Sub Saharan Africa Development Report 2018

Development context: Côte d’Ivoire, Nigeria, Senegal) issued a total of $7.5 billion in bonds to international markets in 2017, 10 times the level seen in 2016 and a record high - Kenya also issuing bonds - much higher yields than for OECD countries - benefits and risks? #econ4

— Tutor2u Geoff (FRSA) (@tutor2uGeoff) May 20, 2018

Development Context: Sub- Saharan Africa has historically the lowest level of private investment as a share of GDP among regions with similar levels of development - what are the main barriers holding back domestic and inward private sector development? #econ4

— Tutor2u Geoff (FRSA) (@tutor2uGeoff) May 20, 2018

IMF (2018) Egypt, Indonesia, Sri Lanka, Morocco, Philippines, Thailand, & Vietnam have all managed to grow from low-income to middle-income status without sizeable commodity exports. Can many Sub Saharan countries do the same? Vietnam now 24th largest global exporter. pic.twitter.com/iqWgRBvyVI

— Tutor2u Geoff (FRSA) (@tutor2uGeoff) May 20, 2018

Will robotics hold back growth & development in SSA? IMF (2018): "The rapid robotization of manufacturing and the risk of a wave of inward- looking policies may make it more difficult for sub-Saharan African countries to compete in manufacturing."

— Tutor2u Geoff (FRSA) (@tutor2uGeoff) May 20, 2018

Trade:
Low intra-industry trade: In 2016, only 18% of Africa’s trade conducted within the continent
Low complexity: Manufactured goods were only 19% of Africa’s exports to rest of the world
High tariffs: Tariffs & non-tariff barriers remain high; SSA average -14.5%

— Tutor2u Geoff (FRSA) (@tutor2uGeoff) May 20, 2018

Counter-intuitive for some students - increasing tax revenues as share of GDP widely regarded as essential for inclusive/sustainable development. Since the mid-1990s, 15 SSA countries have lifted tax-to-GDP ratios >13% - min ratio seen as pre-condition for growth & development

— Tutor2u Geoff (FRSA) (@tutor2uGeoff) May 20, 2018

Median revenue-to-GDP ratio among all emerging market and developing economies is 23 percent, 5 percentage points higher than for sub-Saharan Africa. Taxes help pay for public & merit goods and finance basic welfare provision.

— Tutor2u Geoff (FRSA) (@tutor2uGeoff) May 20, 2018

IMF argue that VAT is more growth friendly than other types of taxes, especially direct taxes (IMF 2015a) especially as an emerging middle class increases per capita spending, but distributional impacts need addressing

— Tutor2u Geoff (FRSA) (@tutor2uGeoff) May 20, 2018

The composition of wealth fundamentally changes with economic development, as countries transition from a reliance on natural capital to investing in human capital https://t.co/UkdCZjMvJE pic.twitter.com/nzuL5FRy38

— World Bank Poverty (@WBG_Poverty) May 20, 2018

Mozambique's huge US$20 billion liquified natural gas (LNG) project lining up financing, with US$12b already secured through China, Italy, Japan and South Africa banks and investors. Eventually 50 million metric tones a year of LNG will be produced. https://t.co/yL3bdFWkSk pic.twitter.com/rQ9jWQ6ZoK

— James Hall (@hallaboutafrica) May 20, 2018

Angola is certain to boost economic diversification away from oil dependency and draw more foreign investment as parliament passes new investment law that 1) allows foreign investment of less than US$1million and 2) drops rule that local partner must own 35% of the enterprise. pic.twitter.com/Myom23Yn0G

— James Hall (@hallaboutafrica) May 19, 2018

Africa's newest mega-bridge, Mozambique's Maputo-Catembe Bridge, to open within weeks. The 3-km long US$700m bridge crosses Maputo Bay - the only way across now is by ferry - cutting travel time to/from South Africa. Certain to boost commerce and tourism. pic.twitter.com/BnDnvbmioF

— James Hall (@hallaboutafrica) May 18, 2018