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Article
Publication date: 30 April 2020

Leonard Onyiriuba, E.U. Okoro Okoro and Godwin Imo Ibe

The purpose of this study is to identify and review strategic government policies on agricultural financing in Egypt, Morocco, Nigeria and South Africa. Four factors dictated the…

1184

Abstract

Purpose

The purpose of this study is to identify and review strategic government policies on agricultural financing in Egypt, Morocco, Nigeria and South Africa. Four factors dictated the choice of these countries. In the first place, the study is set in African emerging markets – and the four countries are the widely acknowledged emerging markets in Africa (Onyiriuba, 2015). Secondly, the spread of the countries, to a large extent, mirrors Africa in general – Egypt and Morocco are in North Africa; Nigeria is a West African country; and, of course, South Africa. Thirdly, other countries in Africa tend to look up to the four countries, apparently as the largest economies in their respective regions. Needless to say, Nigeria alternates with South Africa as the largest economy in Africa. In this capacity, the two countries influence – indeed, mirror – continental Africa's emerging economic progress. Fourthly, lessons from agricultural policy and financing experiences of the four countries will certainly be useful to the other African countries. The specific objective of this paper is to determine how the government seeks to address the financing issues attendant on the risk-laden nature of agriculture through policy interventions. With this end in view, the paper analyses the strategic goals, objectives and beneficiaries of the agriculture financing policies of the government, as well as the constraints on access to finance by the farmers and the policy response.

Design/methodology/approach

The study involves a review of empirical literature and government policies on agricultural financing in Egypt, Morocco, Nigeria and South Africa. The high risks in agriculture (Onyiriuba, 2015; Mordi, 1988), risk aversion behaviour of banks towards agricultural financing (Onyiriuba, 2015, 1990), and the reluctance of insurers to take on agricultural risks (World Bank, 2018; Federal Republic of Nigeria, 2016; Onyiriuba, 1990; Mordi, 1988) underpin this methodology. There are two other considerations: the needs to find out how government seeks to address the financing issues in agriculture through policy intervention, and to avoid unwieldy research, one that combines government and institutional policy perspectives on agriculture financing. Thus the study is not approached from the perspective of banks and other lending institutions; neither does it combine government and institutional policy perspectives. It rather focuses on government policy in order to properly situate implications of the findings.

Findings

The authorities seek to get rid of bottlenecks, ease participation and redress constraints on access to finance in agriculture through policy interventions as a means of sustainable economic growth. The findings are characteristic of emerging markets, rooted in the transitional challenge of opening economies, economic reforms and the March of progress. However, with agriculture and natural resources – rather than industrialisation – as the main stay of their economies, the African emerging markets face an uphill task in their development efforts. This is evident in the divergent and gloomy pictures in which the literature paints their agricultural economies.

Practical implications

Government should gear financing policies to boost output as a means of ensuring food security. It should address risk aversion tendencies among the lenders and feeble credit guarantee, subsidies and budgetary allocations to agriculture. This will ensure effective commitment of the lenders to agriculture and underpin agricultural insurance. However, it demands strengthening links in the chain of access to, and monitoring of, credit for agricultural production. A realistic policy response should target the rural economy – with youth, women and smallholder farmers as ultimate beneficiaries. These actions should be intensified as measures to boost farming and the rural economy.

Originality/value

Current literature fails to situate the empirical findings in emerging markets context, reflecting economies in transition. Besides, in its current state, the literature does not explicitly clarify that agriculture, like most other sectors in such economies, is bound to experience the observed financing constraints. Neither does it clearly reflect how and why the findings should be seen as fleeting realities of the March of progress in transitional economies. This study will help to fill the gap.

Details

Agricultural Finance Review, vol. 80 no. 4
Type: Research Article
ISSN: 0002-1466

Keywords

Book part
Publication date: 17 January 2023

Meng-Ting Chen and Richard J. Nugent

The authors evaluate financial stability and capital flows management objectives of capital controls in the context of four capital control events: removing or imposing controls…

Abstract

The authors evaluate financial stability and capital flows management objectives of capital controls in the context of four capital control events: removing or imposing controls on capital inflows and removing or imposing controls on capital outflows. The authors use synthetic control method to solve the endogeneity problem stemmed from the timing of capital control implementation. The authors find new evidence that capital controls are not consistently effective in reaching financial stability outcomes but are consistent in reaching capital flows management outcomes. The authors compare our results to estimates using difference-in-difference (DID) and carry out placebo analysis. Finally, we use synthetic DID to correct for the parallel trend bias and show that the results still hold.

Details

Fintech, Pandemic, and the Financial System: Challenges and Opportunities
Type: Book
ISBN: 978-1-80262-947-7

Keywords

Article
Publication date: 8 September 2023

Ekundayo Peter Mesagan and Xuan Vinh Vo

The authors analyse the interactive influence of energy use, capital investment and finance on pollution in energy-dependent African countries.

Abstract

Purpose

The authors analyse the interactive influence of energy use, capital investment and finance on pollution in energy-dependent African countries.

Design/methodology/approach

The study analyses data from 5 selected energy-dependent African nations (i.e. Algeria, Egypt, Nigeria, Morocco and South Africa) between 1981 and 2020 using the fully modified ordinary least squares (FMOLS) approach.

Findings

The panel result reveals that capital investment and energy interaction and financial development and capital investment moderation reduce pollution in all the countries. However, for country-specific results, the interaction of investment and energy lowers emissions in Algeria, South Africa, Nigeria and Morocco but increases pollution in Egypt. Similarly, except for Egypt, financial development and capital investment interaction offset pollution in Algeria, Nigeria, South Africa and Morocco.

Research limitations/implications

The limitation of the study stems from the inability to extend the scope to cover the entire African region. However, the fact that the authors selected the most prominent African nations in the sample to enable us to set the template for other smaller nations to follow makes the study tenable in its present form.

Practical implications

Energy-dependent African countries should invest in eco-friendly machines, technologies and equipment to lower pollution vis-à-vis production expansion.

Originality/value

The present research is more expansive by combining the finance and capital investment channels in the quest for decarbonising emerging African nations. Moreover, this is a comparative study, unlike past studies that mainly deploy a one-size-fits-all approach.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 1
Type: Research Article
ISSN: 1477-7835

Keywords

Book part
Publication date: 29 December 2016

Takashi Matsuki, Kimiko Sugimoto and Yushi Yoshida

We examine how the degree of regional financial integration in African stock markets has evolved over the last eleven years. Despite increasing regional economic cooperation, the…

Abstract

We examine how the degree of regional financial integration in African stock markets has evolved over the last eleven years. Despite increasing regional economic cooperation, the process of stock market integration has been slow. To facilitate growth via developed financial markets but keep financial stability risk at a minimum, further regional integration should be promoted, and mild capital controls on non-African investors may be necessary. A Diebold-Yilmaz spillover analysis is applied to ten African stock markets for the period between August 2004 and January 2015. We examine spillovers among four regions and among individual countries. Regional integration, as measured by total spillovers in Africa, is increasing but remains very low. These spillovers were temporarily heightened during the global financial crisis. Cross-regional spillovers are high between Northern and Southern Africa. Asymmetric capital controls on African and non-African investors must be considered to foster further regional integration and to mitigate financial stability risk. This is one of the few studies to address the construction of the future architecture of regionally integrated stock markets in emerging countries.

Open Access
Article
Publication date: 14 March 2022

Kalu O. Emenike

The importance of sovereign bond as a source of financing revenue deficit, benchmarking for corporate bonds and debt management in Africa, calls for continual monitoring of its…

Abstract

The importance of sovereign bond as a source of financing revenue deficit, benchmarking for corporate bonds and debt management in Africa, calls for continual monitoring of its volatility dynamics. This study evaluates the nature of sovereign bond volatility interaction between African countries using bivariate BEKK-GARCH (1, 1) model. Based on a sample of eight African countries, the results show evidence of unidirectional volatility spillover from Morocco sovereign bond to Egypt sovereign bond. Next, the results show absence of volatility interaction between Ghana and Nigeria sovereign bonds. The results further show the existence of bidirectional volatility transmission between Uganda and Kenya. Finally, the results indicate evidence of bidirectional volatility interaction between Botswana and South Africa. Overall, the results show existence of full interaction between Uganda–Kenya and Botswana–South Africa sovereign bond returns, partial interaction between Egypt and Morocco sovereign bond returns and no interaction between Ghana and Nigeria sovereign bonds markets. Thus, these results provide valuable implications for sovereign and corporate credit risk management, as well as strategy for monitoring and minimising negative effect of sovereign bond volatility spillover in Africa.

Details

Journal of Derivatives and Quantitative Studies: 선물연구, vol. 30 no. 4
Type: Research Article
ISSN: 1229-988X

Keywords

Article
Publication date: 13 April 2018

Emmanuel Joel Aikins Abakah, Paul Alagidede, Lord Mensah and Kwaku Ohene-Asare

The purpose of this paper is to re-examine the weak form efficiency of five African stock markets (South Africa, Nigeria, Egypt, Ghana and Mauritius) using various tests to assess…

Abstract

Purpose

The purpose of this paper is to re-examine the weak form efficiency of five African stock markets (South Africa, Nigeria, Egypt, Ghana and Mauritius) using various tests to assess the impact of non-linearity effect and thin trading which are prevalent in African markets on market efficiency.

Design/methodology/approach

The weekly returns of S&P/IFC return indices for five African countries over the period 2000-2013 were obtained from DataStream and analyzed. The study adopted the newly developed Non-Linear Fourier unit root test advanced by Enders and Lee (2004, 2009) which allows for an unknown number of structural breaks with unknown functional forms and non-linearity in data generating process of stock prices series to test the Random Walk Hypothesis (RWH) for the five markets, and an augment regression model.

Findings

In light of the empirical evidence the author(s) using Non-linear Fourier Unit Root Test only fail to reject the RWH for South Africa, Nigeria and Egypt leading to the conclusion that these markets follow the RWH and weak-form efficient whilst Ghana and Mauritius are weak-form inefficient. Besides, evaluating non-linear models without adjusting for thin trading effect shows that, South Africa and Ghana markets are weak-form efficient while Nigeria, Egypt and Mauritius are not. However, after accounting for thin trading effect, the author(s) find that South Africa and Egypt markets follow the RWH. The findings imply that market efficiency results depend on the methodology used.

Originality/value

This paper provides further evidence on stock market efficiency in emerging markets. The finding suggests that thin trading and non-linearity effect influences markets efficiency tests in African stock markets. Thus, recent structural adjustment and liberalization policies have not enhanced stock market operations in Africa. This paper therefore has implications for policy makers and international investors.

Details

International Journal of Managerial Finance, vol. 14 no. 3
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 30 October 2009

Assandé Désiré Adom, Subhash C. Sharma and A.K.M. Mahbub Morshed

This paper aims to investigate the presence of currency substitution in eight African countries.

1102

Abstract

Purpose

This paper aims to investigate the presence of currency substitution in eight African countries.

Design/methodology/approach

This study investigates the presence of currency substitution in eight African countries – Egypt, Morocco, Nigeria, Ghana, Kenya, South Africa, Tunisia and Zambia – for the period 1976 to 2005 using both regional and US dollar as anchor currencies.

Findings

The paper finds that currency substitution is prevalent in Ghana and Nigeria when CFA franc is used as an anchor currency. However, when US dollar is used as an anchor currency there is no evidence of currency substitution in Ghana, but the presence of currency substitution in Nigeria is still observed. The paper also finds the presence of currency substitution in South Africa, but not in Egypt when the US dollar is the anchor currency. For Kenya, Tunisia and Zambia there is no evidence of currency substitution irrespective of the anchor currencies considered. In the case of Morocco, no evidence of currency substitution is observed when the Egyptian pound is used as anchor currency, but there is weak evidence of currency substitution when the US dollar is considered.

Originality/value

This paper provides useful information on the presence of currency substitution in African countries.

Details

Journal of Economic Studies, vol. 36 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 13 October 2022

Loubna A. Youssef

This paper aims to shed light on how children's literature in Africa deserves to be studied because African writers “decolonize” the minds of African children and children and

1178

Abstract

Purpose

This paper aims to shed light on how children's literature in Africa deserves to be studied because African writers “decolonize” the minds of African children and children and adults around the world.

Design/methodology/approach

This paper defines children's literature from an African perspective and the “decolonization of the mind.” This is done to examine how two African writers provide narratives for children inspired by their cultures. They deal with themes, characters and symbols that interest children and adults.

Findings

Achebe and Youssef crossed many borders: the world of children and adults, animals and humans, vice and virtue, supernatural and real. Their stories take the reader on journeys that involve enriching, engaging and inspiring adventures.

Research limitations/implications

Youssef and Achebe are prolific writers. Providing a survey of what is available in Arabic and Nigerian literature for children, is beyond the scope of this paper.

Practical implications

This paper sends a message to those in charge of the curriculum in schools in Egypt, the Arab countries, Africa and the world at large: decolonize the syllabi in schools because the world is not black and white. Literature for children that encourages critical thinking is available by African writers in Egypt, Nigeria and elsewhere.

Social implications

The works discussed show that African writers are creative, and their works inspire the African child with pride in his/her identity, culture and heritage.

Originality/value

To the best of the author’s knowledge, no one has compared Egyptian and Nigerian literature for children before. Youssef and Achebe provide evidence that “Good literature gives the child a place in the world … and the world a place in the child.” – Astrid Lindgren.

Details

Journal of Humanities and Applied Social Sciences, vol. 5 no. 3
Type: Research Article
ISSN: 2632-279X

Keywords

Article
Publication date: 1 January 2016

Mohammad reza Ghane and Mohammad Reza Niazmand

The study aims to monitor the status of open access (OA) journals published in Developing 8 (D-8) countries, i.e. Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan…

Abstract

Purpose

The study aims to monitor the status of open access (OA) journals published in Developing 8 (D-8) countries, i.e. Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.

Design/methodology/approach

The authors' web-based data sources for journal-based metrics were the Directory of Open Access Journals (DOAJ), Thomson Reuters (Journal Citation Reports [JCR], which provided journal impact factors [JIF]) and Scopus (source normalized impact per paper [SNIP] and SCImago journal rank [SJR]). The authors obtained information about journals published before 2000 to 2014. From the JCR, JIF, Rank in Category, Total Journals in Category, Journal Rank in Category, and Quartile in Category were used.

Findings

The authors' identified 1,407 OAJ published in D-8 countries. Egypt published the most journals (490) and Bangladesh the fewest (29). Egypt, Iran and Turkey accounted for approximately 73.5 per cent of all journals. At the time of study, 10,162 journals were registered in DOAJ, and 13.8 per cent of them were published in D-8 countries. The mean JIF for all journals from individual countries was highest for Pakistan (0.84), followed by Iran (0.74) and Turkey (0.57). The mean SNIP for all journals from each country was highest for Nigeria (0.57), followed by Egypt (0.57) and Pakistan (0.51).

Practical implications

The widespread use of OA publishing models in D-8 countries will boost accessibility of their journals’ content and ultimately impact research in D-8 states.

Originality/value

Journals published in Egypt, Iran and Turkey account for approximately three-fourths of all OA journals published in D-8 countries. More than one-third (38 per cent) of the journals the authors studied used a Creative Commons (CC) BY license, a hallmark of OA research findings. Most of the journals with a JIF were in the JCR Medical Sciences category (60 per cent). As the number of journals in D-8 countries increases, publishers should attempt to make their journals eligible for indexing in-citation databases. The authors recommend efforts to improve the quality of journals in other subject categories, so that as many as possible become eligible for indexing in JCR.

Details

The Electronic Library, vol. 34 no. 5
Type: Research Article
ISSN: 0264-0473

Keywords

Article
Publication date: 27 October 2021

Benedict Ikemefuna Uzoechina, Joseph Afolabi Ibikunle, Godwin Olasehinde-Williams and Festus Victor Bekun

The growth of both the informal sector and illicit financial outflows necessitated this study, in order to investigate how countries in Africa respond to these realities in terms…

Abstract

Purpose

The growth of both the informal sector and illicit financial outflows necessitated this study, in order to investigate how countries in Africa respond to these realities in terms of mobilization of domestic resources. These are the main motivation for the current study to the extant literature in conjunction with the adoption of employing second-generation econometric techniques which take into account cross-sectional dependence and country-specific heterogeneity.

Design/methodology/approach

This study therefore examined the capacity of Africa to mobilize domestic resources amidst rising illicit financial outflows and informal sector size in selected African countries between 2000 and 2018. Second-generation econometric techniques such as cross-sectional dependence tests, slope homogeneity tests, Westerlund (2007) long-run co-integration tests, Eberhardt and Teal (2010) augmented mean group estimations and Kónya (2006) panel causality testing were employed.

Findings

Findings revealed the existence of cross-sectional dependence and slope homogeneity in the data series. Findings also supported the existence of depressing long-run impacts of IFOs and ISS on domestic savings. Causality test results were not uniform across variables among countries. Policy recommendations favour formalizing the largely informal African economies through budgetary policy adjustments and commitment to building stronger institutions.

Practical implications

The fragility of the African countries economy and its macroeconomic indicators is suggestive for more policy construction.

Originality/value

This economic reality about the nature of the informal sector is one that has negated the traditional view which holds that economic reforms would make the informal sector shrink as it transits to formal sector. Experiences from Latin America and Africa in fact indicate that the informal sector is actually on an expansionary path in the wake of adjustment and policy reforms. It is often called the unobserved, unorganized or unprotected economy. With this sector growing in size, the possibility of a reverse may not be in sight, owing to the increasing poverty levels and unemployment prevalent in most African countries. Uncertain foreign investment and aid inflows coupled with lower export revenues and high levels of indebtedness have created new impetus to examine the capacity of Africa's fiscal policy regime to mobilise domestic resources for the development of the region. Surprisingly, the last decade witnessed continued rise in Africa's illicit financial outflows amidst large informal sector size (ISS).

Details

Journal of Economic and Administrative Sciences, vol. 39 no. 4
Type: Research Article
ISSN: 1026-4116

Keywords

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