Stylized facts and implications for poverty trade and poverty paper series no. The balance of payments constrained growth model with. An energizing development for imf staff working on sub saharan africa ssa over the past decade was the regions clear growth uptick and progress in reducing poverty relative to earlier periods. Transactions between canada and its main trading partners, including imports and exports of goods and services, direct investment inflows and outflows, and the current account balance. We scale up the derived value of trade misinvoicing by the inverse of the share.
Debt burden indicators for sub saharan africa and debtdistressed countries. The still low level of intraregional trade in sub saharan africa limits the scope for reduced transaction costs stemming from a regional monetary union. Miga in sub saharan africa sub saharan africa migabrief a continent on the move. Sub saharan africa is one of the fastest growing regions in the world. Current account and trade balance by subsaharan country, 20002008. Policy applications of balance of payments and iip statistics. Banking in subsaharan africa european investment bank. The impact of mobile money on monetary and financial stability in sub saharan africa 1 background mobile money has helped reduce the financial exclusion gap in low and middleincome countries, particularly in sub saharan africa, which had almost 400 million registered accounts at. General government gross debt across ssa countries, 2010 vs 201516 34.
Trends in current account balance and its components in. Financial sectors in lowincome sub saharan africa ssa are among the worlds least developed. The political economy of official statistics in sub saharan africa. Major donors presented health insurance, user fee exemption, and resultsbased financing policies as relevant instruments for achieving uhc in sub saharan africa. The recovery in sub saharan africa continues, albeit at a softer pace. Many countries in africa have poor retail banking network infrastructure especially in the rural areas. Prevalence of the balance of payments manual version 5 or 6 in subsaharan africa. A special focus is put on the payment behavior of the poorest parts of the population and those living in rural areas.
Public disclosure authorized an analysis of issues. Current account deficits in subsaharan africa united nations. In hindsight, it is easy to see that the program was launched at the right time, in the right place. Implications for the data revolution in sub saharan africa. The relevance of a demandled growth model for long run economic growth is tested for the sub saharan african region using an augmented. Only a few of the regions nonresource exporters have been immune. Using the postkeynesian balance of payments constrained growth approach, we investigate the recent increase in sub saharan africa ssa growth, focu we use cookies to enhance your experience on our website. Generally, growth is expected to remain strong despite a downward revision since the may 20 report. Payments and money transfer behavior of subsaharan africans offers an indepth look at the payment behavior of subsaharan africans, based on survey results from 11 african nations. Selected economic indicators for africa and sub saharan africa. Sub saharan africa ssa barely raised income levels in the 1970s.
There were 5 live mobile money services across the region at the end of 2017, with 122million active accounts, the gsma said in its the mobile economy sub saharan africa 2018 report. A meeting sub saharan africas frontier market financing needs. By continuing to use our website, you are agreeing to our use of cookies. This paper examines the main components of subsaharan africas balance of payments with a view to understanding the role that trade has played in the evolution of current account imbalances in the region. Merchandise trade summary statistics data for sub saharan africa ssf including exports and imports, applied tariffs, top export and import by partner countries and top exportedimported product groups, along with development indicators from wdi such as gdp, gni per capita, trade balance and trade as percentage of gdp for year. Sub saharan africa is projected to see a moderate pickup in activity, with growth. Mauro mecagni, juan sebastian corrales, jemma dridi, rodrigo garciaverdu, patrick imam, justin. In fact, assets in most lowincome african countries are smaller than those held by a single mediumsized bank in an industrial country. Given the lack of digitalpayment penetration, consumers, banks, and governments in subsaharan africa are still bearing the high cost of cash paymentscosts associated with manual acceptance, record keeping, counting, storage, security, and transportation. Volume 2 market barriers to remittances in subsaharan. Overall balance of payment, current account balance and capital. Pdf subsaharan africas growth, southsouth trade and. Introduction although there has been global experimentation with payments for watershed service pws schemes for almost a decade, only a couple of schemes exist in africa.
Intensifying global headwinds such as decelerating activity in major trading partners, elevated policy. Damage and losses due to weather and climaterelated. Impact of remittances on poverty and financial development. Remittances in africa a catalogue of studies and technical assistance by the world. Current account balance % of gdp sub saharan africa international monetary fund, balance of payments statistics yearbook and data files, and world bank and oecd gdp estimates.
This project leverages gallups worldwide research initiative to understand better the payment behavior of subsaharan africans. The model is estimated by panel cointegration on a sample of 20 low and lowermiddleincome ssa countries, using annual data from 1990 to 2008, and considering three partner areas. The balance of payments constrained growth model with sustainable debt accumulation, interest payments and the terms of trade. Financial flows to subsaharan africa was prepared by cesar calderon and. This was a weaker pace than anticipated in june figure 2. Investment trends power investments in sub saharan africa between 1990 and 20 were far below requirements. Inward and outward categories balance of payments categories applicable to bopcus, non resident rand and bopdir updated 20141211. On the accuracy of trade and gdp statistics in africa. A number of sub saharan african ssa countries have recently obtained debt relief on account of the highly. Primary balance across sub saharan african countries, 2010 vs 201516 33. Public disclosure authorized an analysis of issues shaping africa s economic future. The international monetary fund predicts that this growth will only acceleratereaching around 5.
The development of mobile banking has contributed towards enhanced financial inclusion in sub saharan africa ssa. On the adequacy of monetary arrangements in subsaharan. The views expressed in this working paper are those of the authors and do not necessarily represent. Trade liberalisation, balance of payments and tax revenue. The rise on the international scene of advocacy for universal health coverage uhc was accompanied by the promotion of a variety of health financing policies. An empirical study of the balance of payments constrained growth for the sub saharan african region which incorporates sustainable debt accumulation, interest rate payments and the terms of trade is necessary, as 33 of the 39 countries described as heavily indebted poor countries hipc are in sub saharan africa world bank, 2015. Currently, the average cost of remittances to ssa is 9. Pdf the political economy of official statistics in sub. This study is the first in a twopart note series on the state of national and regional payment systems in sub saharan africa ssa, with the ultimate objective of supporting remittances. Sub saharan africa provides a comprehensive report on the prospects for growth in the region, as well as the major risks to the outlook. Trends in power generation investment in sub saharan africa 3. Payments and money transfer behavior of subsaharan africans offers an indepth look at the payment behavior of sub saharan africans, based on survey results from 11 african nations. Trade and current account balances in sub saharan africa. More is better from the imf center for global development.
Improving terms and conditions for investorslenders. The absence of deep, efficient financial markets seriously challenges policy making, hinders poverty alleviation, and constrains growth. Meeting subsaharan africas frontier market financing. There is considerable country variation in the current account deficitgdp ratio, which ranges from a deficit of 15. Subsaharan africas growth, southsouth trade and the. Current account deficits are a persistent feature of african economies.
Sub saharan africa s growth, southsouth trade and the generalised balance of payments constraint article pdf available in cambridge journal of economics 403 april 2015 with 123 reads. Stylized facts and implications for poverty nicole moussa trade and poverty branch aldcunctad abstract this paper examines the main components of sub saharan africa s balance of payments with a view. Even in cross country studies, sub saharan african countries have not received fair coverage relative to their counterparts from other parts of figure 1. Trade and current account balances in subsaharan africa. Mobile communication networks introduced innovative products to extend mobile banking into remote rural locations. Imfs balance of payments manual that started recording capital transfers. This thesis examines the impact of trade liberalisation on export growth, import growth, balance of payments and tax revenue of 28 sub saharan african ssa countries from 1981 to 2010.
In the 1980s, after adjusting for the effects of inflation, gdp in ssa grew by only 1. Impact of remittances on poverty and financial development in subsaharan africa prepared by sanjeev gupta, catherine pattillo, and smita wagh 1 february 2007 abstract this working paper should not be reported as representing the views of the imf. Informal flows are rife, especially in ssa, and the trend is increasing in many corridors. Current account balance % of gdp subsaharan africa data. International monetary fund balance of payments bpm 6. Payments and money transfer behavior of subsaharan africans. As shown in figure 1, the average current account balance has mostly remained in negative territory for a large sample of sub saharan african countries. Payments and money transfer behavior of subsaharan. Payment systems in sub saharan africa december 2018. Sub saharan africa which comprises of 44 countr ies is located below the sahara desert and is considered as the po orest region in the globe for the last several year s though there are hopes of.
When claims do need to be paid, miga is able to pay them promptly, based on a strong balance sheet and a stable stream of operating income. External debt and debt service of africa and sub saharan africa, 19701987. Using the postkeynesian balance of payments constrained growth approach, we investigate the recent increase in sub saharan africa ssa growth, focussing on the contribution of southsouth trade. The impact of mobile money on monetary and financial. Read sub saharan africa s growth, southsouth trade and the generalised balance of payments constraint, cambridge journal of economics on deepdyve, the largest online rental service for scholarly research with thousands of academic publications available at your fingertips. Illicit financial flows in africa brookings institution. In most sub saharan africa ssa countries, following a prolonged spell of sustained growth, a sharp decline in commodity prices has combined with difficult domestic political and economic conditions. The report draws on the input of 36 experts in media and governance from 15 countries in sub saharan africa who met in durban, south africa, in july 2017, and it deepens the insights and ideas that came from this group by documenting previously successful media reforms in sub saharan africa. Trends in investment and savings in subsaharan african countries, 19702005. The feeble economic recovery in sub saharan africa has lost momentum, with growth in 2019 estimated to have edged down to 2. Capital flight from subsaharan african countries page 4 where mic is the african countrys imports from industrialized countries as re ported by the african country, and pmic is the industrialized countries exports to the african country as reported by the industrialized trading partners. Trends in investment and savings in subsaharan african.
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