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Purpose The management of external debt among highly indebted poor countries (HIPCs) in Africa still remains a challenge despite numerous packages and attempts to ameliorate the consequences of such odious debt. The purpose of this paper is to establish the factors that contribute to the growth rate of external debt and how these factors respond to shocks to external debt growth rate in Africa.Design/methodology/approach Data were obtained from 24 African countries and analyzed using a panel vector autoregression estimation methodology.Findings The study found that external debt growth rates respond positively to unit shock or changes in government investment spending, consumption spending, and domestic borrowings over a long period of time. In the medium term, external debt growth rates respond negatively to shocks in tax revenue, inflation, and output growth rates. The paper also provides empirical support that external debt may be consumed rather than invested among HIPCs in Africa.Research limitations/implications The findings of this paper are limited to only HIPCs in Africa.Practical implications This study has some few debilitating implications for external debt management among HIPCs in Africa. First, the paper suggests that debt repayment may be a problem. This is largely because external debt is consumed rather than invested. External debt sustainability needs a holistic approach in less developed countries. The findings place much emphasis on improvements in gross domestic product and tax revenues as the principal routes out of the debt doldrums. However, this option must be exploited with great caution as there is ample evidence that these poor countries increase their external borrowing capacities with improvements in economic outlook.Originality/value This paper fills a research gap that identifies specific components of government deficit budgets that may be contributing to the growth rate of external debts among HIPCs. [ABSTRACT FROM AUTHOR]

This study examines the link between corporate governance and firm investment and growth opportunities in Africa. Panel data covering the period 1997-2001 from 103 firms selected from Ghana, South Africa, Nigeria and Kenya is used and analysis carried out within the panel data framework. Results show that, indeed, firms with investment or growth opportunities employ large board sizes (high board and auditor fees), have longer CEO tenure and are profitable, and that the extent of growth response to governance structures are influenced by both country and sector specific effects. [ABSTRACT FROM AUTHOR]

This study looks at corporate governance and its impact on shareholder value maximization in Africa. Data from South Africa, Ghana, Kenya and Nigeria covering the period 1997–2001 were used and analysis done within the panel data framework. Results show that, though highly dispersed, both within and between firms, corporate boards in the selected countries are relatively not independent. The regression result shows that large board sizes enhance corporate performance and shareholder value maximization. Our study also shows that both sector and country-specific effects have an impact on shareholder value maximization. While the mining sector is dominant in maximizing shareholder value, it also suffers from higher taxes and interest payments. [ABSTRACT FROM AUTHOR]