Development Finance Agenda (DEFA) - latest Issue
Volume 2, Issue 3-4, 2016
Author Nicholas BiekpeSource: Development Finance Agenda (DEFA) 2 (2016)More Less
Are you a finance person working for a development finance institution, for an economic or finance cluster of government, for a commercial or investment bank with interest in emerging market or for a non-governmental organisation using finance to support development program? If the answer is yes, then the Chartered Institute of Development Finance (CIDEF) is your professional body.
Source: Development Finance Agenda (DEFA) 2, pp 4 –6 (2016)More Less
Over the past decade, the Sub-Saharan African countries' ability to draw on new debt in international capital markets has become a central characteristic of their development experience. Yet, the determinants of the borrowing costs are driven by external factors where investor perception plays a key role. This raises concerns over the sustainability of the current development model.
Author Martin RaschenSource: Development Finance Agenda (DEFA) 2, pp 8 –13 (2016)More Less
If you ask which region of developing countries has performed well recently, sub-Saharan Africa is not generally the reply you will receive. While it is true that poverty and major economic and political problems are even more widespread in this region than elsewhere, it is worth taking a closer look. Since 2000, sub-Saharan Africa has achieved a level of economic growth exceeded only by developing countries in Asia, and considerably higher than in Latin America, North Africa / the Middle East or even advanced economies. Some of this success is due to external factors, such as good prices for commodities exports and the influence of China. But better economic policy on the part of African countries has also paid dividends. However, there is still a great deal to be done. Sub-Saharan Africa will only succeed in further narrowing the development gap compared to other regions if determined efforts to improve framework conditions continue.
Author Hans Dieter SeibelSource: Development Finance Agenda (DEFA) 2, pp 16 –17 (2016)More Less
From Microfinance to Inclusive Banking: Why Local Banking Works, by R.H. Schmidt, H.D. Seibel and P. Thomes (Wiley-VCH 2016) reflects a long story, both of this author and the discipline known as microfinance. The personal story started in 1963 in Nigeria where I discovered informal finance in the shape of the 'esusu', a rotating savings club dating back to the 16th century. This was followed by survey research in rural Liberia where the susu has been ubiquitous, quite similar to the self-help groups in 19th century Germany which evolved into Raiffeisen Banks, At the end of the journey are two banks, in vastly different countries, which have much in common with Savings and Raiffeisen Banks, unlike institutions in the microcredit tradition: a savings bias, individual lending, opportunities for graduating to SME loans, and genuine inclusiveness. They may be indicative of the future of inclusive finance, pointing the way to a new stage of institutional development - similar perhaps to the evolution of savings and cooperative banking in Germany.
Author Rachel Mindra KatoroogoSource: Development Finance Agenda (DEFA) 2 (2016)More Less
Uganda has registered a revolution in its social and financial growth levels in the last 30 years. Despite the significant efforts towards the improvement of financial depth and breadth as a poverty reduction strategy, many people especially in the rural areas continue to suffer from the spillovers of social and financial inequality. Therefore, financial inclusion and poverty eradication strategies ought to be thought in terms of creating multidimensional economic opportunities that enfold distinct segments of Uganda's economy.
Author Sean GosselSource: Development Finance Agenda (DEFA) 2 (2016)More Less
According to Moody's, South Africa is potentially the most exposed country in Sub-Saharan Africa to adverse currency, trade and stock market volatility arising from the UK's recent decision to exit ("Brexit") the European Union (EU). Compounding these risks are South Africa's reliance on capital flows to fund its current account deficit, and ongoing political uncertainty.
Author Oladotun Larry AnifowoseSource: Development Finance Agenda (DEFA) 2, pp 24 –29 (2016)More Less
Non-interest financing in Nigeria has generated a lot of controversy along religious divided and this and its roles towards poverty alleviation motivated the study. It was a descriptive study that relied on secondary sources of data and adopted content analysis method. It observed that Nigeria is a secular State and issues bordering on religion are sensitive and explained why the opposition to it assumed religious dimension. The study found that the principles of Islamic banking that originated from Q30:39, 4:161; 3:130-132 and 2:275-278 is biblical as contained in Exodus 22:25, Leviticus 25: 35-38 and Proverb 19:1 and may challenge sharp practices in Commercial banks thereby enhancing avoidable access to facilities. The study concludes that Christian bodies have slept too long over the welfare of the active needy as free interest banking scheme predated Islam. Since the services cannot be compelled on unwilling individuals, the regulatory institutions must be alert that unscrupulous elements will not use the channel for funding terrorism. The study recommends the adoption of productive engagement with diverse religious elements to minimize its misrepresentation and avoid diverting public fund into the exercise. In addition, the operators of the banks should avoid excessive discrimination in service delivery to justify that the services are people oriented while critics could embark on such venture. When all these are achieved, as the study highlight it will help to alleviate poverty in our country Nigeria.