POPULATION AGEING, INTERGENERATIONAL TRANSFERS AND SOCIAL PROTECTION IN AFRICA

The objective of this paper is to understand intergenerational resource flows to inform policy design for the development of human capital in Sub-Saharan Africa. The paper provides empirical evidences on how changes in a population’s age structure—a product of changes in fertility and mortality—potentially affect the extent to which there is a surplus of production over consumption and hence a potential for understanding the structure of life cycle deficits across age groups and how these deficits can be financed in five selected African countries (Kenya, Nigeria, Mozambique, Senegal, and South Africa). The methodological framework of the National Transfer accounts (NTA) is utilized. Our preliminary findings from the countries indicate that public transfer to children is relatively impressive in Senegal and South Africa, and least in Nigeria; public transfer to the elderly tended to be rather flat in Nigeria and Senegal. In South Africa, however, public pension transfer to the elderly is relatively high. Public transfer outflows in form of taxes are much relatively higher in South Africa among the working age population and the elderly. Senegal’s performance in terms of transfer outflows, though lower than South Africa is much better than Nigeria.