Who has been affected, how and why? The spillover of the global financial crisis to Sub-Saharan Africa and ways to recovery

This paper first presents a comprehensive analysis of the significance of different transmission channels of the global economic and financial crisis to Sub-Saharan African countries. It then examines the repercussions of the crisis for the growth of gross domestic product (GDP) and its components; this is complemented by a study of the responses of monetary and fiscal authorities to the challenges posed by the crisis, both in regional terms and on the basis of selected country case studies. Finally, the paper highlights medium-term to long-term challenges for ensuring a sustainable recovery and for fostering resilience against potential future shocks.The authors find that the intensity of the impact of the crisis varies widely across countries, with a lack of export diversification apparently having been particularly conducive to its transmission. However, the analysis of the magnitude of the observed swings in macroeconomic variables also reveals that although they were large, they were not exceptional and are comparable to fl uctuations Sub-Saharan Africa has witnessed in the recent past. Furthermore, in a non-negligible number of instances the extent of the slowdown seems to have been determined by domestic factors as well. Particularly, policies and conditions prior to the global recession, rather than crisis contagion per se, appear decisively to have shaped the scope of possible responses in many cases.As a result, many of the policy lessons Sub- Saharan Africa might draw from the crisis do not involve radical deviation from the policies in place before. Efforts to improve the management of resource revenue for commodity-dependent countries, necessary reforms of the economic and business environment to enable a diversification of the export base, and further regional integration might help to alleviate possible future external shocks. Additionally, the crisis re-emphasises the need to back growth prospects by redefining sectoral priorities. JEL Classification: E52, E31, D84balance of payments, Global economic crisis, intern. spillover, Regional growth, Sub-Saharan Africa

Special Data Section Domestic Debt Markets in Sub-Saharan Africa

This study discusses the role of domestic debt markets in sub-Saharan Africa (SSA) based on a new data set covering 27 SSA countries during the 20-year period 1980-2000. The study finds that domestic debt markets in these countries are generally small, highly short term, and often have a narrow investor base. Domestic interest payments present a significant burden to the budget, despite much smaller domestic than foreign indebtedness. The use of domestic debt is also found to have significantly crowded out private sector lending. Finally, the study identifies significant differences among the size, cost, and maturity structure of domestic debt markets in heavily indebted poor countries (HIPCs) and non-HIPCs. Copyright 2005, International Monetary Fund

Social protection for refugees and asylum seekers in the Southern Africa Development Community (SADC)

This report provides an overview of the provision of social protection to refugees and asylum seekers from Sub-Saharan Africa in the Southern African Development Community (SADC). This includes analyzing the legal framework and levels of implementation, as well as proposing policy directions on the national and regional levels. After giving an overview of the region's historical and legal context, the report focuses on the case studies of Botswana and South Africa to illustrate the wide variation of social protection framework and practices in the region.Population Policies,Social Cohesion,Education For All,Access to Finance,Gender and Law

The long arm provisions of capital gain tax: An analysis of the capital gains tax consequences on the indirect disposal of immovable property by non-residents in selected African Countries

A non-resident who disposes of a direct interest in immovable property or an indirect interest in immovable property through the disposal of shares may be subject to capital gains tax in the country in which the immovable property is situated. Certain African countries were selected and the capital gains tax consequences on disposal of such property were determined by analysing the domestic tax legislation of the country in which the property is situated. In addition, the effect of any applicable double tax agreement ('DTA') to such disposals was considered. In certain countries - such as Angola and Nigeria - in terms of their domestic tax legislation, a non-resident will not be subject to capital gains tax in the respective country where the property is situated regardless of the value of the shares that is attributable to immovable property. In certain countries - such as Mozambique, Namibia, Tanzania and Zimbabwe - in terms of their domestic tax legislation, a non-resident may be subject to capital gains tax upon the disposal of an interest in immovable property in the respective country in which the immovable property is held regardless of the value of the shares that is attributable to immovable property, unless a DTA provides otherwise. In certain other countries - such as Botswana, Ghana, Lesotho and South Africa - in terms of their domestic tax legislation, a non-resident may be subject to capital gains tax upon the disposal of an interest in immovable property in the respective country in which the immovable property is held, however this will depend in general on the percentage of the value of shares that is attributable to immovable property, unless a DTA provides otherwise. Certain countries domestic tax legislation have specific provisions regulating how this percentage is determined. A DTA may provide relief to taxpayers who are subject to capital gains tax in both their resident country and the source country, on the disposal of an interest in immovable property held in the source country. In terms of domestic tax legislation, where the non-resident is liable to pay capital gains tax in the source country, the non-resident will in general have to comply with the withholding tax and filing obligations of that country where applicable