The effect of sectoral foreign direct investment on sectoral growth and sectoral employment in South Africa
- Authors: Paul, Bernice Nicole
- Date: 2021-04
- Subjects: Investments, Foreign -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Economic policy , Gross domestic product -- South Africa , UNCTAD-ICTSD Project on IPRs and Sustainable Development , Unemployment -- South Africa
- Language: English
- Type: thesis , text , Master , MCom
- Identifier: http://hdl.handle.net/10962/177964 , vital:42894
- Description: Over several decades past, developing countries have received increased amounts of Foreign Direct Investment (FDI). This form of investment has been welcomed because of the perceived benefits attached to it. FDI is seen as an important driver of economic development for many nations. For South Africa specifically, GDP growth rates have remained less than required, unemployment rates have reached staggering levels, poverty and inequality levels are increasing and the list goes on. Considering the perceived benefits of FDI, one may argue that FDI can play a crucial role in reducing the mentioned challenges facing the nation, however, only if directed to initiatives contributing to growth and employment. The 2015 Investment Policy Framework for Sustainable Development includes an action menu promoting investment in sectors relating to the achievement of the Sustainable Development Goals (SDGs). Therefore, this study is aimed at investigating the relationship between sector FDI and sector growth in addition to investigating the effect of sector FDI on sector employment over the period 2000Q1 to 2016Q4 for six of South Africa’s economic sectors. The reason for such a study is based on the premise that developing nations such as South Africa lack sound trade and industrial policies favorable to foreign investors. This then leads to the nation failing to attract higher volumes of FDI which could be used to address structural challenges facing the country. It is therefore important to identify sectors in which FDI has resulted in growth and employment so that when policies are considered, the right FDI is targeted. A comprehensive review of existing theoretical and empirical literature showed that FDI does result in economic growth for developed and developing countries, although FDI crowds out domestic investment in the short run. Literature on the effect of FDI on employment showed diverse effects. Some studies found FDI to increase employment overall, other studies found FDI to increase employment only during periods of restructuring and some studies found FDI to result in job losses. For South African sectors, the present study finds that the financial services sector receives the highest volume of South African FDI, followed by the mining and quarrying sector and the manufacturing, however, FDI in all six sectors under study is associated with increased growth and employment. This finding suggests that the financial services sector has received increased volumes of FDI as a result of financialization of the South African economy. It is this increased FDI in the financial services sector that is directed to income redistribution from the real sector to the finance sector. This study employed econometric techniques and methods of analysis to investigate the relationship between sector FDI and sector growth, and the effect of sector FDI on sector employment. Panel cointegration tests were conducted for all six sectors included in the study to establish if long run equilibrium relationships exist among integrated variables. The Johansen-Fisher panel cointegration test revealed that there is evidence of cointegration in four of the six sectors. Since cointegration was established, the study proceeded to perform the Dumitrescu-Hurlin panel causality analysis and estimate a Panel Vector Error Correction Model (VECM). Results from the causality analysis found a unidirectional causality relationship between FDI and GDP growth, while the panel VECM found FDI to have a significant effect on growth in all sectors. The Seemingly Unrelated Regression (SUR) model employed to investigate the effect of FDI on employment found FDI to have an insignificant effect on employment in all sectors included, although the signs of the coefficients suggest that FDI is associated with increased employment and rising wages is associated with increased productivity growth. Since this study finds that FDI is associated with increased GDP growth in all six sectors under study, policy makers should devise strategies to attract FDI in sectors such as the transportation, storage and communication sector and the electricity, gas and water sector as FDI in these sectors are associated with increased growth however, they receive very low levels of FDI. There are a number of reasons for this, therefore, government institutions and policy makers should investigate the reasons for these low levels of FDI inflows into these sectors so that they can devise further strategies to address these reasons and perhaps attract higher levels of FDI into these sectors. Spillover benefits play a major role in host nations participating in FDI therefore, prior to entering into bilateral treaty agreements, policy makers should ensure that foreign investors are compelled to create jobs, offer training and qualifications etc. through their investments so that some of the SDGs can be achieved. Additionally, this study finds a positive, statistically insignificant relationship between FDI and employment. FDI may not have a significant relationship on employment due to jobless growth and capital-intensive growth rather than labor-intensive growth. Such a situation calls for government intervention. Skills shortage is a rising problem in South Africa; therefore, investors choose to employ advanced technologies rather than people. Under such circumstances, governments are encouraged to invest resources into skills development so that human capital are not completely replaced by technology. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Paul, Bernice Nicole
- Date: 2021-04
- Subjects: Investments, Foreign -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Economic policy , Gross domestic product -- South Africa , UNCTAD-ICTSD Project on IPRs and Sustainable Development , Unemployment -- South Africa
- Language: English
- Type: thesis , text , Master , MCom
- Identifier: http://hdl.handle.net/10962/177964 , vital:42894
- Description: Over several decades past, developing countries have received increased amounts of Foreign Direct Investment (FDI). This form of investment has been welcomed because of the perceived benefits attached to it. FDI is seen as an important driver of economic development for many nations. For South Africa specifically, GDP growth rates have remained less than required, unemployment rates have reached staggering levels, poverty and inequality levels are increasing and the list goes on. Considering the perceived benefits of FDI, one may argue that FDI can play a crucial role in reducing the mentioned challenges facing the nation, however, only if directed to initiatives contributing to growth and employment. The 2015 Investment Policy Framework for Sustainable Development includes an action menu promoting investment in sectors relating to the achievement of the Sustainable Development Goals (SDGs). Therefore, this study is aimed at investigating the relationship between sector FDI and sector growth in addition to investigating the effect of sector FDI on sector employment over the period 2000Q1 to 2016Q4 for six of South Africa’s economic sectors. The reason for such a study is based on the premise that developing nations such as South Africa lack sound trade and industrial policies favorable to foreign investors. This then leads to the nation failing to attract higher volumes of FDI which could be used to address structural challenges facing the country. It is therefore important to identify sectors in which FDI has resulted in growth and employment so that when policies are considered, the right FDI is targeted. A comprehensive review of existing theoretical and empirical literature showed that FDI does result in economic growth for developed and developing countries, although FDI crowds out domestic investment in the short run. Literature on the effect of FDI on employment showed diverse effects. Some studies found FDI to increase employment overall, other studies found FDI to increase employment only during periods of restructuring and some studies found FDI to result in job losses. For South African sectors, the present study finds that the financial services sector receives the highest volume of South African FDI, followed by the mining and quarrying sector and the manufacturing, however, FDI in all six sectors under study is associated with increased growth and employment. This finding suggests that the financial services sector has received increased volumes of FDI as a result of financialization of the South African economy. It is this increased FDI in the financial services sector that is directed to income redistribution from the real sector to the finance sector. This study employed econometric techniques and methods of analysis to investigate the relationship between sector FDI and sector growth, and the effect of sector FDI on sector employment. Panel cointegration tests were conducted for all six sectors included in the study to establish if long run equilibrium relationships exist among integrated variables. The Johansen-Fisher panel cointegration test revealed that there is evidence of cointegration in four of the six sectors. Since cointegration was established, the study proceeded to perform the Dumitrescu-Hurlin panel causality analysis and estimate a Panel Vector Error Correction Model (VECM). Results from the causality analysis found a unidirectional causality relationship between FDI and GDP growth, while the panel VECM found FDI to have a significant effect on growth in all sectors. The Seemingly Unrelated Regression (SUR) model employed to investigate the effect of FDI on employment found FDI to have an insignificant effect on employment in all sectors included, although the signs of the coefficients suggest that FDI is associated with increased employment and rising wages is associated with increased productivity growth. Since this study finds that FDI is associated with increased GDP growth in all six sectors under study, policy makers should devise strategies to attract FDI in sectors such as the transportation, storage and communication sector and the electricity, gas and water sector as FDI in these sectors are associated with increased growth however, they receive very low levels of FDI. There are a number of reasons for this, therefore, government institutions and policy makers should investigate the reasons for these low levels of FDI inflows into these sectors so that they can devise further strategies to address these reasons and perhaps attract higher levels of FDI into these sectors. Spillover benefits play a major role in host nations participating in FDI therefore, prior to entering into bilateral treaty agreements, policy makers should ensure that foreign investors are compelled to create jobs, offer training and qualifications etc. through their investments so that some of the SDGs can be achieved. Additionally, this study finds a positive, statistically insignificant relationship between FDI and employment. FDI may not have a significant relationship on employment due to jobless growth and capital-intensive growth rather than labor-intensive growth. Such a situation calls for government intervention. Skills shortage is a rising problem in South Africa; therefore, investors choose to employ advanced technologies rather than people. Under such circumstances, governments are encouraged to invest resources into skills development so that human capital are not completely replaced by technology. , Thesis (MCom) -- Faculty of Commerce, Economics and Economic History, 2021
- Full Text:
- Date Issued: 2021-04
The role of open government data in the repurposing of land administration in postapartheid South Africa : an exploration
- Authors: Manona, Siyabulela Sobantu
- Date: 2021-04
- Subjects: Transparency in government -- South Africa , Land reform -- South Africa , Qualitative research -- Methodology , Postcolonialism -- South Africa , Post-apartheid era -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Social conditions -- 1994- , South Africa -- Politics and government -- 1994- , Open Government Data (OGD)
- Language: English
- Type: thesis , text , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/178397 , vital:42936 , 10.21504/10962/178397
- Description: Almost three decades after the official end of the apartheid, South Africa has been on a sturdy path that is characterised by deepening spatial economic inequalities. A plethora of policy instruments unleashed since 1994 had not only failed to stem the tide of poverty and inequality, but had deepened them. As part of this, South Africa’s most ambitious social engineering programme – land reform -- had disappointing outcomes. Premised on a view that these apartheid continuities were embedded in South Africa’s land administration system – which was incoherent and fragmented and requiring a systemic overhaul -- the study sought to explore the potential role of Open Government Data (OGD) in the repurposing of land administration system in the post-apartheid South Africa. To achieve this goal, the study was guided by the following objectives: to explore the ontology and the state of land governance and administration in the context of the post-apartheid South Africa; to undertake an evaluation or assessment of South Africa’s land data ecosystem; and to explore the potential role of OGD in the repurposing of land administration system in the postapartheid of South Africa. This study was steeped in qualitative research methods, underpinned by primary and secondary literature review. While the study was primarily pitched on a national scale – the combination of the systems and multiple scales approaches – yielded results which dislodges solutions that are required outside of the domain of a single state. This is one glaring example of land governance complexities that straddle beyond national scale – specifically in respect of new policy trajectories on trans-national boundaries and governance of water resources. Based on the holistic ontology of land, this study concludes that land administration and land governance overarching conceptual orientation -- concerned with land use decisions made by humans at various scales from a praxis and policy perspective –constitute two sides of the same coin, the former steeped towards practice and the latter steeped towards policy. Drawing from decolonial theories the study concludes that land does not only have multiple dimensions, but it also has multiple meanings, in a manner that calls for an ontological shift away from the western ontology, towards an inclusive and holistic conceptualisation. Historiography that is anchored in de-colonial thinking of South Africa’s land governance helps us understand how and why – colonial/apartheid norms acrimoniously found their way into the post-apartheid order -- the post-apartheid institutions of modernity rest on the same hierarchies of identities, classification and pathologisation. The study concludes that, while the colonial/apartheid administration may be gone, it’s underlying power matrices continue -- i.e. capitalism/European/patriachal/white – in a manner which explains the continuities of South Africa’s spatial inequalities and the associated economic inequalities. The organising principle for land relations (including opportunities) continues to be underpinned by gender, race and class, in ways that expose the mythical dimensions of the 'post-apartheid' underbelly. While identifying the need for homogenisation and rationalistion of colonial, apartheid and post-apartheid institutions (on a national scale) that is insufficient for the transformation of the colonial situation of what is in essence a part of the global system, the study advocates for the ‘repurposing of land governance and administration’ – underpinned by de-colonial thinking. Repurposing is seen as political imaginary that would entail uncoupling thought processes and praxis from the colonial matrices of power. The study goes on to conclude that there is a definite role for Open Government Data in repurposing of land administration in the post-apartheid South Africa – as a necessary, though in and of it’s own it is an insufficient condition to achieve that ideal -- but presents an opportunity to enhance transdisciplinarity approaches and efficiencies in internal government functioning and evidence-based decision making and policy formulation processes. , Thesis (PhD) -- Faculty of Science, Geography, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Manona, Siyabulela Sobantu
- Date: 2021-04
- Subjects: Transparency in government -- South Africa , Land reform -- South Africa , Qualitative research -- Methodology , Postcolonialism -- South Africa , Post-apartheid era -- South Africa , South Africa -- Economic conditions -- 1991- , South Africa -- Social conditions -- 1994- , South Africa -- Politics and government -- 1994- , Open Government Data (OGD)
- Language: English
- Type: thesis , text , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/178397 , vital:42936 , 10.21504/10962/178397
- Description: Almost three decades after the official end of the apartheid, South Africa has been on a sturdy path that is characterised by deepening spatial economic inequalities. A plethora of policy instruments unleashed since 1994 had not only failed to stem the tide of poverty and inequality, but had deepened them. As part of this, South Africa’s most ambitious social engineering programme – land reform -- had disappointing outcomes. Premised on a view that these apartheid continuities were embedded in South Africa’s land administration system – which was incoherent and fragmented and requiring a systemic overhaul -- the study sought to explore the potential role of Open Government Data (OGD) in the repurposing of land administration system in the post-apartheid South Africa. To achieve this goal, the study was guided by the following objectives: to explore the ontology and the state of land governance and administration in the context of the post-apartheid South Africa; to undertake an evaluation or assessment of South Africa’s land data ecosystem; and to explore the potential role of OGD in the repurposing of land administration system in the postapartheid of South Africa. This study was steeped in qualitative research methods, underpinned by primary and secondary literature review. While the study was primarily pitched on a national scale – the combination of the systems and multiple scales approaches – yielded results which dislodges solutions that are required outside of the domain of a single state. This is one glaring example of land governance complexities that straddle beyond national scale – specifically in respect of new policy trajectories on trans-national boundaries and governance of water resources. Based on the holistic ontology of land, this study concludes that land administration and land governance overarching conceptual orientation -- concerned with land use decisions made by humans at various scales from a praxis and policy perspective –constitute two sides of the same coin, the former steeped towards practice and the latter steeped towards policy. Drawing from decolonial theories the study concludes that land does not only have multiple dimensions, but it also has multiple meanings, in a manner that calls for an ontological shift away from the western ontology, towards an inclusive and holistic conceptualisation. Historiography that is anchored in de-colonial thinking of South Africa’s land governance helps us understand how and why – colonial/apartheid norms acrimoniously found their way into the post-apartheid order -- the post-apartheid institutions of modernity rest on the same hierarchies of identities, classification and pathologisation. The study concludes that, while the colonial/apartheid administration may be gone, it’s underlying power matrices continue -- i.e. capitalism/European/patriachal/white – in a manner which explains the continuities of South Africa’s spatial inequalities and the associated economic inequalities. The organising principle for land relations (including opportunities) continues to be underpinned by gender, race and class, in ways that expose the mythical dimensions of the 'post-apartheid' underbelly. While identifying the need for homogenisation and rationalistion of colonial, apartheid and post-apartheid institutions (on a national scale) that is insufficient for the transformation of the colonial situation of what is in essence a part of the global system, the study advocates for the ‘repurposing of land governance and administration’ – underpinned by de-colonial thinking. Repurposing is seen as political imaginary that would entail uncoupling thought processes and praxis from the colonial matrices of power. The study goes on to conclude that there is a definite role for Open Government Data in repurposing of land administration in the post-apartheid South Africa – as a necessary, though in and of it’s own it is an insufficient condition to achieve that ideal -- but presents an opportunity to enhance transdisciplinarity approaches and efficiencies in internal government functioning and evidence-based decision making and policy formulation processes. , Thesis (PhD) -- Faculty of Science, Geography, 2021
- Full Text:
- Date Issued: 2021-04
Poor whites and the post-apartheid labour market: a study of perceptions and experiences of work among residents in a homeless shelter in Johannesburg
- Authors: Wollnik, Nadjeschda
- Date: 2020
- Subjects: Poor whites -- South Africa , Poor whites -- South Africa -- Atitudes , Shelters for the homeless -- South Africa , Unemployed -- South Africa -- Attitudes , Unemployed -- South Africa , South Africa -- Social conditions -- 1994- , South Africa -- Economic conditions -- 1991-
- Language: English
- Type: text , Thesis , Masters , MSocSci
- Identifier: http://hdl.handle.net/10962/148540 , vital:38748
- Description: Despite historical precedents, poverty among white people in South Africa remains an anomaly and a paradox. Likewise, the perceptions of work and employment among poor (under- and unemployed) whites in contemporary South Africa have received scant attention in the scholarly literature. Using the conceptual frameworks of critical whiteness studies and segmented labour market theory – as a way of combining subjective and objective considerations – this research seeks to describe and explain the perceptions and experiences of the labour market among poor whites living in a homeless shelter in Johannesburg. Eight respondents were chosen for extended, in-depth interviews in an effort to develop a fine-grained understanding of the pre-existing circumstances that affected their access to information and thus shaped their choices in the labour market, as well as to ascertain what they believed to be the barriers that they face in the labour market. The findings varied, with most of the interviewees seeing ‘being white’ as the reason for their poverty and unemployment, while others exhibited some awareness of the role of their lack of skills and qualifications in their capacity to compete in higher segments of the labour market. The findings were also varied in the sense that not all interviewees experienced poverty in the same manner, with some having been part of the middle class prior to becoming poor, while others having been poor their entire lives. It was also found that class or socio-economic status seemed to have a greater impact than race on the labour market prospects of the interviewees. It is argued that the perceptions of these poor whites, which are informed by their lack of information about the workings of the labour market, rather than their lack of qualifications or their race, most affected their prospects in the labour market. The mechanisms they rely on when seeking employment reveal a poor knowledge of the local labour market and the ways in which they think their skillsets match up to the types of jobs they desire. The lack of understanding of the South African labour market and the policies that are in place to redress the legacies of apartheid are among the factors influencing the lack of success these poor whites are experiencing in their search for work.
- Full Text:
- Date Issued: 2020
- Authors: Wollnik, Nadjeschda
- Date: 2020
- Subjects: Poor whites -- South Africa , Poor whites -- South Africa -- Atitudes , Shelters for the homeless -- South Africa , Unemployed -- South Africa -- Attitudes , Unemployed -- South Africa , South Africa -- Social conditions -- 1994- , South Africa -- Economic conditions -- 1991-
- Language: English
- Type: text , Thesis , Masters , MSocSci
- Identifier: http://hdl.handle.net/10962/148540 , vital:38748
- Description: Despite historical precedents, poverty among white people in South Africa remains an anomaly and a paradox. Likewise, the perceptions of work and employment among poor (under- and unemployed) whites in contemporary South Africa have received scant attention in the scholarly literature. Using the conceptual frameworks of critical whiteness studies and segmented labour market theory – as a way of combining subjective and objective considerations – this research seeks to describe and explain the perceptions and experiences of the labour market among poor whites living in a homeless shelter in Johannesburg. Eight respondents were chosen for extended, in-depth interviews in an effort to develop a fine-grained understanding of the pre-existing circumstances that affected their access to information and thus shaped their choices in the labour market, as well as to ascertain what they believed to be the barriers that they face in the labour market. The findings varied, with most of the interviewees seeing ‘being white’ as the reason for their poverty and unemployment, while others exhibited some awareness of the role of their lack of skills and qualifications in their capacity to compete in higher segments of the labour market. The findings were also varied in the sense that not all interviewees experienced poverty in the same manner, with some having been part of the middle class prior to becoming poor, while others having been poor their entire lives. It was also found that class or socio-economic status seemed to have a greater impact than race on the labour market prospects of the interviewees. It is argued that the perceptions of these poor whites, which are informed by their lack of information about the workings of the labour market, rather than their lack of qualifications or their race, most affected their prospects in the labour market. The mechanisms they rely on when seeking employment reveal a poor knowledge of the local labour market and the ways in which they think their skillsets match up to the types of jobs they desire. The lack of understanding of the South African labour market and the policies that are in place to redress the legacies of apartheid are among the factors influencing the lack of success these poor whites are experiencing in their search for work.
- Full Text:
- Date Issued: 2020
An analysis of the availability of and access to credit from the formal financial sector and the performance of SMEs
- Authors: Asah, Francis Tangwo
- Date: 2019
- Subjects: Small business -- South Africa -- Finance , Microfinance -- South Africa , South Africa -- Economic conditions -- 1991-
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/115138 , vital:34081
- Description: As a developing nation, South Africa faces a high rate of poverty, high levels of inequality in terms of income and a high rate of unemployment. It is officially estimated that about 27.2% of the economically active population are unemployed. SMEs are expected to be an important vehicle to address the challenges of job creation, sustainable economic growth, equitable distribution of income and the overall stimulation of economic development. SMEs in South Africa constitute 99% of all businesses, contributing to employment, income inequality and poverty alleviation (Statistic South Africa, 2018). However, despite the remarkable contribution of SMEs to the economy of South Africa, the failure rate of SMEs (at 75%) is the highest of all the efficiency-driven economies sampled by the Global Entrepreneurship Monitor (GEM). The World Bank affirm that the availability of and access to credit from the formal financial sector is the primary cause of the high failure rate of SMEs. Contemporary literature advance that the future survival and performance of SMEs in South Africa is pegged onto the amount of financial capital available to address their capital needs. Thus, this study sought to analyse the availability of and access to credit from the formal financial sector and the performance of SMEs from the supply and demand-side. In order to achieve the objectives of the study, a sequential exploratory mixed method research design, located in the pragmatic research paradigm, was used in a two phased approach. The qualitative data collection and analysis in Phase 1 informed the quantitative data collection and analysis Phase 2. In Phase 1, in-depth face-to-face semi-structured interviews were conducted with 8 credit and 8 business managers representing the sampling unit of selected formal financial institutions. The qualitative data collected was analysed using the five-steps process of content analysis as illustrated by Terre Blanche et al. (2006:322-326). The main findings with regard to factors that impact on the willingness of the formal financial sector to provide credit to SMEs were collateral, annual business turnover, audited financial records, relationship with the bank, credit profile, nature of the business, economic climate, ethics, nationality, government policy, management team, valid Identity Document/permit, equity contribution, entrepreneurship education, product quality, and business intelligence. Assessing credit applications from SMEs, risk assessment, inspection of financial records, proper documentation and background checks were the different tasks performed by credit and business managers. In addition, the main challenges faced by the formal financial sector in assessing and approving credit in favour of SMEs included the following: lack of investment capital; lack of collateral; lack of proper financial records; poor managerial knowledge; poor business plan; lack of industrial knowledge; and poor legal and credit laws. Lastly, contrary to the notion that formal financial institutions are not interested in investing in SMEs, on average, 70% of SMEs that applied for credit received such credit. In Phase 2, a self-administered questionnaire was used to collect data from formal sector owner/managers of SMEs in the city of Johannesburg. Of the 702 questionnaires distributed, 300 were returned and useable. Data was analysed using the Statistical Package for the Social Sciences (version 24). A test for normality was performed using Shapiro–Wilks test. Reliability was tested using the Cronbach’s Alpha Coefficient. Exploratory factor analysis tested the validity of factors that prevent formal financial sector from granting credit to SMEs while Binary logistic regression was used to infer on the hypotheses. Spearman’s Rho correlation analysis was used to determine whether there was any significant relationship with factors that influence access to credit and SMEs performance. The main findings revealed that access to bank finance was the only challenge that showed a significant correlation with performance. In addition, the study revealed that the South African Identity Document and collateral were the most important factors considered when applying for credit from formal financial institutions. With regard to the reasons why formal financial institutions may refuse to grant credit to SMEs, it was revealed that there was no significant positive relationship between lack of business networking and access to credit from the formal financial sector to SMEs. Conversely, the study also revealed a significant positive relationship between collateral, business information, managerial competency, business intelligence, business ethics, entrepreneurship education, legal system and macro-economy and access to credit from the formal financial sector to SMEs. Thus, it was established that there is a significant positive relationship between access to credit from the formal financial sector and the performance of SMEs.
- Full Text:
- Date Issued: 2019
- Authors: Asah, Francis Tangwo
- Date: 2019
- Subjects: Small business -- South Africa -- Finance , Microfinance -- South Africa , South Africa -- Economic conditions -- 1991-
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/115138 , vital:34081
- Description: As a developing nation, South Africa faces a high rate of poverty, high levels of inequality in terms of income and a high rate of unemployment. It is officially estimated that about 27.2% of the economically active population are unemployed. SMEs are expected to be an important vehicle to address the challenges of job creation, sustainable economic growth, equitable distribution of income and the overall stimulation of economic development. SMEs in South Africa constitute 99% of all businesses, contributing to employment, income inequality and poverty alleviation (Statistic South Africa, 2018). However, despite the remarkable contribution of SMEs to the economy of South Africa, the failure rate of SMEs (at 75%) is the highest of all the efficiency-driven economies sampled by the Global Entrepreneurship Monitor (GEM). The World Bank affirm that the availability of and access to credit from the formal financial sector is the primary cause of the high failure rate of SMEs. Contemporary literature advance that the future survival and performance of SMEs in South Africa is pegged onto the amount of financial capital available to address their capital needs. Thus, this study sought to analyse the availability of and access to credit from the formal financial sector and the performance of SMEs from the supply and demand-side. In order to achieve the objectives of the study, a sequential exploratory mixed method research design, located in the pragmatic research paradigm, was used in a two phased approach. The qualitative data collection and analysis in Phase 1 informed the quantitative data collection and analysis Phase 2. In Phase 1, in-depth face-to-face semi-structured interviews were conducted with 8 credit and 8 business managers representing the sampling unit of selected formal financial institutions. The qualitative data collected was analysed using the five-steps process of content analysis as illustrated by Terre Blanche et al. (2006:322-326). The main findings with regard to factors that impact on the willingness of the formal financial sector to provide credit to SMEs were collateral, annual business turnover, audited financial records, relationship with the bank, credit profile, nature of the business, economic climate, ethics, nationality, government policy, management team, valid Identity Document/permit, equity contribution, entrepreneurship education, product quality, and business intelligence. Assessing credit applications from SMEs, risk assessment, inspection of financial records, proper documentation and background checks were the different tasks performed by credit and business managers. In addition, the main challenges faced by the formal financial sector in assessing and approving credit in favour of SMEs included the following: lack of investment capital; lack of collateral; lack of proper financial records; poor managerial knowledge; poor business plan; lack of industrial knowledge; and poor legal and credit laws. Lastly, contrary to the notion that formal financial institutions are not interested in investing in SMEs, on average, 70% of SMEs that applied for credit received such credit. In Phase 2, a self-administered questionnaire was used to collect data from formal sector owner/managers of SMEs in the city of Johannesburg. Of the 702 questionnaires distributed, 300 were returned and useable. Data was analysed using the Statistical Package for the Social Sciences (version 24). A test for normality was performed using Shapiro–Wilks test. Reliability was tested using the Cronbach’s Alpha Coefficient. Exploratory factor analysis tested the validity of factors that prevent formal financial sector from granting credit to SMEs while Binary logistic regression was used to infer on the hypotheses. Spearman’s Rho correlation analysis was used to determine whether there was any significant relationship with factors that influence access to credit and SMEs performance. The main findings revealed that access to bank finance was the only challenge that showed a significant correlation with performance. In addition, the study revealed that the South African Identity Document and collateral were the most important factors considered when applying for credit from formal financial institutions. With regard to the reasons why formal financial institutions may refuse to grant credit to SMEs, it was revealed that there was no significant positive relationship between lack of business networking and access to credit from the formal financial sector to SMEs. Conversely, the study also revealed a significant positive relationship between collateral, business information, managerial competency, business intelligence, business ethics, entrepreneurship education, legal system and macro-economy and access to credit from the formal financial sector to SMEs. Thus, it was established that there is a significant positive relationship between access to credit from the formal financial sector and the performance of SMEs.
- Full Text:
- Date Issued: 2019
Social movements and economic development in post apartheid South Africa: lessons from Latin America
- Authors: Makoni, Tinotenda Charity
- Date: 2019
- Subjects: South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , Social movements -- South Africa , Social movements -- Latin America , Economic development -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/76420 , vital:30561
- Description: The aim of this research is to bring the literature on political agency and economics together in an analysis of whether social movements can play an important role in economic development in post-apartheid South Africa. The entrenched discourse of sluggish growth and high inequality in post-apartheid South Africa can largely be attributed to the political decision to implement a neoliberal economic development orthodoxy. On the one hand, there is an urgent need to shift the economic development model to an alternate developmentalist model. However, no clearly articulated alternative developmental model has emerged. As a result, economically, South Africa is seemingly stuck. On the other hand, the selection of an economic development model and change in macroeconomic policies requires a political shift. Politically, formal politics has assumed the form of neoliberal democracy, characterised by a largely centralised state and the usurpation of the state and institutions by a national bourgeoisie. Social movements have emerged in response to the failure of neoliberalism to fulfil the promises of early post independent periods. They have been largely successful at highlighting the injustices and the inequalities in the country. However their ability to influence structural economic development has come into question. Firstly, social movements and their “politically destabilising distributive demands” have faced repression from the state as the state and institutions are aligned behind the interests of capital under a neoliberal democracy. Secondly, social movements in South Africa have been largely ideologically under-developed. They have been largely fragmented and tended to contest specific single issues rather than aiming to shift the deeper underlying systemic drivers behind the symptomatic immediate discomforts. The economic dimensions of such a shift are particularly unclear. This fragmentation and apparent lack of economic pragmatism make management or suppression of disruptive movements by the state relatively easy. The research uses a contrast between the Latin American social movements against a South African background in order to see what lessons South Africa can draw from social movements in Latin America. The Latin American case is cautiously more positive and provides comparably more sanguine lessons. In this way, this research seeks to construct a more comprehensive framework for the further study of social movements in South Africa and their potential impact on economic development in South Africa.
- Full Text:
- Date Issued: 2019
Social movements and economic development in post apartheid South Africa: lessons from Latin America
- Authors: Makoni, Tinotenda Charity
- Date: 2019
- Subjects: South Africa -- Economic conditions -- 1991- , South Africa -- Politics and government -- 1994- , Social movements -- South Africa , Social movements -- Latin America , Economic development -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/76420 , vital:30561
- Description: The aim of this research is to bring the literature on political agency and economics together in an analysis of whether social movements can play an important role in economic development in post-apartheid South Africa. The entrenched discourse of sluggish growth and high inequality in post-apartheid South Africa can largely be attributed to the political decision to implement a neoliberal economic development orthodoxy. On the one hand, there is an urgent need to shift the economic development model to an alternate developmentalist model. However, no clearly articulated alternative developmental model has emerged. As a result, economically, South Africa is seemingly stuck. On the other hand, the selection of an economic development model and change in macroeconomic policies requires a political shift. Politically, formal politics has assumed the form of neoliberal democracy, characterised by a largely centralised state and the usurpation of the state and institutions by a national bourgeoisie. Social movements have emerged in response to the failure of neoliberalism to fulfil the promises of early post independent periods. They have been largely successful at highlighting the injustices and the inequalities in the country. However their ability to influence structural economic development has come into question. Firstly, social movements and their “politically destabilising distributive demands” have faced repression from the state as the state and institutions are aligned behind the interests of capital under a neoliberal democracy. Secondly, social movements in South Africa have been largely ideologically under-developed. They have been largely fragmented and tended to contest specific single issues rather than aiming to shift the deeper underlying systemic drivers behind the symptomatic immediate discomforts. The economic dimensions of such a shift are particularly unclear. This fragmentation and apparent lack of economic pragmatism make management or suppression of disruptive movements by the state relatively easy. The research uses a contrast between the Latin American social movements against a South African background in order to see what lessons South Africa can draw from social movements in Latin America. The Latin American case is cautiously more positive and provides comparably more sanguine lessons. In this way, this research seeks to construct a more comprehensive framework for the further study of social movements in South Africa and their potential impact on economic development in South Africa.
- Full Text:
- Date Issued: 2019
Economic justice in South Africa: a pastoral statement
- Southern African Catholic Bishops' Conference
- Authors: Southern African Catholic Bishops' Conference
- Date: 1999-09
- Subjects: Economics -- Religious aspects -- Christianity , South Africa -- Economic conditions -- 1991- , Economic conditions -- Catholic Church , Social justice -- South Africa
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/68823 , vital:29328 , ISBN 1874838275
- Description: The Introduction to the statement explains that its aim is to contribute to the search for a more just, equitable and sustainable economic dispensation. It reminds people that, as a nation, we have overcome the horrors of apartheid and made significant progress towards peace and stability. However, we are sitting on an economic time-bomb; if we do not strive for economic justice we must expect a deepening of our social problems such as crime, lawlessness, poverty and unemployment. The second section considers the Church's Prophetic Duty to speak out and to bring Gospel values to bear on political, economic and social matters. A second transformation is needed: massive, and overwhelmingly positive, political change has occurred, but the same has not yet happened in the economy, with the result that the majority of our people still have little chance of fulfilling their reasonable hopes for a better life. Section three turns to the question of Discerning Economic Justice. It is asserted that every economy has a moral quality which makes it possible for us to pass judgements as to whether or not it is a just economy. In order to make such judgements the presence or absence of various factors must be assessed, including poverty, unemployment, discrimination, materialism and environmental degradation. Next, the statement deals briefly with Economic Structure. The fact that economies are complex, and that most people are unfamiliar with economic terminology, results in many people feeling powerless. They believe that, as individuals, they have no influence over, or responsibility for, the way an economy operates. Some of the negative consequences of such a belief are mentioned, and it is pointed out that we have a moral duty to make the correct choices, even in complex matters. Section four, Christian Economic Values, offers some guidelines for those striving to make these choices. The section summarises some of the main concepts and principles developed by the Church as ways of making concrete the commandment to 'love your neighbour as yourself'. These include the common good, solidarity, the option for the poor, the common destiny of goods, and the integrity of creation. The South African Economy is analysed in section six, according to the criteria mentioned in section three. Poverty, unemployment, materialism, greed, the lack of women's economic empowerment, debt and corruption are among the features identified as contributing to economic injustice in our country. But the gap between rich and poor is singled out as the defining characteristic of our economy, with millions of South Africans surviving, like Lazarus, on crumbs from the rich man's table. No country's economy exists in isolation, free from outside influences. Therefore, in section seven, some attention is given to The World Economy, especially to aspects which affect South Africa. The point is made that international factors can act as powerful constraints on moves towards economic justice at home, without their being, however, an excuse for a lack of effort in this direction. When statements such as the present one are published, people have a right to expect the authors to make specific and practical recommendations. This is attempted in section eight, What Can Be Done? The major role-players in the economy are identified and various steps are suggested for each of them; these range from fiscal initiatives to encourage job-creation, through changes to personal taxation and measures to improve productivity and training, to the promotion of the interests of the unemployed. However, it is conceded that even the most enlightened economic measures will not be able to withstand selfish and destructive attitudes. The question of people's attitudes to each other and to economic choices is therefore addressed, with particular emphasis being placed on the role of the religious community in this regard. By way of Conclusion the statement points out that economic justice is demanded not just by the poor and by forthcoming generations, but by God. In striving for a just economy we are carrying forward Jesus' great task of bringing fullness of life to all people. , 2nd ed
- Full Text:
- Date Issued: 1999-09
- Authors: Southern African Catholic Bishops' Conference
- Date: 1999-09
- Subjects: Economics -- Religious aspects -- Christianity , South Africa -- Economic conditions -- 1991- , Economic conditions -- Catholic Church , Social justice -- South Africa
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10962/68823 , vital:29328 , ISBN 1874838275
- Description: The Introduction to the statement explains that its aim is to contribute to the search for a more just, equitable and sustainable economic dispensation. It reminds people that, as a nation, we have overcome the horrors of apartheid and made significant progress towards peace and stability. However, we are sitting on an economic time-bomb; if we do not strive for economic justice we must expect a deepening of our social problems such as crime, lawlessness, poverty and unemployment. The second section considers the Church's Prophetic Duty to speak out and to bring Gospel values to bear on political, economic and social matters. A second transformation is needed: massive, and overwhelmingly positive, political change has occurred, but the same has not yet happened in the economy, with the result that the majority of our people still have little chance of fulfilling their reasonable hopes for a better life. Section three turns to the question of Discerning Economic Justice. It is asserted that every economy has a moral quality which makes it possible for us to pass judgements as to whether or not it is a just economy. In order to make such judgements the presence or absence of various factors must be assessed, including poverty, unemployment, discrimination, materialism and environmental degradation. Next, the statement deals briefly with Economic Structure. The fact that economies are complex, and that most people are unfamiliar with economic terminology, results in many people feeling powerless. They believe that, as individuals, they have no influence over, or responsibility for, the way an economy operates. Some of the negative consequences of such a belief are mentioned, and it is pointed out that we have a moral duty to make the correct choices, even in complex matters. Section four, Christian Economic Values, offers some guidelines for those striving to make these choices. The section summarises some of the main concepts and principles developed by the Church as ways of making concrete the commandment to 'love your neighbour as yourself'. These include the common good, solidarity, the option for the poor, the common destiny of goods, and the integrity of creation. The South African Economy is analysed in section six, according to the criteria mentioned in section three. Poverty, unemployment, materialism, greed, the lack of women's economic empowerment, debt and corruption are among the features identified as contributing to economic injustice in our country. But the gap between rich and poor is singled out as the defining characteristic of our economy, with millions of South Africans surviving, like Lazarus, on crumbs from the rich man's table. No country's economy exists in isolation, free from outside influences. Therefore, in section seven, some attention is given to The World Economy, especially to aspects which affect South Africa. The point is made that international factors can act as powerful constraints on moves towards economic justice at home, without their being, however, an excuse for a lack of effort in this direction. When statements such as the present one are published, people have a right to expect the authors to make specific and practical recommendations. This is attempted in section eight, What Can Be Done? The major role-players in the economy are identified and various steps are suggested for each of them; these range from fiscal initiatives to encourage job-creation, through changes to personal taxation and measures to improve productivity and training, to the promotion of the interests of the unemployed. However, it is conceded that even the most enlightened economic measures will not be able to withstand selfish and destructive attitudes. The question of people's attitudes to each other and to economic choices is therefore addressed, with particular emphasis being placed on the role of the religious community in this regard. By way of Conclusion the statement points out that economic justice is demanded not just by the poor and by forthcoming generations, but by God. In striving for a just economy we are carrying forward Jesus' great task of bringing fullness of life to all people. , 2nd ed
- Full Text:
- Date Issued: 1999-09
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