Search

Zimbabwe has had a tumultuous currency history. In 2019, it introduced a new currency. To make the new currency widely acceptable, International experience suggests that the introduction of a new currency, following a period of official dollarization, requires the introduction of policies that go beyond just changing the law. This paper, aims to draw lessons from other African countries on how to de‐dollarize effectively. Using various econometric techniques and a new database, this paper documents the pattern of dollarization in African economies over the last decade and assesses the determinants of dollarization compared to the rest of the world. It illustrates that despite an improved macroeconomic environment, dollarization remains elevated, likely due to the region's volatile history. This indicates that dollarization should decline going forward provided that macroeconomic stability is achieved and preserved. The lessons for Zimbabwe are also that it's important to use legal, regulatory and market based incentives to nudge de‐dollarization, and that it will take time. [ABSTRACT FROM AUTHOR]

The International Monetary Fund (IMF) is heavily criticized for being one of the major contributors to the causes of the Ebola outbreak in Africa. This study examined whether public health spending in Ebola affected Sub-Saharan African countries (SSACs) were more likely to decrease compared to non-Ebola affected countries due to IMF bailout program participation. A regression model and its robustness were used to analyse SSACs data from 1994 to 2014. The empirical findings of this study show that IMF bailout can significantly increase the health expenditure of non-Ebola-affected SSACs. But we obtained a significantly negative relationship between health spending and IMF program participation for Ebola-affected SSACs. The study has implications for the methodological design of studies addressing this debatable issue and health spending policy in SSACs. [ABSTRACT FROM AUTHOR]

Workers' remittance and compensation of employees received in Sub-Sahara Africa ( SSA) increased from USD 1.398 billion in 1980 to USD 4.834 billion in 2000 and soared to USD 21.101 billion in 2010. The impact of remittance on recipient economy requires further empirical investigation as there has not been consensus on whether remittance induces 'financial prodigality' or investment in Africa. Differing from extant studies, this study employed rule of law, regulatory quality and government effectiveness as indicators of institutional quality. This is with a view to exploring how institutional quality and financial depth interact with remittance to influence investment in 44 African countries (1995-2010). The major finding from the study, inter alia, is that institutional quality and financial depth play complimentary role in influencing remittance for investment in Africa. This study concludes that the impact of Africa's money in Africa will be enhanced in the presence of reliable institutional quality and viable financial sector. Thus, the side effect of 'financial prodigality' that might be associated with remittance can be ameliorated. [ABSTRACT FROM AUTHOR]