The impact of financial sector development on economic growth: analysis of the financial development gap between Cameroon and South Africa

African countries are developing better economic and monetary reforms so as to gain the status of an emergent country over a certain period of time, Cameroon is not left behind, she wants to be emergent by 2035. This study seeks to verify the short-run and long-run impact of financial sector development on economic growth and also to verify the gap of financial development that separates Cameroon and an emergent country like South Africa. The vector error correction model was used, in Cameroon a long-run relationship between economic growth and financial development was noticed while for South Africa there is a short-run relationship between bank deposits and economic growth, there is also a long-run relationship between economic growth and financial development. The South African economy moves towards its long-run equilibrium faster after economic shocks thanks to its good financial developed economy. We also notice that there is a gap of 0.26, this means that for the economy of Cameroon to be emergent, the speed of long-run adjustment should increase by 0.26

The impact of financial sector development on economic growth: analysis of the financial development gap between Cameroon and South Africa

African countries are developing better economic and monetary reforms so as to gain the status of an emergent country over a certain period of time, Cameroon is not left behind, she wants to be emergent by 2035. This study seeks to verify the short-run and long-run impact of financial sector development on economic growth and also to verify the gap of financial development that separates Cameroon and an emergent country like South Africa. The vector error correction model was used, in Cameroon a long-run relationship between economic growth and financial development was noticed while for South Africa there is a short-run relationship between bank deposits and economic growth, there is also a long-run relationship between economic growth and financial development. The South African economy moves towards its long-run equilibrium faster after economic shocks thanks to its good financial developed economy. We also notice that there is a gap of 0.26, this means that for the economy of Cameroon to be emergent, the speed of long-run adjustment should increase by 0.26

How working capital management affects the profitability of Afriland First Bank of Cameroon? A case study

The main objective of this study is to assess the effect of working capital management on the profitability of Afriland First Bank Cameroon. Time series data from 2002 to 2013 was extracted from the financial statement of the bank. Correlation analysis and ordinary least Square regression were used to determine how working capital affects profitability. The findings of this study show that working capital management effectively influences the performance of Afriland First Bank. The analysis revealed that customer deposits, the size of the bank, outstanding expenditure and return on assets all have a positive impact on bank profitability and are statistically significant while loan portfolio has a positive impact on bank performance but is statistically insignificant. On the other hand, reserves have a negative impact on bank profitability. Thus efficient management of working capital is prerequisite for growth and profitability of commercial banks in general and Afriland first Bank in particular

Public Health Effects of Wood Fuel in Africa: Bioenergy from Tree Commodities as a Sustainable Remedy

Globally, about 2.8 million people depend on solid wood fuel for energy, developing countries account for more than 90% of this population. About 70% of households in Sub-Saharan depend on wood fuel for energy. The combustion of solid wood fuel indoors and outdoors emits smoke with particles that have adverse effects on the health of users. This chapter investigates the health effects of wood fuel combustion on the users and evaluates the potential of bioenergy from tree commodities as a sustainable remedy. Through a literature review of literature on health effects of wood fuel, this chapter shows that acute respiratory infections, lung problems, cataract, cardiovascular diseases and bronchitis are common public health issues that wood fuel users suffer from. Bioenergy provides a clean and healthier alternative energy for rural households; tree commodities provide a more sustainable option for millions of Africans who depend on tree commodities for their livelihoods. Estimates show that between 4.26E+06 and 1.14E+07 MW of bioelectricity can be generated from tree commodities, while 6.26E+08 to 1.71E+09 litres of bioethanol and 4.27E+08 to 1.14E+09 litres of biodiesel can potentially be generated from tree commodities. Significant government support, financial investment, public-private partnerships and community sensitisation are required for tree commodities to sustainable provide clean and healthy bioenergy to rural Africa

Effects of credit constraints on the productivity of small and medium-sized enterprises in Cameroon.

This paper assesses the determinants and effects of credit constraints on the productivity of small and medium-sized enterprises (SMEs) in Cameroon. Use is made of the Cameroon enterprise survey data collected by the World Bank in 2009 and an endogenous switching regression model. Results show that interest rates, size of enterprise, size of loan, size of collateral, maturity of loans and legal status of enterprises are major sources of credit constraints faced by SMEs. Results also indicate that medium enterprises are more credit constrained than small enterprises; meanwhile the effects of credit constraints affect small enterprises more than medium enterprises. Credit constrained firms have lower levels of productivity relative to unconstrained firms. These results have implications for the creation of credit bureaux, prudential stringency and rationalization of the Cameroon tax system

Effects of credit constraints on the productivity of small and medium-sized enterprises in Cameroon.

This paper assesses the determinants and effects of credit constraints on the productivity of small and medium-sized enterprises (SMEs) in Cameroon. Use is made of the Cameroon enterprise survey data collected by the World Bank in 2009 and an endogenous switching regression model. Results show that interest rates, size of enterprise, size of loan, size of collateral, maturity of loans and legal status of enterprises are major sources of credit constraints faced by SMEs. Results also indicate that medium enterprises are more credit constrained than small enterprises; meanwhile the effects of credit constraints affect small enterprises more than medium enterprises. Credit constrained firms have lower levels of productivity relative to unconstrained firms. These results have implications for the creation of credit bureaux, prudential stringency and rationalization of the Cameroon tax system

Illegal logging, governance effectiveness and carbon dioxide emission in the timber‑producing countries of Congo Basin and Asia

The empirical link between governance and illegal logging is widely accepted amongst scientist, although a minority still purports that illegal logging does not necessarily prevail because of poor governance. However, the nexus linking governance, illegal logging and carbon emission is not well enshrined in scientific literature. This paper seeks to review the literature on illegal logging and governance and empirically investigate the effect of illegal logging and governance effectiveness on carbon emission. Using panel dynamic ordinary least square method on data covering three Congo Basin timber-producing countries and three Asian timber-producing countries, this paper further investigates disaggregated effects between these two groups of countries. The empirical evidence underscores that Congo Basin timber-producing countries are characterized by increasing trend of illegal logging, poor governance effectiveness and corruption. Panel regression reveals a positive and significant impact of illegal logging, governance effectiveness and corruption on carbon emission. Asian producing countries depict a reducing trend in illegal logging and improvements in governance and corruption. There is a positive but not significant impact of illegal logging on carbon emission, and governance effectiveness reduces carbon emission. Thus, the dynamics of governance, illegal logging and carbon emission is not the same between timber-producing countries in Asia and Congo producing counties, thus suggesting the ability of institutions to curb illegal logging and enforce laws to reduce the effects of carbon emission. Multi-stakeholder consultations, government engagement, partnerships and training of control staff can help curb corruption. Legality checks should go beyond having legal documents to effectively check and control of timber concessions and small-scale logging

Community capacity for social enterprise development : Empirical evidence from community forest enterprises (CFEs) in Cameroon

With increasing forest devolution globally, community forest enterprises (CFEs) are emerging as potential options for local development based on forest resources. CFEs trade to meet their economic, social, and environmental goals; however, empirical studies have highlighted capacity deficiencies as key drawbacks to their development. Knowledge of what these capacity gaps are is low. This paper uses a systematic framework to explore capacity and deficiencies in capacity and the relation between the two within CFEs in Cameroon. Using the contextualised organisational capacity theory in combination with asset-based mobilisation theory, data was gathered from 31 CFEs based on focus group discussions. Principal component analysis and descriptive statistics were used to evaluate community capacity at individual, organisational (CFE), and network levels. Pearson correlation tests were used to explore the relationships between different domains of community capacity. The results indicate that community members and development practitioners agree that communities are weak in creating partnerships, networking, and resource mobilisation. The participatory community evaluation highlights major capacity gaps in infrastructure, members' skills and knowledge, and sense of community. This confirms that capacity gaps were larger at the individual and social network level, while organisational capacity scored higher except for a sense of community and resource mobilization. Although the community capacities at the individual level are generally low, these capacities correlate strongly with organisational capacity. The potential of the CFEs to meet objectives depends a lot on the capacities of individual members and networking capacity, indicating that these should be prioritised in development efforts, which should involve multiple stakeholders, with policy support and participation by the entire community

Community forest enterprises in Cameroon : Tensions, paradoxes and governance challenges

Community Forest Enterprises (CFEs) are “a form of enterprise based on collective ownership or secured access to forest resources by a community. Their governance is derived from local community traditions, where tensions between direct “democratic” community control and hierarchical management structure are present, and which typically have multivariate objective functions with profits as only one of several goals. This definition underscores the presence of tensions that could have adverse effects on achieving the economic, social, and environmental objectives of CFEs. However, conceptual and empirical research on tensions within CFEs is sketchy. This paper adapts and contextualizes a framework using the paradox lens to explore CFE governance in Cameroon. Narrative inquiry research coupled with focus group discussions and confirmatory document analysis of 31 CFEs was used to characterize performing, belonging, organizing, and learning tensions within CFEs and explore the main challenges. A performing paradox was found, manifested in differences in short-run and long-run perceptions of performance between CFEs, community, and village chiefs. An organizing paradox was found, where tensions in the recruitment of external and resident labor and commercial tensions between CFE management, intermediaries, and community members. How the CFE selects products to generate revenue from the forest created belonging tensions when the choice of products did not include women, and the gendered family context created factions that resulted in belonging tensions at the CFE level. Learning tensions occurred when CFEs grew and had to balance community pressure for social investments against reinvestment for CFE financial sustainability. “Electing” or finding board members with adequate skills and experience, the power of boards to control management, and interdependencies between boards and management were significant challenges faced by CFEs. The accommodation and information strategy employed by some CFEs to manage paradoxes is adequate and recommended to be continued

Financial sector development and economic growth: evidence from Cameroon

Abstract For decades, African economies have embarked on financial sector reforms. However, the empirical implications of these reforms have been divergent. This paper investigates the impact of financial development on Economic growth using time series data in Cameroon. This investigation was carried out using three common indicators of financial development (broad money, deposit/GDP and domestic credit to private sector). Using the Auto Regressive Distributive Lag (ARDL) technique of estimation, it was discovered that there exist a short-run positive relationship between monetary mass (M2), government expenditure and economic growth, a short run negative relationship between bank deposits, private investment and economic growth equally exists. However in the long run, all indicators of financial development show a positive and significant impact on economic growth. This paper thus confirms the existence of a positive and long-term impact of all the indicators of financial development on economic growth through bound test. It is therefore proposed that the financial reforms in Cameroon should be pushed forward in order to boost the development of the financial sector thus an increase in its role on economic growth