Modelling Country Risk of Zambia

Generally defined, political risk is the expected cost or loss incurred by a business due to political decisions, events, and actions. With the evolution of the discipline, it is not only government or organizations that can generate political risks, but also labour unions and civil society that can emanate risks. The South African mining sector includes abundant political risk yet is an attractive investment destination given its large platinum, gold, and coal reserves.

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Why the UN Fails to Prevent Mass Atrocities

Posted on August 10, 2022 by Assistant Editor

Violent Incidents and Reporting Bias in the South Kivu region of the Democratic Republic of Congo from 2017 to 2022

Journal of Political Risk, Vol. 10, No. 8, August 2022

The image depicts UN forces alongside military equipment and vehicles in Minembwe in South Kivu, DRC.

UN forces in Minembwe, South Kivu taken on 2 April 2019. Source: Delphin Ntanyoma.

Delphin Ntanyoma
Erasmus University

Fidele Sebahizi
Liberty University

Prosper Baseka wa Baseka
Bircham International University

1. Introduction

This study includes preliminary analysis of 324 violent incidents in the Democratic Republic of Congo (DRC) recorded by Kivu Security Tracker (KST) and 29 reports of the United Nations Peacekeeping mission in the Democratic Republic of Congo, known as Mission de Nations Unies pour la Stabilisation du Congo (MONUSCO).[1]

Since its creation and deployment in 1999, MONUSCO is now facing unprecedented protests as local populations in Eastern DRC are demanding its immediate withdrawal. Between July 25 and July 26, 2022, protesters from the main cities in North Kivu and South Kivu stormed MONUSCO bases in Beni, Butembo, Goma, and Uvira to express their anger at the 22-year-long UN mission’s failure to stabilize the region. Following these incidents, including the one that took place at the Uganda-DRC border, it is believed that 32 civilians and 4 peacekeepers died. Continue reading →

Modelling the Country Risk of Zambia

Posted on March 24, 2022 by Assistant Editor

Journal of Political Risk, Vol. 10, No. 3, March 2022

Simon Muwando
University of Lusaka

Victor Gumbo
University of Botswana

Gelson Tembo
University of Zambia

Abstract

The world has experienced a dramatic increase in the flow of transnational investments following increased internationalization and globalization of firms in the previous decade. Country risk exposure is a cause for concern for all the institutions that are engaged in multinational trade and finance. The main objective of this study is modelling Zambia’s country risk. A mixed method with concurrent research design was employed. Personal interviews were the main instrument for collection of primary data and snowball sampling was used to select the interviewees. Secondary data was collected from the Lusaka Stock Exchange (LSE), Ministry of Finance, Bank of Zambia and Central Statistical Office. An autoregressive distributed lag technique was employed on annual data for the 1994 to 2018 period. This approach was chosen as it works best for small samples. The findings of the study revealed that the short run drivers for country risk of Zambia are beta, current account balance, political risk, unemployment rate and weighted short term interest rates. Current account balance was found to positively affect country risk while beta, political stability, and weighted short term interest rates negatively influence it. The study findings established that the long run determinants of country risk of Zambia are current account balance, betas, political risk, and unemployment rate. From the study findings, current account balance positively influences country risk of Zambia whereas beta, and political stability negatively influence country risk of Zambia. The study concluded that the major determinant of country risk of Zambia in the short run and long run is current account balance as it has significant positive influence. Effective policies need to be implemented by authorities to manage or reduce persistent current account deficits and political risk, in order to manage country risk.

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South Africa’s Hidden Pandemic: Rape

Posted on February 15, 2022 by Assistant Editor

Journal of Political Risk, Vol. 10, No. 2, February 2022

Anti-femicide protest in Cape Town in response to the murder of Uyinene Mrwetyana. Protestors hold up signs saying "When is Enough Enough" and "Am I Next" against the backdrop of green mountains and blue sky.

Anti-femicide protest in Cape Town in response to the murder of Uyinene Mrwetyana. Wikimedia Commons.

Stephanie Wild
University of Cape Town

42,289. This is the number of women raped in South Africa in 2019. Such shocking levels of sexual violence have prompted President Cyril Ramaphosa to dub gender-based violence as a “second pandemic”, second only to COVID-19.

Violence against women does not end there. Murder rates against women are also extremely high. A widely discussed statistic amongst South Africans is that a woman is murdered every four hours. This statistic was for the April to December 2016 period. The most up-to-date statistics are even more shocking. In the 2017 to 2018 period, a woman was murdered every 3 hours. Such data has prompted a discussion of what is now called “femicide.”

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