...potential of Islamic infrastructure finance in Africa Summary: Lack of funding for infrastructure has been identified as one of the key hurdles hindering African infrastructure development. Africa ranks on the bottom of developing regions in access to infrastructure services and the continent’s total infrastructure financing needs amounts to a staggering circa. USD 93 billion per year until 2020 (Africa Infrastructure Country Diagnostic, 2009). Five years have since lapsed since these estimates were published and the gap continues to widen. Islamic financial institutions that offer Islamic financial products are required by Sharia Law to establish a Shariah Supervisory Board made of Islamic jurists known as fuqha. Over the years, Islamic finance has become an important source of capital for large infrastructure projects. It is estimated that global Islamic assets stood at USD1.6 trillion as of December 2011 (Islamic Development Bank, 2011). In order to attract Islamic Infrastructure funds, a financier is obliged to find ways of overcoming challenges associated with Islamic Finance through innovation (McMillen, 2011). Sharia law prohibits Islamic financial institutions from leveraging their balance sheets through the use of debt for liquidity purposes. Islamic banks use retail banking deposits from devoted Muslims and tend to avoid the bond markets. High risks associated with Islamic financing and infrastructure finance makes Islamic financing uncompetitive...
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...the role of development finance in economic development in Sub-Saharan Africa. Development Finance is practice of using scarce financial resources in an unconventional ways in order to advance economic activity(ies). According to (Nyembezi, 2009), development finance makes the economy run smoothly and effectively. The aim of the development finance is to look at the challenges and design the framework as well as stimulating core activities that will develop the economic growth. As stated by (Nyembezi, 2009) development finance, in an economy, can be compared to oil in a vehicle engine that ensures its sound and smooth operation. According to (Ocran, 2012), development finance is concerned with the financing of development at: • Household level • Firm level • Geographical area/national/regional level This paper looks at the role of development finance at national and regional level in economic development in Sub-Saharan Africa. The Organisation for Economic Co-operation and Development (2002) defines development finance officially as funding “used in measuring the inflow of resources to recipient countries: including (a) bilateral official development assistance (ODA), (b) grants and concessional and non-concessional development lending by multilateral financial institutions, and (c) Other Official Flows for development purposes (including refinancing Loans) which have too low a Grant Element to qualify as ODA”. The role of development finance and economic growth The...
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... BLUESTAR CAPITAL BRIDGING THE GAP BETWEEN AFRICA AND THE GLOBAL MARKETS BY USING INNOVATIVE APPROACH TO CORPORATE AND INVESTMENT BANKING IN AFRICA. WHO WE ARE Bluestar Capital was established in 2007 to provide specialist and innovative debt finance solutions to broad range organisations, across Sub-Sahara Africa. Bluestar Capital is part of Bluestar Group of companies, a leading international Trade group with over five decades of experience in Africa. The company advices and arrange capital for broad range of clients including, Public Sector, State companies, Local enterprises and financial institutions based in Africa. With our experience, local knowledge and a team of highly talented professionals with decades of expertise in Sub-Sahara Africa, first class knowledge of the Global Debt markets, we can structure transactions to suit client’s specific needs. With...
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...which became known as toxic debt instruments in the wake of the financial crisis, the impact was experienced more speedily and more severely. South Africa had very limited exposure to these debt instruments, so the impact on their economy lagged other economies such as the USA. a) South Africa’s macroeconomic performance before, during and after the global financial crisis of 2007-2008 As indicated by the figures in Table 1 below, production and the utilisation of production capacity began tapering down in 2008 as the financial crisis took hold. The figures for 2009 clearly describe the impact of the crisis on South Africa at the bottom of the cycle with reductions of 13.9% in production, 16.2% in sales, and 6.8% in the utilisation of production capacity from 2008. It should be noted that production, sales and utilisation of production capacity had by the end of 2012 still not recovered to the levels recorded for 2008. Table 1: South Africa’s production, sales and utilisation of production capacity 2005 2006 2007 2008 2009 2010 2011 2012 Production* 102.0 106.8 111.3 110.9 95.5 100 102.7 105.2 Sales at constant prices* 98.8 104.6 110.2 114.1 95.6 100 103.9 107.3 Utilisation of capacity 85.4% 85.6% 85.8% 83.8% 78.1% 80.1% 80.6% 81.8% Source: South African Reserve Bank – Government Finance Statistics of South Africa (2013) * (Indices; 2010 = 100) Table 2 below...
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...LITERATURE REVIEW ON SMALL AND MEDIUM ENTERPRISES’ ACCESS TO CREDIT AND SUPPORT IN SOUTH AFRICA December, 2011 Literature Review on Small and Medium Enterprises’ Access to Credit and Support in South Africa Prepared for National Credit Regulator (NCR) Compiled by Underhill Corporate Solutions (UCS) Project Manager and Lead Researcher: Edmore Mahembe Contact Details: Edmore Mahembe 357 Flowers Street Capital Park, 0084 Cell: +27 (0)83 757 3733 Phone: +27 (0)12 751 3237 Fax: 086 540 7052/ 086 639 8976 E-mail: eddiem@underhillsolutions.co.za info@underhillsolutions.co.za Website: www.underhillsolutions.co.za Pretoria, South Africa December, 2011 1 ACKNOWLEDGEMENTS The research team wishes to acknowledge the co-operation of the following organisations and individuals that helped attain the goals of the evaluation. 1. National Credit Regulator (NCR) for the opportunity afforded to Underhill Corporate Solutions (the research consultants) to conduct this study “Literature Review on Small and Medium Enterprises’ Access to Credit And Support in South Africa”. 2. Client project managers: Thandile Gubevu and Darrell Beghin, for facilitating the overall project exercise and the useful comments on the draft report that helped shape the format of the final report. 3. NCR board members; for useful and valuable comments on the draft report that helped in the development of detailed and well informed recommendations. 4. Finally, special appreciation to key research team members, namely;...
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...do quantitative finance, depending on the area that interests them. Core courses help students make an informed choice and staff act as student advisers. * Quantitative Finance This stream was introduced in response to the demand from merchant banks, investment managers and other financial organisations for graduates able to use analytical and numerical techniques to price financial derivatives and to manage portfolio risks. The BCom and BBusSc (Quantitative Finance) degrees cover much of the material included in the actuarial stream but courses specific to life insurance and pension schemes are replaced by additional finance and risk management courses. At the most simplistic level, quantitative finance is concerned with shorter time horizons than actuarial science. The nature of the risks being considered is different with a focus on volatility of investment markets. * Actuarial Science The BCom and BBusSc (Actuarial Science) degrees focus on producing qualified actuaries. Most actuaries in South Africa are employed either by insurance companies or as consultants managing company pension schemes, although increasing numbers are now working in investments, short-term and health insurance. Actuaries have an important role in these institutions and are widely respected. Students who graduate within this stream will be particularly well prepared for further study to obtain the prestigious FASSA (Fellow of the Actuarial Society of South Africa), FIA (Fellow of...
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...independent advisors focusing on corporate finance, financial advisory, business architecture and business processes. Our association includes Financial Services Board registered individuals, a registered Sponsor to a number of companies listed on the JSE Securities Exchange South Africa, a Designated Advisor on AltX, and highly experienced business architects. We focus on the Telecommunications, Agricultural, Mining and Logistics industries, but have a wealth of business experience and business networks at our disposal to offer to our clients. We venture beyond traditional corporate finance to offer advice on many aspects of business strategy and operations, and work through the implementation process to create, unlock and enhance value. We have distinguished ourselves as providers of innovative, value-maximising solutions in an environment of productive, long-term relationships. Our clients include: • • • • • • • The City of Johannesburg The Eastern Cape Pineapple Industry Department of Agriculture Landbank Development Bank of Southern Africa Various Johannesburg Stock Exchange and some London Stock Exchange Listed Companies Numerous Privately Owned Companies We have funded businesses with Funding partners like: • • • • • • • • World Bank International Finance Corporation African Development Bank Development Bank of South Africa Industrial Development Corporation Eastern Cape Development Corporation Landbank of South Africa South African and International Commercial...
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...I will bring Africa on the radar of the Owen Graduate School of Management by Collaborating with other African and International Students to inaugurate an African Business Club. Though Africa has for a long time been misunderstood and referred to as the Dark Continent, today’s Africa is rising from the ashes of the past as the continent has not only become a major investment destination but is also embracing democracy and improving its infrastructure and ease of doing business. Despite the progress witnessed in the last few years, the continent is still in dire need of well rounded professionals that seek sustainable paths to development and also organisations that can showcase it to the world. My goal is to collaborate with current students and African Alumni, to inaugurate a club that will help increase awareness of business opportunities in Africa, deepen African content in the MBA curriculum, provide a platform to link Vanderbilt Owen students with top African careers and help Vanderbilt Owen improve its visibility & brand in Africa. This will ultimately increase the level of admission applications and recruitment from Africa. To help achieve this goal, the proposed African Business Club will hold an annual African Business Summit aimed at bringing together students and professionals under one roof to discuss new developments on the African continent. These conferences will discuss African trade, business regulatory framework, major economic sectors, emerging economic...
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...study gives an analysis and appraisal of New Earth Mining (NEM) company investment prospect in the Iron Ore mining industry in South Africa. It looks at the current financial position of NEM and prospective success of the investment via a subsidiary New Earth South Africa (NESA). The analysis methods delve into the estimated returns on investment by use of approximated cash flows. Results of the analysis show that the returns from the investment are likely to be positive. The case study also investigates the financial soundness of NEM and so its susceptibility to new investments (Fruhan & Wang, 2013). The company’s data used is up to date and hence it is reliable making this study meticulous. The project should commence in year 2015 with an initial Investment cost of $200 million, 40% of which will be required in early 2013 and the remaining 60% in early 2014. The investment will include construction, insurance, operating assets and will have $20m worth of working capital. $40 million of loans will be required in 2013 and $120 million of loans required in 2014 (interest accrued over 2013 and 2014 and paid in 2015). Iron ore has high demand from the steel manufacturing industry. It is mined and transported from South Africa by sea to other countries that manufacture steel. This trade has recorded a steady increase of 4.4% over the years. South Africa produces 1 billion tons of ore annually, which puts it at position 14 worldwide in terms of ore reserves, and the seventh leading...
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...Sustainable Development in Africa (JSDA).www.jsd-africa.com Agarwal, R.N . 2000. “Financial integration and stock markets in developing countries: A study of growth, volatility and efficiency in the Indian stock market” Institute of Economic Growth, Delhi, India in its series Institute of Economic Growth, Delhi Discussion Papers with number 21. Bundoo, S. K. 1999. “The Mauritius Stock Exchange: An Assessment,” Social Sciences & Humanities and Law & Management Research Journal. University of Mauritius, Mauritius. Demirguc-Kunt, Asli and Ross. Levine. 1996. “Stock Market Growthand Financial Intermediaries: Stylized Facts,” The World Bank Economic Review, Vol. 10 (2), pp.291- 232. Khan, Harun-or-Rashid.1992. “The Performance of Stock Markets in Bangladesh:An Appraisal”. Finance and Banking. The Journal of the Department of Finance and Banking, University of Dhaka. Volume 2, Number 1 La Porter, R. Lopez-de-Silanes.,F, Shlieifer A. and Vishny R.W. 1997."Legal Determinants of External Finance ", Journal of Finance, 54 p. 471 – 517. Levine R. and Zervos S. 1998.“Stock markets, bank, and economic growth”, American Economic Review, June pp.537-558. Maunder, P., Myers, D., Wall, N. & Miller, R. 1991. “ Economics Explained.” 2nd ed. London, HarperCollins Naceur, Samy Ben, Samir Ghazouani and Mohamed Omran. 2007. “The determinants of stock market development in the Middle-Eastern and North African region.” Managerial Finance. Volume: 33 Issue: 7...
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...aggression and diplomatic pressures, Africa stood as a unique, untapped continent home to many peoples and cultures since ancient times. In fact early African history, prior to the late nineteenth century, is characterized by the rapid growth of a diverse mix of indigenous people through involvement in trade in the Atlantic and the Indian oceans. Considering various influences, from the spread of Islam to the increased sale of ivory and slaves, one can begin to identify recurring instances of innovation and diversity in practically every aspect of pre-colonial Africa. As the desire for African products grew around the world, innovation in the streams of African exports and finance rose to prominence to most adequately meet the consistent demand in ports like Zanzibar. Further, with the large influx of foreign...
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...Banking and Financial Systems SOUTH AFRICA [pic] | | Summary Introduction page 3 I) Executive Summary. page 4 II) The Financial System: page 4 A) The Banking System page 5 B) The Financial Market page 7 III) The Legal Side: page 7 A) Legal Framework page 7 B) Regulatory Oversight page 8 IV) Depository-Taking Institutions. page 9 V) Banking Issues and Challenges Prospect. page 10 Conclusion page 12 Sources page 12 Annexes page 13 Introduction For years ago, South Africa has been facing a lot of racial, political and demographic problems. On the first hand, this country must face these elements and on the other hand it must still working to become a powerful economic country in the world. With this report we are going to develop the Financial System of South Africa which is a key sector in the country. The South Africa Gross Domestic Product is worth 277 billion dollars or 0.45% of the world economy, according to the World Bank. While it contracted 2.80% over the last 4 quarters, the economy was expected to move back into growth in the last quarter of the year and GDP growth of 1.5% is forecast for 2010, rising to 3.2% by 2012. South Africa has a two-tiered economy; one rivaling other developed countries and the other one with only the most basic infrastructure...
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...at the business environment through the institutions that the government has put in place, as a way of encouraging investors. The country of choice for this case is Rwanda, due to the steps it has made to make investments in business to be friendlier. The country was not so long ago faced with a major challenge, where it was rocked with one of the biggest crisis reported in the recent times, in form of genocide. The country has made major steps in ensuring that the business community is given the best investment environment, which has seen the country being listed among the friendliest country to start a business in the region. This research paper will look at Rwanda in comparison to advanced economies in the region such as South Africa. This research paper is therefore going to look at some areas which have made Rwanda make the gains that it has made in terms of improving the business environment. These areas include • Motivations behind the move the country has made towards encouraging investors to invest in the country. • Areas of improvement, which the country has capitalized on to make business environment friendlier. • Government incentives towards improving the business environment. • Impact of the improved business environment Background Rwanda was faced with a genocide which took place in the year 1994,...
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...Topic: Skills development in the financial sector: A Namibian case study HN Muyoba Student No. MYBHER001 Assignment 1: Literature Review Research Methods BUS5004W MPhil: People Management (2014 intake) Contents 1. Introduction 3 1.1 Definitions 3 1.2 Background of the Study 4 1.3 Aims of the Study 5 1.4 Study objectives 5 2 The research problem 6 3 Research Questions: 6 4 Literature review 6 4.1 International perspective 6 4.2 African perspective 8 4.3 Namibian perspective 9 5 Conclusion 12 6 Bibliography 13 1. Introduction A functional financial sector is essential for economic development. Importantly, a strong financial sector, however, relies not only on the sound organized infrastructure, but also on the ability of its human resources. Human resources are critical in the development of the financial sector. Investments in human capital are influential in shaping the financial services industry where knowledge, skill, competencies and capabilities have become key strategic drivers of productivity, competitiveness and growth (BNM Financial Sector Development, 2015). With globalization, the need for capacity building in any country’s financial sectors becomes even more critical to ensure that experts within the industry will be able to keep up with the new changes brought about by the implementation of the international financial standards, such as IFRIS. In the next decade, there are likely to be many changes...
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...Global Finance names the World’s Best Investment Banks 2011 New York, February 22, 2011 — Global Finance announces its selection of the World's Best Investment Banks 2011 to be published in its April 2011 issue. Global Finance editors, with input from industry experts, used a series of criteria to arrive at their selections. These included market share, number and size of deals, service and advice, structuring capabilities, distribution network, efforts to address market conditions, innovation, pricing, after-market performance of underwritings and market reputation. Deals announced or completed in 2010 were considered. "The investment banking industry has changed as a result of the financial crisis," said Global Finance publisher Joseph D. Giarraputo. "The best institutions are those that have a business model focused on customer needs." For editorial information please contact: Dan Keeler, Editor, email: dan@gfmag.com GLOBAL AWARDS | Best Investment Bank | Morgan Stanley | Best Equity Bank | Morgan Stanley | Best Debt Bank | Barclays Capital | Best M&A Bank | Morgan Stanley | Best Up-and-Comer | QInvest | Most Creative | Bank of America Merrill Lynch | SECTORS | Consumer | Credit Suisse | Financial Institutions | Bank of America Merrill Lynch | Health Care | J.P. Morgan | Infrastructure | Scotia Capital | Industrial/Chemicals | J.P. Morgan | Media/Entertainment | J.P. Morgan | Metals & Mining | BMO Capital Markets...
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