Browsing by Author "Marwa, Nyankomo"

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    An Analysis of the Profitability of Savings Groups in South Africa
    (2019) Muroyiwa, Mildreat; Biekpe, Nicholas; Marwa, Nyankomo
    This research investigated the factors that determine the profitability of Savings Groups in South Africa using the Ordinary Least Squares model (OLS). Over the years, savings groups have increased their reach within the rural poor in South Africa who are often not reached by financial services. Financial inclusion has been a topical issue in South Africa over the past two decades due to the legacy created by apartheid, which deliberately excluded much of the population from economic participation. Specifically, the research analysed savings groups specific factors such as number of members in a group, savings as a percentage of loans outstanding, average annualised savings per member, total savings among others and how they affect profitability which is proxied by, return on assets (ROA) and return on savings (ROS). The sample data was made up of purely of secondary data from 31 projects representing 3477 Savings Groups in South Africa, that with a total membership of approximately 66 911 and was extracted from the Savings Groups International Exchange (SAVIX), an international data platform. The data used was annualised cross-sectional data. The main findings were that, total number of members (TNM) and total assets (TA), are positive and significant in explaining return on assets (ROA), while total number of groups (TNG), and total savings (TS) are negative and significant in explaining return on assets (ROA). When return on savings (ROS) was used instead as a dependent variable, total number of members, and total assets remained positive and significant in explaining return on savings. Total number of groups, total savings, total value of outstanding loans, dropout rate and average number of members per group were all significant but negative in explaining return on savings. All other variables were insignificant for both dependent variables. Return on assets and return on savings were both adopted as profitability measures in the study to cater for the possible differences in constitution of the two variables. Also considering that the research was based on savings groups, it was deemed suitable to see if the independent variables posed any significant effect on the core business of the groups, which is savings. The study contributes to the currently limited literature on profitability of savings groups. The results show that there could be some factors that can be manipulated to enhance the profitability of savings groups hence the results can inform policy formulation and regulation. The results also give an indication that some of the factors that affect the profitability of banks may also be the same for savings groups.
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    The effect of housing micro-finance on household welfare
    (2017) Sobukwe-Whyte, Akyere Andiswa; Biekpe, Nicholas; Marwa, Nyankomo
    The affordable housing crisis in South Africa has created a need for better quality and efficient housing alternatives. The aim of this research is to identify how housing microfinance contributes towards improved living conditions and welfare of low-income households through a case study analysis. Data was collected from employees and beneficiaries of Ikhayalami's loan finance programme using observations, pictures and semi structured individual interviews. Data was analysed for content with the aim of interpreting emerging trends and concepts. The findings reveal a significant positive effect via an increase in community status and housing conditions. If afforded sufficient infrastructure and support – housing microfinance has the potential to grow in scale and move developmental objectives forward.
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    Factors affecting access to finance by Smallholder Farmers in Zambia
    (2019) Siwale, Mwaya; Biekpe, Nicholas; Marwa, Nyankomo
    About seventy-seven percent of Zambia’s citizens who are engaged in primary activity in the agriculture sector are poor (Economies, 2017). One of the ways in which the poverty levels can be reduced is by lessening constraints of access to finance in agriculture sector. The implications of the low access to credit in the agriculture sector is reduced productivity, high food insecurity and perpetual poverty particularly in Zambia’s rural areas. Most of the studies conducted focused on identifying factors which limit participation in agriculture finance from the bank’s perspective and not farmers. Therefore, this study sought to fill the gap and assess variables directly related to smallholder farmers access to finance. It further examines the dynamism of access to finance depending on location, gender and transport infrastructure. The data employed in the study was obtained from a survey conducted in 2013 by IAPRI and UNZA with a sample size of 1,231 households in six districts of Zambia. Agricultural credit for small holder farmers (SHFs) in rural areas is mostly provided in the form of cash or in kind through supply of inputs to these SHFs. This data was modeled based on the logistic regression. The results showed that 14.1% of the SHFs had access to finance. Among these farmers only 13% were female. In addition, secondary education, access to finance information, farm size, access to collateral and distance between the location of the farmer and the financial services, were significant factors in determining access to credit. A recommendation proposed to policy makers based on results presented include sensitization on various finance facilities available to rural farmers so that they are aware and can make necessary efforts to access the finance. Rural education is directly related to access to finance, therefore government should promote education for its citizens. Lack of collateral has been identified as a factor that gravely hinders access levels by most. Government should implement standardized policies that ensure availability of credit to farmers with little or no collateral. In conclusion, improved credit permeation in agriculture sector promotes sustainable and inclusive growth in Zambia and will eventually eradicate absolute poverty.
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    Understanding the Role of Foreign Direct Investment in the Economic Development of South Africa
    (2020) Mathlako, Dineo; Biekpe, Nicholas; Marwa, Nyankomo
    The focus of the study is to explore on the role of Foreign Direct Investment (FDI) in the Economic Development of South Africa. South Africa is a developing country and, just like other developing countries around the world, it requires FDI for its socio-economic and political development. Using the quantitative research methods, and following the descriptive analysis of data gathered from a questionnaire, the study is presented based on the relevant information gathered on the role of FDI on Economic Development of South Africa. This study found that FDI plays an important part within South Africa. Firstly, the study gathered information about factors that impact on the flow of FDI within South Africa. Amongst these factors there is the political nature of the country in which more stable political environment and the investment policies. FDIs within South Africa are a source of external capital which can lead to economic development. Furthermore, within the country, the study concludes that FDI leads to increased revenue and to the development of new industries. Technological advancements have also been brought about by FDI leasing to the socio-economic development of South Africa. The study however concludes that within South Africa, FDI can be a hindrance to domestic investment since it challenges the survival of domestic industries. The thrust with FDI is the focus on resources and capital elsewhere other than the investor's home country. In this regard, FDI has a negative impact on the country's investment. Ideally, the rules that govern foreign exchange rates and investments negatively impact on the investing country. The study therefore recommends the adjustment of investment policies that attract investments, such as policies promoting fair business practices.