IMPLICATIONS AND IMPORTANCE OF ELECTRONICS INVESTMENT
BY
AKATA ANSELM UGOCHUKWU MAXWELL
INSTITUTE OF FINANCIAL & INVESTMENT ANALYSTS, NIGERIA (IFIAN)
2009
ABSTRACT
Today, the talk about globalization, unity of economies and electronic investment systems cannot be swept under the carpet. The use of electronics investment systems in doing business today has impacted greatly in the pattern business is done. It has saved time, money and of course a lot of stress in the global business and has brought a lot of improvement to many economies of the world. This successes not withstanding, a lot of challenges are still being faced, especially in developing countries like Nigeria. Problems ranging from activities of fraudsters, low computer education, poor legislature on internet business and a lot more identified in this study and recommendations made.
Statistical data were drown from a random sample of staff and clients of Cashcraft Asset management Ltd, a leading financial services firm and chi-square test carried out on the data obtained to reach a conclusion on whether electronics investment has a positive or negative impact on the economy of Nigeria and the behaviour of Investors. We came to the conclusion that electronics investment has a positive impact in not only the financial sector but all other sectors of the economy.
DEDICATION
This work is dedicated to my lovely wife, Christiana V O AKATA, all Staffs and Clients of Cashcraft Asset Management Ltd, all Nigerian Investors and to God Almighty.
TABLE OF CONTENT
CONTENT PAGE
ABSTRACT………………………………………………….. i
DEDICATION………………………………………………… ii
CHAPETR ONE………………………………………………. 1-2
CHAPTER TWO……………………………………………… 3-13
CHAPTER THREE…………………………………………… 14-17
CHAPTER FOUR……………………………………………. 18-20
REFERENCES………………………………………………… 21
APPENDIX……………………………………………………… 22
CHAPTER ONE
INTRODUCTION
The increased popularity of the internet and ICT as a medium of communication and transfer of information has a significant impact on the way and manner in which business is done in Nigeria today and has therefore become something to consider in any business development or any investment project to be considered. Presently, financial institutions are using electronic investment tools as a new window for doing global business and are able to offer various range of services at good speeds to their customers as well as give better informed advised to their clients based on availability of information. Customers now have a higher confidence level doing business with these firms as they can actually confirm the status of business anytime anywhere and from different sources. The world is becoming a global village as companies and individuals alike are able to reach a larger audience In a shorter time and if this globalization is to be achieved, electronic investment is critical. If the computer is to turn the world into a global village, electronics investment is one of the enabling tools to create such village (Uremadu 2003). Organizations both in the public & private sectors are beginning to use electronic investment tools as a new vehicle for doing business as it provides the technical framework for online business (Uremadu 2003, Ojo2001).
However, the rate at which new innovations and expectations rise from both consumers and producers of electronic products coupled with the challenges posed by fraudsters have brought some challenges in the impact of today’s ICT in natural socio-economic development especially in developing countries like Nigeria. Cost of doing business is on the increase, customers needs are getting sophisticated and more emphasis is been placed on product and service quality. It therefore follows that only organizations constantly seeking to innovate and imbibe the changes of the business environment, will survive the future.
OBJECTIVE OF STUDY
This study is aimed at looking at the impact of electronics investment in the economy of Nigeria as well as the investment habit of Nigerians. We hope to know if it has improved the economy and the confidence of investors.
SCOPE
The study will cover the Nigerian economy with more emphasis on the financial sector.
METHODOLOGY
Primary sources of data by way of observation and interviews were used. Operations and marketing staffs as well as clients of Cashcraft Asset management were interviewed. Secondary sources are used in the study too which includes journals, newsletters, books, internet, etc.
LIMITATIONS
The limitations are basically the duration for the study and the types of data used i.e secondary sources mainly.
HYPOTHESIS
The following hypotheses are formulated for this study.
H1: Electronics investment has a positive impact on the Nigerian Economy and Investors.
H2: Electronics investment does not have a positive impact on the Nigerian economy and Investors.
CHAPTER TWO
LITERATURE REVIEW
DEFINITION
The two words that make up the term electronics investments have their own definitions;
ELECTRONICS- This is a branch of science and technology that deals with the flow of electrons through non-conductors mainly semiconductors such as silicon. It was called radio technology because its principal application was the design and theory of radio transmitters, receivers and vacuum tubes. The study of electronics has led to the invention of the computer and other mobile devices as well as the internet.
INVESTMENT- this refers to the expenditure on real and financial assets rather than the funding of consumption. Simply put, purchase of any asset which is expected to increase in value.
ELECTRONICS INVESTMENT… We can define this from two angles,
The buying and selling of electronic products such as television, radio, computers, mobile phones etc. it could also mean the investment in the production and development of these products.
The use of electronic means in the act of investment such as the use of computers and internet to transact business or carry out commercial activities like purchase or sale orders, advertising and marketing, payment of bills etc.
The second definition is what we are concerned with in this study as we intend to see how the use of electronic means in investment has impacted the way investors react and the Nigerian economy.
PROSPECTS & PROBLEMS
BENEFITS
The act of trade or investment requires the interaction between a buyer and a seller and various electronic interfaces are put into play to see to the completion of a transaction. One of such is the use of GSM, CDMA and the internet. Statistics from Nigerian Communications Commission (NCC) indicates a drastic increase in the number of subscribers (1999-2008) (chart A) as well as an increase in the percentage contribution of telecoms to the GDP of Nigeria (chart D) and the increase in the trends of private investment (chart E). It indicates how Nigerians embraced the GSM and why was this? It was because of the reduced cost of doing business in the following ways. It reduced the need for physical presence to get answers or to carryout negotiations and to even close business. It also saved time that would have been spent trying to get to someone far off to answer a few questions. Electronic investment involves people interacting with each other in a trade situation-basically a buyer & seller transacting across a non-physical network (Robinson 2003). When agreements are reached, payments and settlements have to take place and this brings us to another term, e-banking. E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. Customers access
e-banking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), etc . Many businesses accept various forms of electronic payments for their products and services. Financial institutions play an important role in electronic payment systems by creating and distributing a variety of electronic payment instruments, accepting a similar variety of instruments, processing those payments, and participating in clearing and settlement systems. However, increasingly, financial institutions are competing with third parties to provide support services for e-commerce payment systems. Among the electronic payments mechanisms that financial institutions provide for e-commerce are automated clearing house (ACH) debits and credits through the Internet, electronic bill payment and presentment, electronic checks, e-mail money, and electronic credit card payments. The Central bank of Nigeria half year economic report for 2007, indicates that there was an increase in the use of electronic payments in the period reviewed. It said the available data on various e-payment channel, indicates that the Automated Teller Machine (ATM) was the most patronized, accounting for over 93%, while mobile phone payments was the least with about 0.20 %( Table 1)
Indicators also show that the there was an upsurge in the number of cheque cleared between 2006 and mid 2007. It said the aggregate volume and value of cheque cleared increased by 5.58% and 33.26% respectively and this is due largely to the automation of the clearing system. This also indicates that there is a reduction in the use of physical cash in transactions which to a great extent reduces the risk of robbery and again of bribery & corruption. When payments are made via electronic means, corrupt officials no longer have the chance to divert funds as they are paid straight to the parties involved. Those who take the salaries of the subordinates and place in fixed deposits for sometime before paying them are unable to do so when government pays directly to staff bank accounts via electronic means. It reduces bottleneck as those who would intentionally delay signing necessary documents are boycotted. Electronic investment (e-banking) establishes trust by reducing bribery and corruption inconsistencies and illegal alterations to banking business transactions ( Osuagwu and Okafor 2001).
Over the years, it has been recognized that modern payments and settlement systems have far-reaching economic and social implications for an economy. On the microeconomic level, a safe and efficient payments and settlement system reduces transaction costs, improves operational efficiency of trade and commerce and is supportive of the internationalization of an economy (CBN Annual report 2006). However, improved payments and settlement systems depend critically on appropriate infrastructure hence the Central Bank of Nigeria in collaboration with other stakeholders implemented the Central bank of Nigeria Inter-Bank Funds Transfer System (CIFTS), which is a Real Time Settlement System (RTGS) for large value inter-bank fund transfers. It has also tried to link this to the Central Securities Clearing Systems (CSCS) of the Nigerian Stock Exchange.
Central Securities Clearing Systems (CSCS)
The Nigerian Stock Exchange was automated and the subsidiary in charge of its automated system is known as the CSCS. Since its automation, transactions on shares in the market have improved dramatically. Investors can get their stocks bought or sold in a short time compared to what was obtainable before then and they can now buy and sell in bits. Stockbrokers can from different locations, carry out trading via the internet without physically going to the stock exchange building. It reduced the chances of corrupt brokers who defraud their clients and therefore increased investors’ confidence which led to an increase in the number of investors in the market. The other part is the safety of the certificates from theft and fire or misplacement, as clients no longer have to go through some serious ordeal to get replacements as it used to be without the automated system.
Reports from Cashcraft Asset Management ltd, a dealing/broker member of the Nigerian stock exchange that started business in 1991, also said its clients based rose dramatically from about 40,000 in 2006 to 140,000 in 2008, over 200% increase in two years and according to a survey it took, most of the clients said they where comfortable doing business because they can assess their accounts online which means they can still do business from every part of the world.
No doubt that electronics investment has had a great impact on the economy and investment habit of investors. Some of the benefits include increased productivity rates, leading to lower inflation and higher rates of economic growth (Coulter 2001, Harrison 2003).
CHALLENGES
It is however still sad to know that While 30 million Nigerians are now hooked on mobile telephone network, only two percent of 140 million Nigeria’s population have access to the Internet, Igho Mrakpor, the chief executive officer of Hirest Africa Limited, a new entrant into the nation’s Internet market has revealed (MBI 2007). Despite having the world’s fastest growth in telephone subscriber base, Nigeria was ranked least among 25 countries surveyed for the use and impact of today’s communication technology in natural, socioeconomic development (BottomLINE Newsletter 2008 Issue Nos103-107 ).
It can be seen that a lot still needs to be done. The educational level of Nigerians is on the low side even the educated do not know much about the use of the internet and their devices. Even the mobile phones which has high patronage has only the voice aspect been utilized, other aspects like data and video are not effective used mainly because the people do not know how to make use of them. Government needs to set policies that encourage the growth and education of its populace on the use of electronics investment, such as strengthening the functioning of the markets, openness to trade and investment, education and lifelong learning and enabling role of information (Oyetola, 2001). Everyone needs to have access to the digital economy and governments needs to make this happen.
INTERNET FRAUD, UNEMPLOYMENT/ JOB CUTS
The lastest result of internet fraud evaluation, contained in the Internet Complaint Centre’s Annual report 2008. has rated Nigeria as the number one African nation that is deeply involved in internet fraud. Nigeria also came third in the world ranking, coming only after the united State and United Kingdom. (
www.234next.com). Information like this, discourage genuine investors from utilizing the internet to do business. From our Table 1, it is obvious there is a low rate in the use of internet for transactions. Governments have to ensure security and privacy of investors by way of putting checks and laws so that one doing business electronically will be sure of who to complain to or who to hold responsible for any fraudulent act. Government needs to have secured severs with all genuine business entities listed in the data base with their correspondence so that investors can run checks before they make conclusion. If the government can do this, the globalization of economies via the internet will be achieved as it will bound economies of different countries together. Countries will now have to be economically cooperative with one another in other for them to flourish (Coulter 2001, Uremadu 2003), which will in turn promote peace amongst nations.
Other issues that might be raised by the use of electronics investment is the reduction of job spaces as there will be no job for those who negotiate on behalf of others due to distance or difference in location, though it would mean reduced cost of doing business, it might also mean more jobless youths on the streets with tendency to commit crime. Take for instance the number of youths involved in internet fraud, personal observation from Ajao estate area of Isolo Lagos state reveals that over 60% of the youths there are into internet fraud and some are even unwilling to improve themselves by going to school because they think they have seen a lucrative job to do but if they are checked and it does not yield any fruit or they are engaged in some other jobs they will not be there.
The pace of advancement in the electronics world also possess a problem whereby organizations and individuals have to keep learning about new technology which might increase cost by training and retraining of staff as well as acquiring new equipment, failure to meet up might mean they will soon be out of business.
POWER SUPPLY
One major threat observed is the power supply in the country. Most electronic devices make use of electricity, directly or indirectly, so most internet service providers as well as telecomm providers incur extra cost investing in generators and diesel. This need not be, if the power is stable the extra funds put into power will be used to expend, create more jobs and opportunities. According to a report by Olivia Phillip International consulting published on
www.marketresearch.com in 2008, Nigeria’s public power company-Power Holding Company of Nigeria has an installed generating capacity of about 6GW but actual available output is less than 2.5GW. Power black-out is frequent. New generation capacity-build-up under the National Integrated Power Project (NIPP) would result in more than 10GW by 2010. Available public capacity is supplemented by private captive generation serving industrial clusters and specific companies in the Cement, Steel and Oil & Gas sectors of the economy. A set of newly licensed independent power producers (IPP) would add more than 10GW if all come on stream before 2010-12. Some of which where commissioned by the Obasanjo administration though there are speculations that these where fictitious as nothing seem to be on ground. The report further said that at Present, power generation is mainly from thermal plants (about 61%) while hydro power generation is about 31%. Most of the generating assets in the public power sector are old, between 18 and 43 years. Lack of timely routine maintenance had caused significant deterioration in plant output and is a key explanatory factor in the lingering electric power crisis. According to industry watchers more than two decades of poor planning and underinvestment had left a huge supply deficit.
There was no new infrastructure in over a decade despite rapid population growth and rising demand for power. The Sector was at the brink of collapse; average daily generation in 1999 was 1,750MW (and almost 10 years after, the situation is not remarkably different as available capacity output is still less than 2.5GW). Add this to the fact that between 1990 and 1998, no new capacity was added. The focus has been on rehabilitation of existing infrastructure. Electricity generation, transmission and distribution account for less than one per cent of Nigeria’s Gross Domestic Products [GDP], but fifty-four per cent of the share of Utilities (electricity and water supply) in the GDP. They constitute a small economic activity in Nigeria in relation to her size and population (
www.nigerianstat.gov.ng). It is obvious that the reliance of electronic systems on power is threatened by the poor power situation in the country. The power situation has to improve to allow the smooth running of electronic systems and databases.
GLOBALISATION
Globalisation is the process by which the people of the world are unified into a single society and function together. Globalization is often used to refer to economic globalization: the integration of national economies into the international economy through
trade,
foreign direct investment,
capital flows,
migration, and the spread of
technology. This process is usually recognized as being driven by a combination of economic, technological, sociocultural, political and biological factors (WIKIPEDIA). So it therefore follows that globalisation has also enhanced electronic investment as countries can now easily partake in trade. Imports/ exports have increased over the years for Nigeria in terms of number of countries trade is going on with and volume of trade as statistics from National Bureau of Statistics Abuja report for 2008 (TABLE 2) indicates, and no doubt the computerisation of the various stages in these activities most have played a major role in this. The risk here is that all economies will be dependent on each other such that if one has a major recession, it will not be experiencing it alone, just like the present economic meltdown that started in 2008. further more, if all are linked any fraudulent person that is able to break the security of the system will have control over many things and could transfer funds at will to whoever. So the world needs to keep improving on security software to avoid this. The government of Nigeria has recently come up with a term project e-governance and is trying to computerise all its ministries and parastatals via this programme. Several assessment studies on penetration and adoption of computer and the internet have shown that these tools are beginning to change the way citizens interact with one another and also with their governments and vice-versa [1]. An assessment from two states in the South Western part of Nigeria regarding the awareness, use and sustainability of e-Governance in Nigeria was carried out. The perspectives of the government staff as well as other users (non-government staff) were assessed. It was found that 68% of both government employees (GE) and non-government employees (NGEs) are aware of e-Governance in the states, and the governments have achieved this high rate of awareness by means of mass media (30%). Computer literacy amongst employees is put at 19 users out of every 20, and 52% of those that are computer literate have over 3yrs experience in using the computer.
Also, 76.6% are reported to have access to the Internet and only 31.3% of those that have access to the Internet have access points in their offices. Proficiency about the use of e-Governance resources was also tested, it was found that about 50% of the users are proficient and about 35% of them use the Internet on a daily basis (Michael Awoyele et al, 2008). This is a sure sign of government’s willingness to globalise.
CHAPTER THREE
RESEARCH RESULTS & CALCULATIONS
According to a research on the effects of electronics investment using Cashcraft Asset Management ltd as a case study by Kayode Obanewo, 57 questionnaires where analyzed. The questions where based on the impact of electronics investment on productivity rate(PR), Information Technology(IT) use on jobs and understanding of problems, opportunities and solution in the company. From the results, the number of respondents that ticked positive was 45 or 78.9% as against 12 or 21.1% that went for negative impact (TABLE 3).
I also observed the following based on a random interview via phone, internet and physical discuss with clients and staff of Cashcraft Asset Management ltd nationwide.
Out of 70 persons interviewed 20 (28.6%) were operations staff, 22 (31.4%) marketing staff and 28 (40%) clients (TABLE 4A). 80% of those interviewed were in support of electronics investment having a positive impact on the economy and investment habit of people their reasons ranged from prompt message delivery, that when orders are placed by clients, they are promptly sent via internet to those to execute such orders. Marketers are able to discuss business with clients who are out of the country and even make new clients via the internet, operations staff experience a lower level of errors in their jobs as compared to when it was done manually using the verification of certificates as example. Only 20% of the population, where of a contrary view.
To test our hypothesis, let us use Chi-square(X2) TEST, a statistical tool to do some calculations. A chi-square test (also chi-squared or X2 test) is any
statistical hypothesis test in which the
sampling distribution of the test statistic is a
chi-square distribution when the
null hypothesis is true, or any in which this is asymptotically true, meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough.
Where
X2 = Chi-square value at 5% and I degree of freedom.
Oij = observed frequency
Eij = expected frequency
Both for the cell corresponding the the ith condition and jth group.
Eij = (Ti x Tj)
N
Where
Eij = expected frequency for the cell in the ith row and jth column.
Ti = total number of subjects in the ith row.
Tj= total number of subjects in the jth column.
N = total number of subjects in the whole table.
PROCEDURE
The hypothesis will be stated.
Computation and comparism between observed frequencies with expected frequencies will be done.
X2 test will be computed at 5% level of significance and 1 degree of freedom.
The hypothesis will be accepted or rejected based on the statistical evidence.
The hypothesis
H1: Electronics investment has a positive impact on the Nigerian Economy and Investors.
H2: Electronics investment does not have a positive impact on the Nigerian economy and Investors.
CALCULATION
Using TABLE 5,
Expected value for 26 = (30 x 56) / 70 = 24
For 30 = (40x56) / 70 = 32
For 4 = (30 x 14) / 70 = 6
For 10 = (40 x 14) / 70 = 8
From TABLE 6
X2 = 0.167 + 0.125 + 0.667 + 0.400
= 1.359
The
degrees of freedom are equal to (R-1)(C-1) where R is the number of rows and C is the number of columns. In this case, R = 2 and C = 2, so df = (2-1)(2-1) = 1. A
chi square table (TABLE 7) can be used to determine that for df= 1 @ 0.05 significance level, the critical value is about 3.841.
DECISION
Our result shows that our calculated value of 1.359 for chi-square is less than the critical value of 3.841, so we therefore accept H1: Electronics investment has a positive impact on the Nigerian Economy and Investors.
CHAPTER FOUR
SUMMARY AND RECOMMENDATIONS
Taking into cognizance the results form the calculations based on the reports on Cashcraft Asset Management Ltd a financial services firm and the reports from the Central bank of Nigeria, the National Bureau of Statistics and other organizations and groups we have mentioned earlier, we can confidently say that electronics investment has a positive impact on the economy of Nigeria and its investors and that it is important in harnessing productivity and development of the economy and the well being of the general citizenry. Though there are still some outstanding challenges that needs to be addressed so that the Nigerian populace can enjoy in full, the benefits of electronic investment. In light of this I will like to make the following recommendations;
POWER SUPPLY – When there is continuous and frequent interruption of power supply, it becomes difficult or more expensive to maintain electronic systems which are crucial for electronics investment. The government should encourage private participation in the generation, transmission and distribution of power in small communities and areas. This will make it possible for generation to be done based on the load to be carried and also will reduce vandalism and billing and maintenance problems as these things will be closer to the people. It will also aid in reducing unemployment.
SECURED & MONITORED DATABASES – The government needs to establish and maintain secured databases of all its citizens, organizations and groups which will be monitored and manned by appropriate security agencies from which genuine investors can make confirmations before they embark on any business. This will make investors more confident and make it possible to trace e-transactions to physical locations easily too.
LAWS & REGULATIONS – Proper laws and regulations needs to be put in place so that proper channels of complain and seeking redress will be available to all.
ENCOURAGEMENT OF E-COMMERCE – The positive impact of electronics investment in the financial sector needs to be encouraged in other sectors of the economy. E-business should be encouraged in all forms of business and with the proper infrastructure put in place.
FEEDBACK – Government needs to place proper feedback channels at all levels so that corporations, parastatals, ministries and individuals can suggest better ways of achieving set goals on electronics investment.#
EDUCATION – various education programmes at different levels should be organized both by the government, private and public sectors even to the grassroots, to see that everyone is computer literate as it will be useless to have all the internet infrastructure and yet the people cannot make use of them because they lack the know-how.
TARIFFS, DUTIES & TAXES – There should be incentives on tariifs, duties and taxes associated with electronic devices useful in promoting electronic business which will encourage the purchase and ownership of internet devices which will in turn boost electronics investment.
I believe that with these recommendations acted upon, tNigeria will have a better presence in the world economy and the poverty level and crime level will drastically reduce as everyone will have access to markets for his or her goods and services.
REFERENCES
Adewale O. S and Falaki O. S (2001), E-Commerce: Promises, Threats Trust and
Payment systems, COAN Conference-services, VOL, 12:84-86
Adeyeri D. (2002) Financial Services Delivery in the Electronic Age, COAN
Conference-Services, VOL 10: 148-157
Coulter G. C (2001) The Importance of E-Commerce and Digital Economy
John Clark (2003 ) Dictionary of banking & Finance terms
Oki A (2000) Internet and the world by the year 2000.
COAN Conference-services, VOL, 10: 175-176
Robinson E.T (2006) the impact of online investment on Nigerian economy
( A study of Cashcraft Asset Mgt Ltd )
APPENDIX
TABLE 1- % OF E-CHANNELS OF TRANSACTIONS USED IN ELECTRONIC PAYMENTS
Channel of Transaction
Percentage (%)
Volume Terms
ATM
93.66
INTERNET
4.36
POS
1.79
MOBILE
0.19
Value Terms
ATM
94.51
INTERNET
3.31
POS
2.17
MOBILE
0.02
TABLE 2- TOTAL TRADE BY YEAR (N’000)
YEAR
IMPORTS(CLF)
EXPORTS(FOB)
BALANCE
TOTAL TRADE
OIL EXPORTS
EXPORTS/TOTAL TRADE %
2004
1,575,563,852
5,137,695,681
3,562,131,829
6,713,259,533
4,473,542,496
76.5
2005
1,779,601,578
6,621,303,643
4,841,702,066
8,400,905,221
6,252,882,284
78.8
2006
2,922,248,462
7,555,141,321
4,632,892,858
10,477,389,783
7,006,591,114
72.1
2007
4,127,689,933
6,881,501,326
2,753,811,393
11,009,191,259
6,395,167,214
62.5
2008
3,299,096,622
9,568,949,247
6,269,852,625
12,868,045,869
8,751,617,979
74.4
TABLE 3- STATISTICAL DISTRIBUTION OF RESPONSES TO QUESTIONAIRE QUESTIONS
RESPONSES
NO_ OF RESPONDENTS
PERCENTAGE (%)
POSITIVE (H1)
45
78.9
NEGATIVE (H2)
12
21.1
TOTAL
57
100
TABLE 4A- STATISTICAL DISTRIBUTION OF RESPONDENTS; POPULATION GROUP (INTERVIEW)
POPULATION GROUP
NO_ OF RESPONDENTS
PERCENTAGE (%)
OPERATIONS STAFF
20
28.6
MARKETING STAFF
22
31.4
CLIENTS
28
40
TOTAL
70
100
TABLE 4B- STATISTICAL DISTRIBUTION OF RESPONSES TO INTERVIEW QUESTIONS
RESPONSES
NO_ OF RESPONDENTS
PERCENTAGE (%)
POSITIVE (H1)
56
80
NEGATIVE (H2)
14
20
TOTAL
70
100
TABLE 5- OPINION DISTRIBUTION BASED ON STAFF AND CLIENTS
OPINION
STAFF
CLIENT
TOTAL
POSITIVE (H1)
26
30
56
NEGATIVE (H2)
4
10
14
TOTAL
30
40
70
TABLE 6 – CHI-SQUARE TEST FOR HYPOTHESIS
Oij
Eij
Oij - Eij
(Oij - Eij)2
(Oij - Eij)2
Eij
26
24
2
4
0.167
30
32
-2
4
0.125
4
6
-2
4
0.667
10
8
2
4
0.400
TABLE 7- CRITICAL VALUES FOR THE CHI SQUARE DISTRIBUTION Significance Level df 0.10 0.05 0.025 0.01 0.005 1 2.7055 3.8415 5.0239 6.6349 7.8794 2 4.6052 5.9915 7.3778 9.2104 10.5965 3 6.2514 7.8147 9.3484 11.3449 12.8381 4 7.7794 9.4877 11.1433 13.2767 14.8602 5 9.2363 11.0705 12.8325 15.0863 16.7496 6 10.6446 12.5916 14.4494 16.8119 18.5475 7 12.017 14.0671 16.0128 18.4753 20.2777 8 13.3616 15.5073 17.5345 20.0902 21.9549 9 14.6837 16.919 19.0228 21.666 23.5893 10 15.9872 18.307 20.4832 23.2093 25.1881 11 17.275 19.6752 21.92 24.725 26.7569 12 18.5493 21.0261 23.3367 26.217 28.2997 13 19.8119 22.362 24.7356 27.6882 29.8193 14 21.0641 23.6848 26.1189 29.1412 31.3194 15 22.3071 24.9958 27.4884 30.578 32.8015 16 23.5418 26.2962 28.8453 31.9999 34.2671 17 24.769 27.5871 30.191 33.4087 35.7184 18 25.9894 28.8693 31.5264 34.8052 37.1564 19 27.2036 30.1435 32.8523 36.1908 38.5821 20 28.412 31.4104 34.1696 37.5663 39.9969 21 29.6151 32.6706 35.4789 38.9322 41.4009 22 30.8133 33.9245 36.7807 40.2894 42.7957 23 32.0069 35.1725 38.0756 41.6383 44.1814 24 33.1962 36.415 39.3641 42.9798 45.5584 25 34.3816 37.6525 40.6465 44.314 46.928 26 35.5632 38.8851 41.9231 45.6416 48.2898 27 36.7412 40.1133 43.1945 46.9628 49.645 28 37.9159 41.3372 44.4608 48.2782 50.9936 29 39.0875 42.5569 45.7223 49.5878 52.3355 30 40.256 43.773 46.9792 50.8922 53.6719 31 41.4217 44.9853 48.2319 52.1914 55.0025 32 42.5847 46.1942 49.4804 53.4857 56.328 33 43.7452 47.3999 50.7251 54.7754 57.6483 34 44.9032 48.6024 51.966 56.0609 58.9637 35 46.0588 49.8018 53.2033 57.342 60.2746 36 47.2122 50.9985 54.4373 58.6192 61.5811 37 48.3634 52.1923 55.668 59.8926 62.8832 38 49.5126 53.3835 56.8955 61.162 64.1812 39 50.6598 54.5722 58.1201 62.4281 65.4753 40 51.805 55.7585 59.3417 63.6908 66.766 41 52.9485 56.9424 60.5606 64.95 68.0526 42 54.0902 58.124 61.7767 66.2063 69.336 43 55.2302 59.3035 62.9903 67.4593 70.6157 44 56.3685 60.4809 64.2014 68.7096 71.8923 45 57.5053 61.6562 65.4101 69.9569 73.166 46 58.6405 62.8296 66.6165 71.2015 74.4367 47 59.7743 64.0011 67.8206 72.4432 75.7039 48 60.9066 65.1708 69.0226 73.6826 76.9689 49 62.0375 66.3387 70.2224 74.9194 78.2306 50 63.1671 67.5048 71.4202 76.1538 79.4898 51 64.2954 68.6693 72.616 77.386 80.7465 52 65.4224 69.8322 73.8099 78.6156 82.0006 53 66.5482 70.9934 75.0019 79.8434 83.2525 54 67.6728 72.1532 76.1921 81.0688 84.5018 55 68.7962 73.3115 77.3804 82.292 85.7491 56 69.9185 74.4683 78.5671 83.5136 86.994 57 71.0397 75.6237 79.7522 84.7327 88.2366 58 72.1598 76.7778 80.9356 85.9501 89.477 59 73.2789 77.9305 82.1174 87.1658 90.7153 60 74.397 79.082 83.2977 88.3794 91.9518 61 75.5141 80.2321 84.4764 89.5912 93.1862 62 76.6302 81.381 85.6537 90.8015 94.4185 63 77.7454 82.5287 86.8296 92.0099 95.6492 64 78.8597 83.6752 88.004 93.2167 96.8779 65 79.973 84.8206 89.1772 94.422 98.1049 66 81.0855 85.9649 90.3488 95.6256 99.3303 67 82.1971 87.108 91.5193 96.8277 100.5538 68 83.3079 88.2502 92.6885 98.0283 101.7757 69 84.4179 89.3912 93.8565 99.2274 102.9961 70 85.527 90.5313 95.0231 100.4251 104.2148 71 86.6354 91.6703 96.1887 101.6214 105.4323 72 87.7431 92.8083 97.353 102.8163 106.6473 73 88.8499 93.9453 98.5162 104.0098 107.8619 74 89.9561 95.0815 99.6784 105.2019 109.0742 75 91.0615 96.2167 100.8393 106.3929 110.2854 76 92.1662 97.351 101.9992 107.5824 111.4954 77 93.2702 98.4844 103.1581 108.7709 112.7037 78 94.3735 99.617 104.3159 109.9582 113.9107 79 95.4762 100.7486 105.4727 111.144 115.1163 80 96.5782 101.8795 106.6285 112.3288 116.3209 81 97.6796 103.0095 107.7834 113.5123 117.524 82 98.7803 104.1387 108.9373 114.6948 118.7261 83 99.8805 105.2672 110.0902 115.8762 119.927 84 100.98 106.3949 111.2422 117.0566 121.1262 85 102.0789 107.5217 112.3933 118.2356 122.3244 86 103.1773 108.6479 113.5436 119.4137 123.5218 87 104.275 109.7733 114.6929 120.5909 124.7176 88 105.3723 110.898 115.8415 121.7672 125.9123 89 106.4689 112.022 116.989 122.9422 127.106 90 107.565 113.1452 118.1359 124.1162 128.2987 91 108.6606 114.2679 119.282 125.2893 129.4902 92 109.7556 115.3898 120.427 126.4616 130.6812 93 110.8501 116.511 121.5714 127.633 131.8705 94 111.9442 117.6317 122.7152 128.8032 133.0589 95 113.0377 118.7516 123.858 129.9725 134.2466 96 114.1307 119.8709 125.0001 131.1411 135.4327 97 115.2232 120.9897 126.1414 132.3089 136.6188 98 116.3153 122.1077 127.2821 133.4756 137.803 99 117.4069 123.2252 128.4219 134.6415 138.9869 100 118.498 124.3421 129.5613 135.8069 140.1697
CHART A- SUBSCRIBER DATA (1999-2008)
CHART B- SHARE OF SERVICES AS AT YEAR END 2008
CHART C- MARKET SHARE OF MOBILE OPERATORS 2008
CHART D – CONTRIBUTION OF TELECOMMS TO GDP
CHART E- TRENDS OF PRIVATE INVESTMENT
CHART F- INFRASTRUCTURE DEPLOYMENT
