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African Journal of Business and Economic Research. vol. 7 No. 2-3
About This Edition
ISSN : (Online) 1750-4562, 1750-4554 (Print)
Table of Contents :
Editorial
Nnamdi O. Madichie5
A lot has happened, both good and bad, in Africa in the last 12 months alone. On the sad note, four presidents/ heads of government have died whilst still holding office, Chinese investments in the continent have unravelled their dark side, Islamists have reared their ugly heads in both Mali and Nigeria, and protesters have been mowed down by police in South Africa. On a positive note however, the World Bank’s Doing Business report has identified one of the best reformers to be from the continent – i.e. Rwanda. What’s more? Ethiopia only recently made history by taking delivery of the coveted Boeing 787 “Dream liner” aircraft, well ahead of India and other global players – albeit only a few days before the country lost its leader.
Defense Security Cooperation Agreements: The Impact of US
Sean F. Reid, Hank J. Brightman 11
The 2010 National Security Strategy of the United States (NSS) emphasizes the rise of Africa as an increasingly vital stage for the advancement of US strategic interests. The NSS advocates supporting peaceful democracies in their “universal aspiration for freedom and dignity” while advancing the equally important objectives of regional stability, security, and economic development. (Obama, 2010) There may be an inherent conflict between these two objectives. This paper empirically examines the relationships between US military engagement policies and various measures of freedom and security for African nations over the last decade. The results show little correlation between levels military engagement and security measures. The results also present a generally positive correlation between military engagement and measures of human rights, freedom, and democracy. Accordingly, we conclude that the use of military engagement as a policymaking tool may present some utility in furthering democratization and US strategic objectives. However, employing the military instrument of national power in an effort to foster nation-state endurance or broader regional stability is questionable.
Keywords: Africa; Regional Economic Development; Foreign Aid; Military Aid; National Security; International Security Cooperation; Failed State
The Geography of Foreign Direct Investment in Africa at
Joel I. Deichmann, Charles A. Malgwi45
This paper examines the geographic determinants of foreign direct investment (FDI) into Africa since the UN Millennium Development Goals (MDGs) declaration in 2000. Given FDI’s importance with regard to Goal Eight: “Global Partnership”, we examine FDI patterns and explanations using data through 2007. Although a growing literature sheds light upon the importance of macro-level economic, social, and political variables, this paper contributes comprehensiveness by applying a combined methodology of OLS regression and factor analysis, to this vital time period during which FDI inflows have escalated dramatically. We find that Africa’s uneven FDI landscape is related to both the distribution of natural resource endowments and their associated trade patterns. Market size is also found to be a significant determinant, as are follow-the-leader strategies, especially among British Commonwealth states. Counter to our expectations that transparency helps FDI flourish, we find scant evidence that inflows are facilitated by the adoption of International Accounting Standards. This observation, as well as clear importance of Internet access in landlocked countries, yields suggestions for government policy and the allocation of international aid.
Keywords:Foreign Direct Investment, Millennium Development Goals, Location Factors.
Foreign Direct Investment & the role of Institutions in Rwanda
Satwinder Singh, Mwitirehe Viviane, Charles Assey, Kenneth Egesa81
The paper provides a profile of foreign direct investment (FDI) in Rwanda and critically assesses the role of government institutions in attracting FDI in the country. The analysis shows that institutions in Rwanda have succeeded in kick-starting the FDI process with a series of positive measures. Presently, the government has ambitious plans of continuing with the process of attracting further investment with a view to create employment and raise income levels. We argue that, after a decade of continuous efforts, it may be time to pause and take a stock of issues surrounding FDI vis-à-vis economic development. We provide a 5-point framework that would be of assistance to policy makers in this review process.
Keywords: Foreign Direct Investment, Government Institutions, Economic Development, Rwanda Development Board
Consumer Attitude towards Shopping Malls in Sub-Saharan Africa:
Robert Ebo Hinson, Thomas Anning-Dorson, Adelaide A. Kastner97
This study investigates the Ghanaian retail sector, with particular focus on shopping malls and the behaviour of their patrons i.e. the shoppers.The study reveals eight (8) key mall visitation motivations and five (5) key shop attributes that attract Ghanaian shoppers. Escapism influences the shoppers most, followed by pleasure flow, safety, aesthetic and architectural leisure, respectively. The least motivational factor is exploration.The result suggests that shoppers in Ghana are most likely to see the mall as an escape route from their daily hectic conditions, a place for relaxation.This study has demonstrated that, the retailing environment of the mall can be best understood by studying the characteristics of the tri-components i.e. shoppers, shop, and mall as all activities and behaviour at the mall are inextricably intertwined.Though the study seeks to investigate the behaviour of patrons of shopping malls in the developing economies within the sub-Saharan Africa, the findings are based on shoppers in Ghana. Therefore care must be taken in applying the findings to other developing economies due to differences in culture.
Keywords: Shopping Malls, Mall Visitation Motivation (MVM), Store Selection Attributes (SSA), Consumer behavior, Ghana
On the challenges of Online Shopping Acceptance in Nigeria
Ernest Emeka Izogo135
The technical, political, socio-cultural and structural differences across countries and regions have generated a lot of confusion as to whether net surfers actually shop online. Acknowledging this, the paper explored the factors restraining online shopping in Nigeria. Using a sample of 120 respondents randomly drawn from the students of Ebonyi State University, Abakaliki, it was found that perceived risk of uncertainty and poor knowledge in respect of the operational modalities of the computer and internet are the root factors deterring online shopping acceptance in Nigeria. It was further argued that the cost and convenience associated with virtual shopping might have been underplayed because of the risk perception and poor knowledge of the consumers. Against these backdrops, the study reinforces that Nigerianfirms as well as organizations operating in less technically advanced, structurally, politically and socio-culturally backward economies must find a way of reducing the perceived risk of uncertainty associated with online shopping through embarking on aggressive awareness to revive consumers’ lost confidence and subsequently get them to adopt online shopping.
Keywords: Online Shopping Acceptance; Ebonyi State University, Perceived Risk and Technology Adoption, Eastern Nigeria
Mega-events, Corporate Image & Reputation: Preliminary
Moguluwa Shed Chinwuba, Princewell Achor155
Three mega-events of three Nigerian organizations form the basis of this paper: Star Trek – a musical show sponsored by Nigerian Breweries Plc.; Who Wants to be a Millionaire” – an audience-participation TV game show created and sponsored by MTN Nigeria Ltd.; and “Glo, Rule Your World”, a musical talent hunt show sponsored by Global Communication Limited. Using survey research method, the study sampled 1080 event attendees, audience participants and TV viewers of these three mega-events. Empirical findings show that the crowd pulling effect, fun-fair or entertainment nature and broad-based target audience participation of mega-events if sustained, can leverage on corporate image and reputation. Mega-events’ high attendance/participation or viewership profile translates to high corporate image and reputation ratings of organizations associated with the events. These opportunities can be maximized by events sponsors. It was equally revealed that the events that were built around brands possess potentials for building brand equity, higher customer patronage value, brand image, customer retention and satisfaction.
Keywords: Megaevents, Event Marketing, Public Relations, Corporate
Image and reputation
Community Banks, Poverty Alleviation & Rural Development
Felix O. Ayadi171
The approach in this paper to examine the Nigerian financial system in order to revisit the role designed for community banks in Nigeria’s economic development. Moreover, an effort is made to examine if the role of community banks had been met with the establishment of microfinance institutions. If not, what should be done to refocus community banks to play their role in rural economic development? More importantly, there seems to be a gap to be filled by community banks. There are several rural communities throughout Nigeria without microfinance banks (MFBs). The thesis of this paper is to advance arguments for a re-emergence of community financial institutions to be licensed and regulated by state and local governments to fill the gaps created by MFBs. The new institution to be created must adhere to some tenets such as not restricting loan use, providing access to financial services rather than subsidies, focussing more on women empowerment and supporting institutions instead of projects associated with microfinance.
Keywords: Microfinance Banks (MFBs), Community Financial Institutions, Poverty Alleviation, Rural Development, Nigeria
Executive Opinion: An interview with PROFESSOR DAVID ABDULAI
Interviewer: Nnamdi O. Madichie193
Institution Summary: The African Graduate School of Management and leadership (AGSML) was founded in January 2011 to meet the leadership challenges confronting Africa, which has been described as the “last frontier.” It is an innovative, vibrant and forward-looking school, with a cutting-edge pedagogy, relevant to the African environment that a young school of management and leadership require to navigate the continent forward. AGSML seeks to be a place where students from all over Africa, and the rest of the world, can come together to study and research on new management, leadership and entrepreneurship tools and techniques. This cross-cultural, cross-fertilization of ideas and multidisciplinary approach to learning across different generations is what sets AGSML apart as an institution. AGSML’s long-term objectives are enunciated in its motto “Equipping today’s African leaders for tomorrow’s challenges and successes.” For more information visit: http://www.africasml.edu.gh/index.html
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