Microfinance accessibility, social cohesion and survival of women MSMEs in post-war communities in sub-Saharan Africa: Lessons from Northern Uganda

2020 ◽  
Vol 27 (5) ◽  
pp. 749-774
Author(s):  
George Okello Candiya Bongomin ◽  
Atsede Woldie ◽  
Aziz Wakibi
Keyword(s):  
Developing Countries ◽  
Social Cohesion ◽  
Social Protection ◽  
Sub Saharan Africa ◽  
Northern Uganda ◽  
Microfinance Institutions ◽  
Content Type ◽  
Sub Saharan ◽  
Post War

PurposeGlobally, women have been recognized as key contributors toward livelihood and poverty eradication, especially in developing countries in sub-Saharan Africa. This is due to their great involvement and participation in micro small and medium enterprises (MSMEs) that create employment and ultimately economic growth and development. Thus, the main purpose of this study is to establish the mediating role of social cohesion in the relationship between microfinance accessibility and survival of women MSMEs in post-war communities in sub-Saharan Africa, especially in Northern Uganda where physical collateral were destroyed by war.Design/methodology/approachThe data for this study were collected using a pre-tested semi-structured questionnaire from 395 women MSMEs who are clients of microfinance institutions in post-war communities in Northern Uganda, which suffered from the 20 years' Lord Resistance Army (LRA) insurgency. The Analysis of Moment Structures (AMOS) software was used to analyze the data and the measurement and structural equation models were constructed to test for the mediating role of social cohesion in the relationship between microfinance accessibility and survival of women MSMEs in post-war communities.FindingsThe results revealed that social cohesion significantly and positively mediate the relationship between microfinance accessibility and survival of women MSMEs in post-war communities in Northern Uganda. The results suggest that the presence of social cohesion as a social collateral promotes microfinance accessibility by 14.6% to boost survival of women MSMEs in post-war communities where physical collateral were destroyed by war amidst lack of property rights among women. Similarly, the results indicated that social cohesion has a significant influence on survival of women MSMEs in post-war communities in Northern Uganda. Moreover, when combined together, the effect of microfinance accessibility and social cohesion exhibit greater contribution towards survival of women MSMEs in post-war communities in Northern Uganda. Indeed, social cohesion provides the social safety net (social protection) through which women can access business loans from microfinance institutions for survival and growth of their businesses.Research limitations/implicationsThis study concentrated mainly on women MSMEs located in post-war communities in developing countries in sub-Saharan Africa with a specific focus on Northern Uganda. Women MSMEs located in other regions in Uganda were not sampled in this study. Besides, the study focused only on the microfinance industry as a major source of business finance. It ignored the other financial institutions like commercial banks that equally provide access to financial services to micro-entrepreneurs.Practical implicationsThe governments in developing countries, especially in sub-Saharan Africa where there have been wars should waive-off the registration and licensing fees for grass-root associations because such social associations may act as social protection tools through which women can borrow from financial institutions like the microfinance institutions. The social groups can provide social collateral to women to replace physical collateral required by microfinance institutions in lending. Similarly, the governments, development agencies, and advocates of post-war reconstruction programs in developing countries where there have been wars, especially in sub-Saharan Africa should initiate the provision of group business loans through the existing social women associations. This may offer social protection in terms of social collateral in the absence of physical collateral required by the microfinance institutions in lending. This may be achieved through partnership with the existing microfinance institutions operating in rural areas in post-war communities in developing countries. Additionally, advocates of post-war recovery programs should work with the existing microfinance institutions to design financial products that suit the economic conditions and situations of the women MSMEs in post-war communities. The financial products should meet the business needs of the women MSMEs taking into consideration their ability to fulfil the terms and conditions of use.Originality/valueThis study revisits the role of microfinance accessibility in stimulating survival of women MSMEs as an engine for economic growth in the presence of social cohesion, especially in post-war communities in sub-Saharan Africa where physical collateral were destroyed by war. It reveals the significant role of social cohesion as a social protection tool and safety net, which contributes to economic outcomes in the absence of physical collateral and property rights among women MSMEs borrowers, especially in post-war communities.

3. Institutional Perspectives

2017 ◽  
Author(s):  
Lise Rakner ◽  
Vicky Randall
Keyword(s):  
Developing Countries ◽  
Political Institutions ◽  
Informal Institutions ◽  
Sub Saharan Africa ◽  
Sociological Institutionalism ◽  
The Third ◽  
Rational Choice Institutionalism ◽  
Sub Saharan ◽  
Electoral Quotas

This chapter examines the role of institutions and how institutionalism is applied in the analysis of politics in the developing world. It begins with a discussion of three main strands of institutionalism: sociological institutionalism, rational choice institutionalism, and historical institutionalism. It then considers political institutions in developing countries as well as the interrelationship between formal and informal institutions. Three cases are presented: the case from sub-Saharan Africa illustrates the salience of neo-patrimonial politics and competing informal and formal institutions, the second case relates to campaign clientelism in Peru and the third is concerned with electoral quotas in India. The chapter concludes by addressing the question of the extent to which the new institutionalism is an appropriate tool of analysis for developing countries.

Savings-investment-financial development trilogy: evidence from SSA

2017 ◽  
Vol 9 (1) ◽  
pp. 20-33
Author(s):  
Ibrahim D. Raheem ◽  
Mutiu Abimbola Oyinlola
Keyword(s):  
Financial Development ◽  
Quantitative Measure ◽  
Financial Sector ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Qualitative Nature ◽  
Sub Saharan ◽  
Generalised Method Of Moments ◽  
Qualitative Measure

Purpose The study seeks to examine the role of financial development (FD) in the Feldstein–Horioka (FH) puzzle. The novelty of this study is based on the fact that the measures of FD are expanded to account for the qualitative nature of the financial sector (“better finance”). Design/methodology/approach The study used annual dataset for 37 countries in sub-Saharan Africa (SSA) for the period 1999 through 2010 and relied on the system generalised method of moments (GMM) technique, which takes accounts of endogeneity-related issues. Findings The estimated FH coefficients ranged between 0.419 and 0.720. The qualitative measures of FD have higher FH coefficient relative to the traditional or quantitative measure of FD (“more finance”). Hence, improvement in both the quantity and quality of the financial sector might be helpful in the mobilization, distribution and utilization of savings for investment purposes within these economies. The high FH coefficients obtained suggest that the FH puzzle does not hold in the SSA region. Practical implications Policymakers should formulate and design policies that would seek to ensure the development of the financial sector both in terms of quantity and quality. While taking this into consideration, special attention should be devoted to the qualitative measure of finance. Originality/value The study extends the work of Adeniyi and Egwaikhide (2013) by providing different and, possibly better proxies for FD to capture the efficiency and the qualitative nature of the financial system. This crux of the study serves as the value addition to the literature, as no other study the authors are aware of, has considered the importance of “better finance” indicators in the saving – investment nexus investigation.

scholarly journals Evaluating Antipoverty Transfer Programmes in Latin America and Sub-Saharan Africa. Better Policies? Better Politics?

2015 ◽  
Vol 6 (1) ◽  
Author(s):  
Armando Barrientos ◽  
Juan Miguel Villa
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Development Policy ◽  
Sub Saharan Africa ◽  
Evidence Based ◽  
Political Factors ◽  
Evaluation Practice ◽  
Complementary Role ◽  
Sub Saharan

AbstractTwo broad explanations can be offered for the incidence of impact evaluations in antipoverty transfer programmes in developing countries. The first, and arguably dominant, explanation suggests this is a consequence of a shift towards evidence-based development policy. A second explanation emphasises the complementary role of policy competition and political factors in motivating evaluations. The paper assesses the relevance of the latter in Latin America and sub-Saharan Africa through (i) a comparison of evaluation practice and (ii) the analysis of a new database of flagship antipoverty transfer programmes.

scholarly journals Serological Diagnostic Assays for HIV-Associated Tuberculosis in Sub-Saharan Africa?

2014 ◽  
Vol 21 (6) ◽  
pp. 787-790 ◽  
Author(s):  
Stephen D. Lawn
Keyword(s):  
Potential Role ◽  
Point Of Care ◽  
Antibody Responses ◽  
Sub Saharan Africa ◽  
Simple Point ◽  
Content Type ◽  
Diagnostic Assays ◽  
Hiv Coinfection ◽  
Sub Saharan

ABSTRACTIn this issue ofClinical and Vaccine Immunology, Siev and colleagues present an evaluation of antibody responses to four immunodominant proteins ofMycobacterium tuberculosisin patients with HIV-associated pulmonary tuberculosis (TB) in South Africa (M. Siev, D. Wilson, S. Kainth, V. O. Kasprowicz, C. M. Feintuch, E. Jenny-Avital, and J. J. Achkar, 21:791–798, 2014, doi:http://dx.doi.org/10.1128/CVI.00805-13). This commentary discusses the enormous need for simple point-of-care assays for tuberculosis (TB) diagnosis in patients with and without HIV coinfection in high-burden settings and considers the potential role of serological assays and the huge challenges inherent in developing and validating such assays.

Microfinance institutions' risk and governance in Sub-Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haileslasie Tadele ◽  
Helen Roberts ◽  
Rosalind Whiting
Keyword(s):  
Financial Risk ◽  
Risk Measures ◽  
Generalized Least Squares ◽  
Sub Saharan Africa ◽  
Microfinance Institutions ◽  
Content Type ◽  
For Profit ◽  
Sub Saharan ◽  
Female Director ◽  
The Impact

PurposeThe purpose of this study is to explore the impact of MFI-level governance on microfinance institutions' (MFIs’) risk in Sub-Saharan Africa (SSA).Design/methodology/approachThe study uses data from a sample of 151 MFIs operating in 21 SSA countries during 2005–2014. The Feasible Generalized Least Squares (FGLS) regression model is applied to investigate the relationship between MFI level governance mechanisms and risk.FindingsThe study provides new evidence that board characteristics have differential effects on for-profit (FP) and not-for-profit (NFP) MFI risk. Board independence reduces credit risk of NFP MFIs. Foreign director presence increases MFI failure risk. Furthermore, greater female director representation reduces (increases) FP (NFP) financial risk whereas female CEOs are associated with higher (lower) FP (NFP) financial risk.Originality/valueThe paper contributes to existing literature on microfinance governance and risk, by exploring the impact of governance on MFI risk based on MFIs profit orientation. In addition, the study uses three different risk measures unlike previous microfinance studies.

Fertility Issues and Policy in Developing Countries

2017 ◽  
pp. 120-148
Author(s):  
Claus C. Pörtner
Keyword(s):  
Developing Countries ◽  
Bargaining Power ◽  
Labor Market Outcomes ◽  
Sub Saharan Africa ◽  
Replacement Level ◽  
Market Outcomes ◽  
Population Policies ◽  
Sex Preferences ◽  
Sub Saharan

Fertility in most developing countries has declined substantially and is in many places now close to replacement level. Despite the large reductions, there are still important outstanding questions when it comes to fertility in developing countries. This chapter examines four of those questions. First, why has Sub-Saharan Africa not seen reductions in fertility as large as other developing countries? Second, what factors determine the timing of fertility, especially for first births, and how is timing related to schooling and labor market outcomes? Third, what is the role of bargaining power when determining fertility? Finally, how do sex preferences affect fertility outcomes? In addition, I discuss the literature on the effectiveness of population policies on both fertility and outcomes such as health and schooling.

scholarly journals Financial access, governance and insurance sector development in sub-Saharan Africa

2020 ◽  
Vol 47 (4) ◽  
pp. 849-875 ◽  
Author(s):  
Simplice Asongu ◽  
Nicholas M. Odhiambo
Keyword(s):  
Rule Of Law ◽  
Life Insurance ◽  
Political Stability ◽  
Sub Saharan Africa ◽  
Financial Access ◽  
Content Type ◽  
Government Effectiveness ◽  
The Rule Of Law ◽  
Sub Saharan

PurposeThis study investigates the role of financial access in moderating the effect of governance on insurance consumption in 42 sub-Saharan African countries using data for the period 2004–2014.Design/methodology/approachTwo life insurance indicators are used, notably: life insurance and non-life insurance. Six governance measurements are also used, namely: political stability, ‘voice and accountability’, government effectiveness, regulation quality, corruption-control and the rule of law. The empirical evidence is based on the Generalised Method of Moments (GMM) and Least Squares Dummy Variable Corrected (LSDVC) estimators.FindingsEstimations from the LSDVC are not significant while the following main findings are established from the GMM. First, financial access promotes life insurance through channels of political stability, ‘voice and accountability’, government effectiveness, the rule of law and corruption-control. Second, financial access also stimulates non-life insurance via governance mechanisms of political stability, ‘voice and accountability’, government effectiveness, regulation quality, the rule of law and corruption-control.Originality/valueThis research complements the sparse literature on insurance promotion in Africa by engaging the hitherto unexplored role of financial access through governance channels.

scholarly journals Perception on challenges impacting bid decision of indigenous building contractors in Dar Es Salaam, Tanzania

2020 ◽  
Vol 18 (6) ◽  
pp. 1641-1662 ◽  
Author(s):  
Nicholas Chileshe ◽  
David John Edwards ◽  
Neema Kavishe ◽  
Theo C. Haupt
Keyword(s):  
Developing Countries ◽  
Literature Review ◽  
Correlation Analysis ◽  
Dar Es Salaam ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Economic Wealth ◽  
Sub Saharan ◽  
Project Location ◽  
Survey Responses

Purpose The acknowledged mode of securing work by contractors is through the bidding process. However, the bidding decisions undertaken by some indigenous contractors in developing countries are fraught with challenges that often engender bidding practices (such as collusion through price fixing and intentional lower bidding) and threaten business survival. Therefore, in the quest to better understand these challenges and viable advocate solutions for overcoming them, this paper aims to identify the key challenges impacting the bid decision process by small indigenous building contractors in Dar es Salaam, Tanzania, and establish the strength of their relationship between the pairs of key challenges. Design/methodology/approach A comprehensive literature review was conducted to identify nine challenges impacting the bid decision of indigenous building contractors in Tanzania, which were used to design a questionnaire survey. Data collected were analysed using descriptive statistics, mean score, inferential statistics (One sample t-tests), Kendall’s concordance and correlation analysis. Findings Challenges identified from a literature review were empirically tested using survey responses accrued from 33 participating small indigenous building contractors in Dar es Salaam, Tanzania. The findings illustrate that lack of liquidity, profit returns, lack of equipment, lack of experience of several works and procurement procedures are perceived as being the five most critical challenges. Project location, site accessibility and lack of labour were least critical. The major finding from the correlation analysis was the existence of the strong and positive correlation between “project location” and “site accessibility”. Research limitations/implications The study is limited by its sample and geographical settings which focussed and confined the results on one country, Tanzania. However, the findings can be considered as important for other developing countries wishing to gain insights into the challenges impacting bid decisions. Practical implications Measures for addressing the identified challenges impacting the bidding decisions of the indigenous small building contractors would be undertaken. The findings will enable contractors to not only reconcile the challenges with the industry and in so doing benefit both themselves and the clients but also enable them to be better prepared to deliver contractual obligations and generate socio-economic wealth. Government and policymakers will also be able to appropriately develop macro interventions for managing these challenges, which could be custom-tailored to indigenous small contractors. Finally, improving the ability of local firms to compete in the construction industry has been recognised as having the potential of advancing socio-economic development within the comity of developing countries. Originality/value The study enhances government, client and practitioners’ understanding of the challenges affecting the bidding practices among the indigenous building contractors in Tanzania. This area of investigation has previously been under explored particularly sub-Saharan Africa.

Microfinance board and default risk in sub-Saharan Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haileslasie Tadele
Keyword(s):  
Default Risk ◽  
Generalized Method Of Moments ◽  
Geographical Area ◽  
Sub Saharan Africa ◽  
Future Research ◽  
Board Structure ◽  
Microfinance Institutions ◽  
Content Type ◽  
Sub Saharan ◽  
Female Director

PurposeThis paper examines whether board structure affects microfinance institutions' (MFIs) default risk in sub-Saharan Africa (SSA).Design/methodology/approachThe paper uses a pooled OLS and system generalized method of moments (GMM) model on unbalanced panel data from 214 MFIs in 26 SSA countries over 2005–2016 period. Default risk is measured using non-performing loans (loans overdue 30 and 90 days) and loans written-off ratios. Board size, proportion of independent and female directors are used as proxies for board structure.FindingsThe empirical results indicate that unregulated MFIs with larger and more independent boards tend to have a lower default risk. In addition, unregulated MFIs with a female director tend to lower default risk.Research limitations/implicationsThis research mainly focusses on SSA. Future research may consider a broader geographical area.Practical implicationsPoor loan portfolio quality is one of the major problems of MFIs operating in SSA. The findings of this study will contribute in emphasizing the role of an effective board structure in lowering MFI default risk.Originality/valueThis study is unique in terms of investigating whether board structure impacts default risk based on MFI regulation.

African conflicts

2017 ◽  
Author(s):  
Sabine Lee
Keyword(s):  
Sub Saharan Africa ◽  
Northern Uganda ◽  
Rwandan Genocide ◽  
Post Conflict ◽  
Societal Norms ◽  
Sub Saharan ◽  
The Impact

The chapter investigates the experience of children born of war in late 20th century sub-Saharan Africa by exploring the fate of children conceived during the Rwandan genocide and the children born of forced conjugal associations during the LRA war in Northern Uganda. Using extensive fieldwork in Northern Uganda, the analysis focusses on the impact of the ethnic undertones of the conflicts and the role of kinship in determining what guides the integration of CBOW into volatile post-conflict societies. It reflects on the gendered societal norms and their role in shaping the communities into which CBOW and their mothers have to settle and explores healing mechanisms and their limitations for affected children.

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