The Career Development Industry in Uganda

Oirc journals, 2019

This paper investigated factors responsible for financial performance disparity in banks originating from West Africa and those originated from East Africa operating in Uganda. Data was collected in a longitudinal survey, using both qualitative and quantitative approach. The data collection was through documents review, questionnaires and interviews. It was concluded that banks with origin from West African did not do well financially unlike those from East Africa. The major findings were that banks from East Africa operating in Uganda performed fairly while those from West Africa performed badly (loss for six years running) under the years of review, except Guarantee Trust Bank, who learnt from the mistakes of UBA, Orient and Ecobank and started posting profit within one year of operation, it was also discovered that business terrain in Nigeria and other West Africa countries is different from business terrain in East Africa, banks from Kenya adjusted and fit in easily to Uganda while banks from Nigeria keeps struggling. Innovation, diversification, competition, comparative advantages are among the key factors determining banks performance in Uganda. The study recommends that banking in Uganda requires good learning curve. Whereas the Kenya operating environment is almost similar to Uganda’s (that is why most Kenyan banks have thriven with Kenyan CEOs), Nigeria’s operating environment is different. This explains the failure of Ecobank and UBA to create an impact in the local market for over five years of operation. While Global Trust Bank was taken over by DFCU.

The main objective of this study is to ascertain the significance of indigenous banks to the economic development of Zimbabwe because any economy requires the existence of a banking system to ensure the mobilization of excess money, as well as guiding money towards the pursuit of efficient economic activities that promote economic development. Banks as financial intermediaries channel funds from those who have excess money for investing at an interest to those who want to borrow at an interest, creating a lender borrower relationship. They also provide financial services that reduce the cost of moving funds between borrowers and lenders, leading to a more efficient allocation of resources and faster economic growth. Thus, banks are an essential component of modern economies, not only in terms of turnover, but also as primary financiers. 100 respondents were selected from 8 indigenous banks and 400 bank users were also selected using purposive sampling techniques. The data collected from the respondents was analyzed using mixed methods. Furthermore, secondary data was obtained from journals, reports and relevant publications. The findings of the study revealed that indigenous banks help entrepreneurs in different industrial sectors to gain access to capital which also contributes to the economic development of Zimbabwe. The study also revealed that indigenous banks inculcate the habit of banking in rural people and other low income groups among other benefits. Hence, there is need for the government to support indigenous banks.

Economic development is crucially an end product of mobilizing dormant savings into the fragrance of a new life-what is commonly called as investment. Banks play a crucial role in this channelization. In an underdeveloped economy like India, there are many traditional avenues of savings (such as gold, land, livestock, real estate, and so on). There may be many motives why people opt for traditional avenues rather than formal banking. The traditional avenues are believed to be more trustworthy and down to earth. The strict rules and stereotyped functioning of the formal banks can make them uncomfortable to the people in the underdeveloped areas. Thus, a huge fund in India is caught in the web of informal banking streams. This chapter seeks to understand how far and to what extent these changes have occurred in India. First, the authors consider a case study from rural India that depicts disparate banking behavior of rural populace. Next, they use district level data on banking habits across all the states of India. The authors first note the pattern and distribution of banking habits of people across the subcontinent. They then try to assess the reasons behind such discrepancy.

1995

Over the last four decades Sierra Leone established several credit schemes to help farmers increase production, productivity and incomes. This was motivated by several factors including the high proportion of the population in agriculture, the relative poverty of farmers and their subsistence level of production. Cheap credit was seen as the appropriate instrument to achieve market-oriented production. But these schemes failed due mainly to concessionary interest rates, high default, lack of savings mobilisation, mismanagement and poor economic policies. In March, 1985, a rural banking scheme was launched to replace these failed schemes; and by 1994, eight rural banks were in operation. The main objectives were to mobilise savings and to provide credit to agriculture and other rural enterprises. In early 1990), it was realised that these banks were far from achieving these objectives. This study examines and identifies the factors responsible for their low levels of achievement. The study reveals that huge losses were made due to several reasons among which are low interest rates for savings and loans which were typically below market rates and inflation suggesting negative returns on interest income, high default, poor economic environment and poor market infrastructure. These factors made rural banks unsustainable and highly subsidy dependent. The study further reveals that informal financial sources (i. e. moneylenders and osusu clubs) have been rendering services for which rural banks were not designed, In addition, rural banks and their clients were incurring relatively higher transaction costs compared to the informal sources and their clients. The study therefore recommends a restructuring of rural banks and suggests policies to improve their operations. In the main, institution-building is recommended, and that the operational flexibility of the informal financial sector be incorporated into the policies of rural banks. We recognise that Sierra Leone is going through a period of internal conflict. But these recommendations need to be urgently implemented to forestall the collapse of these rural banks. IV DEDICATION To my late parents, Mama Burah and Pa Ali who love unconditionally.

MPRA Paper No 105485, 2021

The banks are central elements of a market economy. In more than one way, they facilitate business transactions by acting as depositor and lender for many actors in the domestic and international economy. The banking industry in Nigeria has expanded in size in terms of assets in the last 60 years since the country’s independence from British colonial rule and undergone large-scale reforms vis a vis transformation in the global economy. What are the dimensions of this growth? How has it affected market efficiency and economic wellbeing of the people? This article provides answers to these questions and argue that growth has indeed happened in the banking sector by a quantification of liquid assets, investment securities and loans. It also captured its transnational dimension and how that has boosted international transactions as well as repatriation of Diaspora transfers to the national economy. This article also focused on the contradictions of the economy arising from inconsistent policies of government and meddlesomeness of global financial institutions, and their impact on the banking sector. This article ends on a prescriptive note by suggesting ways to make the banking sector more relevant in promoting productive activities in the national economy.

Small Enterprise Development, 2003

2020

Rural banks in Ghana were originally establish to bring banking services to the door step of the rural communities and also provide financing support to rural industries. However most appear to have relocated to the urban areas and thus defeating their original mandate. This paper was set out to ascertain the reason for this apparent development in the banking sector of Ghana. We employed varied methods of data collection to concretely bring out the fact from all stakeholders. The responses from about 130 stakeholders showed that rural banks in Ghana are drifting to the urban agencies to mobilise funds to increase their capital base; to provide credit to the urban poor and also to mobilise enough profit to support their activities (social responsibility projects) in their rural catchment. Undoubtedly, the rural banks are trying to be innovative but, their inability to compete favourably with the universal banks in the urban areas can destabilize them.

1996

OED Working Papers are an informal series to present the findings of work in progress in evaluation or research relating to development effectiveness. They are circulated to encourage discussion and elicit comment. The findings, interpretations, and conclusions expressed in this paper are those of the author(s). They do not necessarily reflect the views of the Board of Directors of the Asian Development Bank or the governments they represent. The Asian Development Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of ADB any judgment of the legal or other status of any territorial entity.

The mainstay of Ghana's economy is agriculture and this is mostly practiced in the rural areas, and not until recently, individuals and the government did not show adequate interest in investing in economic activities such as farming, fishing and animal rearing. Over the years, the economic development of Ghana has been closely linked with the performance of the agricultural sector. However, due to inadequacy of funds and poor education, the agricultural sector is left undeveloped and this has contributed to low productivity, poor distribution and low consumption hence to the weak development of the country. Many farmers, fishermen and herdsmen face the problem of inadequate capital to acquire equipment that large-scale production requires. They also lack the skills and knowledge that such large-scale activities require and as such face difficulties in marketing their produce. The above mentioned problems amongst others led to the introduction of the Ghanaian Banking System in recent times known as Rural Banks. Understanding in the first place and recognizing the impact of rural banking on economic development will be an advantage that will reorganize individuals in the agricultural sector to patronize the banks. Under the depository institutions we have the commercial banks, and then life insurance companies for non-depository institutions. However, banking can be defined as a practice of accepting deposits and giving loans including monetary advisory services to customers. Kolari W. (1995) defined a bank as a financial institution offering two major services. These he said include transaction accounts which may be used to make payment for goods and services and are widely accepted by the public and then the issuance of direct loans to individuals, businesses and other institutions. Banks also represent a vital link in the transmission of government policies. From the perspective of various groups in the economy, access to banks credit and other banking services is absolutely essential for economic development. This paper is an investigation into the impact of rural banking on economic development. The study involves a survey of management and employees of Unity Rural Bank Limited and the inhabitants of "Ziope"; a rural area in the Volta Region of Ghana. Interviews and questionnaires were the main research techniques adopted for the data collected for this study. Results show that, for the bank to be able to contribute effectively to economic development, further education of the rural folks must be undertaken so as to enlighten the people about the benefits that comes with banking. Until that is done, the banks' impact on economic development remains relatively low

1998