Impact of microfinance institutions on small business sustainability in Nelson Mandela Bay
- Authors: Mgoduka, Bulelwa Keitumetse
- Date: 2015
- Subjects: Microfinance , Financial institutions -- South Africa , Small business -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , MPhil
- Identifier: http://hdl.handle.net/10948/8564 , vital:26407
- Description: The rise of microfinance in South Africa as a development trajectory has dismissed ideas that small business enterprises have no significant contribution to the economic growth and development of the country. The primary objective of the study is to assess the impact of microfinance service providers on the success and sustainability of small business enterprises in the Nelson Mandela Bay. By applying descriptive statistics, 2 ordinary least square regression analyses as well as correlation matrix; the results reveal that microfinance has a positive and significant impact on the success and sustainability on small business enterprises in the Nelson Mandela Bay. The research findings hold a variety of implications for Government and policymakers. The study recommends that the microfinance sector must be under good governance through the microfinance regulatory and supervisory structures, since the sector contributes a great deal towards one of the most important objectives of the Post-Apartheid Government. Further, small business entrepreneurs must be well exposed to the requirements, standards and norms which govern the financial sector. This is particularly important in terms of the National Credit Act provisions.
- Full Text:
- Date Issued: 2015
- Authors: Mgoduka, Bulelwa Keitumetse
- Date: 2015
- Subjects: Microfinance , Financial institutions -- South Africa , Small business -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Doctoral , MPhil
- Identifier: http://hdl.handle.net/10948/8564 , vital:26407
- Description: The rise of microfinance in South Africa as a development trajectory has dismissed ideas that small business enterprises have no significant contribution to the economic growth and development of the country. The primary objective of the study is to assess the impact of microfinance service providers on the success and sustainability of small business enterprises in the Nelson Mandela Bay. By applying descriptive statistics, 2 ordinary least square regression analyses as well as correlation matrix; the results reveal that microfinance has a positive and significant impact on the success and sustainability on small business enterprises in the Nelson Mandela Bay. The research findings hold a variety of implications for Government and policymakers. The study recommends that the microfinance sector must be under good governance through the microfinance regulatory and supervisory structures, since the sector contributes a great deal towards one of the most important objectives of the Post-Apartheid Government. Further, small business entrepreneurs must be well exposed to the requirements, standards and norms which govern the financial sector. This is particularly important in terms of the National Credit Act provisions.
- Full Text:
- Date Issued: 2015
Risks associated with infrastructure project finance in developing countries: the case of Zambia
- Authors: Mweemba, Bruno N
- Date: 2015
- Subjects: Infrastructure (Economics) -- Finance , Infrastructure (Economics) -- Risk management -- Zambia
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/6389 , vital:21081
- Description: Since the enactment of the Public Private Partnership (PPP) Act of 2009, there has not been a single successful PPP transaction entered into between the Government of Zambia and any private sector entity under the PPP Act of 2009 (Zambia Development Agency, 2014: 7). According to the Zambia Development Agency (2014:7), 75% of the PPPs that were entered into by the government of Zambia prior to the promulgation of the PPP Act of 2009 were canceled. These include: the Kasumbalesa Border Post, Mpulungu Harbour and Railways Systems of Zambia with an exception of the 65 year concession of the Luburma Market (popularly known as Kamwala Market). These cancellations of PPP concessions coupled with revelations in the Zambian Parliament that concession documentation for the Luburma market which is the only surviving PPP had since gone missing, this led to the research problem statement with an assertion that risks associated with infrastructure project finance are endemic in Zambia. In seeking to explore the validity of this assertion, three research objectives guided the study, namely: assessing Zambia’s general infrastructure project finance and PPP framework in comparison to theoretical normative criteria and selected country experiences; identifying and rating risks through a questionnaire; and proposing an ideal project finance risk management model which can be used as a reference by sponsors in Zambia as they design and structure infrastructure project finance deals. On a scale of 1-5 which was guided by the overal risk score outlined in the study, the average mean score ranking for all the 40 risks under investigation was found to be 3.25 .This indicates that the sentiments among respondents is that risks associated with infrastructure project finance in Zambia are average and not endemic as was affirmed in the problem statement. Despite this ‘comforting’ statistical result, the little progress in terms of earmarked infrastructure PPP deals coupled with deal cancellations as outlined above may be an indication that even the average risks appear to impede on the development of project finance and PPPs in Zambia. There is therefore an urgent need for Government and other relevant stakeholders to begin paying attention to some of the risks discussed in this study especially those with a mean score ranking in excess of 3.50 (high risk). The study in chapter 9 provides recommendations which are grouped under four key headings: addressing the environment for PPPs; providing capacity to procuring entities; paying attention to critical success factors for project development; as well as exploring a variety of possible credit enhancement mechanisms such as guarantees as a way of wooing project investors and improving the bankability of planned infrastructure deals. The Government of Zambia is further advised to avoid using ‘political feasibility “as the core investment criteria in the infrastructure agenda for the country. The study encourages that conventional benchmarks which are a mix of technical soundness, economic viability, environmental and social sustainability, financial/commercial viability as well as market readiness remain the core guiding principle in the project identification process. This will be the only way to avoid developing “white elephants” that may perpetually be a burden to the treasury and tax payers.
- Full Text:
- Date Issued: 2015
- Authors: Mweemba, Bruno N
- Date: 2015
- Subjects: Infrastructure (Economics) -- Finance , Infrastructure (Economics) -- Risk management -- Zambia
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/6389 , vital:21081
- Description: Since the enactment of the Public Private Partnership (PPP) Act of 2009, there has not been a single successful PPP transaction entered into between the Government of Zambia and any private sector entity under the PPP Act of 2009 (Zambia Development Agency, 2014: 7). According to the Zambia Development Agency (2014:7), 75% of the PPPs that were entered into by the government of Zambia prior to the promulgation of the PPP Act of 2009 were canceled. These include: the Kasumbalesa Border Post, Mpulungu Harbour and Railways Systems of Zambia with an exception of the 65 year concession of the Luburma Market (popularly known as Kamwala Market). These cancellations of PPP concessions coupled with revelations in the Zambian Parliament that concession documentation for the Luburma market which is the only surviving PPP had since gone missing, this led to the research problem statement with an assertion that risks associated with infrastructure project finance are endemic in Zambia. In seeking to explore the validity of this assertion, three research objectives guided the study, namely: assessing Zambia’s general infrastructure project finance and PPP framework in comparison to theoretical normative criteria and selected country experiences; identifying and rating risks through a questionnaire; and proposing an ideal project finance risk management model which can be used as a reference by sponsors in Zambia as they design and structure infrastructure project finance deals. On a scale of 1-5 which was guided by the overal risk score outlined in the study, the average mean score ranking for all the 40 risks under investigation was found to be 3.25 .This indicates that the sentiments among respondents is that risks associated with infrastructure project finance in Zambia are average and not endemic as was affirmed in the problem statement. Despite this ‘comforting’ statistical result, the little progress in terms of earmarked infrastructure PPP deals coupled with deal cancellations as outlined above may be an indication that even the average risks appear to impede on the development of project finance and PPPs in Zambia. There is therefore an urgent need for Government and other relevant stakeholders to begin paying attention to some of the risks discussed in this study especially those with a mean score ranking in excess of 3.50 (high risk). The study in chapter 9 provides recommendations which are grouped under four key headings: addressing the environment for PPPs; providing capacity to procuring entities; paying attention to critical success factors for project development; as well as exploring a variety of possible credit enhancement mechanisms such as guarantees as a way of wooing project investors and improving the bankability of planned infrastructure deals. The Government of Zambia is further advised to avoid using ‘political feasibility “as the core investment criteria in the infrastructure agenda for the country. The study encourages that conventional benchmarks which are a mix of technical soundness, economic viability, environmental and social sustainability, financial/commercial viability as well as market readiness remain the core guiding principle in the project identification process. This will be the only way to avoid developing “white elephants” that may perpetually be a burden to the treasury and tax payers.
- Full Text:
- Date Issued: 2015
The influence of financial market development on economic growth in Brics countries
- Authors: Ruzive, Tafadzwa Mutsvedu
- Date: 2015
- Subjects: Financial services industry -- Marketing , Economic development -- BRIC countries
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/6594 , vital:21123
- Description: The debate about the influence of financial market development on economic growth has been ongoing for more than a century. Since Schumpeter (1912) wrote about the happenings on Lombard Street, right up to the economists of today, there is growing interest into how financial market development affects economic activity and hence economic growth. With economic growth gaining prominence in respect of development discourse, inquiry into the finance-growth nexus has grown rapidly. The latest advances of the finance-growth nexus show a positive relationship between financial market development and economic growth. In this regard, little research has been done globally pertaining to most recent economic developments, especially concerning the BRICS economies. This research investigates the influence of financial market development on emerging economies, BRICS and non-BRICS and to determine whether the openness of financial markets in BRICS economies contributed to higher growth trajectories compared to their non-BRICS counterparts. The research utilises the Generalised Method of Moments and an extended endogenous growth model to estimate the influence of a set of financial market indicators. The study found that higher levels of credit to the private sector and financial depth in the BRICS economies contributed to the higher levels of economic growth experienced in the BRICS compared to non-BRICs emerging economies.
- Full Text:
- Date Issued: 2015
- Authors: Ruzive, Tafadzwa Mutsvedu
- Date: 2015
- Subjects: Financial services industry -- Marketing , Economic development -- BRIC countries
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/6594 , vital:21123
- Description: The debate about the influence of financial market development on economic growth has been ongoing for more than a century. Since Schumpeter (1912) wrote about the happenings on Lombard Street, right up to the economists of today, there is growing interest into how financial market development affects economic activity and hence economic growth. With economic growth gaining prominence in respect of development discourse, inquiry into the finance-growth nexus has grown rapidly. The latest advances of the finance-growth nexus show a positive relationship between financial market development and economic growth. In this regard, little research has been done globally pertaining to most recent economic developments, especially concerning the BRICS economies. This research investigates the influence of financial market development on emerging economies, BRICS and non-BRICS and to determine whether the openness of financial markets in BRICS economies contributed to higher growth trajectories compared to their non-BRICS counterparts. The research utilises the Generalised Method of Moments and an extended endogenous growth model to estimate the influence of a set of financial market indicators. The study found that higher levels of credit to the private sector and financial depth in the BRICS economies contributed to the higher levels of economic growth experienced in the BRICS compared to non-BRICs emerging economies.
- Full Text:
- Date Issued: 2015
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