Browsing by Author "Aziakpono, Meshach"

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    Efficiency and profitability of Tanzanian saving and credit cooperatives : who is a star?
    (International Foundation for Research & Development, 2014-08) Marwa, Nyankomo; Aziakpono, Meshach
    The objective of this paper is to evaluate and benchmark the performance of Tanzanian Saving and Credit Cooperatives (SACCOs). Measuring the performance of these organizations is useful in helping them to monitor and control their performance and business processes and improve productivity and profitability. The study used secondary data from audited financial statements from 103 SACCOs. Technical efficiency was estimated using the data envelopment analysis approach and profitability was measured using return on assets. Then an efficiency-profitability matrix was employed to distinguish best performers from struggling SACCOs. This particular approach has been selected to account for multiple dimensions of performance measures. Using the top 25% as a cut-off for profitability and efficiency we found that only 12% of the firms were diagnosed as best performers (stars). The majority of the firms (61%) were classified under the low efficiency low profitability category. Fourteen SACCOs were highly profitable but had low efficiency scores, which demonstrate a potential for performance improvement by increasing their efficiency. Another group of 14 SACCOs were classified as potential candidates for divestiture because they had high efficiency scores but low profitability. Conclusively the performance of the industry in Tanzania needs a well-thought turnaround strategy to make it commercially viable. For the majority of the SACCO both profit-increasing and efficiency-increasing strategies are required.
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    The relative contribution of alternative capital flows to South Africa : an empirical investigation
    (AOSIS, 2017) Adeola, Omolola; Aziakpono, Meshach
    The need for external capital flows to developing countries to supplement domestic savings for investment and growth cannot be over-emphasised, especially in Africa, where there are high levels of poverty and low domestic capacity to save. To achieve sustainable economic growth, countries require other sources of capital from outside the domestic economy. This study uses co-integration and error correction modelling techniques together with tests for weak exogeneity to analyse the effects of four major capital flows into South Africa. This is done for the period 1970 to 2012 in order to determine the relative contribution of these capital flows to South Africa’s economic growth. The results reveal that foreign direct investment and remittances had a positive and significant impact on South Africa’s economic growth during the period investigated. Debt liabilities and portfolio equity, however, were not statistically significant in terms of their contribution to economic growth.