Papers by Benson O Ndiege
International Journal of Financial Research, Apr 8, 2013
In this paper we examine the role of Savings and Credits Cooperative Societies (SACCoS) in the ec... more In this paper we examine the role of Savings and Credits Cooperative Societies (SACCoS) in the economic growth of Tanzania by answering two main questions. First, are financial services in SACCoS significant factors for economic growth? Second, are financial services in SACCoS Granger causing economic growth? We use credits-real GDP per capita ratio and savings-real GDP per capita ratio as proxy measures for financial services and real GDP per capita for economic growth. We employ Newey-West standard errors regression model and Wald Granger causality tests in analysis. The sample period is 1990-2012. Data are from the Ministry of Agriculture, Food and Cooperatives, World Economic Outlook (WEO) database, International Monetary Fund (IMF). The findings show that, there is a strong positive association between the financial services and the economic growth, also there istwo-ways Granger causality between them. However, we find out that savings are much important in fostering economic growth as compared to credits/loans. These criteria make SACCoS the distinct microfinance institutions in the economic development in Tanzania and therefore should be promoted with more emphasis on the savings objective.
Ara: Revista de Investigación en Turismo
Este trabajo analiza el rendimiento de la industria turÃstica de Tanzania, que depende de la esce... more Este trabajo analiza el rendimiento de la industria turÃstica de Tanzania, que depende de la escena turÃstica patrimonio natural recursos naturales en particular mediante la evaluación de la tendencia y la previsión de la demanda turÃstica internacional. El número de llegadas de turistas internacionales en Tanzania se utiliza como aproximación para medir la demanda turÃstica internacional. El uso de los datos para el perÃodo de 2001q1- 2010q4 y utilizando el modelo ARIMA, el estudio afirma que la demanda turÃstica internacional en Tanzania está creciendo aunque de muy bajo ritmo de alrededor de 1% por año. Esto es menos que el crecimiento promedio mundial que se ha informado por la Organización Mundial del Turismo (OMT) en 2012 para llegar a 5.4% anual. Por otra parte, la demanda turÃstica internacional Tanzania es cada vez menos competitiva y ha estado fluctuando con los años. AsÃ, para obtener lo suficiente del mundo crece la demanda turÃstica internacional el desarrollo de la esc...
Södertörns högskola, 2021
The two topics highlighted in this volume, entrepreneurship and co-operatives, and education with... more The two topics highlighted in this volume, entrepreneurship and co-operatives, and education within these fields, may be regarded as essentially disparate themes. However, looking more closely it is apparent that these have some interesting intersections. The main focus relates to innovation and entrepreneurship among co-operatives, the public sector, and the private sector This work is a product of the collaboration between Södertörn University in Stockholm, Sweden, and Moshi Co-operative University in Moshi, Tanzania. In both countries we aim to understand, how enterprises with different ownership forms and other kinds of state and private organizations contribute to economic growth or decline. The volume is an overview of research about entrepreneurship and co-operatives but also of education in these areas. The intention is to contribute to the promotion of research on these topics in both countries and enhance future collaboration between the two Universities
African Journal of Applied Research, Sep 28, 2021
This study is based on empirical information to understand the importance of firms listing in the... more This study is based on empirical information to understand the importance of firms listing in the stock market. It analysed the impact on performance for the listed firms at Dar es Salaam Stock Exchange. Methodology: The mixed methods approach with an explanatory sequential design and a sample size of 19 listed firms, the data between 1998 and 2019 were used. Matched pairs approach, random effect model and thematic analysis were used to analyse quantitative and qualitative data respectively. Findings: The study found the firm performance has trajectory increased after listing as noted for both mean and median were change in Return on Equity being 13.09% and 13.37% respectively. The baseline model and robustness check done sector-wise revealed that listing had a statistically positive impact on firm performance. Research Implications: The study focused on the impact on performance for the listed firms at Dar es Salaam Stock Exchange. It proved that listed firms' performance improved compared to before listing. Practical Implication: The study informed firms to go public since it will help them to shift the risk to other shareholders and acquire capital to finance their subsequent growth. Social Implication: The Policymakers are informed to continue investing more resources in the Dar es Salaam Stock Exchange as they impact positively on firm performance. Originality: The study provided evidence that listed firms have improved performance. This study is quite different from previous scholars' debate and Agency theory arguments highlighted poor performance once the firm list at the stock market.
Although the existing literatures on performance advocate that Performance Management (PM) positi... more Although the existing literatures on performance advocate that Performance Management (PM) positively affect organizational performance, there is evidence that co-operatives in Tanzania are performing poorly. However, there is anecdotal evidence on factors to be included in performance measurement systems of co-operatives . The aim of the study was to establish the key performance factors which could be used in the co-operative performance system. In addition, the study assesses specifically the current performance system, identifies the critical performance aspects, and to establish the factors suitable for the comprehensive performance evaluation for Agricultural Marketing Co-operative Societies. The methodology for this study involved a documentary review, interview, and focus group discussion composed of 15 key informants. Data were analyzed by using content analysis. The study found five aspects to be of fundamental in the performance evaluation framework. The performance aspec...
International Journal of Managment, IT and Engineering, 2013
This paper centered on assessing challenges facing entrepreneurs in initiating small businesses p... more This paper centered on assessing challenges facing entrepreneurs in initiating small businesses particularly single shop retail business in Arusha Municipal. It documents the difficulties entrepreneurs face when starting new small businesses, the possible causes for such difficulties and solutions which will be useful in solving such difficulties. Data were analysized qualitatively and quantitatively. In quantiative analysis, descriptive statistics were used. The study observed that major challenges facing entrepreneurs in initiating small businesses are lack of knowledge of the business, high business running cost, Insufficient capital, poverty and competition. The study recomend that the Government and other stakeholders should build and maintain infrastructures, creat employment opportunities and provide management workshops and seminars on enterpreneurial tendencies, proper record keeping, and financial management practices to the small business owners.
This paper analyzes the performance of Tanzanian tourism industry which depends on natural herita... more This paper analyzes the performance of Tanzanian tourism industry which depends on natural heritage tourism scene particularly natural resources by assessing the trend and forecasting the international tourism demand. The number of international tourist arrivals in Tanzania is used as the proxy measure for international tourism demand. Using the data for the period of 2001q1- 2010q4 and using ARIMA model, the study asserts that the international tourism demand in Tanzania is growing though in a very low pace of about 1% per year. This is less than world average growth that has reported by World Tourism Organization (UNWTO) in 2012 to reach 4-5% per annum. Moreover, the Tanzania international tourism demand is becoming increasingly less competitive and has been fluctuating over the years. Thus to reap enough from the world growing international tourism demand the development of artificial tourism scene to supplement the natural heritage and development of new tourism products should ...
Sustainable Education and Development, 2021
International Journal of Agricultural Economics, 2018
The paper presents prospects and challenges of the collective action in facilitating access to fi... more The paper presents prospects and challenges of the collective action in facilitating access to financial services among smallholder farmers in rural areas. It is based on data collected through Focus Group Discussions (FDGs) from 11 cases of Savings and Credit cooperatives (SACCOs), Primary Agricultural Marketing Co-operatives (AMCOS) and Farmers Associations (FA) in Dodoma and Morogoro regions in Tanzania. By using the content analysis, the paper presents three major findings. First, the groups are much relevant in strengthening the ability of the smallholder farmers to access financial services. Second, The majority of smallholder farmers rarely payback their loans obtained through wholesale borrowing. Thus, wholesale group lending results into ineptness which leads to debt frightening. Failure to repay their loans increases financial burden as interest and fine enlarge the loan size. Consequently, frightening cooperation and sustainability of groups and deepening poverty among smallholder farmers. It was further observed that, the main reason for poor repayment of the loans is poor group lending implementation arrangements. Thus, the paper proposes the implementation arrangement of the wholesale lending method that would reduce financial risks and ensure sustainability of the groups.
European Journal of Business and Management, 2014
This paper centers on examining the role of nursery gardens as small scale agribusiness enterpris... more This paper centers on examining the role of nursery gardens as small scale agribusiness enterprises in improving livelihoods in Arusha, Tanzania. It documents, challenges, prospects and contributions to the livelihoods of actors in the industry. Household improvements, access to education, food, health services, regulating weather and climate are some remarkable contributions. Access to financial services, reliable markets, higher input's prices, room for expansion, institutional support and entrepreneurial skills were challenges noted. The study shows the need for appreciating their existence, increasing productivity and improving the situation which is context specific though applied in other cities of the same milieu.
African Journal of Business Management, 2016
The Savings and Credit Cooperative Societies (SACCOS) which are co-operative financial models are... more The Savings and Credit Cooperative Societies (SACCOS) which are co-operative financial models are flourishing in most of the developing economies recently. However, loan repayment capacity remains a challenge that threatens their future. Using financial statements data for the year 2012, from 36 SACCOS in Kilimanjaro Region, Tanzania, and using descriptive statistics and regression models in the analysis, this study examines the relationship between financial performance and loan repayment capacity. It thus examines the extent by which SACCOS are capable of recovering the loan issued and also the financial ratios that explain loan repayment capacity in SACCOS. The study depicts that there is a severe financial risk management problem among Tanzanian SACCOS. Focusing on sustainability is significant for improvements of loan repayment, but focusing on profitability in SACCOS results to an adverse loan repayment. The study asserts that the primary focus of SACCOS should not be profit but member's wealth maximization and sustainability of the institution. Moreover, we suggest that in addition the traditional means of dealing with financial risk, the uses of a modern risk management tool like credit scoring should be considered in evaluating borrowers.
European Journal of Business and Management, 2013
There is continuous and increasing flow of funds from commercial banks and other formal financial... more There is continuous and increasing flow of funds from commercial banks and other formal financial institutions to the Savings and Credits Cooperative Societies (SACCoS) in Tanzania. This experience causes contradiction of whether it is blessing or threat to the SACCoS existence. This paper examines the linkage between sources of funds and level of outreach as a performance indicator in SACCoS. We employ panel data which are obtained from Ministry of Agriculture Food and Cooperatives for the period 2005-2012 and analysis is based on panel data regression model. Findings indicate that both external and internal sources of funds are positive and significantly related to outreach. However the results indicate that external sources funds are becoming central part of the SACCoS loan portfolio as compared to internal sources of funds. This is a threat to saving practices in SACCoS. We recommend that policy and rules governing SACCoS indicate clearly the model and level of linkage to maintain the principles, structure and objectives of member-based microfinance.
Research Journal of Finance and Accounting, 2013
The paper was aimed at evaluating the efficiency of banking system in Tanzania. The study employe... more The paper was aimed at evaluating the efficiency of banking system in Tanzania. The study employed panel data for the period of 2006-2011. The paper utilized data from all 45 banks in Tanzania; the paper used efficiency measures, financial ratios, parametric and non-parametric approaches. In the context of parametric approach the study employed the Trans log and cob Douglas to test the profit efficiency. The findings of the study revealed that the three models to exhibited results, each model reflects and reported its efficiency score categories and the author conclude from the empirical literature that the all the three models do exhibit different efficiency score. Furthermore the study noted that the banks within the peer group were operating at higher level of efficiency but the industry at large still operates at inefficiency level but operate at higher level of profit efficiency due higher level of interest spread, large banks have been more efficient then the medium banks followed by the Non-Banking Financial institutions and finally the medium banks.
Journal of Co-operative Organization and Management, 2014
operative and Business Studies has recently changed the name and now it is known as Moshi Co-oper... more operative and Business Studies has recently changed the name and now it is known as Moshi Co-operatives University. 2 The less-formal financial institutions are all semiformal and informal financial institutions most of which are rural financial institutions and serve the poor. So in some explanation the word is synonymy to microfinance. Moreover, contrary to the formal financial institutions like commercial banks, less-formal financial institutions are not regulated by the Bank of Tanzania.
Journal of Asian Economics, 2006
Since the financial crisis broke out in East Asia, the importance of financial development and st... more Since the financial crisis broke out in East Asia, the importance of financial development and stability had been noted. This paper tries to examine the relationship between financial development and the source of growth for three Asian economies, namely, Taiwan, Korea, and Japan. Particularly, we wish to emphasize the role of financial development and structure (including banking and stock markets), monetary and financial policies, as well as the degree of international capital mobility in the economic growth processes. Using the generalized method of moments (GMM) and principal component analysis, we find that (1) high investment had accelerated economic growth in Japan, while high investment to GDP ratio did not necessarily lead to better growth performance if investment did not have been allocated efficiently e.g. in Taiwan and Korea cases; (2) real export growth rate had contributed to all three economies; (3) capital flows had negative effects on Taiwanese and Korea's economic growth, while the capital inflow had positive effect on Japan's economy only; (4) the finance-aggregate had positive effects on Taiwan's economy, but had negative effect on other countries; (5) the stock market development had positive effects on Taiwan's economic growth.
Housing is a fundamental right and every person is entitled to this basic need. However, the bigg... more Housing is a fundamental right and every person is entitled to this basic need. However, the biggest challenge facing Kenya is lack of affordable housing especially for low-and middle-income households in urban areas. We profile housing cooperative models and examine their suitability in addressing shortage of affordable housing in Nairobi City County. Specifically, we: (i) profile housing cooperative models adopted by housing cooperatives in Nairobi City County and (ii) examine the suitability of the models in provision of affordable housing. A qualitative approach using semi-structured interviews was adopted to generate data on how the housing co-operative models formed, membership characteristics, management practices, financing models and ownership practices. The paper is anchored on transaction cost theory. The target population consists of all active housing cooperatives registered by the State Department of Cooperatives in Nairobi City County as of December 2017. The sample size selection for this exploratory study was based on data saturation criteria. Purposive sampling technique was used to select 10 key informants, based on their technical expertise and knowledge. Thematic content analysis was used to analyze the qualitative data. Findings revealed that the limited housing cooperative model is most used among the members of housing cooperatives in Nairobi City County. However, the model failed to take into consideration collective efforts of members in terms of collective housing construction which bring down the total cost of construction. The paper recommends restructuring of housing finance system to take into consideration issues of low-and middle-income households for adoption of a multiple mortgage housing cooperative model.
The study examined the impact of capital structure on the performance of Savings and Credit Coope... more The study examined the impact of capital structure on the performance of Savings and Credit Cooperative Societies (SACCOS). Specifically, the study examined how the sources of capital and how the allocation of SACCOS capital influences the performance of the SACCOS. Using secondary data of the SACCOS financial statements from Tanzania and, random effect regression model in the analysis, the findings reveal that higher net loan, liquid investment, members' savings and institutional capital are both crucial determinants of performance. Also, there was no evidence on the impact of leverage on the performance of SACCOS. Moreover, the findings indicated that allocating more resources into non-financial investments lower the performance. The study recommended that giving loans should be the major business of SACCOS. SACCOS should be encouraged to focus on extending financial services to its members who will invest, rather than SACCOS investing in non-financial investments. Also, members' savings and institutional capital should remain the primary financing instruments in SACCOS.
The study examined the causality between bank profitability and stability of commercial banks (CB... more The study examined the causality between bank profitability and stability of commercial banks (CBs) in Tanzania using panel data covering 10 years (2006-15). Bank profitability was measured using Return on Assets (ROA) and Return on Equity (ROE) while stability was measured using Z-score and the ratio of Non-performing loans to total loans (NPL/TL). The study included 22 banks and employed Granger Causality Test in Heterogeneous Panels as a method of analysis. The findings revealed that there is a positive bidirectional relationship between ROE and Z-score in large and small banks. This implies that banks in Tanzania should strive to increase both ROE and Z-score since they cause each other. The study also found that ROE does granger cause the ratio of NPL/TL in small and large banks while the ratio of NPL/TL was found to granger cause ROA and ROE in small banks. This might be implying that loans are almost the only source of income for small banks that is why NPL/TL do cause their profitability. Hence, the study recommends that, small banks should be keener on how to manage their loans and should expand their activities to earn more non-interest income which would ensure their stability even when their loan portfolios are not performing well. The findings concerning ROA and Z-score indicated that there is a bidirectional relationship between ROA and Z-score in small banks. These findings imply that the profitability and stability in small banks do cause each other. Thus, the study recommends that the management of small banks should aim to accomplish both simultaneously as they cause each other.
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Papers by Benson O Ndiege