Scoping study on the evolution of industry in Ghana

This paper chronicles the evolution of industry in Ghana over the post-independence era from an inward over-protected import substitution industrialization strategy of 1960-83 to an outward liberalized strategy during 1984-2000, and since 2001, to the private sector-led accelerated industrial development strategy based on value-added processing of Ghana's natural resource endowments. Over the last couple of years, industry in Ghana, dominated since independence by the manufacturing subsector, is gradually being overtaken by mining and quarrying subsector due to the discovery and subsequent production of oil and gas. Industry is mainly dominated by micro and small firms, privately-owned and mainly located within urban areas in the form of industrial clusters. Patterns of labour productivity and wages within Ghana's industrial sector indicate the food processing subsector, foreign-owned and older firms as the most productive. Currently under a medium-term agenda, the industrial sector is expected to play a pivotal role through enhanced growth in the construction sector; infrastructure development in the oil sector, energy and water subsectors and an increase in output from the mining sector, especially in salt production. The emerging policy issues relate to the key developmental objectives of the current industrial policy including how to empower the private sector especially SMEs to expand productive employment and technological capacity within a highly competitive manufacturing sector; how to promote agro-based industrial development to ensure value-addition to manufactures and Ghana's exports; and how to promote the spatial distribution of industries away from the current over-concentration of industries within urban areas

Formal finance and household enterprise performance in Ghana:The gender dimension

In this study, we empirically examine the gender dimension of the effect of formal finance on enterprise performance. While the literature suggests that formal finance, in general, improves firm performance, this effect may differ across firms headed by male and female entrepreneurs since the latter are faced with more severe social, economic, and financial constraints, which undermine their firm performance. Consequently, the effect of finance on firm performance is expected to be weaker in female-headed enterprises. So far, there is little evidence as to whether a gender gap exists regarding the effect of formal finance on firm performance, especially among small household enterprises. To fill the gap in the literature, we use the Ghana Living Standards Survey 2016/2017 and study the effect of formal credit on the productivity of male-headed and female-headed non-farm household enterprises in Ghana. Our results show that a positive effect of formal credit on labor productivity is only found in male-headed enterprises, but not in female-headed ones. We suspect that this result may be explained by women’s relatively less endowment in conditional factors, such as skills, knowledge, experiences, and capabilities

Education, skill, and earnings: Further evidence from Ghana

This paper provides evidence on the nature of returns to education in Ghana and confirms the emerging empirical literature on the convexity of returns to education in Ghana. Using a basic Mincerian, model we find that returns to education more than triples from primary to secondary level or higher - an indication of a rather strong convex relationship. The results point to the importance of higher education in productivity. Nonetheless educational policies should not only be directed at increasing enrolment and quality of education at the secondary and higher educational levels but also at improving the quality of basic education

Fintech and financial inclusion in developing countries

Financial inclusion is identified as a driver of sustainable development and a necessary condition for social and economic development. Yet, most people in developing countries face numerous constraints and barriers that exclude them from the financial system. The recent fintech developments and their ability to reduce these constraints promise to be a potentially useful strategy to enhance financial inclusion. In this chapter, we discuss financial inclusion and provide insights into the current state of fintech in the developing world particularly, Mobile Money—on financial inclusion and development outcomes. Being global leaders in mobile money, Sub-Saharan Africa have set the standards for other developing countries to replicate for enhanced financial inclusion. We also show that the implications and impacts of different forms of fintech on financial inclusion, and through financial inclusion on social and economic outcomes, represent one of the most exciting and important research frontiers in the field of development finance. The rapid evolvement of fintech products however poses regulatory challenges and calls for careful assessment of regulatory approaches for instance innovation offices, regulatory sandboxes, and RegTechs in regulating the financial ecosystem

Banking Sector Developments in Emerging Markets: A Review of Recent Developments in Africa

Key to the economic transformation of developing economies is the banking sector developments. The banking sector in Africa has witnessed a steady growth in its core functional areas over the recent decades. This growth has implications on access to finance and stability in the financial system. This study reviews banking sector performance, competition, access to finance and stability in the context of sub-regional and comparator regional analysis with the view to informing and shaping policy directions. The North African economies recorded high levels of financial deepening than the rest of the regions.  With the same economic conditions like South Asia, East Asia Pacific and Latin America and Caribbean regions, African’s banking sector depth lags behind these regions.  Access to financial institutions is high in Southern African region than the rest of the sub-regions. Again, Africa records very low level of banking sector accessibility compared to its comparator regions. Moreover, the banking system in Africa is characterized by high costs, inefficiency and high margins. The banking system also exhibit high concentration and market power and relative stability than comparator regions. The North African economies exhibit low presence of foreign banks than sub-regional groupings. Keywords: Banking Sector, Efficiency, Performance, Stability, Financial Accessibility, Afric

Drivers of organisational performance : a state-owned enterprises perspective

CITATION: Mbo, M. & Adjasi, C. 2013. Drivers of organizational performance : a state-owned enterprise perspective. Biennial Conference of the Economic Society of South Africa, University of the Free State, Bloemfontein, South Africa, 25-27 September.This paper examines empirical evidence on SOE performance drivers and thus contributes to understanding the literature behind SOE performance as well contributions to policy formulation on such organizations. Data from annual reports of 24 SOEs selected from 9 countries across 7 industries in a regression model empirically estimated using linear mixed model within the framework of longitudinal data analysis. The study finds that in an SOE set up, good firm performance is driven by existence of strong boards, good liquidity position and independent industry regulation. Firm size and age are also found to be positively driving performance whilst gearing levels, government’s involvement in pricing, attempting to cater for all stakeholder interest and financial dependence on government are negatively related to performance of SOEs. Our study brings no conclusive result on the effect industry competition has on SOE performance. We conclude that SOE performance can be explained in terms of the following organizational theories: resource based theory, agency theory, stewardship theory and the public choice theory whereas the stakeholder theory does not hold in an SOE set up.Post-prin

Uxhaso mali lokuhluma kweafrika: indima yophuhliso lwemali

Zeziphi izixhobo zoqoqosho uMzantsi Afrika onazo kwezemali,ukutsho, amaziko enza iiprojekthi, ukwanda kwamashishini amancinci okanye izinto ezinokuthi zithengiswe zamakhaya? Njing. Charles Adjasi, injingalwazi emanyeneyo neyintoko: Inkqubo yoPhuhliso lweZemali kwi Yunivesithi yase Stellenbosch Business School, ihlola indima yophuhliso lwemali ukuxhasa ukuhluma kweAfrika

Links between stock market development and key economic growth variables : the case of selected African countries

Dissertation (PhD)--University of Stellenbosch, 2007.ENGLISH ABSTRACT: This thesis is a collection of eight essays on links between stock market development and economic growth in selected African countries. In the first essay an overall index of stock market development shows that South Africa, Mauritius, Zimbabwe, Morocco and the BRVM in Cote d’Ivoire have the most developed stock markets in terms of market size, liquidity and transactions cost indicators. However, Nigeria and Egypt also emerge when institutional development is considered. Ghana, Malawi and Namibia have the least developed stock markets. Results from the second essay on stock markets and growth show a positive relationship between stock market development and economic growth. This positive influence is significant for countries classified as upper-middleincome economies. On the basis of market capitalization groupings, stock market developments play a significant role in growth only for moderately capitalized markets. Form the third essay exchange rate depreciation in the long-run leads to increases in stock market returns in Tunisia. Exchange rate movement leads to stock market returns in Egypt, while stock market returns lead to exchange rate movement in Kenya and Mauritius. Shocks induced by either stock market returns or exchange rate changes are more protracted in Ghana, Kenya, Mauritius and Nigeria than in South Africa and Egypt. Cointegration analysis in the fourth essay reveals a negative relationship between inflation and stock market prices for three out of seven countries: Egypt, Mauritius and South Africa. Short-run models for these countries show a negative response of stock returns to instantaneous change in inflation. In Ghana, Kenya, Nigeria and Tunisia, where cointegration is absent, there is unidirectional causality from inflation to stock returns for Ghana, bidirectional causality between inflation and stock returns for Kenya, and no significant results for Nigeria and Tunisia. Results from the fifth essay show that investment in the selected countries grows significantly with an increase in stock market returns. Even without the inclusion of South Africa in the panel, stock market returns in the other relatively less developed African economies impact positively on investment growth. Cointegration tests from the sixth essay indicate a long-run relationship between interest rate and stock prices for Kenya and South Africa. In the short-run there is unidirectional causality from stock returns to interest rate in Kenya and bidirectional causality in South Africa. Responses to shocks have long-lasting effects in Egypt, Ghana, Nigeria and Tunisia and are short-lived in Mauritius. The seventh essay shows that countries with more developed stock markets (Cote d’Ivoire, South Africa, Mauritius, Tunisia and Morocco), have the most developed financial intermediation system. There is evidence from correlation analysis of complementarity between stock market development and bank developments in the selected countries. Finally from the eighth essay two long-run stable cointegration relations are found, one hinging on a larger market (South Africa) and the other on a smaller market (Ghana). The short-run error correction framework shows significant feedback and causal effects both ways from smaller to larger markets.AFRIKAANSE OPSOMMING: Hierdie tesis bestaan uit 'n versameling van agt essays oor verwantskappe tussen aandelemarkontwikkling en ekonomiese groei in geselekteerde Afrika-lande. In die eerste essay toon 'n algehele indeks van aandelemarkontwikkeling aan dat Suid-Afrika, Mauritius, Zimbabwe, Marokko en die BRVM in die Ivoorkus die mees ontwikkelde aandelemarkte het wat grootte, likiditeit en transaksiekoste-aanwysers betref. Nigerië en Egipte kom egter ook te voorskyn wanneer institusionele ontwikkeling in ag geneem word. Ghana, Malawi en Namibië se aandelemarkte is die minste ontwikkel. Die resultate van die tweede essay oor aandelemarkte en groei toon 'n positiewe verwantskap tussen aandelemarkontwikkeling en ekonomiese groei. Hierdie positiewe invloed is beduidend vir lande wat as hoër-middelinkomste ekonomieë geklassifiseer word. Aandelemarkontwikkelings speel op grond van markkapitalisasiegroeperinge net in matig gekapitaliseerde markte 'n beduidende rol in groei. In die derde essay word aangetoon dat wisselkoersdepresiasie op lang termyn tot 'n toename in aandelemarkopbrengste in Tunisië gelei het. Wisselkoersbeweging lei tot aandelemarkopbrengste in Egipte terwyl aandelemarkopbrengste tot wisselkoersbeweging in Kenia en Mauritius lei. Skokke wat deur aandelemarkopbrengste of wisselkoersveranderings veroorsaak word, is meer langdurig in Ghana, Kenia, Mauritius en Nigerië as in Suid-Afrika en Egipte. In die vierde essay bring koïntegrasie 'n negatiewe verwantskap tussen inflasie en aandelemarkpryse aan die lig vir drie van die sewe lande: Egipte, Mauritius en Suid-Afrika. Korttermynmodelle vir hierdie lande dui op 'n negatiewe respons van aandelemarkte op 'n oombliklike verandering in inflasie. In Ghana, Kenia, Nigerië en Tunisië, waar koïntegrasie afwesig is, is daar 'n eenrigting oorsaaklikheid van inflasie na aandele-opbrengste vir Ghana, 'n tweerigting oorsaaklikheid tussen inflasie en aandele-opbrengste vir Kenia, en geen beduidende resultate vir Nigerië en Tunisië nie. Die resultate in die vyfde essay toon aan dat belegging in die geselekteerde lande beduidend groei met 'n toename in aandelemarkopbrengste. Selfs sonder om Suid-Afrika by die paneel in te sluit, het aandelemarkopbrengste in ander betreklik minder ontwikkelde Afrika-ekonomieë 'n positiewe uitwerking op ekonomiese groei gehad. Die koïntegrasietoetse van die sesde essay dui op 'n langtermynverwantskap tussen rentekoerse en aandelepryse in Kenia en Suid-Afrika. Daar is op kort termyn 'n eenrigting oorsaaklikheid van aandele-opbrengste na rentekoerse in Kenia, en tweerigting oorsaaklikheid in Suid-Afrika. Response op skokke het 'n langdurige uitwerking in Egipte, Ghana, Nigerië en Tunisië, maar is van korte duur in Mauritius. Die sewende essay toon aan dat lande met meer ontwikkelde aandelemarkte (Ivoorkus, Suid-Afrika, Mauritius, Tunisië en Marokko) die mees ontwikkelde finansiële bemiddelingstelsel het. Korrelasieontleding in die geselekteerde lande toon bewyse van van komplementariteit tussen aandelemarkontwikkeling en bankontwikkeling. Laastens is daar in die agste essay twee langtermyn stabiele koïntegrasieverhoudings gevind – een wat van 'n groter mark (Suid-Afrika) afhang en een wat van 'n kleiner mark (Ghana) afhang. Die korttermyn-foutkorreksieraamwerk toon beduidende terugvoer en kousale uitwerkings in albei rigtings van kleiner tot groter markte.pdv201

Financing Africa's growth: the role of development finance

ENGLISH ABSTRACT: What financial tools do African countries have at their disposal to finance, say, infrastructure projects, small business expansion or household assets? Prof Charles Adjasi, associate professor and head: Development Finance Programmes at the University of Stellenbosch Business School, explores the role of development finance in supporting Africa’s growth