How much do African countries collect in taxes?

Not very much compared to global standards, according to this Economist article.  As they note,

Government revenues average about 17% of GDP in sub-Saharan Africa, according to the IMF. Nigeria has more than 300 times as many people as Luxembourg, but collects less tax. If Ethiopia shared out its tax revenues equally, each citizen would get around $80 a year. The government of the Democratic Republic of Congo is so penurious that its annual health spending per person could not buy a copy of this newspaper.

Globally, wealthy countries have tax revenues equivalent to about 34% of GDP, and Latin America averages 22%, according to the OECD.

taxes

One of the paradoxes of taxation in many African states is that low tax revenues co-exist with relatively high tax rates, because the overall tax base is very narrow.  Most economic activity goes untaxed, and taxes are concentrated on a small number of firms in the formal sector.  And the largest firms, or those which are politically connected, can often negotiate further tax breaks, further narrowing the tax base.

(H/t to Ken Opalo for this article.)

 

Africa Update for December 2019

Welcome to the latest edition of Africa Update!  We’ve got the competitive rollerbladers of eastern DRC, the Nairobi governor’s prison break, African women on boards, the health threats of kids’ facepaint in Uganda, and more.

West Africa: This was a wild story about a Nigerian sailor who got hijacked by pirates, forced to work for them, and then arrested for piracy himself.  Older Nigerians find WhatsApp easier to use than other social media or internet platforms, but it also leaves them less able to check on false news before spreading it.  The Senegal-Mali railway line has slowly been falling into ruin, with workers showing up though they haven’t been paid for nearly a year.  An ECOWAS court has ruled that Sierra Leone must stop kicking pregnant students out of school.

Central Africa: Meet the competitive rollerbladers of eastern DRC.  In Burundi, the president continues to consolidate his power and crack down on civic space.  Qatar Airways has acquired a 60% stake in Rwanda’s planned new international airport.  Agro-processing accounts for almost 70% of Uganda’s manufacturing sector, but many factories are still sitting idle.

A mural of a colorful blue and pink face on a cement wall
Art at the Nairobi Railway Museum, via Nanjala Nyabola

East Africa: This piece debunks a lot of harmful stereotypes about northern Kenya.  The leading Janjaweed commander in Sudan exported almost a ton of gold to Dubai in a single month in 2018.  South Sudan has stopped paying civil servants but is still spending lavishly on the military and perks for MPs. Here’s some useful background on ethnic politics in Ethiopia.  Somalia’s president is stacking the deck to get re-elected in 2020.

Governance in Kenya: The Kenyan Red Cross collected almost US$10 million after a 2011 famine, but a new investigation shows that most of the money never reached the victims.  The governor of Nairobi is in trouble for failing to disclose that he escaped from prison in 1998.  Kenya may be losing up to 1/3 of its national budget to corruption every year.

Southern Africa: In South Africa, climate change protests often discuss environmentalism as an individual responsibility rather than a need to rethink the structure of the economy.  Private CCTV networks are creating a new type of racial apartheid in South Africa.  This was an insightful illustrated guide to Zimbabwe’s ongoing currency crisis.  In Mozambique, kids as young as four are forced to mine mica, which is used in electronics and makeup.

A graph showing the gender and national breakdown of startup founders in Africa
Women are still substantially underrepresented as start-up founders across Africa, according to Forbes

Human rights: A militia leader in eastern DRC was convicted of war crimes less than two years after they occurred, in an unusually rapid turnaround for the Congolese courts.  On Congo’s palm oil plantations, workers are consistently being exposed to toxic chemicals.  Who is policing the police in Kenya?

Politics + economics: Here’s an insightful overview of the state of judicial systems in West Africa. I’m looking forward to reading this new book on the politics of social protection in Eastern and Southern Africa.  A new study shows that giving cash transfers to families in Kenya is very good for the local economy and doesn’t lead to inflation.  Tullow Oil has seen its stock price crash after problems with its oil investments in Ghana, Kenya and Uganda.  Jumia has pulled out of Tanzania, Cameroon and Rwanda in the last few weeks.

Environment:  In northern Uganda, conflict is leading to deforestation.  But are movements to plant more trees in Africa to fight climate change just a new kind of colonialism?  In Ghana, fisheries observers are facing threats for reporting illegal fishing by Chinese trawlers.  Read about how four African mega-cities are adapting to climate change.

Lake Malawi, with a large mountain in the background
Scenic Lake Malawi, from Kim Yi Dionne

Health: Most African countries still haven’t banned lead paint, leading to concerns that kids are being exposed at home and via facepainting.  Burkina Faso has a controversial new plan to wipe out malaria by sterilizing mosquitos.  In Zimbabwe, doctors are striking over missing medical supplies and inflation which has wiped out their salaries.  Millions of unsafe abortions are performed annually in Nigeria, where the procedure is illegal in most circumstances.

Gender: TheBoardroom Africa is connecting African women with corporate and non-profit board positions.  Kenya’s national homicide data doesn’t list the gender of victims, but one MA student is working to change that.  Many African countries have laws which protect women and children, but don’t address the specific risks faced by young girls.  These were moving ethnographic interviews with women doing sex work in Uganda.

Education: Check out this review of research on African education by scholars based in Africa.  A Nigerian effort to make Igbo an official language of instruction is running into opposition from parents and students, who feel that English and Pidgin are better languages for business.

 

A portrait of a young woman on a colorful pink and purple background
I’m loving Kenyan-French artist Evans Mbugua’s colorful portraits

Research roundup: The latest round of Afrobarometer data is out, for all your opinion polling needs.  The British Journal of Political Science has ungated a selection of articles on African politics until the end of December 2019.  The Africa Science Desk has an open call for scientific journalism.  What does impact evaluation capacity look like across Africa?  I agree that the African Studies Association of Africa should get to be the main “African Studies Association,” and the existing ASA should be renamed “African Studies Association of America”!

Art + literature: Did you know that Nando’s is the biggest collector of South African art? Here’s a great interview with the founder of Bakwa, Cameroon’s first literary magazine.  The Nigerian publisher Cassava Republic has a new grant for publishing in local African languages.  Read about the history of Hausa feminist literature in Nigeria.  Nairobi has a vibrant literary house party scene.  Check out this open access sound archive of Nairobi.

Interesting academic articles for November 2019

Here’s what I’ve been looking forward to reading lately.

Sam Hickey, Tom Lavers, Jeremy Seekings, and Miguel Niño-Zarazúa, eds.  2019. The Politics of Social Protection in Eastern and Southern Africa.  UNU-WIDER.

The Politics of Social Protection in Eastern and Southern Africa challenges the common conception that [social protection] has been entirely driven by international development agencies, instead focusing on the critical role of political dynamics within specific African countries. It details how the power and politics at multiple levels of governance shapes the extent to which political elites are committed to social protection, the form that this commitment takes, and the implications that this has for future welfare regimes and state-citizen relations in Africa. It reveals how international pressures only take hold when they become aligned with the incentives and ideas of ruling elites in particular contexts. It shows how elections, the politics of clientelism, political ideologies, and elite perceptions all play powerful roles in shaping when countries adopt social protection and at what levels, which groups receive benefits, and how programmes are delivered.

Rumman Khan, Oliver Morrissey, and Paul Mosley.  2019.  “Two Africas? Why Africa’s ‘growth miracle’ has barely reduced poverty.”  RePEc discussions papers 2019 – 08.

Growth improved substantially in most countries in sub-Saharan Africa (SSA) since 1990, but poverty in SSA as a whole has fallen by about a third, compared to by half or more in other developing regions. While some countries have had little or no success in reducing poverty, many have had significant achievements. The paper argues that inter-country differences, traceable to colonial experience, are crucial to understanding this varied SSA performance. This is based on a distinction between relatively labour-intensive ‘smallholder’ colonial economies and capital-intensive ‘extractive economies’ exporting minerals and plantation crops. Because of the more equitable income distribution and African political inclusion generated in smallholder economies, at independence they were in a better position than extractive economies to translate growth into poverty reduction. Since the 1990s (when poverty data are available) the distinction in terms of poverty reduction can be observed. The empirical analysis estimates the growth elasticity of poverty using various specifications, some including inequality. There are two key robust findings: i) smallholder economies significantly outperform extractive economies in poverty reduction; and ii) growth rates do not differ on average between the two groups, but the growth elasticity of poverty is higher in smallholder economies.

Michael Clemens, Helen Dempster, and Kate Gough.  2019.  “Promoting New Kinds of Legal Labour Migration Pathways Between Europe and Africa.”  Center for Global Development.

As Europe’s working-age population continues to decline, sub-Saharan Africa’s is rapidly increasing. Many of these new labour market entrants will seek opportunities in Europe, plugging skill gaps and contributing to economies in their countries of destination. To make the most of these movements, the new European Commission should create and promote new kinds of legal labour migration pathways with more tangible benefits to countries of origin and destination; pilot and scale Global Skill Partnership projects between Europe and sub-Saharan Africa and within Africa; and be a positive voice for migration within Europe, promoting the benefits from migration and ensuring they are understood.

Sohela Nazneen.  2019.  “How Do Leaders Collectively Influence Institutions?”  Developmental Leadership Program.  

How do leaders collectively influence institutions? This question lies at the heart of understanding how actors influence positive change. Social scientists have attempted to answer it from different perspectives. Broadly, these either emphasise the role of actors (both the individual leader and collective bodies) and how they act and what strategies they use, or focus more on how structures and institutions (i.e. rules of the game) define contextual boundaries and create specific opportunities and incentives for actors to behave in specific ways. These two perspectives reveal important aspects of how and why actors engage in collective processes of change. However … unpacking how leaders and coalitions engage in collective processes of change requires a deeper and nuanced understanding of what factors and conditions influence the decisions taken and strategies used by leaders and coalitions at different stages along the lifecycle of reform. Collective processes of change have three interlinked stages: 1) collective formation—when leaders focus on forming collectives and maintaining group cohesion; 2) legitimation—when leaders and coalitions are concerned with framing and justifying their demands and strengthening their position to make claims; and 3) securing institutional change—when the focus is on using different strategies to negotiate an outcome for the constituencies they claim to represent.

Rajeev Dehejia, Cristian Pop-Eleches, and Cyrus Samii.  2019.  “From Local to Global: External Validity in a Fertility Natural Experiment.”  NBER working paper 21459.

We study issues related to external validity for treatment effects using over 100 replications of the Angrist and Evans (1998) natural experiment on the effects of sibling sex composition on fertility and labor supply. The replications are based on census data from around the world going back to 1960. We decompose sources of error in predicting treatment effects in external contexts in terms of macro and micro sources of variation. In our empirical setting, we find that macro covariates dominate over micro covariates for reducing errors in predicting treatments, an issue that past studies of external validity have been unable to evaluate. We develop methods for two applications to evidence-based decision-making, including determining where to locate an experiment and whether policy-makers should commission new experiments or rely on an existing evidence base for making a policy decision.

Caitlin Tulloch.  2019.  “Taking intervention costs seriously: a new, old toolbox for inference about costs.”  Journal of Development Effectiveness.

This paper examines a new set of average cost data from a large international NGO, finding that costs for the same intervention can vary as much as twenty times when scale or context is changed. Despite this challenge to the generalisability of cost estimates, a high proportion of the variation can be explained by observable program and contextual characteristics. Binary questions about whether cost estimates are externally valid do not provide a useful framework for wider inference; instead, researchers can gain analytical traction if they study what factors cause the costs of specific interventions to change, and by how much.

Africa Update for November 2019

Here’s the latest edition of Africa Update.  We’ve got a new metro system in Abidjan, culinary imperialism in Kenya, plans to refill Lake Chad with a giant canal, how hospitals in Malawi are getting men to do more housework, and more.

A view of Nairobi with Karura Forest in the foreground

A stunning view of Nairobi, via Kenyapics

West Africa: Follow 5 young Nigerian journalists as they travel across 14 West African countries along the Jollof Road.  In Nigeria, former members of Boko Haram and ISIS trafficking survivors have found it very difficult to re-integrate into civilian society.  Hundreds of children, some as young as 5, have been arrested by the Nigerian police on suspicion of involvement with Boko Haram.  Abidjan is getting a metro system.  A new policy that lets cocoa farmers plant in “degraded” forests could lead to widespread deforestation in Côte d’Ivoire.  This is a great resource on the history of West Africa at a glance.

Central Africa:  This was a thoughtful piece about breaking the cycle of motorcycle theft and violent retribution in the CAR.  Members of opposition parties are regularly being killed in Rwanda, although no one wants to point a finger directly at the government.  Rwanda is also getting a new nuclear research reactor with support from Russia.  The Uganda Law Society has released a new app meant to connect women and girls to legal advice.  LGBT+ rights are under threat again in Uganda, with discussion of another law to make gay sex punishable by death.  Check out this incredible mixed media piece about one family’s experience becoming refugees after the Congo Wars of the 1990s.

A cartoon showing a Chinese dragon scaring the crane and impala away from the Ugandan national crest

Here’s Atukwasize ChrisOgon‘s take on Chinese investment in Uganda

East Africa: In Kenya, the urban middle class is increasingly turning to “telephone farming” to diversify their income streams.  Here’s a wonderful piece about khat and precolonial cuisine in Kenya.  See also this piece about the history of culinary imperialism in Kenya.  Meet the the Jehovah’s Witnesses targeting Chinese immigrants in Kenya.  This is a good overview of Ethiopia’s complicated ethnic and regional politics.  There’s an ambitious plan to refill Lake Chad by piping water in from the DRC via the CAR.

Southern Africa: A novel campaign strategy has been spotted in Botswana, where the opposition handed out menstrual pads with the party logo on them.  This was a heartbreaking piece about sexual violence in South Africa and the #AmINext movement.  Check out this photo essay on the mine-clearing women of Angola.  Here’s an insightful long read about what really happened to the billions of dollars that were to be spent on Angola’s post-war reconstruction.  Why is Zambia planning to finance almost 10% of its 2020 budget through a mysterious “exceptional revenue” source?

Sunset on a beach, with a boat and a person in the foreground

Kismayo sunset, by Said Fadhaye

Gender: Meet Yvonne Aki-Sawyerr, the first female mayor of Freetown, Sierra Leone.  Roughly 1/3 of African businesses have no women on their boards, and another 1/ 3 have only one woman.  In Malawi, a program which gives pregnant women housing close to hospitals before they deliver their babies has increased their husbands’ housework commitments while they’re away.  This is a remarkable portrait of three generations of women who have stood up to dictatorship in Sudan.  Kenya’s Gladys Ngetich is breaking barriers about women in STEM with her PhD on improving the efficiency of jet engines.

Business: This is a must-read piece on the political economy of foreign start-ups in Kenya.  Orange is developing a new feature phone for the African market which includes social media apps.  Uber is launching boat taxis in Lagos.  Africa has 15% of the world’s population, but fully 45% of the world’s mobile money activity.  African cosmetics companies are getting acquired by international corporations which want to offer better products for black skin and hair.  Check out my Mawazo co-founder Rose Mutiso’s TED talk on how to bring affordable electricity to Africa.

Maps showing that there appears to be much more poverty in Africa when it's measured at the district level rather than the country level

The geographic distribution of wealth in Africa looks very different depending on whether it’s measured at the country, province, or district level (via Marshall Burke)

Politics:  Africa Check has a great Promise Trackers page checking on the campaign promises of ruling parties in Kenya, Nigeria and South Africa.  In many African countries, political parties aren’t obliged to disclose private donations, in an area ripe for campaign finance reform.  In Ghana, the “I Am Aware” project successfully helped people push their local governments to improve the quality of public services like sanitation.  More than 45% of African citizens live in a country where the last census was done more than 10 years ago.  It turns out that most of Africa’s “civil wars” are actually regional wars.

Public health: Dr Jean-Jacques Muyembe of the DRC discovered Ebola in the 1970s, but has been largely written out of the historical record, until now.  Check out this incredible photo essay about Ebola first responders in eastern DRC. Also in the DRC, snakebites are an underdiscussed public health crisis. A new study finds that more than 40% of women are verbally or physically abused while giving birth in Ghana, Guinea and Nigeria.  Here’s how toxic masculinity can lead to the spread of HIV in Uganda.

A colorful portrait of a man and a woman on a red and pink printed background

Don’t miss Bisa Butler’s inspiring portraits of Black Americans done in African fabrics

Art + culture: A Togolese vintage clothing dealer is making waves in France by re-importing cast-off clothing previously sent to Togo.  Meet Kenyan sculptor Wangechi Mutu, who’s taking over the façade of the Metropolitan Museum of Art in New York until January 2020.  What can be done about the spike in fake South African art?  Check out the first print issue of Cameroon-based Bawka Magazine, about travel stories.  Let’s celebrate these six inspiring young climate activists from low income countries, including Kenya and Uganda.  Learn about all the unusual ways that African countries got their names.  Here are the rising female artists of Kampala.

Africa Update for October 2019

Here’s the latest edition of Africa Update.  We’ve got Kenya’s first all-female motorcycle gang, pigs on ARVs in Uganda, religious leaders reducing violence against women in the DRC, the rise of the African literary festival, and more.

West Africa: Nigeria is trying to consolidate the 16 different state and federal agencies which currently give people IDs into a single national ID program.  Young people in Nigeria are facing police harassment for reasons as small as wearing their hair in dreadlocks or carrying a laptop.  In Senegal, people who attempted to seek asylum in Europe but got sent back home are finding it difficult to re-integrate.  Ghana overinvested in electricity generation after years of power outages, and now produces more power than it can use.

A sunset seen through palm trees

Evening in Sierra Leone, by Anne Karing

Central Africa: Here’s now the DRC continues to provide state services without much state funding.  Programs to combat sexual violence in the DRC often reinforce the patriarchal norms they’re trying to change.  Rwanda has forbidden students from crossing the border to attend cheaper DRC schools out of concerns about Ebola.  In Uganda, pork farmers may be creating ARV resistance by using the drugs to fatten up their pigs. Here’s what we can learn from Ugandan schools with higher performance on reading outcomes than the national average.

East Africa: This was a really moving piece on the lived experience of displacement in South Sudan, where roughly 40% of the population is displaced after years of war.  Sudan has just opened its first women’s football league.  I just learned that many Kenyan ethnic groups didn’t bury the dead until the colonial era, when the British decided that burials signified an ancestral connection that could be used to make claims on land.  A teenaged Kenyan chess champion can’t compete in international competitions because she doesn’t have a birth certificate, and thus can’t get a passport.  “By law, every student in Eritrea must spend their final year of high school at the Warsai Yikealo Secondary School … [which] is inside a military camp.”

Four Kenyan women on motorcyclesMeet Kenya’s first all-female biker gang, the Inked Sisterhood

Southern Africa: Several homeless people have brought a lawsuit against Cape Town to stop the city from fining people for sleeping in public.  South African miners just won a landmark lawsuit that forces mining companies to compensate them for lung diseases they contracted at work.  Meet South Africa’s Ayakha Melithafa, a 17-year old climate activist who recently petitioned the UN alongside Greta Thunberg.

Public health: The US has warned citizens against traveling to Tanzania amid reports that the country has concealed Ebola deaths.  In Kenya, a teenager killed herself after being kicked out of class when she got her period during school hours.  Postpartum depression is an understudied topic in countries like Sierra Leone.  An Ethiopian university student has invented a non-invasive malaria test after his brother died of the disease.  A new drug which treats extremely drug-resistant TB has been approved after trials in South Africa.

Politics + economics: Nigeria has closed its border with Benin in an attempt to stop imports of rice and promote local production.  A parliamentary report suggests that Kenya’s flagship infrastructure investments haven’t improved growth in the last decade.  This is a great summary of projects mapping paratransit across Africa.  Here are the factors that make African militaries more likely to stand with protestorsduring democratization protests.  Many African countries are building coal-fired power plants despite abundant renewable resources.

Tweet from World Bank Poverty reading In Sub-Saharan Africa, the 10 countries which have reduced poverty the fastest since 2000 are Tanzania, Chad, Republic of Congo, Burkina, DRC, Ethiopia, Mozambique, Namibia, Rwanda, and UgandaUpdates on poverty reduction from the World Bank​

Gender: Lack of access to safe abortion is killing Kenyan women.  A group of activists have sued the government in Sierra Leone for its ban on pregnant students attending school.  In the DRC, a study found that religious leaders play a key role in local campaigns to reduce violence against women.  A new study in Kenya finds that cash transfers also reduce rates of violence against women.  Across Africa, women are less likely than men to have access to the internet or mobile phones.

Higher education:  Here’s some good background on the state of higher educationin Africa.  A Kenyan scientist is leading an effort to train 1000 African PhD students in immunology over the next decades.  The African Institute of Mathematical Sciences plans to change math education on the continent with a network of campuses in six countries.  New data science institutions are also popping up across Africa.

Colorful fabric in neat piles at a shop in an old neighborhood in Dar es SalaamDW has a lovely photo essay on the history of East African kanga

Arts + technology: This was a great thread on studying African literature in African languages written for African audiences.  Read about the rise of the literary festivalin Africa.  Here’s how Google created a Nigerian accent for Google Maps.  Check out the best African films of 2019 so far.  Filmmakers in northern Ghana should check out this free training session (applications due Oct. 17).

Scholarships + conferences: Wits University is offering MA, PhD and postdoc funding for studies of urban mobility in Africa (due Nov. 1).  Residents of low income Commonwealth countries can apply for split-site PhD funding for study at UK universities (due Nov. 6).  If you’re in Nairobi on October 24 – 26, don’t miss the African Studies Association of Africa conference!