This paper analyses factors that drive Foreign Direct Investments (FDI) in Africa. To do so, for the first time in the literature, the paper uses five-year panel data with the system-GMM technique, over the period 1970-2009 including 53 African countries. The main results are as follows: (a) Larger...

Following the referendum of January 2011, South Sudan became an independent country on July 9, 2011. The new government undoubtedly faces daunting challenges ahead in a context of complex social and economic problems at the back of weak institutions and lingering social tensions. Sudan is one of...

In January 2012, the 18th African Union (AU) Summit of African Heads of States and Governments was held in Addis Ababa. At this occasion, a major decision was taken with the adoption of the AU Action Plan for “Boosting Intra-African Trade and the Establishment of a Continental Free Trade Area (CFTA...

According to African Development Bank (AfDB) estimates, the Programme for Infrastructure Development in Africa (African Union Commission et al., 2012) Priority Action Plan (PAP) will cost $68 billion through 2020 covering regional infrastructure projects in energy, transport, ICT and transboundary...

Access to finance is a major challenge, especially in emerging and developing economies. A key factor behind the persistence of this problem is the information asymmetry between lenders and borrowers that encourages adverse selection and moral hazard. To address this information asymmetry, credit...

Africa has enjoyed fifteen years of sustained economic growth. Per capita income for the region as a whole is rising steadily, and regional growth has exceeded the global average. During the last decade six of the world’s ten fastest-growing economies were in Sub-Saharan Africa. Yet, there are...

Interest in regional integration in Africa has accelerated recently, reflecting a renewed political will and increased resource flows for regional projects under the Extended Integrated Framework and Aid-for-Trade initiatives. Integration measures in the East African Economic Community (EAC)...

This paper investigates the transmission of unanticipated US bond yield increases, monetary stimulus and the federal funds rate tightening shocks into South Africa using small open economy structural VAR models. This investigation will inform policy-makers about channels impacted by external...

This brief draws from the global database on systemic financial crises (Laeven and Valencia, 2010) to examine the situation in Africa over the period 1970-2009 and inform current effort to strengthen financial systems on the continent. It emphasizes on key factors that have been important in...