Revenue diversification would reduce African debt

2018 ◽  
Keyword(s):  
Interest Rates ◽  
West African ◽  
International Capital ◽  
Content Type ◽  
International Capital Markets ◽  
Public Investments ◽  
Republic Of The Congo ◽  
Sub Saharan ◽  
Ssa Countries ◽  
Additional Constraints

Subject African debt burdens Significance Sub-Saharan African (SSA) countries that face soaring debt-servicing obligations (Angola, Nigeria) have no option but to reduce borrowing or risk squeezing further urgent public investments. Other countries face additional constraints from approaching deadlines for meeting fiscal limits mandated by their respective economic communities (West African Economic and Monetary Union, WAEMU). A final group of countries that have fallen into debt distress and/or default (Republic of the Congo, Mozambique) are under pressure to restore creditworthiness and re-establish access to international capital markets. Impacts Falling domestic interest rates and lower local borrowing costs could slow demand for external debt. Prospects for reviving stalled debt restructuring negotiations in Mozambique are slim before the 2019 general election. Use of the proceeds of Nigeria's recent Eurobonds may be impacted by electoral factors at the expense of more productive investments.

Banking technology and cashless economy in selected Sub-Saharan African countries: does education matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ese Urhie ◽  
Ogechi Chiagozie Amonu ◽  
Chiderah Mbah ◽  
Olabanji Olukayode Ewetan ◽  
Oluwatoyin Augustina Matthew ◽  
...  
Keyword(s):  
Panel Study ◽  
Positive Sign ◽  
African Countries ◽  
Content Type ◽  
Bank Branches ◽  
Mobile Cellular ◽  
Sub Saharan ◽  
The Relationship ◽  
Ssa Countries ◽  
Practical Implications

Purpose This study aims to analyze the effect of banking technology [automated teller machine (ATM) and mobile cellular devices (MOBs)] and other traditional factors on the level of currency in circulation for a sample of 21 selected sub-Saharan African (SSA) countries. It also assessed the mitigating effect of education on the relationship between banking technology and the cashless economy. Design/methodology/approach The study used a panel data approach to design a cashless economy model with banking technology – ATM and MOBs – as well as their interaction with education as regressors. Findings This study finds that MOB is significant for promoting a cashless economy, whereas ATM is insignificant in sample SSA countries. The level of education and the number of bank branches were also found to be significant in promoting a cashless economy. The interaction between education and ATM was insignificant but negatively signed, whereas that between education and MOB was significant but had a positive sign. Research limitations/implications Non-availability of data restricted this work to a panel study of selected SSA countries. Subsequent studies should consider single-country case studies. Practical implications Findings from the study imply that for banking technology to drive a cashless economy effectively, education has to be improved. Originality/value The ratio of cash in circulation to total money supply was used as a measure of the cashless economy. The study also evaluated the moderating effect of education on banking technology.

Real estate risk, yield modelling and market sentiment: the impact on pricing in European office markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tony McGough ◽  
Jim Berry
Keyword(s):  
Real Estate ◽  
International Capital ◽  
Content Type ◽  
International Capital Markets ◽  
Real Estate Markets ◽  
Market Sentiment ◽  
Office Markets ◽  
Risk Pricing ◽  
Changes In Risk ◽  
The Impact

PurposeThe financial and economic turmoil that resulted from the Global Financial Crisis (GFC), included a marked increase in the volatility in real estate markets. Property asset prices were impacted by the real economy and market sentiment, particularly concerning the determination of risk. In an economic downturn, the perception of investment risk becomes increasingly important relative to overall total returns, and thus impacts on yields and performance of assets. In a recovery phase, and particularly within an environment of historically low government bonds, risk and return compete for importance. The aim of this paper is to assess the interrelationships and impacts on pricing between real estate risk, yield modelling outcomes and market sentiment in selective European city office markets.Design/methodology/approachThis paper specifically considers the modelling of commercial property pricing in relation to the appetite for risk in the financial markets. The paper expands on previous work by determining a specific measure of risk pricing in relationship to changing financial market sentiment. The methodology underpinning the research specifically examines the scope for using national and international risk pricing within specific real estate markets in Europe.FindingsThis paper addresses whether there is a difference between the impact of risk on the pricing of real estate in international versus regional cities in Europe. The analysis, therefore, determines which city centre office markets in Europe have been most impacted by globalisation including the magnitude on real estate prices and market volatility. The outcome of the paper provides important insights into how changes in risk preferences in the international capital markets have driven and continues to drive yield movements under different market conditions.Research limitations/implicationsThe paper considers the driving forces which have led to the volatile movements of yields, emanating from the GFC.Practical implicationsThis paper considers the property market effects on pricing of commercial real estate and the drivers in selected European cities.Originality/valueThe outcome of the paper provides important insights into how changes in risk preferences in the international capital markets have driven and continue to drive the yield movements in different real estate markets in Europe.

The nexus between economic institutions and unemployment: evidence from sub-Saharan Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdullahi Abdulhakeem Kilishi ◽  
Hammed Adesola Adebowale ◽  
Sodiq Abiodun Oladipupo
Keyword(s):  
Panel Data ◽  
Private Investment ◽  
Developed Countries ◽  
Sub Saharan Africa ◽  
Economic Institutions ◽  
Male And Female ◽  
Content Type ◽  
Long Run ◽  
Sub Saharan ◽  
Ssa Countries

Purpose This paper aims to investigate the nexus between economic institutions (EI) and unemployment in sub-Saharan African (SSA) countries. Specifically, the paper examines the impact of aggregate EI and ten different components of institutions on total, male and female unemployment in SSA. Design/methodology/approach The paper used unbalanced panel data of 37 SSA countries covering the period between 1995 and 2018. A dynamic heterogenous panel data model is specified for the study. Two alternative estimation techniques of dynamic fixed effect and pool mean group methods were used to estimate the models. The choice of appropriate method is based on Hausman specification test. Findings The findings reveal that aggregate EI and institutions related to the monetary system, trade flows, government spending and fiscal process significantly lead to less unemployment in the long-run. However, there is no evidence of a significant relationship between EI and unemployment in the short-run. These findings are consistent for total, male and female unemployment, respectively. Practical implications To reduce unemployment significantly in the long run, policymakers in SSA need to build more market-friendly institutions that will incentivize private investment, allow free movement of labour and goods, as well as guarantee a stable macroeconomic environment and efficient fiscal system. Originality/value Most of the existing studies focused on the influence of labour market institutions on unemployment ignoring the effects of other forms of institutions. While available studies on the link between institutions and unemployment used either OECD or other developed countries sample, with scanty evidence from Africa. However, the effects of EI could vary across regions. Thus, generalizing the findings from developed countries for SSA countries and other developing countries may be misleading. Hence, this paper contributes to the existing literature by examining the nexus between different types of EI and unemployment using the SSA sample.

Interactive effects of human capital in finance–economic growth nexus in Sub-Saharan Africa

2018 ◽  
Vol 45 (6) ◽  
pp. 1192-1210 ◽  
Author(s):  
Muazu Ibrahim
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Interactive Effect ◽  
Financial Sector ◽  
Content Type ◽  
Long Run ◽  
The World ◽  
Sub Saharan ◽  
Ssa Countries

Purpose The purpose of this paper is to examine the interactive effect of human capital in financial development–economic growth nexus. Relative to the quantity-based measure of enrolment rates, the main aim was to determine how quality of human capital proxied by pupil–teacher ratio influences the relationship between domestic financial sector development and overall economic growth. Design/methodology/approach Data are obtained from the World Development Indicators of the World Bank for 29 sub-Saharan African (SSA) countries over the period 1980–2014. The analyses were conducted using the system generalised method of moments within the endogenous growth framework while controlling for country-specific and time effects. The author also follows Papke and Wooldridge procedure in examining the long-run estimates of the variables of interest. Findings The key finding is that, while both human capital and financial development unconditionally promotes growth in both the short and long run, results from the interactive terms suggest that, irrespective of the measure of finance, financial sector development largely spurs growth on the back of quality human capital. This finding is also confirmed by the marginal and net effects where the interactive effect of pupil–teacher ratio and indicators of finance are consistently huge relative to the enrolment. Statistically, the results are robust to model specification. Practical implications While it is laudable for SSA countries to increase access to education, it is equally more crucial to increase the supply of teachers at the same time improving on the limited teaching and learning materials. Indeed, there are efforts to develop rather low levels of the financial sector owing to its unconditional growth effects. Beyond the direct benefit of finance, however, higher growth effect of finance is conditioned on the quality level of human capital. The outcome of this study should therefore reignite the recognition of the complementarity role of human capital and finance in economic growth process. Originality/value The study makes significant contributions to existing finance–growth literature in so many ways: first, the auhor extend the literature by empirically examining how different measures of human capital shape the finance–economic growth nexus. Through this the author is able to bring a different perspective in the literature highlighting the role of countries’ human capital stock in mediating the impact of financial deepening on economic growth. Second, the author makes a more systematic attempt to evaluate the relative importance of finance and human capital in growth process while controlling for several ancillary variables.

scholarly journals Remittances, ICT and doing business in Sub-Saharan Africa

2019 ◽  
Vol 46 (1) ◽  
pp. 35-54 ◽  
Author(s):  
Simplice Asongu ◽  
Nicholas Biekpe ◽  
Vanessa Tchamyou
Keyword(s):  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Negative Effects ◽  
Content Type ◽  
Doing Business ◽  
Time To Build ◽  
Start Up ◽  
Information And Communication ◽  
Sub Saharan ◽  
Ssa Countries

Purpose The purpose of this paper is to examine how linkages between information and communication technology (ICT) and remittances affect the doing of business. Design/methodology/approach The focus is on a panel of 49 Sub-Saharan African (SSA) countries for the period 2000–2012. The empirical evidence is based on the generalized method of moments. Findings While the authors establish some appealing results in terms of net negative effects on constraints to the doing of business (i.e. time to start a business and time to pay taxes), some positive net effects are also apparent (i.e. number of start-up procedures, time to build a warehouse and time to register a property). The authors also establish ICT penetration thresholds at which the unconditional effect of remittances can be changed from positive to negative, notably: for the number of start-up procedures, an internet level of 9.00 penetration per 100 people is required, while for the time to build a warehouse, a mobile phone penetration level of 32.33 penetration per 100 people is essential. Practical and theoretical implications are discussed. Originality/value To the best of the authors’ knowledge, this is the first study to assess linkages between ICT, remittances and doing business in SSA.

RUFO expiration will not end Argentina debt lawsuits

2015 ◽  
Keyword(s):  
Central Bank ◽  
Capital Markets ◽  
International Capital ◽  
Content Type ◽  
International Capital Markets ◽  
Debt Markets ◽  
Growth Prospects ◽  
The Government ◽  
Severe Shortage

Significance Debt markets have failed to pressure Argentina to end the impasse with holdouts, with the government arguing that it could not offer them new terms without offering similar concessions to holders of restructured debt. With elections scheduled for October, the current government is likely to kick the problem to its successor, leaving Argentina facing continued litigation in US and UK courts. Impacts The Central Bank has effectively managed drawdowns of dollar reserves, helping the government to maintain its hard line against holdouts. While this policy persists, the country will remain locked out of international capital markets. The severe shortage of dollars will continue, and will continue to dampen growth prospects until resolved.

Economic stress drains CIS sovereign wealth funds

2015 ◽  
Keyword(s):  
Pension System ◽  
Economic Stress ◽  
International Capital ◽  
Sovereign Wealth Funds ◽  
Content Type ◽  
International Capital Markets ◽  
The Face ◽  
National Welfare ◽  
The Impact ◽  
Welfare Fund

Significance Concern about the need to preserve one of the SWFs to support the pension system is probably a major reason behind the rejection. The Ministry of Economic Development had already approved part of the 1.3 trillion ruble (25 billion dollar) transfer to Rosneft from the National Welfare Fund. The intra-ministry dispute highlights how state firms are looking to SWFs for unconventional government financial support in the face of sanctions-driven stress on Moscow's budget and restricted access to international capital markets. Impacts SWFs are helping to offset the impact of low oil prices and regional turmoil. The anti-crisis effort is boosting spending on infrastructure. Weaker exchange rates will increase the value of resources in domestic currencies.

Improved African infrastructure will be key to growth

2018 ◽  
Keyword(s):  
Sub Saharan Africa ◽  
Sovereign Wealth Funds ◽  
Content Type ◽  
High Profile ◽  
Access To Water ◽  
Insurance Firms ◽  
Sub Saharan ◽  
Private Financing ◽  
Ssa Countries

Subject Infrastructure outlook for Sub-Saharan Africa. Significance Africa's infrastructure needs are under increasing scrutiny after several recent high-profile summits, as well as visits by international leaders to the continent. Sub-Saharan African (SSA) countries need to invest collectively an estimated 130-170 billion dollars per year to maintain and enhance transportation networks, achieve near 100% electrification and 100% access to water and sanitation. However, SSA faces an annual deficit of more than 68 billion dollars unless financing commitments increase sharply. Impacts A growing number of international insurance firms are likely to invest in regional and continent-wide infrastructure funds. Sovereign wealth funds could lead the private financing drive as they face fewer restrictions than pension funds and invest long-term. Amid growing African debt levels, development banks and multilateral bodies will increasingly support private infrastructure deals.

IMF lending will prod Ukraine to sustain reforms

2017 ◽  
Keyword(s):  
Capital Markets ◽  
Armed Conflict ◽  
Government Support ◽  
Political Crisis ◽  
The Political ◽  
International Capital ◽  
Content Type ◽  
International Capital Markets ◽  
The Third ◽  
The Government

Significance After releasing 1 billion dollars in April, the IMF is urging Ukraine to implement land and pension reforms to make it eligible for further lending tranches. The government is finding it hard to pursue controversial changes opposed by many voters and taken up as causes by the political opposition. Gontareva's resignation reflects a lack of government support and is a setback for the reformist camp. Impacts The 'economic war' emerging alongside armed conflict in the east will dent prospects for growth and reform. Failure to secure further IMF financing could accelerate the planned return to international capital markets, perhaps in the third quarter. Attempts to push through reforms such as land sales may lead to increased political strife but not a full-blown political crisis.

What determines financial inclusion in Sub-Saharan Africa?

2017 ◽  
Vol 8 (1) ◽  
pp. 8-18 ◽  
Author(s):  
Sydney Chikalipah
Keyword(s):  
International Development ◽  
World Bank ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Data Set ◽  
Content Type ◽  
The World Bank ◽  
The World ◽  
Sub Saharan ◽  
Ssa Countries

Purpose The purpose of this paper is to investigate the determinants of financial inclusion (FI) in Sub-Saharan Africa (SSA). Design/methodology/approach The paper uses the World Bank country-level data from 20 SSA countries for the year 2014. Findings The empirical findings in this study indicate that illiteracy is the major hindrance to FI in SSA. The findings provide useful information to government agencies and international development organisations. Also, the findings can help accelerate and strengthen FI strategies among SSA countries. Research limitations/implications Some countries were excluded from the final analysis due to lack of data. Practical implications In the last two decades, there has been renewed interest in fighting financial exclusion in Africa. Therefore, this study provide evidence which clearly shows that enhancing literacy levels in a country can immensely contribute towards building the financially inclusive societies in the SSA region. Originality/value To the best of the author’s knowledge, this is the first study to empirically test the determinants of FI in SSA using the World Bank FI data set. Furthermore, this is the first attempt to estimate the determinants of FI with a combined data of SSA countries.

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