Economics, Business and Management: Recent Advances Vol. 2

Foreign Direct Investment and Economic Growth in Botswana: Evidence from Cointegration and Granger Causality Analysis

2026-05-02T11:48:51+00:00

Background: Foreign Direct Investment (FDI) is broadly defined as capital flows resulting from the behaviour of multinational companies. Several studies have found the impact of FDI on economic growth to be insignificant. Despite the observed economic growth in Botswana, there is limited empirical evidence examining the specific impact of Foreign Direct Investment (FDI) inflows on this growth.

Aims: The study examines the relationship between FDI and economic growth using yearly time series data for the period 1980 to 2012.

Methodology: A Multi-model econometric study was conducted to determine the true impact of FDI on economic growth in Botswana. The study uses the Augmented Dickey-Fuller and the Phillips-Perron test to test the stationarity of the variables. Johansen and Juselius' cointegration test was used to test for cointegration. Finally, the study uses the Granger causality test to determine whether FDI influences economic growth.

Findings: FDI is regarded as an important driver of economic growth, but empirical evidence reveals that the relationship is not straightforward. Using the Johansen cointegration test applied to a dynamic model, the study found that there is a long-term relationship between FDI and economic growth in Botswana. However, using the Granger causality tests, we were not able to confirm whether it is the FDI that is spurring economic growth or it is economic growth that is promoting FDI inflows.

Conclusion: Botswana should therefore continue to create conditions that attract FDI in order to influence economic growth. Further research could use time series models like the vector autoregression model (VAR) to test the linear relationship between FDI and economic growth, including control variables like investment (as a percentage of GDP) and human capital formation.

Control Environment and Financial Performance: Evidence from Selected Insurance Companies in Rwanda

2026-05-02T11:51:09+00:00

As a core component of internal control systems, the control environment significantly affects organisational performance in the global financial industry. This study investigates the effect of the control environment on the financial performance of selected insurance companies in Rwanda, focusing on Radiant, Old Mutual, and Britam. Anchored in the COSO internal control framework, the research examines how key dimensions, such as integrity and ethical values, commitment to competence, and management philosophy, influence financial performance. A mixed-methods research design was employed, combining a descriptive survey and case study approach. Primary data were collected via structured questionnaires and semi-structured interviews from 88 respondents, including senior executives and finance managers, supplemented by secondary data from audited financial statements. Quantitative data were analysed using SPSS Version 25. Regression analysis reveals that the control environment significantly and positively affects financial performance (R² = 0.498, p < 0.001). The control environment demonstrates a strong predictive relationship (β = 0.706, B = 1.372), where financial performance is measured as a composite index of Return on Assets (ROA), Return on Equity (ROE), and Earnings per Share (EPS). The significant constant term (p = .025) underscores the essential role of governance in achieving positive outcomes. The study concludes that a robust control environment is a critical strategic asset for sustainable financial success. It is recommended that insurers prioritise governance culture through leadership accountability and training, while regulators should integrate control environment assessments into supervisory frameworks. Future research could explore longitudinal impacts across different financial sectors in East Africa.

Kenyan Youth Perception on Agriculture and Necessary Interventions: A Review

2026-05-02T11:53:40+00:00

Kenyan youth participation in agriculture has been declining over the years, with a notable labour force of about 28.47% in 2020. Despite agriculture being central to addressing their unemployment, youth are increasingly turning away from the sector, seeking what they believe to be more gainful jobs and business-oriented careers. This may be partly attributed to poor perception of agriculture, among other factors. Agriculture, which is basically a rural-oriented sector, remains the backbone of Kenya’s economy, contributing over 35% of GDP, while providing over 80% of employment opportunities in the country, but it remains unattractive to the youth. While youth unemployment is rising, youth engagement in agriculture is declining, implying that most of them are not fully engaged in productive economic activities, which puts their dependency index quite high. Declining youth engagement in agriculture has implications for household and national food and nutritional security, unemployment and underemployment, which may undermine the Government’s efforts of ensuring 10% national economic growth through agriculture as envisioned in the country’s Vision 2030. If youth's positive perception of agriculture is positive, they can engage in various activities along the agricultural value chain development, thus enhancing their self-reliance. The chapter analyses and discusses the influence of Kenyan youth’s perception towards agriculture and the necessary interventions. The study considers the challenges and opportunities for enhanced youth participation in agriculture. Insights were gleaned through an exhaustive review of literature, with recommendations poised to enrich the existing knowledge domain and to guide policymakers on strategies for promoting youth’s participation in agricultural development for enhanced livelihood.

Effect of Project Team Competency on Mining Project Success in Rwanda: Evidence from the Trinity Nyakabingo Mining Project

2026-05-07T09:04:36+00:00

Despite the strategic importance of mining, project failure rates remain high, with over 30% of licensed initiatives in Rwanda experiencing delays often attributed to insufficient team capacity. Grounded in Team Theory and the Resource-Based View, this study investigates the effect of project team competency on the success of mining projects in Rwanda, with a specific focus on the Trinity Nyakabingo Mining Project. Using a quantitative cross-sectional design, data were collected from 91 respondents through structured questionnaires and analysed using regression analysis to examine the relationship between project team competency encompassing skill proficiency, collaboration, and problem-solving ability and project success, measured by on-time completion, budget adherence, and quality deliverables. The findings reveal a strong positive and statistically significant relationship, with project team competency explaining 77.3% of the variance in project success (R² = .773, p < .001). While limited by its single-site case study design, the study concludes that competent project teams are pivotal to achieving successful mining outcomes in Rwanda's evolving extractive sector. Consequently, it recommends that mining companies institutionalise competency-based hiring, regulatory bodies enforce minimum competency standards, and project managers prioritise continuous training. These insights contribute to both academic literature and practical strategies for enhancing project delivery in resource-constrained mining environments.

An Investigation of Socio-Economic Drivers Contributing to Rural Energy Poverty and their Implications on Off-Grid Households in the Eastern Cape Province, South Africa

2026-06-19T11:01:14+00:00

Energy poverty remains a persistent development challenge in South Africa, particularly in remote and off-grid communities where structural inequalities and infrastructural neglect limit access to modern energy services. This chapter examines the socioeconomic drivers contributing to energy poverty among off-grid households in the Upper Blinkwater. Using a cross-sectional survey of 53 households, we applied the Foster-Greer-Thorbecke (FGT) approach to derive an energy poverty line, providing a binary classification of households as energy poor or non-poor. A binary regression model is then employed to identify factors influencing the likelihood of being energy poor. Descriptive and econometric analysis reveal that gender, household size, education and reliance on social grants significantly shape household energy outcomes in this community. The findings show that female-headed households face a disproportionately high risk of energy poverty, reflecting broader gender inequalities in income and access to livelihood opportunities. Larger households, contrary to expectations, were less likely to be energy-poor, suggesting economic and labour pooling advantages within multi-member households. Results further challenge the conventional “energy ladder” hypothesis, revealing that even educated households remain constrained by structural barriers, including absent energy infrastructure and limited economic prospects that restrict transitions to modern energy sources. Social grant dependency was found to be strongly correlated with energy poverty, underscoring the inadequacy emerged as a strong predictor of energy poverty, underscoring the limitations of income transfers in addressing systemic deprivation in off-grid areas. Overall, the chapter highlights the multidimensional and context-specific nature of rural energy poverty and highlights the need for gender-responsive, economically inclusive and infrastructure-focused policy interventions. By drawing attention to the interplay between socioeconomic vulnerabilities and structural constraints, the study contributes valuable evidence for designing targeted strategies to improve energy access and enhance wellbeing in South Africa’s off-grid rural communities. The findings carry broader relevance for policymakers, practitioners and researchers concerned with energy justice, rural development and sustainable energy transitions in the Global South.

Financial Ratio Based Valuation in an Emerging Market: Evidence from Omantel and Investor Pricing Behaviour

2026-07-02T10:49:13+00:00

Financial ratios remain widely used indicators for assessing firm performance, market valuation and investor pricing behaviour. This study examines the relationship between selected financial ratios and stock price movements in Omantel, Oman’s leading telecommunications company, over the period 2005–2024. Using secondary data from audited financial statements and stock market records, the study evaluates seven financial indicators: Earnings Per Share (EPS), Price-to-Earnings Ratio (P/E), Dividend Yield (D/Y), Return on Equity (ROE), Return on Assets (ROA), Debt-to-Equity Ratio (D/E) and Price-to-Book Ratio (P/B). Correlation analysis and multiple linear regression were applied to assess the explanatory strength of these indicators in relation to Omantel’s market price per share. The findings show that EPS and the P/E ratio are the most significant predictors of stock price, with both demonstrating positive effects. Dividend Yield approached statistical significance, while ROA, ROE, D/E and P/B did not show significant effects in the regression model. The model reported strong explanatory power, with an R² value of 0.938, indicating that the selected financial ratios explain a substantial proportion of variation in Omantel’s stock price. The study suggests that earnings-related and valuation-based measures play a central role in investor pricing behaviour in Oman’s emerging capital market.

The Role of Storage Facilities in Enhancing Cold-Chain Operational Efficiency for Pharmaceutical Distribution in Tanzania

2026-07-02T10:53:23+00:00

This study examined the effect of storage infrastructure availability on cold value chain efficiency for pharmaceutical products at the Medical Stores Department in Tanzania. A quantitative approach was applied using a structured questionnaire administered to 110 respondents drawn from key operational departments. The data were analysed using descriptive statistics and regression analysis with SPSS version 27. Descriptive findings indicated consistently positive perceptions of storage infrastructure, with agreement and strong agreement across the indicators ranging from approximately 84 per cent to 91 per cent. The mean scores for refrigeration units, Internet of Things (IoT)-based tracking systems and warehouse capacity ranged from 4.08 to 4.15, while the standard deviation values ranged from 0.55 to 0.60, indicating limited variation in respondents' views. The regression results showed a strong positive relationship between storage infrastructure availability and cold value chain efficiency (R = 0.752). The coefficient of determination indicated that storage infrastructure availability explained 56.5 per cent of the variation in cold chain efficiency (R² = 0.565), while the model was statistically significant (F = 140.214, p = 0.000). The beta coefficient further showed a positive and significant effect of storage infrastructure availability on cold chain efficiency (B = 0.603, β = 0.752, p = 0.000). The findings suggest that adequate refrigeration units, sufficient cold storage facilities and appropriate warehouse capacity contribute to improved quality preservation, reduced spoilage risk and more reliable pharmaceutical service delivery. The study recommends continued investment in modern storage facilities, reliable backup power systems and coordinated monitoring mechanisms to strengthen cold value chain performance for temperature-sensitive pharmaceutical products.

Public Financial Management and Public Service Delivery

2026-07-09T10:10:39+00:00

Financial Management (FM) deals with resource mobilisation and expenditure for either private firms or public institutions. More specifically, Public Financial Management (PFM) involves planning and controlling public institution funds through capital expenditure management, working capital, working with the institution's Treasury, funding for expenditure, and making informed funding decisions for the institution (World Bank, 2020). Therefore, the main objective of PFM is to manage raised or about to be raised financial resources economically and efficiently, at the same time delivering the targeted outputs for the desired outcomes (effectiveness) and achieving the community needs (appropriateness). Most countries require proper management of financial resources to ensure proper service delivery to the community. It is emphasised that most developing countries need to develop proper ways of ensuring accountable public fund management. The need for prudent management of funds is critical for most public institutions to achieve their objectives, as widely emphasised in different international forums. Efficient fund management consists of five key aspects: budgeting, proper financial reporting, good auditing practices, a well-structured regulatory framework, and a revenue collection base. In any economy, proper PFM is critical to economic development and growth. Such practice enhances revenue generation and sourcing, which improves service provision and the welfare of the communities by reaching all corners, which in turn improves growth. Following the key steps of PFM helps reduce corruption and improve the accountability of public funds. It is noted that proper PFM accounting is important for the institution to achieve community and national development at large. This is realised through improved service quality, public trust, community buy-in, and improved performance of public institutions.

Determinants of Food Poverty among Household Heads in Zanzibar: Evidence from a Household Budget Survey-2019/2020

2026-07-09T10:13:53+00:00

Introduction: Food poverty and insecurity among household members have adverse consequences for dietary quality and may lead to inadequate nutrition, thereby affecting the physical, emotional and financial well-being of household members. In recent years, Zanzibar has experienced increasing food-insecurity pressures, with IPC classifications indicating worsening food conditions in several regions and highlighting the need for robust household-level measurement approaches. Previous studies in Tanzania have commonly used the Food Consumption Score and the Food Insecurity Experience Scale to assess food access and food poverty. However, these measures may be limited in capturing actual dietary energy intake. Therefore, this study adopts a more direct approach by using food consumption measured in kilocalories per adult equivalent per day to estimate food poverty.

Aim of the Study: The aim of this study is to investigate the socio-economic and demographic determinants of food poverty among household heads in Zanzibar using data from the 2019/2020 Household Budget Survey, and to identify the key factors influencing household access to adequate food, measured in kilocalories, in both Unguja and Pemba islands.

Material and Methods: Data from 2,788 household heads in the Household Budget Survey were used. The objective of the study was to investigate the socio-economic and demographic variables affecting household heads' access to food in Zanzibar. Using 2,200 kcal as the baseline consumption threshold, equivalent to TSh 1,571.1091, food poverty was estimated among adults in Zanzibar. Stratification was based on area and weighted by occupancy. A two-stage stratified design-based binary logistic model was applied, and the area under the receiver operating characteristic curve was used to evaluate model accuracy. Descriptive statistics for the covariates of poverty were computed, and food-poor and non-food-poor households were estimated.

Results: The weighted binary logistic regression model showed that household size, educational attainment of the household head, total monthly expenditure and household location were significant determinants of food poverty at the 5% level. Specifically, larger household size was associated with a higher likelihood of food poverty, while higher educational attainment reduced the probability of being food poor. Higher monthly household expenditure significantly improved food consumption levels, thereby reducing the risk of food poverty. Households headed by individuals with no or low educational attainment had significantly higher odds of food poverty than those headed by individuals with higher education levels. The model demonstrated strong predictive performance, with an area under the receiver operating characteristic curve of 0.9278, indicating excellent classification accuracy. No statistically significant difference was observed between rural and urban households in food-poverty status (p > 0.05).

Conclusion: Household size, educational attainment of the household head, total monthly expenditure and location were the significant correlates influencing food poverty.