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
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
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
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
