Masters

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Open Access
Alternative financing of teacher education in South Africa: Stakeholder affinity
(2018) Saba, Namhla; Kabinga, Mundia
Adequately prepared quality Maths and Science teachers are crucial to addressing South Africa’s poor learner results and the associated skills development shortages. South Africa has been characterised by dismal and worsening matric SMT results over the past two decades, which jeopardises current and future prospects of a successful transitioning in the fourth industrial revolution. Critically underpinning this dismal performance are teacher quality and quantity. South Africa’s public education sector is known for its ill-prepared and unqualified teachers who struggle specifically with contextual application abilities. While past scholarly research and policy interventions have focused on financing teacher education quantities with considerable success, little if anything has been documented about innovative project financing approaches to quality teacher training, and the potential for wholesale adoption in social entrepreneurship, public-private partnerships in resource constrained contexts. SIBs were identified as a potential complementary finance model mainly due to identified characteristics and associated benefits. A qualitative study was conducted in order to find out how South African stakeholders can navigate the operational and associated financial challenges of developing quality Maths and Science teachers for the public sector. The study, limited to the capacity building dimensions of teacher training in South Africa, endeavored to understand how alternate financing mechanisms could respond to some of the key challenges of developing quality teachers. Interviews were conducted with the relevant participants in a SIB which included Education government representatives, teacher training service providers and private sector financiers. The research identifies that the value of implementing a SIB in teacher training is based on its ability to accommodate heterogeneous outcomes of an alternative holistic teacher training framework. This models strength lies in its reliance on strong partnerships for both implementation and financial outcomes. The SIB model finds its theoretical framework in project finance and has characteristics that can be seen as complementary solutions to the key challenges of developing teachers as well as a potential solution for wholesale implementation. From an operational perspective, the SIB creates a platform for the public educations lack of quality teacher infrastructure to leverage off private education’s quality teacher infrastructure in capacitating current and incoming teachers into the public sector. Thus allowing for the education sectors to collaborate and cross pollinate skills, resources and knowledge for the benefit of boosting the public sectors teacher training implementation capabilities. This ensures that the right skills, competencies and platforms are utilised in tackling challenges emanating from insufficient, irrelevant and unsupported experiential learning. The model also places outcomes at the centre and as a driving force for quality teacher delivery. This encourages stakeholders to earnestly consider quality teacher characteristics and include the associated key performance indicators at the different stages of development. This shifts the focus of teacher training delivery in South Africa to being outcomes driven rather than being inputs focused. This shift has proven to be a more cost effective method of addressing social challenges. From a financial perspective, once the requirements from public and private financial sectors have been met, the model also taps into new capital sources for scaling the implementation of a holistic teacher training model. The additional resources also enables government to introduce social entrepreneurs into education delivery and scale funding innovative preventative teacher training solutions. The PPP model is not without its challenges within the South African teacher education landscape. However conceptually, all the stakeholders appear keen to further engage and explore the merits of the holistic quality teacher framework, representing an emerging opportunity towards collaborative efforts in lure of a common social goal. Factors such as the alignment of objectives amongst stakeholders and additional revenue streams were identified as dominant stakeholder incentives affirming the desire to engage. Meanwhile, factors such as challenges with quantifying and measuring teacher quality, implementation and execution risk, and trust deficit issues were identified as dominant challenges that highlighted stakeholder key reservations with the framework.
Open Access
Assessing the Principal Agent Problem in Mobile Money Services: Lessons from M – PESA in Lesotho
(2018) Thabane, Matela; Biekpe, Nicholas
The expansion and diffusion of mobile phones globally has resulted in the provision of financial transactional services over the existing mobile phone platforms, generally referred to as mobile money. The supply end of mobile money services is an important factor in the success of the financial transactions offering. This research assessed vulnerabilities in the mobile money supply network that are inherently related to the existence of the principal – agent problem and their implications on availability and access to the services. The research study was conducted using a qualitative approach. Qualitative information was collected through interviews guided by open – ended questionnaires. Thematic analysis approach was followed to systematically analyse the data and generate findings of the study. Agent transactional data was analysed to complement the findings from qualitative analysis The findings suggest that the principal agent problem permeates the mobile money delivery network mainly after businesses joining as agents and manifests as moral hazard. Moral hazard is the dominant feature of the principal – agent problem, with adverse selection very low. Drivers of moral hazard are demonstrated by the influences and demands of agents’ core businesses and challenges in agent monitoring and training. The existence of the principal – agent problem has limited or no implications on access and availability of services. However, overtime the combined vulnerabilities identified related to the principal agent problem are likely to manifest into risks that are likely to affect access and availability of mobile money services. Regulators, Mobile Network Operators and agent enterprises must collectively review monitoring approaches for mobile money service providers to address challenges identified and increase the effectiveness of monitoring. Service provision standards should be reviewed to suit the various business environments the services are provided within. Mobile Network Operators and agent enterprises need to institute stronger partnership arrangements that enhance ownership and obligations for all parties, in particular agent enterprises. Agreements must enable application of different mobile money delivery models suitable to meet the demands and requirements of the agents’ core businesses. Innovations such as Near Field Communication (NFC) can be integrated with Point of sale (POS) applications and mobile money platforms to reduce the administration burden on agents and human error. Such applications must consider the cost implications of adoption from the agents’ business perspective.
Open Access
The causal relationship between road transport infrastructure development and economic growth in Namibia (1990-2014)
(2018) Mungendje, Louis; Alhassan, Abdul Latif
The major aim of the study was to examine the short and long-run relationships and directional causality flow between road transport infrastructure development and economic growth in Namibia for the period 1990-2014. To achieve this objective, the study adopted the auto regression distributive lag (ARDL) Bounds testing approach to co-integration, to examine the short-run and long-run relationship between economic growth and transportation infrastructure in Namibia. The data was sourced from the World Bank Database on GDP from 1990 to 2014, the Namibia National Planning Commission MTEF (Medium-Term Expenditure Framework from 1990-2015) and the Roads Authority Annual Reports from 1999 to 2014, which were imported into the E-view tool to run quarterly regressions from 1990 - 2014. The results confirm a relationship among the variables. The Bounds test results indicated that there exists a long-run relationship among the variables under study. The estimated long-run model showed that there is a statistically insignificant positive relationship between expenditure on road transport and economic growth as well as between information communication technology and economic growth in Namibia. However, the short-run model revealed a positive and statistically significant relationship between expenditure on road transport and economic growth. Conversely, both the long-run and short-run estimates showed a statistically insignificant and negative relationship between foreign direct investment and economic growth. Lastly, the Granger causality test results showed no causality between expenditure on road transport and economic growth in Namibia. The present study offers fresh insights to policy makers on crafting appropriate policies to regulate tax consolidation revenue and infrastructure levies collection; secondly, to boost public sector borrowing on international capital markets through bond issues, infrastructure funds and revenue bonds; thirdly, to develop partner financing business models through sector budget support; fourthly, to secure private sector financing through a private debt, private equity or capital structure leveraging business model; and lastly, implementing fast-tightened fiscal and monetary policy measures on foreign direct investment which currently severely affect Namibian capital outflows.
Open Access
Cognitive outcomes in adults with HIV-associated Tuberculous Meningitis
(2017) Albertyn, Christine Herculine; Solms, Mark; Marais, Suzaan; Gouse, Theta; Bateman, Kathleen
Tuberculous meningitis (TBM) is a common cause of meningitis in adults in South Africa (1-3), second only to cryptococcal meningitis in studies of microbiologically confirmed meningitis, and accounting for 28% of cases in one (1). Conventional diagnostic tests for TBM are, however, relatively insensitive, and the true incidence is likely to be underreported. When both microbiological and clinical diagnostic criteria (4) are used in the same setting, the incidence of TBM rose to 57% (3), emerging as the most common cause of meningitis in adults in a district level hospital in the Western Cape. In the setting of high human immunodeficiency virus (HIV) and tuberculosis (TB) prevalence, approximately 88% of patients with definite or probable TBM are co-infected with HIV (3, 5) and six-month mortality in this group approaches 50% (3). Survivors may be left with long-term disability secondary to hydrocephalus, cranial neuropathies, seizures and strokes (6).
Open Access
Colonial architecture as heritage: German colonial architecture in post-colonial Windhoek
(2018) Ruhlig, Vanessa Jane; Townsend, Stephen
The rapid post-Independence development of the city of Windhoek, Namibia; and the ensuing destruction of a substantial number of German colonial buildings in the capital city, prompted speculation as to why these buildings are inadequately protected as heritage – and whether they are, in fact, considered to be heritage. The study explores the issues pertaining to the presence of German colonial architecture, as artefacts of the German colonial period, within the postcolonial context of Windhoek. The trauma and pain of the Namibian War and genocide (1904 – 1908) are recurring themes in the body of literature on postcolonial Namibia; and this informs a wider discourse on memory. Memory is found to play a crucial role in evoking a sense of both individual and shared ownership, through its capacity to create meaning, which can in turn ascribe value to a place. Memory is also dependent on visual cues for its continued existence, which suggests the importance of colonial architecture as a material prompt to sustain memory. The research therefore investigates the memories and multiple meanings attributable to colonial architecture in this plural society, and how these meanings can be created, or possibly reinvented, through the continued use of these buildings. The study is based on an assessment of three halls in Windhoek – the Grüner Kranz Hall (1906), the Kaiserkrone Hall (1909), and the Turnhalle (1909; 1912), all designed by the German architect Otto Busch – which illustrates in part, the need for the development of historical building surveys that assess the social values and significances of these contested spaces; and moreover, the potential that these spaces have to support memory work through their continued use.
Open Access
Corbelled Buildings as heritage resources: in the Karoo, South Africa
(2018) Hancock, Caroline; Townsend, Stephen
The primary aim of this study was to determine who claims the corbelled buildings in the Karoo as their heritage and why. Through the use of vernacular architecture and heritage identification theory, interviews and research it is clear that the buildings are significant and a heritage resource. Their significance lies in their historical, social, aesthetic, symbolic and cultural values, as well as their unique vernacular construction and limited distribution. The corbelled buildings as vernacular buildings are part of the natural landscape which the local community associate as part of their identity and heritage. The buildings also possess academic and historical potential as they have the potential through further archaeological and vernacular architectural research, to provide more information on the northern frontier during the late 18th and early 19th centuries, a time that is not well recorded or documented. The buildings were built in 19th century along the ‘open’ northern frontier where there was intermingling and creolisation of people from different economic and social groups. As a result, they cannot be claimed by a single group of people in the present. The vast range in types and styles of corbelled buildings indicate that they were built by most people living in the area. They can therefore, be claimed by everyone who lives in the area today. They can also be claimed as national heritage as they possess values that are common to the whole country.
Open Access
Determinants of exports in Zambia’s Manufacturing Sector
(2018) Mwiinga, Mwiinga; Biekpe, Nicholas
The cyclical price movements of primary products exported from Zambia has placed the country at a disadvantage. This stems mainly from the fact that lower prices of primary commodities have had negative effects on the balance of payments and the developmental agenda of the Zambian government. It is therefore important that efforts are made by the government to move towards supporting product sophistication, primarily focusing on the growth of industries that offer the greatest possible impact. In this regard, the growth of the manufacturing sector becomes of the utmost importance. This is mainly because the more the manufacturing sector is developed, the greater the technological transfer which will in turn facilitate product sophistication. This will also mitigate the dependency on exports of primary commodities such as copper, and make the economy less susceptible to cyclical price movements of primary commodities. It was therefore important that the study investigated the determinants of export performance in Zambia’s manufacturing sector. Variables analysed included Foreign Direct Investment (FDI), inflation rate, exchange rate, Gross Domestic Product (GDP) and lending rates. The study utilised the Ordinary Least Square (OLS) and the Auto Regressive Distributive Lag techniques to capture the dynamic relationships. The results revealed that Inflation and FDI were statistically significant. It was further observed that inflation was negatively related to exports in manufacturing sector. FDI, on the other hand, was positively related to exports in the manufacturing sector in the long run. GDP and lending rates were statistically insignificant, which could be as a result of the openness of the economy and low productive capacity. One of the key recommendations made was for government to effectively manage its policies in a way that maximises FDI inflows, whilst minimising inflation to effectively create a favourable macroeconomic environment for the sustained growth of the manufacturing sector. It was further observed that FDI, GDP and Inflation rate jointly affected exports in the manufacturing sector, therefore confirming that the three variables do have a joint effect on exports in the long run.
Open Access
Does public debt spur or hinder economic growth in Zambia?
(2018) Siyanga, Malumo; Gossel, Sean
This study investigates the relationship between public debts and economic growth in Zambia using ARDL analysis covering the period from 1970 to 2015. The results confirm the existence of the long run relationship between public debt and economic growth but the relationship is found to be negative and insignificant both in the short and long run. In addition, the results indicate that both the debt overhang and crowding out effects occur in Zambia. The study recommends that the government should develop a debt management policy, improve macroeconomic management, borrow prudently, improve project appraisal and selection, investing in productivity-enhancing projects, encourage diversification and promote export-growth.
Open Access
The effect of sovereign debt on Capital inflows to Zambia
(2018) Lunda, Mutinta M; Gumede, Lungelo Linda
Over the last 10 years, many Sub Saharan countries have tapped into the international market to issue sovereign bonds to boost economic growth and attract additional foreign direct investments. Funds obtained have been used for large infrastructure projects and easing of balance of payments to name but a few. Zambia between the years 2011-2015 borrowed heavily on the international market totaling just around US$ 4 billion in Eurobonds to drive jobs and fill gaps in essential infrastructure in the energy and health sectors. Financing of large infrastructure projects had been a main topic for governments in Zambia and the local market did not have the capacity. Upon receiving its sovereign rating, Zambia saw the international bond market as an avenue. Accessing of the international bond market for African nations had grown noticeably due to eased financial conditions on the global market. Thirteen countries had tapped into the international markets by the end of March 2014 for various reasons which mostly included economic growth. Many market players have kept a close watch on the rising debt levels particularly in sub Saharan Africa to ensure that it does not reach levels similarl to those of HIPC. In 2005, Zambia’s debt stood at US$ 5.4 billion which was unsustainable and represented 74% of Zambia’s GDP and approximately 208% of export earnings (IHS Global Insights, 2014). Having their debt relieved by the IMF and World Bank in 2006 reduced their debt burden to around 25% of GDP. Following that, the Zambian government in 2012 issued its first Eurobond and borrowed excessively in the years to follow that the debt to GDP ratio reached almost 40%. Coupled with that, Zambia experienced a reduced price in its major export commodity copper and a tumbling exchange rate. It has become clear that access to international capital markets and high levels of public debt has made the Zambian economy more susceptible to shocks and leaves them vulnerable and does not achieve desired goals of growth and does not encourage foreign direct investment through capital inflows. This paper examines the effect of capital inflows to Zambia as a result of rising public debt levels. It focuses on the impact of Zambia’s sovereign debt on capital inflows for a period of 15 years (between 2000 and 2015). The findings suggest an inverse relationship between sovereign debt and capital inflows. The findings also suggest a positive relationship between a countries international reserves and capital inflows. These relationships were found to be significant which suggests that external debt could influence capital inflows to Zambia.
Open Access
An examination of the role of the Public Library in Cape Town, in support of Early Childhood Development, with special reference to Harare Public Library, Khayelitsha
(2017) Fako, Sipho; Nassimbeni, Mary; Bitso, Connie
The purpose of this study was to investigate the role of the Harare Public Library, Khayelitsha, in empowering Early Childhood Development Centres (crèches and nursery schools) in its community. The researcher focused on the relationships the library has with Early Childhood Development Centres in its community, and the non-profit organisation (NPO) providing educational services. It is argued that the provision of ECD will help reduce the cycle of poverty by strengthening the educational foundation of South Africa’s children. The main finding of the study is that strong relationships between libraries and other community stakeholders are critical in offering a better future for the children of disadvantaged communities.
Open Access
Exploring the capital investment practice of mining corporations in Namibia
(2018) Iiyambo, Hilma Naleshemunyenga; Zolfaghari, Badri
Namibia is a country rich in minerals, and this has attracted both national and international investors to the mining industry in the country. The mining sector is a capital-intensive industry that calls for long-term investment. Capital investment is a long-term economic venture that requires and consumes a lot of resources, for example, the purchase of fixed assets, such as land, machinery, and buildings (Ward, 2013). Capital investment in the mining sector is risky because of various uncertainties that include among others, political risks, environmental risks (geological), fluctuations of mineral prices on the world market, changes in fiscal policies, and the depletion and exhaustion of mineral resources. Generally, risks associated with technical and commercial aspects have always been high in the mining sector (Bhapu, 2005). Because of the risky nature of the mining sector, companies venturing into a mining project need to adopt comprehensive capital investment practices that realise the return on capital, taking into cognisance all risks that could jeopardise and frustrate the ambitions of the promoters, shareholders and various stakeholders, which include the government, downstream industries and the local community. The aim of this study was to explore capital investment practices of mining corporations in Namibia focusing on the five large mining companies. The purpose was to identify gaps between investment practice and investment theory that might have a long-term impact on mineral dependent national economies, development finance for local community sustainable development and the return on capital to investors. Since large-scale mining demands large capital investment that requires proper long-term planning for the realisation of return on capital, it has been found necessary to purposively select five largest mining corporations for the study. The mining organisations involved were De Beers Marine, Rosh Pinah, Rössing, Tsumeb Corporation and Navachab. The study employed an exploratory qualitative research approach to explore the capital investment practices of five major mining operations in Namibia that generate more than 95% of the mining income. The study employed the qualitative research in order to obtain a deep understanding of capital appraisal methods used and get reasons why they are used. Purposive sampling was used to select five participants for the survey. The collected data was assessed and analysed using thematic analysis. The analysed data was converted into tables and bar charts. The tables and bar charts of analysed data are presented as findings in chapter four of this study. The results show that five of the mining organisations use Net Present Value to conduct capital investment appraisal and a similar number uses the Payback Back Period. Two of the mining organisations use IRR and one uses ARR for capital investment appraisal. It was further found that mining organisations surveyed factor in development finance in their capital budgeting process but experience unforeseen incidences when it came to implementation. Finally, it is recommended that the Government of Namibia together with various stakeholders consider and incorporate development finance in their capital investment appraisal and capital budgeting for sustainable development.
Open Access
Foreign Aid and Economic Growth in Sub Saharan Africa
(2018) Chilinkhwambe, Tamara; Alhassan, Abdul Latif
This paper seeks to examine the relationship between foreign aid and economic growth in Sub Saharan Africa (SSA). The study is based on a sample of 21 ‘low income countries’ as defined by The World Bank, and used data covering a 25 year period from 1991 to 2015. The variables in the study are; growth measured by Gross Domestic Product (GDP) per capita as a dependent variable, foreign aid which is represented by Net Official Development Assistance (NODA); macroeconomic variables are trade openness, government capital formation and labour force. The study seeks to answer the question: Does foreign aid contribute to economic growth? The study explores the hypothesis that foreign aid does not promote economic growth in Sub Saharan Africa. To empirically investigate the hypothesis, the approach taken was similar to that of Durbarry, Gemmell, & Greenaway (1998) by employing panel data techniques and crosssection methods and utilized the augmented Fischer-Easterly type model. Similar to Durbarry, Gemmell, & Greenaway (1998), the study sought to identify not only aid effects on growth using a set of conditioned macroeconomic policy variables, but also to test the significance of this set when aid is included as one of the determinants of economic growth. Given that the study employed panel data, the Hausman Chi-Square test was utilized to determine whether to use fixed effects or random effects model. The results favoured fixed effects over random effects hence the model was adopted for empirical analysis. The study finds macroeconomic policy variables (gross capital formation and labour force) have a positive impact on economic growth, and trade openness has a negative impact as measured by annual GDP growth. These results support the theory which argues for the important role labour and capital play in the economic growth of a country. The results also show that foreign aid has a weak positive correlation to growth. These results are significant at 5% error level hence the hypothesis is rejected and it is concluded that foreign aid promotes economic growth in Sub Saharan Africa. Further analysis of time effects test suggest that being in a specific time period has got an impact on growth in Sub Saharan Africa and country effects results indicate that being in a specific country does not have effects on economic of the growth of the country.
Open Access
Gender inequality and its impact on economic growth: a study of the relationship between gender inequality in employment, education and growth in South Africa
(2018) Ruiters, Michele; Alhassan, Abdul Latif
This thesis explores the impact that gender equality in employment and education in South Africa has on the country’s Gross Domestic Product (GDP) growth on a quarterly basis from 2008 – 2017. The hypothesis is that gender equality in employment and education will impact economic growth in South Africa because the inclusion of women as economically active and educated equals will have a direct impact on the economy. The Autoregressive Distributive- Lag (ARDL) model is used to quantify the long run relationships between the dependent (economic growth) and independent (women’s employment and education levels) with Granger causality tests used to examine short-run causal relationships between the variables. The study discovered that women’s employment and the combined variable of women’s education and employment have an impact on GDP growth. However, women’s education does not have a significant impact on economic growth. It is also found that women’s employment has an impact on women’s education but the reverse does not hold. The results from this study inform employment and education policy in South Africa and ensure that women and men have equal access to labour markets and schooling. The objective is to facilitate the equal contribution of men and women to economic growth.
Open Access
Good governance as key to the flow of foreign development aid: the sub-Saharan Africa perspective
(2018) Gezimati, Robinson; Alhassan, Abdul Latif
The aim of this study was to evaluate the importance of good governance to the flow of foreign development aid. The researcher used the sub-Saharan Africa region to accomplish the aim of his study. The study examined the extent to which foreign development aid has been targeted at countries with sound governance systems, that is, strong institutions and policies. This study therefore determined whether the flow of foreign development aid in sub-Saharan African developing countries has changed since the endorsement of the “Monterrey Consensus” by targeting those countries with sound economic institutions and policy environments. Empirical and theoretical literature was reviewed on foreign development aid as well as governance systems especially the Ibrahim Index of African Governance (IIAG), which was discussed and used in this study as the governance indicator system. The study’s results and findings were deduced from secondary data which addressed the governance indicators in sub-Saharan Africa for 2010 to 2015, gathered from the IIAG assessment reports of 12 selected sub-Saharan African countries as well as the amount of foreign development aid received by each of the countries during the same period gathered from OECD and World Bank statistics. Additionally, inferential analysis was undertaken using the Spearman’s correlation test as well as a multiple linear regression analysis to establish the relationships and/or impact of the governance indicators on the flow of foreign development aid to sub-Saharan Africa. The study concluded that the combined effect of all the governance indicators have a statistical significant effect on the flow of foreign development aid to developing countries in sub-Saharan Africa. Individually, Participation and Human Rights indicators as well as Sustainable Economic Opportunities indicators have a positive effect or impact on the flow of foreign development aid in sub-Saharan African countries, with Sustainable Economic Opportunities indicators having the highest impact. However, Safety and Rule of Law indicators were discovered to have a negative effect on the flow of foreign development aid in sub-Saharan Africa whilst Human Development indicators were discovered not to have any effect or impact. On the other hand, the study also noted that in further determining allocations funding agencies may consider a country’s Safety and Rule of Law indicators as well as Human Development indicators whilst Participation and Human Rights indicators and Sustainable Economic Opportunity indicators were seen not have any significant effect on determination of funding allocations.
Open Access
The impact of stock market performance on economic growth in Malawi
(2018) Ng’oma, Diana Kisyombe; Charteris, Ailie
This study investigated the causal relationship between the performance of the Malawi Stock Exchange (MSE) and economic growth in Malawi using quarterly data for the period 2003 to 2017. Stock market performance was measured using four indicators: the all share price index, total stock market capitalisation, stock market liquidity, and the number of shares traded. Economic growth was measured by real Gross Domestic Product (GDP). The Autoregressive Distributed Lag (ARDL) model was used to test for the existence of a long- run co-integrating relationship between the variables, while Granger causality tests, impulse response functions and variance decomposition analyses were employed to examine the short- run dynamics. The co-integration tests found no evidence of a long-run relationship between real GDP and all measures of stock market performance. However, there was evidence of the existence of shortrun relationships, with a positive and significant contemporaneous relationship noted between real GDP and stock market capitalisation and a negative and significant relationship between real GDP and market liquidity. The Granger causality tests revealed the following intertemporal relationships: bidirectional causality between real GDP and stock market liquidity and unidirectional causality from stock market capitalisation to real GDP and changes in the all share price index to real GDP. The impulse response functions and variance decompositions further revealed real GDP reacts highly to a shock in market capitalisation than to other variables and a shock in real GDP causes a higher fluctuation in liquidity than in any other variables. The findings of this study thus show that there is short-term causality between the performance of the MSE and economic growth in Malawi albeit that no long-run relationship exists. In light of these results, specific policy recommendations are provided for various stakeholders so as to enhance economic growth in Malawi. Suggestions for future research are also given.
Open Access
Impact of the global financial crisis and its implications for the Zambian banking sector: an econometric study
(2018) Sichula, Mwembe; Mukuddem-Petersen, Janine
The research examines how the banking sector in Zambia faired in the wake of the global financial crisis, and the ensuing global recession that followed. Even prior to the crisis, weaknesses within the Zambian Banking sector were already identified by a World Bank/IMF financial sector assessment. The research therefore aims to gain a better understanding of the potential destabilizing factors to the Zambia Banking sector, and provide key players (Policymakers, Regulators and Banks) with knowledge on how best to manage and overcome these adverse effects, in times of a financial crisis. A Vector Error Correction Model (VECM) is estimated using commonly identified macroeconomic and banking sector indicators from selected Anglophonic African countries that were affected by the crisis at the time. The selected variables include, Return on Assets (ROA); Non-Performing Loans (NPL); Foreign Assets (FA); Interbank Lending Rate (IBLR); Liquidity (LQD); Credit to Private Sector (PRV); Foreign Exchange Rate (FOREX); Inflation (INFL); Copper Price (CU); and a ‘dummy’ variable (CRISIS). The direction of causality between the variables is further established using the VAR Granger Causality Test. Results of the model suggests that although the CRISIS was found to cause the ROA, it had no significant effect on its outcome, implying that overall the crisis had very little effect on the Zambian banking sector’s profitability. It was the liquidity (LQD) variable instead which was found to have a significant effect on the ROA. In times of a financial crisis, it is therefore recommended that policy makers and regulators apply more stringent regulatory and monetary policy instruments. This would counter the adverse effects on the liquidity and profitability of the Banking sector, and thus ensure its stability.
Open Access
Investigating the effects of dollarization on economic growth in Zimbabwe (1990-2015)
(2018) Nemaramba, Nhongerai; Charteris, Ailie
This research presents a comprehensive analysis of Zimbabwe’s adoption of a basket of foreign currencies as legal tender and the resultant economic effects of this move. Upon adoption in 2009, Zimbabweans were optimistic about the future as they thought the multicurrency regime would bring a more stable economy. Eight years down the line, it is prudent to evaluate whether this optimism was justified in terms of the effect of the policy on the Zimbabwean economy. An econometric model was applied in this study to investigate how dollarization and the other macroeconomic factors impacted on economic growth. The findings of the study show that most macroeconomic indicators improved as a result of dollarization. The average economic growth rate, as measured by growth in gross domestic product, was -5.22 per cent for the period before dollarization (1990 to 2008) and 14.83 per cent for the dollarized period (2009 to 2015). The difference in average growth rate is 20.05 per cent and is statistically significant at 1 per cent. This implies that the average economic growth rate improved by 20.05 per cent after the economy was dollarized. The average GDP per capita improved during dollarization by $278.78 and this difference is statistically significant at the 1 per cent level. Foreign direct investment inflows per capita improved from the pre-dollarization average of $5.40 to an average of $20.89 during the dollarized period, with this difference statistically significant at the 1 per cent level. Inflation declined substantially from over 230 million per cent to an average of less than 1 per cent during the dollarized period. However, despite a significant improvement in some macroeconomic variables, Zimbabwe’s debt increased during dollarization. The results from the regression model of economic growth on its determinants further show that dollarization improved economic growth. In the absence of a dummy variable for dollarization, economic growth is influenced by population (statistically significant at 10 per cent), literacy (statistically significant at 5 per cent) and inflation (statistically significant at 1 per cent). However, with a dollarization dummy, growth becomes a function of inflation (statistically significant at 1 per cent) and dollarization (statistically significant at 10 per cent). The findings generally indicate that dollarization has improved economic growth. They point to the policy implication that a control of inflation to reasonable levels is crucial for economic growth. The policy implications for such findings are discussed in the study
Open Access
Mobile Money Provision and Adaptation in a Multicurrency Economy: The Case of Zimbabwe
(2018) Nyaruwata, Tinashe; Kabinga, Mundia
Mobile money has been regarded as a catalyst for financial inclusion in developing areas where traditional banking is limited. This research provides a critical assessment of the factors that facilitate or impede the provision of mobile money services in a fragile multicurrency economy, in particular, Zimbabwe. It explores how mobile money providers adapt to the fragility of the economy and what needs to be done to broaden mobile money uptake and performance in same environment. The study employs a qualitative and multiple case study approaches to understand mobile money business models in three mobile network operators in Zimbabwe. Research findings revealed that MNOs have developed MNO led approaches which are slowly migrating to collaborative models thereby greatly enhancing financial accessibility for the mass traditionally unbanked. With reference to the first sub question it was established that the multicurrency regime enabled remittance and withdrawals aspects of mobile money in Zimbabwe as during the 2016/2017 cash shortage era high demand in local and international money transfer was backed by the rise of a supportive role from the Central bank and Public Finance authorities. Most people were more favourable to mobile money transfers and banking which offered more control to customers since they negatively viewed traditional finance entities following a series of local bank collapses. On the downside, challenges of obtaining cash in the country that is illiquid reduced agent network and affected the confidence in mobile money deposits and withdrawals as mobile money customers were used to handling cash. In addition the lack of interoperations amongst the service providers significantly affected effective uptake of mobile banking. The research shows that use of collaborative approaches suggest the ability to adapt and adjust a model based on the prevailing conditions and customer needs and wants by MNOs. With reference to the third question it was recognised that mobile money can succeed in a multicurrency ecosystem when a focused and coordinated approach to fundamentals is applied to properly deal with the challenges that come with shifting from a cash economy to a digital ecosystem.
Open Access
Molecular and Kinetic Characterisation of wild type and mutant Porphobilinogen Deaminase
(2016) Pienaar, Elaine; Meissner, Peter
The purpose of this dissertation was to provide an overview of acute intermittent porphyria, focussing on the structure and function of the enzyme, porphobilinogen deaminase (PBGD), as well as experimentally demonstrating the use of kinetic, structural and thermodynamic approaches to shed light on the enzyme reaction. The key focus was to investigate the effect of three mutations of the active site lysine 98 residue (K98) on the enzyme’s stability and mechanism. Two clinically relevant PBGD mutants, the K98E and K98R were expressed. Both of these mutants have previously been described in patients. We engineered and expressed an additional mutant, K98A, in order to investigate the effect of charge at this residue. The K98E, K98R and K98A recombinant proteins were successfully engineered, expressed and purified. These mutations were kinetically characterised, and the low enzyme activity supports the fact that the K98E and the K98R are known-disease causing mutations. The negligible activity of the K98A and K98R mutants was predicted as a result of a loss of DPM co-factor binding, which was analysed and proved with a co-factor spectral shift assay. Further attempts to examine the interaction of co-factor binding involved removal of the bound cofactor from wild type enzyme, in order to investigate the possible interaction of the ‘apo’- enzyme with the DPM co-factor. However, no results were obtained to elucidate this interaction, largely due to the highly unstable nature of the generated ‘apo’-enzyme. Native polyacrylamide gel electrophoresis (PAGE) was performed in order to observe changes in enzyme-substrate complexes between the wild type and the different mutant proteins. The enzyme-substrate complexes for the wild type were clearly shown, however we could not do so in our mutant proteins. The secondary structure estimations as well as the conformational stability of the mutants were tested with the use of circular dichroism. Far- and near-UV analysis provided insight into the effect of each mutation on the enzyme’s secondary and tertiary structure respectively. Results indicate that the different mutations cause marginal alterations in secondary structure, and resulted in changes of aromatic ring conformations in the near-UV analysis. Finally, modelling of each mutation to known crystal structures of the human enzyme was done in order to provide a rationalisation of kinetic and conformational data. Although this provided only a static image and estimation of the structural effect of each mutation, it did allow for some speculation in order to rationalise the kinetic and conformational data obtained. Overall, this work illustrates how the characterisation of expressed, purified, AIP-associated mutant enzymes aids our understanding of the complex structure and mechanism of the PBGD enzyme.
Open Access
The role of Development Finance Institutions (DFIs) in economic growth in Zambia
(2018) Kang’ombe, Mutale Matthew; Kabinga, Mundia
This study empirically investigates the role Development Finance Institutions (DFIs) play in the economic growth of Zambia from 1992: Q1 to 2015: Q4. The main aim of the study is to find out if DFIs enhance economic growth in Zambia and if the growth witnessed over the study period was in fact improved by these inflows. Additionally, a multiple regression is run against the exchange rate, inflation unemployment and interest rate to further analyse the interaction of these variables with DFI inflows and how they have impacted the growth levels experienced in Zambia. The findings show that the impact DFIs on the GDP are ambiguous. In current period and DFI lagged to 2 periods prior, has a depressing effect whilst DFI lagged one period has an encouraging effect on GDP levels. Furthermore, from the cointegration tests, it is evident that there is a long run relationship that exists, signifying that the positive effects of DFIs can be felt in future periods especially if deployed to key sectors. The regression results of the other variables are in line with macro-economic theory which suggests that DFI inflows need to be supplemented with stable macro conditions to boost the degree of positive impact on GDP. To ensure future benefit to Zambia from DFI inflows; recommendations preferred to authorities inferred from the findings include, directing of these funds to job and revenue generating sectors that can increase export revenue. These sectors may include agriculture and manufacturing. Furthermore, it is cardinal that institutional infrastructures are put in place that effect legal and monitoring framework to ensure efficient deployment of these funds within the economy.