Browsing by Author "Ikhide, Sylvanus"

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    Dealing with the challenge of generating employment in South Africa : does banking sector efficiency matter?
    (The Clute Institute, 2013) Maredza, Andrew; Ikhide, Sylvanus
    In this paper, the authors seek to investigate the nexus between banking sector efficiency and labour employment in South Africa. The Hicks-Moorsteen aggregator functions were used to generate total factor productivity (TFP) efficiency measures for the big-four commercial banks. The authors then used the pooled estimation technique to examine the link between banking sector TFP efficiency and employment. First stage results revealed that the average banking sector TFP efficiency was 68 percent implying that the observed TFP was 32 percent short of the maximum TFP possible using the available technology. Hence, the banking sector has the potential to augment productivity by 32 percent without the need for further input utilisation if they were to operate efficiently. Of paramount importance in the second stage analysis was that the authors found a positive and significant association between banking sector efficiency and national employment, meaning that national employment is influenced, inter alia, by the efficiency with which banks operate. This finding highlights how the enhancement of bank efficiency translates into increased employment in the economy. The authors therefore underscore the need for the banking sector to maintain high efficiency in order to augment efforts to achieve the objectives of the New Growth Path aimed at creating five million jobs in South Africa by 2020. They also advocate for banking sector policies and incentives that are directed at enhancing the efficiency of the banking sector.
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    Determinants of savings in the SADC region : the role of foreign capital and financial development
    (The Clute Institute, 2015-12) Kapingura, Forget Mingiri; Ikhide, Sylvanus; Tsegaye, Asrat
    The study examines the determinants of savings in the SADC region, mainly focusing on the roles played by external financial flows and financial development in mobilising domestic savings utilising panel cointegration method and the Dynamic ordinary Least Squares (DOLS) approach from 1980 to 2009. Following the review of literature, the empirical model adopted established that there is a long-run relationship between the variables of interest. The results indicate that income, proxied with GDP, financial sector development and foreign capital have a positive relationship with savings. The results also suggest that financial sector development has played a very important role in influencing savings in the region. However on the other hand the results indicate that interest rate and dependency ratio have influenced savings negatively. The empirical results support the hypothesis that foreign savings bridges the gap between domestic demand and supply of finance in the SADC countries. There is need to attract more foreign capital given that it compliments domestic savings. At the same time policies aimed at financial deepening should still be pursued to further deepen the financial system in the SADC countries to further enhance savings.
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    Unfulfilled loan demand among agro SMEs in Namibia
    (AOSIS Publishing, 2016) Amadhila, Elina; Ikhide, Sylvanus
    Using a qualitative methodology approach, a case study research design by way of in-depth semi-structured interview(s) was followed to interview farmers, commercial banks, development banks, venture capitals and private equities to determine the financing options available for farmers and provide reasons why some financial institutions shy away from providing finance to agricultural enterprises. This study deviates from prior studies which have focused on small-scale farmers and subjected farmers’ access to finance to rural credit markets, mostly informal money lenders using secondary information mostly from household surveys to build econometric models. The study indicates that only about 33 percent of formal financial institutions are providing finance to agricultural SMEs. The lack of expertise and perception of risk were cited as top reasons why formal financial institutions find it hard to provide finance to agricultural SMEs. Building on opinions from other authors cited in this paper, we maintain that new financing mechanisms can be achieved by all types of financial institutions through learning from experiences by other successful countries.