nep-afr New Economics Papers
on Africa
Issue of 2016‒07‒23
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Factors influencing customer loyalty to family businesses in the Eastern Cape, South Africa By Shelley Saunders; Bomikazi Zeka
  2. Chinese investments in Africa: what have we known and what should we know? By Alexis Abodohoui; Marie-Helene Regniere; Zhan Su
  3. Ghana LEAP 1000 Impact Evaluation: Overview of Study Design By Richard de Groot; UNICEF Office of Research - Innocenti
  4. Access to improved water, human capital and economic activity in Africa By Arouri, Mohamed; Ba-Diagne, Bineta; Ben-Youssef, Adel; Besong, Raymond; Nguyen, Cuong
  5. Emerging Opportunities in the West African Food Economy By Thomas ALLEN; Philipp HEINRIGS
  6. Solar off-grid markets in Africa: Recent dynamics and the role of branded products By Grimm, Michael; Peters, Jörg

  1. By: Shelley Saunders (Nelson Mandela Metropolitan University (NMMU)); Bomikazi Zeka (Nelson Mandela Metropolitan University)
    Abstract: In today’s competitive business environment, ensuring customer loyalty and the building and maintaining of relationships with customers is important to all businesses, especially family businesses. In South Africa approximately 80% of all businesses have family ownership involvement and more than 60% of all listed companies on the Johannesburg Stock Exchange (JSE) Ltd are family businesses. In South Africa. Family businesses are in a unique position to leverage relationship building into a sustainable competitive advantage associated with positive customer referrals, repeat purchases and ultimately, increased profitability. Despite the benefits of building customer relationships, South African businesses are known for poor customer service. Additionally, limited research exists investigating customer loyalty in South African family businesses. Therefore, this paper investigates the factors influencing customer loyalty of family businesses in the Eastern Cape, South African. The sample consisted of customers that purchased a product or service from a family businesses that operate in the boundaries of the Eastern Cape. The statistical analysis was undertaken on 194 usable questionnaires. Factor analysis was undertaken and Cronbach alpha coefficients were calculated to assess the validity and reliability of the measuring instrument. Multiple regression analysis was utilised to investigate the relationships between the independent variables in this study, namely: Trust, Commitment, Two way communication and Conflict handling and the dependent variable Customer loyalty. The empirical findings revealed that Trust, Commitment and Two way communication have a positive significant influence on Customer loyalty. Finally, recommendations based on the findings of the study, are presented to family businesses owners/managers.
    Keywords: Customer loyalty; family business; customer-relationship management
  2. By: Alexis Abodohoui (Laval University); Marie-Helene Regniere (Laval University); Zhan Su (Laval University)
    Abstract: This study conducts a systematic review of the researches on Chinese investments in Africa, publishing in major journals of business administration and international business over these last 10 years. It studies the motivational factors for Chinese firm’s presence in Africa, the modes of entry of Chinese investment, the management issues, and their impacts on local economy and firms. It aims to provide an organizing framework for emerging theoretical and methodological issues, as well as future research direction in this field.Based on the international business theories, the findings of this study indicated that, to date, the majority of research has attempted to either qualitatively or conceptually criticize the cooperation between China and Africa, and there are very few studies that define model and develop measurement tools to empirically test the effects of the Chinese presence in the African continent and its impacts on local enterprises. Very few studies have provided robust evidence to establish the role that China is playing and the crowding-in or crowding-out effects of the Sino-Africa cooperation. This paper discusses about 5 major flaws in the existing literature and concludes with some emerging issues, the practical implications of this review, and future research directions.
    Keywords: Chinese investments in Africa, existing researches, systematic review, major flaws, emerging issues, future research directions
    JEL: F20 F59 M16
  3. By: Richard de Groot; UNICEF Office of Research - Innocenti
    Abstract: Sharing of good, practical research practices and lessons learned from development and humanitarian contexts is in high demand not only within UNICEF, but also in the broader international development and humanitarian community, ‘Impact Evaluation in the Field’ complements other methodological briefs by discussing how textbook approaches are applied in often challenging, under-resourced development contexts as well as the innovative solutions that are needed to ensure that practical demands do not compromise methodological rigour. The series will grow over time, allowing UNICEF staff and partners to share new experiences and approaches as they emerge from applied research. The overarching aim is to contribute to strengthening capacity in research and evaluation, improving UNICEF and partners’ ability to provide evidence-based, strategic, long-term solutions for children. This brief documents the impact evaluation design of the Ghana Livelihood Empowerment against Poverty (LEAP) 1000 programme which is being piloted in ten districts in two regions and targets about 6,000 households initially.
    Keywords: cash transfers; programme evaluation; research methods;
    Date: 2016
  4. By: Arouri, Mohamed; Ba-Diagne, Bineta; Ben-Youssef, Adel; Besong, Raymond; Nguyen, Cuong
    Abstract: This paper examines the correlation between access to improved water, human capital and economic activity in Africa. It shows that countries with higher access to improved water tend to have lower mortality rate than those with lower access to improved water even they have the same per capita GDP, population characteristics and other time-invariant characteristics. One percentage point increase in the proportion of population accessing improved water is associated with a decrease of 0.45 and 0.89 in the mortality rate (calculated as per mil). Although there is a very small correlation between the access to improved water and GDP per capita, there is a strong correlation between the access to improved water and poverty. Countries with higher proportion of population with access to improved water are more likely to have lower poverty.
    Keywords: Urbanization; piped water; household welfare; income; household survey
    JEL: O1 O18
    Date: 2014–12–20
  5. By: Thomas ALLEN; Philipp HEINRIGS
    Abstract: Driven by urbanisation and income growth, the West African food economy has radically changed over the past 60 years. The food economy, including all activities involved in producing food, from production to processing, transport and distribution totalled USD 178 billion in 2010, equal to 36% of the regional GDP. Forty percent of the value added in the food economy is generated by non-agricultural activities. Post-harvest activities are rapidly developing and are expected to grow more quickly in coming decades than other segments of the food value chain. Policies and monitoring systems need to adjust to these changes to leverage the emerging opportunities in agricultural development, employment and value creation. This paper estimates the size and structure of this new food economy, and explores major policy implications.
    Keywords: food policy, agricultural transformation, value chain, urbanisation, West Africa, food systems
    JEL: Q13 Q18
    Date: 2016–07–01
  6. By: Grimm, Michael; Peters, Jörg
    Abstract: Solar off -grid technologies have become a lower-cost alternative to grid-based electrification in rural Africa. As a contribution to the United Nations' electricity for all goals, policy currently promotes branded solar products based on the assumption that high-quality standards are necessary. We provide evidence suggesting that nonbranded technologies have already made widespread inroads to rural households. Quality is not necessarily worse, in particular if the considerably lower end-user prices are accounted for. A justification of branded solar promotion programs can thus not only be based on energy access arguments, but rather on environmental concerns related to electronic waste. Moreover, we show that if poorer strata are to be reached, end-user subsidies are required.
    Keywords: rural electrification,energy access,energy poverty,technology adoption
    JEL: O13 O33 Q41
    Date: 2016

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