This study examines the impact of armed conflicts on the fiscal capacity of African governments. It made use of a data set covering 1997–2021 for 50 countries, as well as the system dynamic... Show moreThis study examines the impact of armed conflicts on the fiscal capacity of African governments. It made use of a data set covering 1997–2021 for 50 countries, as well as the system dynamic generalised method of moment estimation technique. The results show that, in the short run, conflicts undermine tax revenue, mount pressure on military expenditure, and force governments to rely more on mineral resource rents for their fiscal needs. As conflicts persist, this fiscal feature changes to a pattern that reflects a decline in mineral resource earnings and an increase in tax revenue. The impact on public health expenditure also changes from an increasing to a decreasing pattern, whereas the positive impact on military expenditure and external borrowing persists over time. The findings suggest that African countries in conflict can address their fiscal challenges by observing these patterns and putting in place policies that protect public resources (e.g., the adoption of digital financial technology protocols to facilitate remote revenue collection and strategic protection of mineral resource-endowed zones from insurgents' control). Overall, enhancing government effectiveness and strengthening the institutions of governance is important to facilitate a quick return to normalcy in the event of conflict and to prevent future conflicts. Show less
In this paper, we employed a blend of multiple and historical case study design, and a mix of institutional, behavioral, resource-based, and multinational theories, to examine the nature of... Show more In this paper, we employed a blend of multiple and historical case study design, and a mix of institutional, behavioral, resource-based, and multinational theories, to examine the nature of multinational companies’ (MNC) engagements in local economic development and capital export practices in an African context. Evidence from our Nigerian case analysis (FrieslandCampina, Nigerian Breweries Plc. and Dangote Cement) confrms the proposition that, faced with a similar degree of uncertainty and constrained institutional environment and laying claims to difering sources of competitive advantage, both local and foreign MNCs would repatriate profts and limit exposures to local value chains (LVCs) mainly as a strategy for mitigating country risks and preserving corporate value. Such limited exposures detach MNCs, especially the foreign ones, from the LVCs, and by doing so push them to deeper reliance on the global value chains (GVCs). Linking local businesses to the GVCs is central in the inclusive development (ID) debate essentially because it allows for the redistribution of economic benefts, helps in building a complementary (rather than competitive) relationship between MNCs and local businesses, and facilitates local businesses’ access to international markets. We, therefore, recommend that in pursuit of the inclusive and sustainable development projects in Africa, industrial policies need to be tailored toward stabilizing the policy environment, protecting investments from risk of expropriation, and incentivizing MNCs’ participation in the LVCs. Show less
Using materials from three relevant archives, this article explores the 1967 Nationalisation of the banking industry in Tanzania with particular focus on the three British banks that dominated the... Show moreUsing materials from three relevant archives, this article explores the 1967 Nationalisation of the banking industry in Tanzania with particular focus on the three British banks that dominated the sector. Although it is widely agreed that prompt, adequate, and effective compensation should be paid for such nationalisations, studies in this arena have rarely focused on the contestations that impact on the definition and operationalisation of what constitutes fair compensation. This article explores the above dynamics using the Obsolescing Bargaining Power Theory. Evidence in this article suggests that the bargaining position of foreign multinational banks is stronger when they are net exporters of capital from their host countries. Also, the negotiating position of the British banks was further strengthened by the overt and covert support they received from the British Government. Show less
Using the case of Nigeria's Dangote Group and an exploratory research technique, we critique CSR practices in a developing country context based on a three‐pillar model—traditional CSR, strategic... Show moreUsing the case of Nigeria's Dangote Group and an exploratory research technique, we critique CSR practices in a developing country context based on a three‐pillar model—traditional CSR, strategic CSR and strategic business engagements. Our paper makes a unique contribution by revealing how a company can transform its strategic CSR into strategic business engagements that permit it to circumvent public procurement laws and secure public contracts at non‐competitive terms. We show how, in weak institutional and regulatory contexts, strategic CSR could be turned to a tool for rent extraction and profit maximization. We advocate for regulatory measures that impose ex ante and ex post limits on the extent to which firms can go in integrating CSR into their normal business operations. Based on the outcomes from this important African case study, we illustrate and propose the strategic business engagement model as a new framework for analysing the social benefits of strategic CSR practices in developing countries. Show less
Nigeria is arguably the largest importer of dairy products in Africa. Available statistics shows that up to 98% of the total dairy products consumed in the country are imported; and that about 75%... Show moreNigeria is arguably the largest importer of dairy products in Africa. Available statistics shows that up to 98% of the total dairy products consumed in the country are imported; and that about 75% of the entire dairy market is controlled by FrieslandCampina WAMCO (FCW). The purpose of this study is to examine the basis for the prevailing import orientation in the dairy industry since 1973. Is the orientation traceable to operations of multinational companies or the institutional and governance challenges in the country? Using triangulated data collected from FCW official reports and other relevant sources, and a content analytical technique, the study finds that the problem in the industry is multifaceted. Central to the challenges are persistent institutional and infrastructural defects, as well as faulty integration designs adopted by FCW. Based on this, the paper recommends that reversing the current trend requires government’s policies that dis-incentivizes importation. However, such policies canwork only when the right atmosphere for cattle farming and local dairy production is put in place. Show less
This article critiques the second-hand vehicle markets in the West African region, focusing on the triad trading arrangements among Nigeria, Benin, Togo, and Niger. These countries are connected by... Show moreThis article critiques the second-hand vehicle markets in the West African region, focusing on the triad trading arrangements among Nigeria, Benin, Togo, and Niger. These countries are connected by a number of underlying conflicting interests in the second-hand vehicles trade. Benin and Togo are incentivised by the revenues derived from re-export trade and port operations. Niger provides a proxy market for the illegal re-export of these vehicles to Nigeria, with the latter suffering huge welfare losses as a major consuming nation. We conclude that by offering conflicting benefits to the West African countries, the second-hand vehicle market provides disincentives against true regional integration. Show less
This paper critiques the emergence of Dangote Cement as the dominant player in cement manufacturing in Nigeria. It argues that the changed economic environment General Obasanjo met when he became... Show moreThis paper critiques the emergence of Dangote Cement as the dominant player in cement manufacturing in Nigeria. It argues that the changed economic environment General Obasanjo met when he became president of Nigeria for a second time in 1999 made it difficult for him to continue the nationalisation policies and the expansion of government involvement in several spheres of economic activity that he helped to promote in the 1970s. The realisation that this strategy, which created numerous crony capitalists, was unsustainable resulted in Obasanjo allying with Dangote and promulgating the Backward Integration Programme (BIP) for the local cement industry. This made it possible for Dangote to risk aggressive investment in the capital-intensive cement production business. This strategy achieved public good by rapidly making Nigeria, an oil rent- and import-dependent economy with enormous limestone reserves, self-sufficient in cement production. Show less
By far the most contentious issue in the postcolonial relationship between the UK and Uganda was the 1972 expulsion of British Asians by President Amin. Although it is well documented that Idi Amin... Show moreBy far the most contentious issue in the postcolonial relationship between the UK and Uganda was the 1972 expulsion of British Asians by President Amin. Although it is well documented that Idi Amin refused to bow to international pressure to reverse this decision or extend its compliance period, our knowledge of the numerous schemes, especially the covert ones, that were considered and/or operationalized by the British government in order to influence a revision of this decision remains limited. This essay, using newly available evidence mainly from the British National Archives in London, attempts to fill this gap. Such insights enhances the utility value of this episode for our understanding of bilateral and multilateral relations among states. Show less
This paper critiques the emergence of Dangote Cement as the dominant player in cement manufacturing in Nigeria. It argues that the changed economic environment General Obasanjo met when he became... Show moreThis paper critiques the emergence of Dangote Cement as the dominant player in cement manufacturing in Nigeria. It argues that the changed economic environment General Obasanjo met when he became president of Nigeria for a second time in 1999 made it difficult for him to continue the nationalisation policies and the expansion of government involvement in several spheres of economic activity that he helped to promote in the 1970s. The realisation that this strategy, which created numerous crony capitalists, was unsustainable resulted in Obasanjo allying with Dangote and promulgating the Backward Integration Programme (BIP) for the local cement industry. This made it possible for Dangote to risk aggressive investment in the capital-intensive cement production business. This strategy achieved public good by rapidly making Nigeria, an oil rent- and import-dependent economy with enormous limestone reserves, self-sufficient in cement production. Show less
Why would the citizens of an oil-producing state continually resist reform-induced petrol price increases, even when subsidy payments are proved to be a serious threat to the capacity of the state... Show moreWhy would the citizens of an oil-producing state continually resist reform-induced petrol price increases, even when subsidy payments are proved to be a serious threat to the capacity of the state to deliver its core constitutional mandates? In this paper, we tackle this question by contending that the difficulty in petrol subsidy implementation in a country like Nigeria has more to do with the clear lack of state legitimacy and public trust, and the recorded cases of political instability entrenched by forced attempts at reforms. By contextualizing the reform efforts in Nigeria within the framework of the relationship between state legitimacy and reforms, we are able to provide valid insights to a broader understanding of the “whys” of public resistance to the authority of the state to enforce reform. The Nigerian case, as revealed in this article, provides evidence of a shift in paradigm from the conventional and dominant Weberian emphasis of state legitimacy around the nature and sources of state authorities to a more functional context of citizens’ perception of the governance process as a source of legitimacy. Show less
Historically, entrepreneurs have always played a central role in the development of nation states. Aside from rentier states, which depend extensively on the availability of mineral resource rents,... Show moreHistorically, entrepreneurs have always played a central role in the development of nation states. Aside from rentier states, which depend extensively on the availability of mineral resource rents, most economically prosperous nations in the world have strong, innovative and competitive business enterprises and entrepreneurs as the bedrock of their economic development and prosperity. It was arguably because of the above historical fact that the World Bank in 1989 declared that entrepreneurs will play a central role in transforming African economies. This collective volume deals with theory, structure and practice of entrepreneurship in diverse African countries, including Angola, Cameroon, Ghana, Kenya, Nigeria, Sudan, Tanzania, Uganda and Zimbabwe. Contributions: Introduction (Akinyinka Akinyoade, Ton Dietz and Chibuike Uche). Part 1: Examination of related theories and innovations. Methodological challenges of entrepreneurship research in the least developed East African Countries (Emiel L. Eijdenberg); Africapitalism: a management idea for business in Africa? (Kenneth Amaeshi and Uwafiokun Idemudia); Inclusive business in Africa: priorities, strategies and challenges (Addisu A. Lashitew and Rob van Tulder); Innovation as a key to success? Case studies of innovative start-ups in Kenya and Nigeria (Miguel Heilbron, André Leliveld and Peter Knorringa); Innovation in manufacturing SMEs in Kenya, Ghana and Tanzania: a grounded view on the research and policy issues (Jaap Voeten). Part 2: Entrepreneurship development, country studies. An institutional analysis of entrepreneurship development in Nigeria (Abel Ezeoha and Afam Ituma); Entrepreneurship development in Africa: insights from Nigeria's and Zimbabwe's telecoms (Nnamdi O. Madichie, Knowledge Mpofu and Jerry Kolo); The development of entrepreneurship in Sudan (Yagoub Ali Gangi and Hesham E. Mohammed); Challenges to entrepreneurship development in Tanzania (Nsubili Isaga and Albogast Musabila); Institutional and contextual factors effects on entrepreneurship in Cameroon: the case of the transport sector (Françoise Okah-Efogo and Crescence Marie-France Okah-Atenga). Part 3: Entrepreneurship and sectoral considerations or determinants. Dangote cement: the challenges of pan-African expansion (Akinyinka Akinyoade and Chibuike Uche); Culture as a facilitator and a barrier to entrepreneurship development in Uganda (Jane N.O. Khayesi, Arthur Sserwanga and Rebecca Kiconco); African women large-scale entrepreneurs: cases from Angola, Nigeria and Ghana (Miriam Siun, Akinyinka Akinyoade and Ewurabena Quaye); Financial barriers and how to overcome them: the case of women entrepreneurs in Tanzania (Marta Lindvert); Gentlemanly capitalism and entrepreneurial management: formation and rise of Nigeria's Guaranty Trust Bank, 19902002 (Ayodeji Olukoju); Indigenous banking enterprises: the rise of Nigerian multinational banks (Chibuike Uche). [ASC Leiden abstract] Show less
On June 2, 1978, the Tanzanian government under President Julius Nyerere ordered the British multinational corporation, Lonrho Limited, to leave the country. The “official reason” provided for this... Show moreOn June 2, 1978, the Tanzanian government under President Julius Nyerere ordered the British multinational corporation, Lonrho Limited, to leave the country. The “official reason” provided for this action was Lonrho’s “continued defiance of the United Nations mandatory sanctions against Rhodesia and the expansion of its business interests in South Africa.” Using newly available materials, mainly from the National Archives London, this paper attempts to document the rise of Lonrho in Tanzania up until the nationalization, the factors that influenced the compensation negotiations process between Lonrho and the Tanzanian government, and the role the British government played in the entire episode. Show less
This paper critiques the rise of Dangote Cement plc to become the dominant player in the Nigerian cement industry. Although the close relationship between the company's founder, Aliko Dangote, and... Show moreThis paper critiques the rise of Dangote Cement plc to become the dominant player in the Nigerian cement industry. Although the close relationship between the company's founder, Aliko Dangote, and subsequent Nigerian governments has been an important factor in this success story, we argue that it is not the only explanatory variable. Dangote's entrepreneurial skills and understanding of the Nigerian political and economic environment enabled him to proactively predict and exploit the rapid increase in demand for cement in the country. The reluctance of most multinational cement companies to increase their investments in Nigeria - a consequence of the ever increasing international scrutiny of business ethics especially in corruption prone countries - also helped reduce the competition and investment risks for Dangote Cement. Show less
