Companies In Africa Research Articles

Perceptions of asset managers on corporate social responsibility challenges and opportunities

Purpose: Companies and investors in South Africa are challenged with multiple sustainability concerns. Asset managers have substantial power to motivate investee companies to focus on pressing corporate social responsibility (CSR) issues. Yet, there is limited scholarly evidence on how they process CSR information and which sustainability considerations influence their decisions. Therefore, the CSR challenges and opportunities that selected South African asset managers experience were explored.Design/methodology/approach: Semi-structured interviews were conducted with 26 South African asset managers. Thematic analysis was conducted to derive four main themes.Findings/results: Four considerations were identified on which the considered asset managers based their responsible investment decisions when reflecting on CSR practices. Firstly, CSR should form part of a company’s primary purpose. Secondly, the interviewees focussed on material industry-specific CSR risks when making investment decisions. Thirdly, the inclusion of CSR practices in asset managers’ decision-making was hindered by the relatively small South African investable market, a limited demand for responsible investments from asset owners and beneficiaries, and insufficient disclosure of material sustainability information. Lastly, the interviewees highlighted social and economic infrastructure investment opportunities. Furthermore, they mentioned that CSR practices can be improved by refined regulation and educating asset owners and beneficiaries.Practical implications: Corporate leaders are urged to increasingly engage with asset managers and collaborate with stakeholders from the private sector to address prominent sustainability issues and to capitalise on related opportunities.Originality/value: This research contributes four considerations to the limited body of knowledge on the unique CSR challenges and opportunities pertaining to the investment decisions of an influential stakeholder group, namely asset managers in South Africa.

“Pharma’s secret weapon”: unleashing supply chain potential through supplier relationship management practices

PurposeThe study explored how supplier evaluation, selection, development and segmentation affect supply chain performance in pharmaceutical organizations. It also determined the moderating influence of top management support on the link between supply chain performance and organizational performance.Design/methodology/approachThe research philosophy of this study was positivism, leading to the adoption of a quantitative research method. Empirical data were gathered from a significant sample of supply chain experts at leading pharmaceutical companies in South Africa. Data collection scales were derived from existing studies. The collected data were analysed using structural equation modelling.FindingsThe results confirmed the validity of the proposed model, which is based on selected criteria (latent variables). This study emphasizes the crucial influence of supplier evaluation, selection, development and segmentation on supply chain performance in pharmaceutical organizations. The research shows a positive correlation between supply chain performance and organizational performance, with top management support playing a moderating role.Originality/valueThe study’s originality and value stem from its thorough examination of how supplier relationship management practices affect supply chain performance and organizational performance in the pharmaceutical industry of South Africa. Furthermore, the research adds to the current body of knowledge by considering the moderating influence of top management support on the link between supply chain performance and organizational performance. These findings offer valuable insights for academics and industry professionals in the realm of supply chain management.

Anti-Money Laundering and the "Beneficial Ownership" Amendments to South Africa's Companies Act 71 of 2008

The "beneficial ownership" (BO) amendments to the Companies Act 71 of 2008 (the Companies Act 2008) were introduced in response to requirements set by the Financial Action Task Force (FATF). These amendments are just one part of a broader anti-money laundering (AML) framework introduced by South Africa in response to the country's much publicised recent "grey listing" by FATF. The amendments aim to provide useful information to law enforcement agencies about the natural persons that are the beneficial owners of companies. The South African AML legislative regime is comprehensive but lacks implementation and investigative skills largely due to the lack of expertise in money laundering detection in law enforcement agencies. Unfortunately, the amendments suffer from several defects as identified in this article. The definitions of "affected company" and "beneficial owner" are critiqued. In addition, the authors argue that the failure to create a criminal offence for failing to disclose BO information is a weakness in the Companies Act 2008's AML efforts. The impact of these disclosure obligations on small to medium enterprises is discussed and it is argued that the increased administrative burden and potential compliance costs need to be justified by a likelihood that the amendments will be effective in curbing money laundering in South Africa.

Nexus of fraud mitigation practices and profitability of insurance companies in South Africa

The objective of this study was to evaluate how measures taken to prevent fraud impact the Profitability of insurance companies operating in South Africa. The study adopted a descriptive research approach and surveyed a sample of 70 licensed insurance companies in the country. Primary sources of data were obtained by engaging claims managers in each of the firms, and descriptive and inferential statistics were used to analyse the data. The results of the study revealed that fraud mitigation measures significantly affect the Profitability of insurance companies in South Africa. The implementation of fraud prevention, detection, and response measures had a positive impact on the Profitability of these firms. Based on the findings, the study recommends that the Insurance Regulatory Authority establish regulations that mandate all insurance providers to collect and report statistics on fraud. Insurance firms should provide their employees with comprehensive training on fraud management and implement strict penalties and disciplinary measures for employees involved in fraudulent activities, as they can undermine the effectiveness of the fraud mitigation process.

Local directors and corporate social responsibility activities of multinational companies in Africa

AbstractMany multinational companies (MNCs) in Africa claim to support the continent's sustainable development through corporate social responsibility (CSR) initiatives. However, the timing and relevance of these projects to local communities have often been questioned. Little is known about how local directors shape the sustainability activities of MNCs in their host regions. Drawing on image motivation theory, we investigated the influence of local directors on MNCs' sustainability activities in Nigeria, an emerging economy. We conducted content analyses and a series of semi‐structured interviews with local directors in MNCs. Consistent with our expectations and stakeholder theory, we find that local directors significantly drive the consistent and continuous sustainable development activities of MNCs through CSR in their host communities. Many local directors indicated that, unlike the traditional approach of MNCs consulting with local leaders, being a director provides the opportunity to understand the firms' activities and advocate for appropriate projects for the host region. The presence of local directors helps bridge the expectation gap between MNCs and the host region. Our study provides evidence of the relevance of local individuals in the directorship of MNCs and their contribution to sustainable development in Africa.

The mediating and moderating role of coping on occupational stress and psychological well-being among the construction workforce in South Africa: the psychological stress theory approach

Purpose The purpose of this cross-sectional study is to examine the direct relationships between occupational stress (OccS), coping and well-being (WB). The study further examined the mediating and moderating roles of adaptive coping and maladaptive coping on OccS and WB among the construction workforce in South Africa. Design/methodology/approach Data were collected from construction companies in South Africa, and the sample were conveniently selected based on proximity and familiarity with the researcher. A total of 201 subjects were suitable for conducting the study after data were screened. A quantitative research approach was used, and data were analysed in IBM SPSS v28 for descriptive statistics and exploratory factor analysis. The reliability and validity of the constructs were measured and met the minimum thresholds. Furthermore, IBM AMOS v28 was used for confirmatory factor analysis and structural equation modelling to test the hypothesised relationships. Process macro v4.2 was also used to test the mediation and moderation relationships. Psychological well-being was measured using the validated WHO-5 Well-being Index Measure. Findings The finding of the study revealed that subjective well-being was good, with a score of 77.97 out of 100. The finding also revealed that there were no significant relationships for the hypothesised mediation relationships between either adaptive coping and maladaptive coping as mediators between OccS and WB, although there was a partial mediation relationship when both maladaptive and adaptive coping mediated the relationship between OccS and WB. Furthermore, adaptive coping acted as a moderator between OccS and WB. Research limitations/implications The study only focuses on the mediation and moderation relationships between OccS and subjective WB. Adaptive coping was limited to social support and active coping, while WB was limited to quality of life. The study is quantitative and suffers from the limitations associated with this type of research. Furthermore, while sound measures were used to ensure validity and reliability, the study relied on the opinions of the respondents, and opinions may not necessarily present facts. Practical implications This study highlighted some of the effects of coping on mental well-being of the South African construction workforce. The findings provide insight to some areas of concern relating to OccS management to improve the overall WB of the workforce. Social implications The construction industry relies on a healthy and active workforce. To ensure sustainability of the workers and to ensure that each worker returns home safe to their family, it is important to address workers mental health especially at work where workers spend majority of their time. This is important in an industry that employs the poor and marginalised. Originality/value This study addressed both the knowledge and population gap. Majority of the study have focused on construction professionals who constitute about 30% of the entire workforce. The current study examined stress across all professions. Furthermore, the study used the psychological stress theory to examine coping and its impact on the workforce.

Rebooting State-Owned Companies in South Africa: Exploring the Viability of Singapore's State Holding Company (Temasek) Model of Ownership and Control

Rebooting State-Owned Companies in South Africa: Exploring the Viability of Singapore's State Holding Company (Temasek) Model of Ownership and Control

The impact of NOCs in Chinese foreign policy: the cases of Angola and Sudan

AbstractChinese companies have invested substantially in countries abroad in recent years, including countries in Africa. This article investigates the activities of Chinese energy companies in Africa, looking at the cases of Angola and Sudan. It develops a theoretical framework that can examine the role of non-state actors in foreign policy. The article presents evidence that non-state actors play a role for Chinese foreign policy and sometimes go against the policy line from Beijing. Theoretically, it illuminates the increasing role played by national oil companies (NOCs) in foreign policy and contributes with explicitation of the role played by NOCs for the foreign policy of the state. The article also contributes with insights regarding the importance of concerns with domestic stability (weiwen) to Chinese foreign policy and how this motive relates to the Chinese NOC activities in a number of countries.

Social and Relationship Capital Disclosure, Business Model and Firm Value: A Comparative Study of Listed Companies in Kenya and South Africa

The increased volatility and decline in firm value has been observed for companies listed in the Nairobi Securities exchange, Kenya as evidenced by substantial variations between market-to-book values. Company disclosures in integrated reports have long been linked with firm value. However, integration of non-financial information disclosures with financial information in a single report and its worth to the company and its distinctive stakeholders has not been accorded a proper assessment in the African context. While, preceding studies in other settings have shown mixed results, emphasis has been on establishing the total effects. This comparative study was intended to determine the effect of <IR> capitals disclosure on value of listed companies in Kenya and South Africa, focusing on the role of the business model. Specifically, the role of the business model on the relationship between social and relationship capital disclosure and value of listed companies was examined in this research comparing Kenya and south Africa from 2018 to 2020. Positivist research philosophy was applied, while the research design encompassed both exploratory and confirmatory. The study was grounded on the Legitimacy theory. Firm value in this study was proxied by Tobin’s Q ratio, while, social and relationship capital was measured using an unweighted disclosure index. The study population contained 209 listed companies from which a sample of 137 was identified using purposeful sampling technique, comprising of 19 firms listed in the NSE, Kenya and 118 companies listed in the JSE, South Africa. Secondary data was collected from annual integrated reports and financial statements of the targeted firms. Preliminary analyses were conducted, such as descriptive statistics and correlation matrix. On the other hand, mediation effect was analysed by using stepwise regression method. The results depict that social and relationship capital disclosure has a statistically significant positive effect on firm values for both Kenya and South Africa. Further, business model mediates this relationship, with Kenyan listed firms manifesting inconsistent mediation while South African companies reported full/complete mediation. The study therefore recommends that social and relationship capital aspect of integrated reporting in Kenya should be made mandatory because this will improve shareholder understanding of financial statements and appropriate valuation of the firm.

A Quantitative Review of Un-licensed and Off-label Medicines Use in Children Aged 0-2 Years in the Private Sector in South Africa: Extent, Challenges, and Implications.

The global lack of suitable formulations for children leads to off-label and unlicensed medicine use, posing significant risks of adverse effects. Understanding this usage on a national level can help guide interventions for better formulations. This study aimed to measure the prevalence of off-label and unlicensed medicines among children in South Africa's private sector. The study used a point prevalence methodology to review medicine use in children aged 0-2 years enrolled in a selected pharmaceutical benefit management company in South Africa from January to June 2022. A sample size of 1055 prescriptions was calculated using a 90% confidence interval, 50% prevalence rate, and 5% error margin. A systematic random sampling approach selected every seventh entry from 91,973 total entries, resulting in a final sample size of 13,139. Data included patient age, number and characteristics of medicines, quantity, and indications. Descriptive statistics analysed and reported the prevalence of unlicensed and off-label medicine use. Among the 13,139 prescribed medicines, 40% (5,246) were off-label or unlicensed, and 60% (7,893) were on-label. Of the off-label/unlicensed medicines, 16.85% (2,214) were unlicensed, and 23.08% (3,032) were off-label. Methylprednisolone was the top off-label medicine, probiotics were the top unlicensed, and the ICD10 code Z76.9 was the top diagnosis. The study found that 40% of children aged 0-2 years were prescribed unlicensed or off-label medicines in South Africa's private healthcare sector between January and June 2022. This suggests a widespread practice of off-label or unlicensed prescriptions in paediatric treatment in the South African private sector.

The challenges of Internationalisation of Chinese companies in Africa: A systematic review

The challenges of Internationalisation of Chinese companies in Africa: A systematic review

The challenges of Internationalisation of Chinese companies in Africa and Europe: A comparative analysis

The current research is undertaken as an in-depth comparison of challenges related to the internationalization process into Africa and Europe for Chinese firms. This paper synthesizes the empirical evidence that identifies and contrasts the different obstacles and strategies associated with expanding into these two diverse regions through a systematic review methodology. The Chinese firms face regulatory unpredictability, infrastructural deficiencies, and cultural integration problems within African countries themselves, which call for strategies like local partnerships and community engagement. In Europe, challenging factors involve stringent regulatory standards, high market competition, and political-economic uncertainties, all calling for a "comply, differentiate, and adapt" approach. The study therefore gives emphasis to the fact that strategies have to be designed for the respective region and provides concrete recommendations of how Chinese companies can master these complex environments successfully. These findings add significant value to the field of international business and further support the need for tailored approaches toward effective internationalization. Keywords: Internationalisation, Chinese Companies, Africa, Europe, Regulatory Challenges, Market Strategies.

The political ecology of cocoa agroforestry and implications for equitable land use in rural Ghana

AbstractThe relevance of cocoa agroforestry is widely discussed in debates on sustainability transition in cocoa, especially in the context of ending hunger and poverty among cocoa farmers. Whereas this has led to multiple cocoa agroforestry investments by NGOs, governments, and cocoa and chocolate companies in West and Central Africa, a notable gap exists in the literature on how these interventions respond to the needs of cocoa farmers who are typically framed as the primary target of equity in cocoa sustainability discussions. This paper contributes to bridging this gap by analyzing equity in implementing various cocoa agroforestry projects by different actors in Ghana’s Juabeso-Bia Landscape (JBL). I find that the ongoing cocoa agroforestry initiatives may be broadly characterized as renovative or additive in terms of how they (re)shape the various components on cocoa farms. Yet, they are all designed to primarily enhance cocoa productivity even when seasonal food insecurity is one of the most pressing challenges among cocoa farmers in the JBL. The persistent neglect of food in cocoa production risks leaving poverty and hunger in cocoa households unaddressed. Additionally, it increases cocoa households' predisposition to forest conversion, making current forms of cocoa agroforestry an indirect driver of deforestation in the landscape. To transform the current situation, policymakers and scholars must reflexively integrate household food security in designing cocoa agroforestry, prioritizing farmers’ involvement in dynamic agroforestry technologies that contribute directly to local food access over time. This contrasts the current policy and practice of cocoa agroforestry, focused on maintaining a prescribed number of shade trees on new or existing cocoa farms but highly likely to engender significantly greater inequity in the cocoa sector.

Identification of oil contamination in process water using fluorescence excitation emission matrix (FEEM) and parallel factor analysis (PARAFAC).

Fuel oil is widely used within Eskom, a power generation company in South Africa. Eskom's coal-fired power stations use up to 30,000 L of fuel oil per hour during a cold start-up, a consequence of which results in oil leaks to the dams. Oil contamination in water treatment plants causes irreversible membrane fouling, requiring costly replacement. This research work focused on the development of a rapid method for the identification of low concentrations of the water-soluble oil component fraction of crude fuel oil. For the developed method, known volumes of the water-soluble fraction of crude oil were spiked into various matrices of process water. FEEMs were collected using the patented HORIBA Aqualog spectrometer and data were modelled with PARAFAC. The results were well described with a four-component model, which included an oil component and three natural organic matter components, with a split-half validation match of 90%. The oil component was verified using linear regression of the PARAFAC component scores yielding an R2 value of 0.98. From the scores, a qualitative pass/fail test was developed such that process water can be analysed and subjected to the model to indicate the presence of oil contamination beyond a damaging threshold.

Analysis of private security companies compliance to the private security industry’s regulatory framework in Gauteng

This article explores some of the shortcomings of the Private Security Industry Regulatory Authority (PSIRA) in regulating and effecting control over the Private Security Industry (PSI) in South Africa. In South Africa, all Private Security companies must comply with PSIRA by registering as security providers, however this study revealed a non-compliance. This shortcoming is demonstrated by fly-by-night security companies that provide security services at shopping centres and shopping malls particularly in the parking areas who fail to comply with PSIRA in terms of registration. The main aim of this research was to analyse whether the PSCs comply with the regulatory framework as per the Private Security Industry Regulation Act 56 of 2001 in South Africa in Gauteng Province. A qualitative research design was applied to determine whether PSIRA enforces compliance as per regulatory framework and to establish whether the current private security service providers are registered with PSIRA. The population of the study involved security managers and owners of the private security companies in South Africa. The findings revealed that there is non- compliance to PSIRA by Security providers. It is recommended that the regulator be capacitated with resources to improve its compliance.

Role of Human Resources Management in Construction Company in Africa

Role of Human Resources Management in Construction Company in Africa

Evaluation of Supply Chain Management Challenges of multinational companies in West Africa under the ECOWAS Trade Liberalization Scheme (ETLS)

This paper examined the Supply Chain Management challenges of multinational companies in West Africa under the ECOWAS trade liberalization scheme. The objective of the study includes to identify the various ECOWAS's regional integration protocols, Assess the level of implementation of ETLS among members state and evaluation of the various negative factors affecting full implementation of ETL, among others. The methodologies adopted includes Qualitative and quantitative method of data collection including literature review, expert interview, survey and case studies over a sample of 150 multinational companies (MNC). The results reveal that Complex and Non-Transparent Regulations exists among the MNC in the West African region, existence of Inadequate Infrastructure and Logistics, Non-Harmonized Trade Facilitation Measures as well as weak institutional co-ordination and enforcements. The study concludes that ETLS presents both opportunities and challenges for MNCs operating in West Africa and recommends among others the Simplification and Harmonization of Trade Regulations, investment in infrastructures and logistics as well as strengthening of institutional co-ordinations and enforcements.

Firm’s Annual Labor Productivity Growth Determinants: Sub-Sahara Africa

Understanding the determinants of company productivity and annual employee productivity growth is essential, especially for companies in sub-Saharan Africa. The existing literature has not differentiated the effects of skilled labor (permanent and temporary) in production from all skilled workers in the firm, which will have differential effects on annual labor productivity growth. Current literature also needs to empirically document the top management experience contributing to labor productivity growth. This paper explores the multifaceted aspects of labor productivity growth, focusing on the portion of skilled workers, years of the top manager's working experience in the firm's industry, a portion of permanent workers, and capital equipment, utilizing the micro-level data from the Enterprises Survey database (2006-2018). The findings identified the top manager's experience in the industry and permanent workers as the most significant yearly labor productivity growth contributors, followed by the firm's capital equipment. In contrast, the combination of skilled workers (temporary and permanent) in production has an insignificant relationship with annual labor productivity growth, implying that permanent workers' and top managers' experience matters in a firm's productivity growth.

Enhancing creditor decision-making in South African business rescue proceedings: a comprehensive analysis of information requirements in business rescue plans

PurposeBusiness rescue, as a mechanism to aid financially distressed companies in South Africa, has received considerable academic and practical recognition. However, the business rescue plan is an overlooked and, perhaps, underdeveloped aspect of the regime. For stakeholders, this is the ultimate decision-making document. Creditors are the most influential stakeholders in business rescue proceedings owing to their voting rights. For creditors to make informed decisions and exercise their votes meaningfully, the business rescue plan should be transparent and adequately disclose relevant and reliable information. This study aims to identify creditors’ primary information needs to enhance the sufficiency and decision-usefulness of business rescue plans, not only to entice the vote of creditors but to enforce accountability from practitioners.Design/methodology/approachUsing a qualitative research design, semi-structured interviews were conducted with 14 executives from 10 South African financial institutions.FindingsThe findings reveal that comprehensive disclosure of financial, commercial and legal information in business rescue plans was a critical antecedent for stakeholder decision-making. Additionally, leadership and social impact information were influential determinants. This study advances academic knowledge and, for practitioners, adds value to the development of business rescue plans. This can enhance creditors' confidence in supporting the rescue effort and approving the plan.Practical implicationsThis study advances academic knowledge and, for practitioners, adds value to the development of business rescue plans. This can enhance creditors' confidence in supporting the rescue effort and approving the plan.Originality/valueThe originality of this article lies in its investigation of how creditors assess the information in BR plans as a precursor to supporting the company’s reorganisation in a creditor-friendly business rescue system such as South Africa. This study provides novel insights into the decision-making process, particularly how creditors assess BR plans, address information asymmetry and vote on the plan.

Effect of Segment Reporting Practice on Investors Decision Making: A Comparative Analysis of Nigeria and South Africa

Aim: Segment disclosure is expected to present essential information to meet the increased need of demand for published corporate disclosure of firms by stakeholders worldwide. This study examined the effect of Segment Reporting Practises on Investors’ Decision Making: A Comparative analysis of Nigeria and South Africa. Methodology: The research design was ex post facto. As of the end of 2023, the study’s population included 66 firms from the Johannesburg Stock Exchange and 46 multinational corporations listed on the Nigeria Exchange Group.15 businesses from each of the two stock exchanges were chosen using the purposive sampling method. Data were obtained from the audited annual reports of the companies from the period 2015 to 2022 and analyzed using Panel regression analysis. Results: Findings revealed that segment reporting practices have an insignificant effect on investors’ decision-making of multinational firms in Nigeria while on the decision-making of investors for multinational companies in South Africa, segment reporting practice can be argued to have a considerable impact.it can be said that segment reporting practice has a significant effect on investors’ decision-making of multinational firms in South Africa. Conclusion: This comprehensive panel regression analysis delved into the intricate relationship between segment reporting practice, leverage, firm size, and investors’ decision-making for multinational organisations in both Nigeria and South Africa. Recommendation: The findings offer nuanced insights into how these factors contribute to shaping investment decisions, as measured by share prices, in the respective countries. While the results vary between the two nations, they collectively underline the complexity of factors influencing investors’ choices and highlight the need for a tailored approach to decision-making frameworks.