Graduate School of Business

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Subject: search.filters.subject.Inflation

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    The impact of inflation on the performance of Standard Bank Namibia
    (International University of Management, 2025) Puuahee, Filimon; Sunde, Tafirenyika
    Banking institution primarily aims to achieve profitability to ensure long-term stability and growth. External and internal economic environments are viewed as critical drivers for bank performance. The main purpose of this study was to determine the impact of inflation on the performance of Standard bank Namibia for a period of 15 years, starting from the year 2009 to 2024. This study examined return on assets (ROA), return on equity (ROE) as the dependent variables, with the inflation rate serving as the independent variable. The specific objectives of this research were to determine the effects of inflation on the financial performance of Standard bank Namibia. The choice of this twenty-one-year period was based on the explosive growth of the banking sector in the country and the availability of complete data for that period. This research focused on a particular element influencing the financial performance of banks. This study adopted descriptive research design approach by using secondary data collection to fulfil the objectives. The researcher collected data on published financial statements of Standard bank Namibia for fifteen years from 2009 to 2024. Data was analyzed using linear regression models to show the effect of inflation on the performance of SBN over that period under study. The findings were presented in tables and narratives. The results revealed that inflation had a statistically significant positive effect on bank profitability, supporting the research objective that banks benefit from inflation through mechanisms like widening interest margins. Market concentration negatively affected profitability, suggesting that excessive dominance by a few banks may reduce competitive efficiency. Other variables such as liquidity, leverage, and firm size were either statistically insignificant or dropped due to multicollinearity. This research adds to the expanding body work examining how macroeconomic factors affect banking performance in developing nations.
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    An analysis of the impact of economic management policies on inflation in Namibia
    (International University of Management, 2024) Kankondi, Severus; Tafirenyika, Blessing
    This research empirically analyses the impact of economic management policies on inflation in Namibia, focusing on key economic variables such as interest rates, repo rates, exchange rates, money supply, government expenditure, and GDP growth. The study uses quarterly time series data from 2007 to 2021, sourced from the Bank of Namibia and the Namibia Statistics Agency. A descriptive research design was employed, with a multiple linear regression model applied to examine the long- and short-term dynamics between these variables and inflation. Key statistical tests, including the Augmented Dickey-Fuller (ADF) test, Johansen co-integration, Granger causality, and Auto Regressive methods, were used to ensure the robustness of the analysis. The findings revealed significant relationships between government expenditure, money supply, interest rates, exchange rates, repo rates, and GDP growth. However, the study found limited short-term causal links between inflation and some of the other variables, possibly due to external economic shocks or the need for a more detailed exploration of policy instruments. The regression model showed good fit with an R-squared value of 0.55 and demonstrated stability, with no issues of heteroscedasticity, autocorrelation, or non-normality in residuals. The Granger causality test suggested that, with the exception of GDP influencing exchange rates and inflation affecting interest rates, most of the variables did not directly cause one another. Based on these findings, the study recommends that the Bank of Namibia consider tightening money supply control and utilizing repo rates to mitigate inflationary pressures. It also emphasizes the need for further analysis of government expenditure’s long-term effects on inflation for better fiscal planning. Given Namibia’s limited control over monetary policy due to its fixed exchange rate with South Africa, future research should explore alternative trade agreements or government subsidies to manage import-driven inflation. Lastly, fostering transparent and consistent policymaking could help stabilize the economy, enhance business confidence, and alleviate inflationary pressures.
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    Analysing the impact of inflation on welfare of government employees: A case of Ministry Works and Transport employees, Windhoek
    (International University of Management, 2024) Shilinge, Martha N. N.; Sunde, Tafirenyika
    The primary aim of this study is to analyse the impact of inflation on the welfare of government employees in the Works and Transport Ministry in Windhoek. By identifying the challenges and concerns these employees face due to inflation, the study seeks to propose potential strategies for mitigating its negative effects on their welfare. This study adopts a positivist research philosophy, seeking to objectively examine inflation's impact on government employees' welfare. This study adopted the descriptive research design. The sample size of 142 was determined using Slovin's Sampling Formula. Regression analysis in the form of ordinary least squares was performed to test the effect of inflation on government employee’s purchasing power and job satisfactions. According to the findings the strongest predictor of the perceived impact of inflation on purchasing power is inflation's negative effect on savings, followed by the challenge of meeting daily expenses. The moderate effect was the erosion of the real value of salaries and benefits shows a moderate but marginally non-significant impact. The data showed that government employees are finding it increasingly difficult to meet their daily expenses as a result of inflation (mean = 2.79). The respondents' belief that inflation undermines their ability to invest for future needs (mean = 2.59) and negatively influences their morale and productivity (mean = 3.11). Although the government is perceived to provide appropriate aid in dealing with rising costs (mean = 3.19), there is still a request for the government to implement further measures to offset the negative impacts of inflation on employee welfare (mean = 2.89). The study also emphasizes the difficulties employees face in meeting their financial goals as a result of inflation (mean = 3.11). Furthermore, the data show that inflation's impact on purchasing power reduces work satisfaction (mean = 3.14). These steps will not only promote financial stability, but also increase job happiness and productivity. Organizations in the public sector should prioritize financial planning and education initiatives in order to better equip personnel with the skills needed to manage inflation.