Assessment of the role of financial institutions in mineral resources financing in Namibia: a mixed methods study
type: CreativeWork
description: The Namibian economy is considered natural resource-dependent, where the mining sector is essential in terms of revenue generation, employment, and infrastructure development. The Chamber of Mines of Namibia in 2020 has reported that the mining sector contributed about 10.1% of the Gross Domestic Product growth in 2020, increasing from 9.4% contribution of 2019. Nevertheless, the sector is experiencing challenges such as lack of access to capital, water and electricity and regulation uncertainty. This study analyses the role of commercial banks in financing the mining sector and the relationship between banking lending to mining and economic growth in Namibia over the period from 2006 to 2020 using a Convergent Parallel Design mixed research method. The role of financial institutions and their impact on economic growth as a function of providing service to the critical economic sector such as mining in Namibia are necessary to assess the natural relationships and challenges. Both the qualitative and quantitative methods were adopted to examine this research problem thoroughly. The Vector Error Correction Estimations techniques and the Granger causality approach have been applied to identify the long-run and short-run causality direction for all possible variables of the study from the secondary quantitative data. While the primary data were collected by semi-structured qualitative interviews with senior mining bankers of commercial banks in Namibia to provide insight into the role commercial banks played. Economic growth and commercial bank lending to mining show no long-run relationship, but a long-run relationship was observed between growth and lagged interest rate. There was no short-run relationship between growth and commercial bank lending observed. In contrast, the unidirectional causal relationship between GDP and commercial bank lending to mining running from GDP and commercial bank lending to mining was observed. The main findings from the interview that …
abstract: The Namibian economy is considered natural resource-dependent, where the mining sector is essential in terms of revenue generation, employment, and infrastructure development. The Chamber of Mines of Namibia in 2020 has reported that the mining sector contributed about 10.1% of the Gross Domestic Product growth in 2020, increasing from 9.4% contribution of 2019. Nevertheless, the sector is experiencing challenges such as lack of access to capital, water and electricity and regulation uncertainty. This study analyses the role of commercial banks in financing the mining sector and the relationship between banking lending to mining and economic growth in Namibia over the period from 2006 to 2020 using a Convergent Parallel Design mixed research method. The role of financial institutions and their impact on economic growth as a function of providing service to the critical economic sector such as mining in Namibia are necessary to assess the natural relationships and challenges. Both the qualitative and quantitative methods were adopted to examine this research problem thoroughly. The Vector Error Correction Estimations techniques and the Granger causality approach have been applied to identify the long-run and short-run causality direction for all possible variables of the study from the secondary quantitative data. While the primary data were collected by semi-structured qualitative interviews with senior mining bankers of commercial banks in Namibia to provide insight into the role commercial banks played. Economic growth and commercial bank lending to mining show no long-run relationship, but a long-run relationship was observed between growth and lagged interest rate. There was no short-run relationship between growth and commercial bank lending observed. In contrast, the unidirectional causal relationship between GDP and commercial bank lending to mining running from GDP and commercial bank lending to mining was observed. The main findings from the interview that …
author: Nanyemba, Paulina Kandiwapa
keywords: development finance
date published: 2022
date modified: 2026-07-22T22:23:39Z
provider: University of Cape Town
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Graduate School of Business (GSB)

PropertyValue
property ID: Handle
value: http://hdl.handle.net/11427/39114