Japan will reboot its approach to African development

2019 ◽  
Keyword(s):  
Private Sector ◽  
Development Model ◽  
Policy Space ◽  
Content Type ◽  
African Development ◽  
International Conference ◽  
Private Sector Investment ◽  
Government Aid ◽  
Japanese Companies

Subject Japan's Africa development model. Significance The latest edition of Japan’s Tokyo International Conference on African Development (TICAD) concluded on August 30, with the summit largely continuing the developed world’s shift from traditional government-to-government aid to a focus on trade and private-sector investment. Impacts With 42 African leaders attending, the conference will help strengthen and create new bilateral linkages. The summit’s major themes will provide policy space for initiatives focusing on small, medium and micro-sized enterprise (SMME) development. The focus on SMMEs, conceptualised as a solution to many of the continent’s problems, may entrench the developing ‘business-first’ mindset. The conclusion of 110 new memorandums of understanding between Japanese companies and African states will be seen as a key success.

Innovative financial intermediation and long term capital pools for infrastructure

2016 ◽  
Vol 21 (3) ◽  
pp. 231-252 ◽  
Author(s):  
Thillai Rajan Annamalai ◽  
Smitha Hari
Keyword(s):  
Private Sector ◽  
Financial Intermediation ◽  
Emerging Countries ◽  
Infrastructure Development ◽  
Infrastructure Projects ◽  
Multiple Perspectives ◽  
Multiple Sources ◽  
Content Type ◽  
Private Sector Investment

Purpose Developing countries are increasingly looking to private sector investment for infrastructure development. Successful development of private infrastructure projects, however, depends on adequate availability of long-term debt to complement private sector equity. As domestic bond markets in many emerging countries are not very deep, availability of long-term debt funding for infrastructure has been limited. Recently, a new form of financial intermediation has emerged in India with the creation of infrastructure debt funds (IDFs) to create capital pools for long-term debt funding. This paper aims to analyse the effectiveness of IDFs for financing infrastructure projects. Design/methodology/approach This paper uses a case study approach. The case studies were written using both secondary and primary information. Secondary information was obtained from various sources such as policy papers, websites and other published sources. Primary information was obtained from interviews with the top management of three IDFs. Information obtained from multiple sources was triangulated for consistency and correctness. Findings IDFs have emerged as an effective intermediation mechanism for attracting long-term capital by offering a new investment product with appropriate risk-adjusted returns. For the fund seekers, IDFs are able to provide long-term capital at lower rates and higher flexibility. Unlike commercial banks, IDFs are able to add value to the projects apart from funding by periodic monitoring of the projects. Practical implications Creating new forms of financial intermediation can help in reducing the financing gap for infrastructure projects, especially in emerging countries. Originality/value IDFs have been analysed from a perspective of financial intermediation. The effectiveness of IDFs in bridging the funding shortfall has been evaluated from multiple perspectives.

Barriers to development of private sector investment in water and sewage industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hadi Sarvari ◽  
Daniel W.M. Chan ◽  
Nerija Banaitiene ◽  
Norhazilan Md Noor ◽  
Michael Beer
Keyword(s):  
Private Sector ◽  
Insurance Companies ◽  
Public And Private ◽  
Content Type ◽  
Success Stories ◽  
Recent Success ◽  
Private Sector Investment ◽  
Fuzzy Delphi ◽  
Private And Public ◽  
Private Investors

PurposePrivatization is a complex issue in many developing countries; therefore, it is vital to examine the obstacles that prevent its proper implementation. The goal of this study is to identify and analyze the barriers to private sector investment in the Water and Sewage Industry (WSI) and to suggest effective ways to attract the private investors to this sector.Design/methodology/approachThe obstacles to private sector investment in the WSI were identified by conducting a desktop literature review and interviewing an expert panel, using the fuzzy Delphi technique. The most important barriers were identified and categorized. A structured survey was then developed and distributed to private sector investment experts. The Fuzzy Analytic Hierarchy Process (FAHP) was applied to further examine the responses and to rank the identified barriers.FindingsThe results showed that the greatest barrier to privatization is the weakness of insurance companies in controlling investment risks, and the second greatest barrier is the weakness of the country's capitalist culture. A review of recent success stories revealed that these barriers can be overcome with transparent price policies and increased interaction between the public and private sectors, which motivate private investors to invest in the WSI.Originality/valueThe elicitation of this study can be useful to both private and public sectors for the development of infrastructure projects, particularly for the WSI.

Poor infrastructure will weigh on South African growth

2020 ◽  
Keyword(s):  
Private Sector ◽  
South African ◽  
Government Expenditure ◽  
Load Shedding ◽  
Short Term ◽  
Content Type ◽  
Private Sector Investment ◽  
Plant Maintenance ◽  
Public Pressure ◽  
Poor Infrastructure

Subject South African infrastructure. Significance Building on previous government commitments to reverse the falling percentage of GDP spent on investment, last month’s 2020 budget sought to rebalance government expenditure away from consumption spending to capital budgets. In a time of severely strained government finances and an economy in recession, Pretoria is looking to shift resources from stalled infrastructure projects to more viable ones and to attract private-sector investment. Impacts Eskom's new CEO could face growing public pressure to ease ‘load shedding’ (power outages) necessary for key plant maintenance. Ongoing bureaucratic, legislative and procurement hurdles will hamper improved infrastructure spending over the short term. A flagship government aim for 30% of GDP to be spent on investment by 2030 is unlikely to be realised.

Domestic crises will challenge US-Nigeria relations

2021 ◽  
Keyword(s):  
West Africa ◽  
Private Sector ◽  
Political Institutions ◽  
Content Type ◽  
Private Sector Investment ◽  
Us Government ◽  
Economic Engagement ◽  
Us Immigration

Significance Distracted by a spiralling pandemic and crisis in its political institutions, the incoming US government will struggle to establish new initiatives both in Nigeria and across West Africa. Impacts Trump’s popularity among many Nigerians is unlikely to be replicated by Biden, despite probable greater engagement. The reputational damage from probably soon-to-be relaxed restrictive US immigration and visa policies will endure. Opportunities for deepened economic engagement exist but will depend on encouraging increased US private-sector investment.

Islamic banking and real performances in a dual banking system

2019 ◽  
Vol 12 (3) ◽  
pp. 426-447
Author(s):  
Mohamed Ben Mimoun
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Banking System ◽  
Policy Implications ◽  
Islamic Banking ◽  
Dynamic Interactions ◽  
Causality Test ◽  
Content Type ◽  
Private Sector Investment ◽  
Long Run

Purpose There is a rich debate on the nature of Islamic banking (IB)–growth nexus and the direction of causality governing this nexus. This study aims to focus on this issue in the case of Saudi Arabia, the largest country-holder of Islamic Banks (IBs)’ assets worldwide. It assesses empirically the nature of dynamic interactions between IBs’ financing and the real performances in the non-oil private sector (investment and GDP) in the context of a dual banking system where IBs operate alongside their conventional counterparts. Design/methodology/approach This study employs the Bounds test in the context of reparametrized autoregression distribution lags (ARDL) models to analyse both long-run and short-run dynamics governing Islamic and conventional banks’ (CBs) financings on one hand and real investment and GDP in the private sector on the other hand over the 2007q1-2016q4 period. It also uses the Toda and Yamamoto (1995) augmented Granger-causality test to assess the direction of causality governing these dynamics. Findings The more important results are: there is a stable and significant long-run relationship between IBs’ financing and real performances in the private sector. This nexus is governed by the “feed-back hypothesis”, implying the validity of both the “supply-leading” and the “demand-following” hypotheses. In a dual banking system context, IBs exert two effects on the financing of their conventional counterparts: a negative “crowding-out” effect and a positive and “stimulating” effect which transmits through the “competition” channel. Finally, in the long-run, steady-state, real GDP is dissociated from CBs’ financing. Originality/value This paper highlights an issue that has not received the needed attention in the case of Saudi Arabia. It has also found novel results with important policy implications.

scholarly journals Zambian farm blocks: A vehicle for increased private sector investments

2020 ◽  
Vol 5 (1) ◽  
pp. 817-825
Author(s):  
Susanna L. Middelberg ◽  
Pieter van der Zwan ◽  
Cobus Oberholster
Keyword(s):  
Private Sector ◽  
Land Tenure ◽  
Agricultural Sector ◽  
Agricultural Land ◽  
Labour Productivity ◽  
Land Development ◽  
Policy Uncertainty ◽  
Infrastructure Development ◽  
Structured Interviews ◽  
Private Sector Investment

AbstractThe Zambian government has introduced the farm block development programme (FBDP) to facilitate agricultural land and rural development and encourage private sector investment. This study assessed whether the FBDP achieves these goals. Key obstacles and possible opportunities were also identified and, where appropriate, specific corrective actions were recommended. Qualitative data were collected through semi-structured interviews conducted in Lusaka with various stakeholders of the FBDP. The FBDP is designed to facilitate agricultural land development and encourage private sector investment. However, the programme falls far short in terms of implementation, amidst policy uncertainty and lack of support. This is evident by the insecurity of land tenure which negatively affects small- and medium-scale producers’ access to financing, lack of infrastructure development of these farm blocks, and constraints in the agricultural sector such as low labour productivity and poor access to service expertise. It is recommended that innovative policy interventions should be created to support agricultural development. This can be achieved by following a multistakeholder approach through involving private, public and non-profit sectors such as non-governmental organisations (NGOs) and donors.

Relationship between CSR motivations and corporate social performance: a study in the power industry in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moumita Acharyya ◽  
Tanuja Agarwala
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Power Sector ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Self Interest ◽  
Public And Private Sector

PurposeThe paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).Design/methodology/approachThe data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.Findings“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.Research limitations/implicationsFurther studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.Originality/valueThe social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.

scholarly journals Property Rights and Finance

2002 ◽  
Vol 92 (5) ◽  
pp. 1335-1356 ◽  
Author(s):  
Simon Johnson ◽  
John McMillan ◽  
Christopher Woodruff
Keyword(s):  
Property Rights ◽  
Private Sector ◽  
Bank Loans ◽  
New Firms ◽  
Limited Access ◽  
External Finance ◽  
Private Sector Investment ◽  
Weak Property ◽  
Communist Countries ◽  
Retained Earnings

Which is the tighter constraint on private sector investment: weak property rights or limited access to external finance? From a survey of new firms in post-communist countries, we find that weak property rights discourage firms from reinvesting their profits, even when bank loans are available. Where property rights are relatively strong, firms reinvest their profits; where they are relatively weak, entrepreneurs do not want to invest from retained earnings.

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