African Journals Online
African Journal of Finance and Management

Volume 7 Number 1 July 1998

THE ROLES OF STOCK EXCHANGES IN EMERGING MARKETS: THE CASE OF FOUR SOUTHERN AFRICAN MARKETS

Tebogo T. K. Matome

ABSTRACT

This article revisits the discussion on the functions that the emerging stock markets are intended to perform when they are established. In order to fulfill such functions, certain levels of "market micro-structure" characteristics should be obtained. Such micro-structure features include liquidity, market size and enabling environment. Some factors obtaining in a market's environment like credit rationing and protectionist tariffs tend to curtail the pricing and consequently allocational efficiencies on the emerging markets. The paper calls on the authorities and policy makers in countries where emerging markets exist to create or improve operational conditions to facilitate overall market efficiency.

CAPITAL ADEQUACY IN BANKS: REFLECTIONS ON SELECTED BANKS IN TANZANIA

Mutaitina, O. R.

ABSTRACT

In principle, bank capital serves two functions. First, it represents the value of shareholder's equity, and secondly, it is the value of the buffer stock available to absorb unexpected losses. Because of this second function, it is argued that a bank's capital must be adequate. Adequate capital is the foundation of any banking system. It offers protection to depositors, creditors, deposit insurance funds, central banks and ultimately the government. Due to the protection it provides against unexpected losses, the maintenance of adequate capital is undoubtedly the main source of public confidence in individual banks and the entire banking system. This paper is of the opinion that, regardless the legally established minimum standards, the amount of capital appropriate for an individual bank is a function of its likelihood to incur unexpected losses,. Banks with greater risks are exposed to greater degree of unexpected losses and should therefore hold adequate amount of capital.

PRIVATIZATION AND GOVERNMENT REGULATION OF PUBLIC UTILITIES: JUST AND REASONABLE RETURN – THE CASE OF TANESCO

Dr. Lenny B. Kasoga, Ph.D.

ABSTRACT

The inefficiency of public utilities undoubtedly contribute to economic problems in Tanzania. Privatization has increasingly become an alternative to addressing the fundamental problems of inefficiency, and as a solution for reducing the heavy burden on the national budget during times of economic crisis. The purpose of this paper is to consider the traditional issue of "Just and Reasonable return", as an alternative of public interest, were natural monopolies such as TANESCO to be privatized.

LAND FOR HOUSING THE URBAN POOR IN TANZANIA: SOLUTIONS OR STOP GAP TO THE HOUSING CRISIS OF URBAN POOR TO TANZANIA?

Dr. Suma C. M. Kaare

ABSTRACT

For a long time it has been argued that the housing crisis of the poor in urban Tanzania requires an increased supply of land. The government in the past three decades has taken various measures intended to give land for housing to the urban poor. The measures have not achieved the intended objectives because housing remains a disturbing problem to the urban poor of Tanzania. This article explores the measures taken by the government and the reasons for their dismal performance. The article argues that the previous land strategies, well intended as they were, failed because they did not address the underlying cause which is income poverty.

PERFORMANCE MANAGEMENT: AN OVERVIEW

Michael D. Nungu

ABSTRACT

The theme of this paper is Performance Management, which is a philosophy and way of thinking about continuous Performance Improvement through improved performance of employees. The paper highlights the different processes involved in order to institute and implement performance management. Every process (eg Setting objectives; performance measures; performance appraisal; and etc.) is discussed separately in some detail. Probably one significant revelation concerns a shift from financial figures as essential performance measures to such other measures as customer satisfaction; quality; innovation and social responsibilities. Towards the end, the paper lists a number of suggestions in order to have a successful and sustainable performance management system. The paper concludes by re-emphasising the need for total commitment by both top management and all employees.

ORIGINS OF SOCIAL SECURITY IN DEVELOPING COUNTRIES: THE CASE OF AFRICAN COUNTRIES

Msalangi, H. K. M

ABSTRACT

The history of social security in Africa dates back to pre-independence period when civil service pensions and employment injury schemes were introduced. There has been, however, a steady expansion of more modern forms of social security schemes particularly following the accession of independence by many countries. There is at present, however, no in depth study of why these arrangements or schemes have developed in the way they have, nor has there been an in depth analysis of the structure of the current institutions, the range and scope of covers, as well as the process of benefit delivery. The paper attempts such a study.

MODEL FOR EVALUATING SOCIAL FACTORS IN NATIONAL AND INTERNATIONAL GOVERNMENT POLICIES

J. B. Mashimi

ABSTRACT

This model analyses social using laws of thermodynamics to make the study of social systems more accurate given that laws of physical sciences are more precise than those of social sciences. It identifies social factors that determine the social stability of a country and how this affects economic performance. It quantifies these factors so that they can be measured, and suggests how that can be controlled to achieve better economic performance and organise society so that it is peaceful and stable. The model could be used as a tool by global investors, policy making at national and international levels and world peace.

THE SIZE AND CHANGING COMPOSITION OF THE PUBLIC SECTOR IN GHANA

Dr. Bright Honu

ABSTRACT

The size and the composition of the public sector and the activities of all levels of government are currently important policy issues. After all, one of the main aims of structural adjustment programs is to reduce the size and the participation of the public sector in economic activity because of the sector's 'inherent' inefficiency. Attempts to estimate the size of the public sector in Ghana face serious data problems. Available data do not permit an in depth analysis of the public sector and hence one cannot be definitive on some issues. However, what is clear from available information lends some support to the view that cuts in the public sector may have fallen more heavily on 'soft' targets. Furthermore, this study shows that the capacity of the private sector in Ghana to generate jobs is quite limited, suggesting that by changing the pace and intensity of those components of structural adjustment programs that lead to the retrenchment of large numbers of public sector employees the social cost of adjustment may be reduced.

SELLING AND SALES MANAGEMENT IN NIGERIA

M. Johnson and S. O. Monye

ABSTRACT

The development of selling in the twentieth century parallel the growth of modern marketing. Sales management has become a more professionally and customer oriented endeavour in line with the philosophy of the marketing concept. The focus of selling in advanced economies has shifted to and increased emphasis on solving customers problems and building long-term relationships. However, this important function remains under-development in developing countries. One of the characteristics of developing economies is the focus on production or selling orientation as a business philosophy. Although there is ample literature on selling and sales management in industrialized countries, there has been very little written on the subject in developing countries. The aim of this paper is to contribute to knowledge in the field by examining the status of selling and sales management in Nigeria. The study was based on primary research conducted with the aid of structured questionnaire administered to sales managers. The results showed that selling and sales management in Nigeria are in the latter production or early selling orientation stage (a stage that the United States was in during the first half of the twentieth century) because of its slow economic development. The author believes that if the critical economic and political problems, which limit the country's economic growth, can be alleviated. It has the market size and natural resources to prosper and move quickly away from sellers to buyers market, thus providing the impetus for the development of selling and sales management.