopt reforms that allow more citizens to mine legally and head off disputes over the country’s mineral wealth.
Topic:
Natural Resources, Inequality, Mining, Organized Crime, and Wealth
Political Geography:
Africa and Zimbabwe

3. Stokvels: An Instrument for Income Generation and Wealth Creation?

Author:
Ntando Nkambule and Mangaliso Mohammed
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Stokvels are increasingly being recognised as a solution to contribute to income generation and wealth creation, especially amongst low-income earners who are excluded from the formal financial markets. This study investigates the contribution of stokvels to income generation and wealth creation in Eswatini focusing on the poorest region, Lubombo. The study uses 436 stokvel participants which were accessible through NGOs (Joyful-heart, Bantwana Initiative, Imbita Women Finance Trust, and World Vision) which promote savings groups in the country, Lubombo region. The study employs Principal Component-based asset index as a proxy for assets accumulation (wealth creation). The findings from the descriptive statistics indicate that women are dominating stokvels participation in households. In support of income generation, the participants in the study are capable of saving up to E796,123 per annum, and the total loan amount issued increases the total contributions by 6.7%. The generated revenue results for a total of E0.8m. Even though the prominent goals for most of the participants are consumptive, still members can acquire assets and accumulate wealth through borrowing before the cycle matures, thus significantly increasing their socioeconomic status. The study recommends an establishment of a stokvel representative body (such as Eswatini National Association of Stokvels) to capture the Lilangeni value of stokvels that generate in the informal economy, as well as assist in promoting stokvels campaigns for information exchange platform, deal with other stokvels issues of interest, and create and monitor a stokvel data base in the country.
Topic:
Poverty, NGOs, Unemployment, Wealth, and Income
Political Geography:
Africa and Eswatini