African J. of Economic and Sustainable Development (6 papers in press)

Regular Issues

• Assessment of the business environment for the furniture industries in the Temeke, Dodoma and Handeni districts, Tanzania  
  by Alpha E. Mfilinge, Jumanne Moshi Abdallah 
  Abstract: In Tanzania, furniture industry is one of the important components of the manufacturing sector, and the sector is dominated by small and micro enterprises. In various places, local furniture entrepreneurs establish manufacturing and trade centres. However, the amount of furniture demanded is still higher compared to what is manufactured. The study aimed on assessing the business environment for the furniture industries, specifically supporting functions, and rules and regulations guiding the industry. Data was collected using a questionnaire survey, key informant interviews, focus group discussions and observations. The study argue that, the industry had a deficit in training to improve skills of local furniture producers also, the industry faces the challenges such as poor infrastructures, lack financial support, lack training and compliance to rules and regulation thus reducing production efficiency. The study recommends the government to have policy which focus on product quality, financial support, and lower operational costs.
  Keywords: Tanzania; furniture; industry; business environment; supportive function; rules; regulations; manufacturing; sector.
  
  
• Post COVID-19 achievement of SDGs in Africa: what financing levers can we use for effective implementation  
  by Moussa Njoupouognigni, Alain Latoundji Babatoundé 
  Abstract: While implementing the sustainable development goals (SDGs) generates co-benefit and trade-off between goals, new challenges and constraints of financing are raising especially in developing countries: deficient domestic resources and development aid, debt sustainability, attractiveness of private finance and trade restrictions, unintended effects. Since 2020, the COVID-19 outbreak has aggravated them in many aspects. This paper explores the relative effectiveness of a range of financing levers in achieving SDGs in Africa, applying an ordered logit to the recent Africa SDG index and trend data. Given the COVID-19 outbreak, its related economic shutdown and financial commitments, we re-estimated the model and found some influence of the pandemic crisis on the performance of African countries in achieving the SDGs. We explain its slight extent by the compensating effect between economic shutdown and supporting actions. For SDGs 4, 5, 8, 9 and 11, some countries are expected to perform at a higher rate to achieve the goals while for SDGs 1, 2 and 7, they are expected to perform at a lower rate compared to the baseline. The results call for additional fiscal space and public financial support to address sufficiently old and new financing challenges in African countries.
  Keywords: financing for development; FfD; sustainable development goals; SDGs; Africa; COVID-19.
  DOI: 10.1504/AJESD.2024.10063203
   
  
• Poverty status and reduction strategies in Tigray Region, Ethiopia  
  by Adonay Habtu, Tesfay Aregawi 
  Abstract: This study was conducted mainly to determine the poverty gap, poverty severity and assess the impacts of poverty reduction policies and strategies in Tigray regional state. The survey was conducted in both urban and rural areas of the region. The analysis was based on primary household level cross sectional data collected from 2,459 randomly selected rural and urban households. The researchers have applied the propensity score matching (PSM) and Foster-Greer-Thorbecke (FGT) poverty measurement to evaluate the impact of the program and poverty, respectively. Using the CBN approach we computed a total poverty line of birr 583.3 Birr and food poverty line Birr 437.3 per month per adult equivalent. Regional level 38.1% of the households are living below the poverty line with income shortfall of 13.1 and poverty severity index of 6.8%. The researchers found that there is highest level of poverty in the rural areas compared with the urban areas. The PSM result reveals that integrated household package program participants are found better in terms of expenditure, asset and household income. Similarly, food and non-food expenditure for MSE participants are higher and better in contrast to non-participants.
  Keywords: Tigray; poverty; poverty severity; poverty gap; impact; poverty reduction strategies.
  
  
• Influence of inventory turnover on the profitability of listed manufacturing firms in Dar Es Salaam stock exchange, Tanzania  
  by James Daniel Chindengwike 
  Abstract: The study mainly focused on assessing the influence of inventory turnover on the profitability of listed manufacturing companies in DSE. The research used a longitudinal research design, utilising five years of secondary data from 2015 to 2020. Seven companies from the manufacturing sector were used in this study purposefully. The study found that inventory turnover had a significant positive influence on the profitability of listed manufacturing companies. The study recommended that DSE supervisors pay consideration to the turnover and extent of their corporations in the growing plan of the association. Besides, managers are advised to innovate efficient ways of managing inventory turnover to optimise its potential. Companies should increase control over inventory management.
  Keywords: inventory turnover; profitability; listed manufacturing companies; DSE; Tanzania.
  
  
• Testing classical and neo-classical models on banks in Africa  
  by Jacob Tche 
  Abstract: In the present paper, we aim at filling the gap created by the few and conflicting econometric works on classical and neo-classical theoretical models on banks in Africa. Based on the case of banks and economic growth in 33 Sub-Sahara African countries for the 1990-2021 periods, we employ the Granger causality tests in heterogeneous panels developed by Juodis et al. (2021), the fixed effect ordinary least squares method, the mean group method and the generalised method of moments to conclude that, in the short and long runs, there was no evidence supporting the classical and neo-classical models on banks suggesting that banks development precedes economic growth.
  Keywords: classical; neo-classical; banks; investment; growth; Africa.
  
  
• Contribution of non-timber forest products to women’s empowerment: evidence from South Burkina Faso  
  by Soumaïla Sawadogo 
  Abstract: Rural women harvest non-timber forest products (NTFPs) for various reasons, but does this activity contribute to their empowerment? Using the capability approach, the current paper analyses the contribution of NTFP exploitation to womens empowerment in villages bordering the ecological Po-Nazinga-Sissili complex in south Burkina Faso. With original data collected on 336 randomly selected households, some indices of womens empowerment in agriculture were calculated, with and without consideration of NTFP exploitation as an agricultural activity. Using the ordinary least squares technique, these indices were then regressed on the socioeconomic characteristics of the selected individuals and their households. Results show that NTFP exploitation contributes to a significant increase in womens empowerment and a significant reduction in gender decision-making inequalities within households. NTFP exploitation would be an activity to be deeply considered in rural womens empowerment policies.
  Keywords: capabilities approach; forest management; empowerment; gender equality; non-timber forest products; NTFP; sustainable development; women’s empowerment in agriculture index; WEAI; Burkina Faso.