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on Africa |
| By: | Oluwabunmi Adejumo (Obafemi Awolowo University, Ile-Ife, Nigeria); Uchenna Efobi (Covenant University, Ota, Ogun State, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | Financing sustainable development in Africa requires financing options that is best for development in the region without further escalating other societal problems. This chapter takes stock of financing options previously advocated for financing development in the African region such as development assistance and foreign investment. By considering its implication on development outcomes like poverty, inequality, and aggregate human development, some drawbacks still exist. Therefore, the chapter identifies, reconfigures and reinvents other financial flows such as mutual support networks, agricultural cooperatives, crowd funding, fiscal responsibility, other forms of informal banking, and remittances, among others to African countries for efficient provision of structures that can aid in the sustenance of development. We conclude that these alternative means of financing development could be a viable policy option to bridge income and development gaps; thereby mainstreaming the process for financial inclusion and sustainability. |
| Keywords: | Finance; Sustainable Development |
| JEL: | G20 I00 O10 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:20/071&r=all |
| By: | Melesse, Wondemhunegn Ezezew |
| Abstract: | Businesses, consumers, and individual investors rely on a host of debt instruments when their internal resources are insufficient. This paper explores the determinants of debt financing choices among small-scale manufacturing enterprises in Ethiopia—with special focus on the role of government policies. The study exploits survey data gathered from 1321 enterprises in the Amhara region of Ethiopia and employs conditional mixed process (CMP) estimation technique to isolate the key drivers of firm debt levels. The major econometric findings confirm that enterprises that had some debt mix in their startup capital are more likely to be in higher debt categories than those enterprises that kick start exclusively with their own internal resources. In addition, the results also reveal that self-reported profitability, firm age, ownership structure, access to business development services, and receipt of bureaucratic support during enterprise formation process have strong effects on the degree of firms’ indebtedness. However, firm size, gender, and owner-manager’s education have no discernible correlation with reported debt levels in the sampled firms. |
| Keywords: | debt financing, small-scale enterprises, ordered probit, conditional mixed process, Ethiopia |
| JEL: | D04 G28 M21 |
| Date: | 2020–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:103240&r=all |
| By: | Reyntjens, Filip |
| Abstract: | On July 3, 2020 the investigating chamber of the Paris Court of Appeal upheld the December 21, 2018 decision of the investigating judges Herbaut and Poux, dismissing, for lack of sufficient evidence, the case regarding the missile attack, on April 6, 1994, against the plane of Rwandan President Juvénal Habyarimana. This decision meant the abandonment of proceedings against nine suspects close to the current Rwandan President, Paul Kagame. The terrorist act of April 6 heralded the resumption of the Rwandan civil war, the genocide of the Tutsi and the seizure of power by the Rwandan Patriotic Front (RPF). Subsequently, it also deeply destabilized the entire Great Lakes region. While the civil parties announced an appeal in the Court of Cassation and certain voices1 wish to see other avenues of investigation explored, this decision marks the provisional end of a legal saga that has lasted twenty-two years. The outcome is disappointing since it amounts to the conclusion that there was a crime without perpetrators. |
| Keywords: | Rwanda |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:iob:wpaper:2020.05&r=all |
| By: | Mirpourian, Mehrdad |
| Abstract: | Well-designed financial products improve the overall financial health of users. The design of products is particularly important for low-income customers, for whom product design drives behavior. In this paper, we offer insights on low-income customers’ savings behavior and on how they use their savings accounts. More specifically, we focus on detecting and measuring the effects of a set of explanatory variables on transaction amount. To do so, we use quantile regression (QR) and apply it to a novel dataset collected from a financial institution in Nigeria. The data show individual transactions made using the account over time, along with additional socioeconomic information on each customer. Using these data, we specify a model that incorporates customer age, account age, location, transaction type, gender, and seasonality effects, evaluating their correlation with transaction size. With the QR model, we are able to study the effect of the explanatory variables within each quantile of transaction amount instead of just showing trends on average. This is the first study to examine transaction size among low-income customers through a gender lens using QR. All of the variables incorporated in this model have a significant effect on transaction size. However, among all of the explanatory variables, the season in which a customer places a transaction (seasonality effect) has the largest impact on predicting transaction amounts. |
| Keywords: | Financial Inclusion, Behavioral Finance, Savings, Quantile Regression, Nigeria |
| JEL: | D01 |
| Date: | 2020–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:103062&r=all |