Suchergebnisse

This book evaluates the characteristics and developments in Africas financial systems, including monetary policy, structured finance, sustainable finance and banking, FinTech, RegTech, SupTech, inclusive finance, the role of regulation in dealing with banking crises, the impact of the COVID-19 pandemic on Africas financial systems and how to reform the post-COVID-19 financial systems. It is made up of contributions from scholars in finance and economics as well as financial market practitioners. Banking and the financial markets play a significant role in the growth of various economies. Although a number of handbooks on banking and finance exist, they mainly focus on Europe, America and Asia. Banks and financial markets in Africa are confronted with different challenges and therefore present a unique case to understand Africas financial systems. A number of African countries have experienced banking crises and it is important to examine these issues as well as the regulatory regimes required to address them. This edited book contributes to the limited texts in the area by providing a comprehensive resource on banking and finance for students, scholars, researchers, policymakers, and financial market practitioners. It contains various theoretical and empirical chapters on banking and finance in Africa. Joshua Yindenaba Abor is a financial economist, Professor of Finance and former Dean at University of Ghana Business School. He is an External Fellow at the Centre for Global Finance, SOAS University of London. He has held Visiting Scholar positions at the IMF and is a member of the Monetary Policy Committee of the Bank of Ghana. Charles Komla Delali Adjasi is a Professor of Development Finance and Economics at Stellenbosch University Business School, where he was former Head of Development Finance Programmes. He is an Afreximbank Research Fellow, a Visiting Professor at ENSEA Cote dIvoire and was previously a Visiting Professor/Scholar at University of Groningen and the IMF.

PurposeThe study aims to examine the importance of access to finance in firm innovation by using firm-level data from the World Bank enterprise survey (WBES) on selected African countries.Design/methodology/approachThis study utilises firm-level data from the WBES database and computes aggregate innovation index by using multiple correspondent analysis. The authors then apply instrumental variable models (to control for possible endogeneity between innovation and finance) to assess the link between finance and innovation.FindingsThe research finds that finance in the form of overdraft overwhelmingly drives innovation in all selected countries – Cameroon, Kenya, Morocco, Nigeria and South Africa. Trade credit enhances innovation among firms in Nigeria, South Africa and Cameroon, while asset finance drives innovation amongst firms in Cameroon, Nigeria and South Africa.Practical implicationsPolicy incentives such as tax breaks could be put in place for financial intermediaries that have shown proof of extending loans to financially constraint firms to enable them to innovate. Furthermore, different financial institutions such as microfinance institutions can be supported to increase credit to enterprises. Partnerships with organisations willing to fund firms and support start-ups should be encouraged. One of such support mechanisms could be specialised schemes such as a credit guarantee scheme to encourage and secure lending to enterprises to promote innovation.Originality/valueThis paper provides empirical insights into how finance enhances innovation in African enterprises. It also shows how different finance structures (overdraft, asset finance and trade credit) affect firm innovation in different African countries.

Financial market inadequacies often constrain overseas trade flows because exporters largely rely on access to external credit to survive. This article examines the influence of external credit (bank finance; and suppliers and customer credit) on exports size of manufacturing firms in Nigeria using Two-Stage Least Square (2SLS) estimation procedure. We approximate exports size as the ratio of exports over total sales. The study also proxy access to external finance as bank finance as a proportion of total financing while suppliers and customer credit was defined as credit from suppliers and advances from institutional customers as a proportion of total financing. The findings reveal that bank credit is significant and negatively associated with exports size while suppliers and customer credit are positive and significantly drives exports size. Government should put stringent measures in place to ensure that Nigeria's exports meet overseas standards in terms of high-quality, packaging, and labeling, which are critical in selling exports in the international market. Policy should also be directed at reducing the cost of exporting in Nigeria. Finally, government should also consider establishing innovative tax incentives and credit guarantee schemes to encourage suppliers and institutional customers to extend more flexible credit to exporters.