The tax implications of a private equity buy-out : a case study of the Brait-Shoprite buy-out
- Authors: Mawire, Patrick N
- Date: 2008
- Subjects: South African Revenue Service , Consolidation and merger of corporations -- Finance , Taxation -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8959 , http://hdl.handle.net/10948/803 , South African Revenue Service , Consolidation and merger of corporations -- Finance , Taxation -- Law and legislation -- South Africa
- Description: This treatise examines the history of private equity as a context in which to understand its role in the economy and specifically, the background for the high profile leveraged buy-outs that have been entered into in the past year. The treatise then focuses specifically on the Brait-Shoprite buy-out, examining its structure and the tax implications. The treatise then reviews the reaction of the South African Revenue Authority (“SARS”) to the buy-out and evaluates whether it was the best approach that could have been taken under the circumstances. As a result of the research, the following conclusions have been reached: Private equity transactions Private equity transactions have a role to play in the business world despite the apprehensions of tax authorities. The perception that these transactions are tax driven as part of an avoidance scheme is not justified. Structure of the Shoprite buy-out transaction: The Shoprite buy-out transaction was structured to obtain deduction for interest. The transaction was also structured to utilise the relief provisions of Part II of Chapter II (Special Provisions Relating to Companies) of the Income Tax Act no.58 of 1962, as amended (“the Act”). The relief was for capital gains tax (“CGT”) on disposal of the Shoprite assets. Finally, the transaction was designed to allow the existing shareholders to exit their investments free of Secondary Tax on Companies (“STC”). The reaction of SARS to the Shoprite buy-out transaction Whereas SARS may have been justified in questioning the structure and its impact on fiscal revenue, the response in the form of withdrawing STC relief from amalgamation transactions in section 44 was not in the best interest of a stable tax system and the majority of tax payers who are not misusing or abusing loopholes in the income tax legislation. It may have been possible for SARS to attack the structure based on the General Anti-Avoidance Rule (GAAR) in part IIA of the Chapter III of the Act.
- Full Text:
- Date Issued: 2008
- Authors: Mawire, Patrick N
- Date: 2008
- Subjects: South African Revenue Service , Consolidation and merger of corporations -- Finance , Taxation -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8959 , http://hdl.handle.net/10948/803 , South African Revenue Service , Consolidation and merger of corporations -- Finance , Taxation -- Law and legislation -- South Africa
- Description: This treatise examines the history of private equity as a context in which to understand its role in the economy and specifically, the background for the high profile leveraged buy-outs that have been entered into in the past year. The treatise then focuses specifically on the Brait-Shoprite buy-out, examining its structure and the tax implications. The treatise then reviews the reaction of the South African Revenue Authority (“SARS”) to the buy-out and evaluates whether it was the best approach that could have been taken under the circumstances. As a result of the research, the following conclusions have been reached: Private equity transactions Private equity transactions have a role to play in the business world despite the apprehensions of tax authorities. The perception that these transactions are tax driven as part of an avoidance scheme is not justified. Structure of the Shoprite buy-out transaction: The Shoprite buy-out transaction was structured to obtain deduction for interest. The transaction was also structured to utilise the relief provisions of Part II of Chapter II (Special Provisions Relating to Companies) of the Income Tax Act no.58 of 1962, as amended (“the Act”). The relief was for capital gains tax (“CGT”) on disposal of the Shoprite assets. Finally, the transaction was designed to allow the existing shareholders to exit their investments free of Secondary Tax on Companies (“STC”). The reaction of SARS to the Shoprite buy-out transaction Whereas SARS may have been justified in questioning the structure and its impact on fiscal revenue, the response in the form of withdrawing STC relief from amalgamation transactions in section 44 was not in the best interest of a stable tax system and the majority of tax payers who are not misusing or abusing loopholes in the income tax legislation. It may have been possible for SARS to attack the structure based on the General Anti-Avoidance Rule (GAAR) in part IIA of the Chapter III of the Act.
- Full Text:
- Date Issued: 2008
The tax implications of non-resident sportspersons performing and earning an income in South Africa
- Authors: Wessels, Jacques
- Date: 2008
- Subjects: South African Revenue Service , Sports -- Taxation -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa , Income tax -- Foreign income , Income tax -- South Africa -- Foreign income , Withholding tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:893 , http://hdl.handle.net/10962/d1003719 , South African Revenue Service , Sports -- Taxation -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa , Income tax -- Foreign income , Income tax -- South Africa -- Foreign income , Withholding tax -- Law and legislation -- South Africa
- Description: As the number of non-resident sports persons competing in South Africa increases so does the need to tax them more effectively. It was for this reason that the South African legislature decided to insert Part IlIA into the Income Tax Act which regulates the taxation of non-resident sports persons in South Africa. The new tax on foreign sports persons, which came into effect during August 2006, is a withholding tax placing the onus upon the organizer of the event to withhold the tax portion of the payment to the non-resident sportsperson and pay it over to the revenue services. The rate of taxation has been set at 15 percent on all amounts received by or accruing to a foreign sportsperson. The question which the research addressed is whether this new tax will prove to be an effective tax, both from the point of view of its equity and the administration of the tax. In order to determine the impact of the new tax, it was compared to similar taxes implemented in the United Kingdom and Australia and also to other withholding taxes levied in South Africa. The new tax was also measured against a theoretical model for effectiveness, compared to the pre-August 2006 situation and to the taxation of resident sportsmen and women, using hypothetical examples. The major shortcomings of the new withholding tax are the uncertainty with regard to the intention of the legislature on matters such as the taxation of capital income versus revenue income, the question whether payments to support staff are included in the ambit of the new tax, the taxation of the award of assets in lieu of cash payments and the definition of a resident. A further area of concern is that the rate of taxation of 15 percent appears to be too low and creates horizontal inequity between the taxation of resident and non-resident sports persons. The new tax on non-resident sports persons may have its shortcomings but, depending upon the administrative and support structures put in place to deal with it, will be an effective tax. The rate at which the tax is levied could result in a less tax being collected than before but, with the reduced administrative cost of tax collection, the effective/statutory ratio of the tax could well be much higher than it was. This is a new tax in South Africa and certain initial problems are inevitable and will undoubtedly be solved as the administrators gain experience and as the case law governing this tax develops. , KMBT_363
- Full Text:
- Date Issued: 2008
- Authors: Wessels, Jacques
- Date: 2008
- Subjects: South African Revenue Service , Sports -- Taxation -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa , Income tax -- Foreign income , Income tax -- South Africa -- Foreign income , Withholding tax -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:893 , http://hdl.handle.net/10962/d1003719 , South African Revenue Service , Sports -- Taxation -- Law and legislation -- South Africa , Taxation -- Law and legislation -- South Africa , Income tax -- Law and legislation -- South Africa , Income tax -- Foreign income , Income tax -- South Africa -- Foreign income , Withholding tax -- Law and legislation -- South Africa
- Description: As the number of non-resident sports persons competing in South Africa increases so does the need to tax them more effectively. It was for this reason that the South African legislature decided to insert Part IlIA into the Income Tax Act which regulates the taxation of non-resident sports persons in South Africa. The new tax on foreign sports persons, which came into effect during August 2006, is a withholding tax placing the onus upon the organizer of the event to withhold the tax portion of the payment to the non-resident sportsperson and pay it over to the revenue services. The rate of taxation has been set at 15 percent on all amounts received by or accruing to a foreign sportsperson. The question which the research addressed is whether this new tax will prove to be an effective tax, both from the point of view of its equity and the administration of the tax. In order to determine the impact of the new tax, it was compared to similar taxes implemented in the United Kingdom and Australia and also to other withholding taxes levied in South Africa. The new tax was also measured against a theoretical model for effectiveness, compared to the pre-August 2006 situation and to the taxation of resident sportsmen and women, using hypothetical examples. The major shortcomings of the new withholding tax are the uncertainty with regard to the intention of the legislature on matters such as the taxation of capital income versus revenue income, the question whether payments to support staff are included in the ambit of the new tax, the taxation of the award of assets in lieu of cash payments and the definition of a resident. A further area of concern is that the rate of taxation of 15 percent appears to be too low and creates horizontal inequity between the taxation of resident and non-resident sports persons. The new tax on non-resident sports persons may have its shortcomings but, depending upon the administrative and support structures put in place to deal with it, will be an effective tax. The rate at which the tax is levied could result in a less tax being collected than before but, with the reduced administrative cost of tax collection, the effective/statutory ratio of the tax could well be much higher than it was. This is a new tax in South Africa and certain initial problems are inevitable and will undoubtedly be solved as the administrators gain experience and as the case law governing this tax develops. , KMBT_363
- Full Text:
- Date Issued: 2008
Trends and determinants of inward foreign direct investment to South Africa
- Authors: Rusike, Tatonga Gardner
- Date: 2008
- Subjects: International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:995 , http://hdl.handle.net/10962/d1002730 , International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Description: Foreign direct investment (FDI) is seen as a way to provide the needed capital inflow to stimulate growth in a domestic economy. FDI can also result in increased employment levels, managerial skills and increase in technology. In efforts to attract FDI, host countries have undertaken various policy incentives to attract foreign investors. This study analyses the trends and determinants of inward FDI to South Africa for the period 1975-2005. The study starts by reviewing FDI literature on its determinants and provides the macroeconomic background and FDI related policies undertaken in South Africa. The trend and sectoral analysis provides the actual nature of FDI flows to South Africa. An empirical model linking theoretical and empirical determinants of FDI is estimated using the Johansen cointegration and VECM framework. The study also augments the cointegration framework with impulse response and variance decomposition analyses to complement the long and short run determinants of FDI. Dummy variables are used in each of the estimated FDI models to take into account the possibility of structural breaks. Results show that relative to the size of the economy and to other developing countries, South Africa still receives low levels of inward FDI. Only are few years are exceptional i.e. 1997, 2001 and 2005. From the sectoral distribution, the financial sector is now the major recipient of FDI followed by the mining and manufacturing sectors. The emergence of the financial sector could suggest that FDI motives could have shifted from the natural resource seeking and market seeking to efficiency seeking FDI. The United Kingdom emerges as the major source of FDI to South Africa followed by United States of America and Germany. Empirical analysis indicated that openness, exchange rate and financial development are important long run determinants of FDI. Increased openness and financial development attract FDI while an increase (depreciation) in the exchange rate deters FDI to South Africa. Market size emerges as a short run determinant of FDI although it is declining in importance. Most of the impulse response analysis confirmed the VECM findings. Variance decomposition analysis showed that FDI itself, imports and exchange rate explain a significant amount of the forecast error variance. The influence of market size variable is small and declining over time.
- Full Text:
- Date Issued: 2008
- Authors: Rusike, Tatonga Gardner
- Date: 2008
- Subjects: International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:995 , http://hdl.handle.net/10962/d1002730 , International business enterprises -- South Africa , Investments, Foreign -- South Africa , Economic development -- South Africa , Macroeconomics -- South Africa , Foreign exchange rates -- South Africa
- Description: Foreign direct investment (FDI) is seen as a way to provide the needed capital inflow to stimulate growth in a domestic economy. FDI can also result in increased employment levels, managerial skills and increase in technology. In efforts to attract FDI, host countries have undertaken various policy incentives to attract foreign investors. This study analyses the trends and determinants of inward FDI to South Africa for the period 1975-2005. The study starts by reviewing FDI literature on its determinants and provides the macroeconomic background and FDI related policies undertaken in South Africa. The trend and sectoral analysis provides the actual nature of FDI flows to South Africa. An empirical model linking theoretical and empirical determinants of FDI is estimated using the Johansen cointegration and VECM framework. The study also augments the cointegration framework with impulse response and variance decomposition analyses to complement the long and short run determinants of FDI. Dummy variables are used in each of the estimated FDI models to take into account the possibility of structural breaks. Results show that relative to the size of the economy and to other developing countries, South Africa still receives low levels of inward FDI. Only are few years are exceptional i.e. 1997, 2001 and 2005. From the sectoral distribution, the financial sector is now the major recipient of FDI followed by the mining and manufacturing sectors. The emergence of the financial sector could suggest that FDI motives could have shifted from the natural resource seeking and market seeking to efficiency seeking FDI. The United Kingdom emerges as the major source of FDI to South Africa followed by United States of America and Germany. Empirical analysis indicated that openness, exchange rate and financial development are important long run determinants of FDI. Increased openness and financial development attract FDI while an increase (depreciation) in the exchange rate deters FDI to South Africa. Market size emerges as a short run determinant of FDI although it is declining in importance. Most of the impulse response analysis confirmed the VECM findings. Variance decomposition analysis showed that FDI itself, imports and exchange rate explain a significant amount of the forecast error variance. The influence of market size variable is small and declining over time.
- Full Text:
- Date Issued: 2008
Willingness to pay for the control of water hyacinth in an urban environment of South Africa
- Authors: Law, Matthew Charles
- Date: 2008
- Subjects: Water hyacinth -- Control -- South Africa , Urban ecology (Sociology) -- South Africa , Biodiversity -- Economic aspects -- South Africa , Biodiversity conservation -- Economic aspects -- South Africa , Biological invasions -- Economic aspects -- South Africa , Biological invasions -- Environmental aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:996 , http://hdl.handle.net/10962/d1002731 , Water hyacinth -- Control -- South Africa , Urban ecology (Sociology) -- South Africa , Biodiversity -- Economic aspects -- South Africa , Biodiversity conservation -- Economic aspects -- South Africa , Biological invasions -- Economic aspects -- South Africa , Biological invasions -- Environmental aspects -- South Africa
- Description: Water hyacinth is recognised as one of the most problematic invasive aquatic plant species in Africa. For this reason considerable funds are spent each year on itscontrol. As a consequence of the amount of money being spent on problems such as the invasion of water hyacinth, and because of the recognition of the ongoing and accelerated efforts that are required in the future, recent research has focused on accurately quantifying the costs and benefits of control of invasive species to aid policy decisions.A comprehensive cost-benefit analysis would be able to identify if the funds are justified and are being spent effectively. This thesis provides an example of a cost-benefit analysis of funds spent on the control of water hyacinth in an urban environment in South Africa. In order to develop a comprehensive assessment of the total economic value of the control of water hyacinth to an urban population, the Nahoon River in East London was selected as the study site to calculate the benefits of control. In addition to valuing the direct services provided by the resources that are traded in the market (in this case water provision), a contingent valuation study was undertaken in Abbottsford and Dorchester Heights (two suburbs in East London banking the Nahoon River). These were done in order to assess any non-use value a sample of 132 households of the population has for the control of water hyacinth, and any use values that are not traded in the market, for example recreational value. When the benefits of control of water hyacinth were compared to the costs of one of the least cost effective methods of control (herbicidal control), the benefits outweighed the costs by a ratio of more than 4:1, and for the most cost effective method of control the ratio was almost 6:1. These results provide a justification for the funds that are devoted to the control of water hyacinth, providing an argument for the continued expenditure for its control, and for further research into more cost effective methods of control, such as biological control.
- Full Text:
- Date Issued: 2008
- Authors: Law, Matthew Charles
- Date: 2008
- Subjects: Water hyacinth -- Control -- South Africa , Urban ecology (Sociology) -- South Africa , Biodiversity -- Economic aspects -- South Africa , Biodiversity conservation -- Economic aspects -- South Africa , Biological invasions -- Economic aspects -- South Africa , Biological invasions -- Environmental aspects -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:996 , http://hdl.handle.net/10962/d1002731 , Water hyacinth -- Control -- South Africa , Urban ecology (Sociology) -- South Africa , Biodiversity -- Economic aspects -- South Africa , Biodiversity conservation -- Economic aspects -- South Africa , Biological invasions -- Economic aspects -- South Africa , Biological invasions -- Environmental aspects -- South Africa
- Description: Water hyacinth is recognised as one of the most problematic invasive aquatic plant species in Africa. For this reason considerable funds are spent each year on itscontrol. As a consequence of the amount of money being spent on problems such as the invasion of water hyacinth, and because of the recognition of the ongoing and accelerated efforts that are required in the future, recent research has focused on accurately quantifying the costs and benefits of control of invasive species to aid policy decisions.A comprehensive cost-benefit analysis would be able to identify if the funds are justified and are being spent effectively. This thesis provides an example of a cost-benefit analysis of funds spent on the control of water hyacinth in an urban environment in South Africa. In order to develop a comprehensive assessment of the total economic value of the control of water hyacinth to an urban population, the Nahoon River in East London was selected as the study site to calculate the benefits of control. In addition to valuing the direct services provided by the resources that are traded in the market (in this case water provision), a contingent valuation study was undertaken in Abbottsford and Dorchester Heights (two suburbs in East London banking the Nahoon River). These were done in order to assess any non-use value a sample of 132 households of the population has for the control of water hyacinth, and any use values that are not traded in the market, for example recreational value. When the benefits of control of water hyacinth were compared to the costs of one of the least cost effective methods of control (herbicidal control), the benefits outweighed the costs by a ratio of more than 4:1, and for the most cost effective method of control the ratio was almost 6:1. These results provide a justification for the funds that are devoted to the control of water hyacinth, providing an argument for the continued expenditure for its control, and for further research into more cost effective methods of control, such as biological control.
- Full Text:
- Date Issued: 2008
A contingent valuation of river water inflows into the Swartkops, Kariega, Mngazi and Mngazana Estuaries in the Eastern Cape
- Authors: Mlangeni, Moses Mbendela
- Date: 2007
- Subjects: Contingent valuation -- South Africa -- Eastern Cape , Water quality management -- South Africa -- Eastern Cape , Swartkops Estuary (Eastern Cape, South Africa) , Kariega Estuary (Eastern Cape, South Africa) , Mngazi Estuary (Eastern Cape, South Africa) , Mngazana Estuary (Eastern Cape, South Africa)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9004 , http://hdl.handle.net/10948/569 , http://hdl.handle.net/10948/d1011690 , Contingent valuation -- South Africa -- Eastern Cape , Water quality management -- South Africa -- Eastern Cape , Swartkops Estuary (Eastern Cape, South Africa) , Kariega Estuary (Eastern Cape, South Africa) , Mngazi Estuary (Eastern Cape, South Africa) , Mngazana Estuary (Eastern Cape, South Africa)
- Description: Many South African estuaries are currently believed to be generating lower levels of services than they used to in the past due to substantially reduced inflow of river water, among other reasons. The basis by which river water is allocated in South Africa has had to be re-examined. Local authorities are now required to integrate into their development planning sensitivity to the ways estuaries work; the relevant legislation being the Municipal Systems Act No. 32 of 2000. Sound water resource management requires that the benefits and costs of different water allocations be compared and an optimum determined. The Contingent Valuation Method (CVM) is used in this study to estimate the benefits of changing allocations of river water into estuaries. This study builds on a CVM pilot project done at the Keurbooms Estuary in the Southern Cape in year 2000 (Du Preez, 2002). Further CVM studies were conducted at the Knysna, Groot Brak and Klein Brak estuaries (Dimopolous, 2004). The CVM is a valuation technique based on answers given to carefully formulated questions on what people are willing to pay for specified changes of freshwater inflows into estuaries. The CVM depends on there being a close correspondence between expressed answers given to hypothetical questions and voluntary exchanges in competitive markets that would be entered into if money did actually change hands. The fact that it has proved very difficult to establish this correspondence has led to CVM being subject to criticism. However, many aspects of this criticism have been addressed in the form of methods to reduce biases, and the application of the technique has grown steadily in popularity during the past 25 years. Four estuaries, the Swartkops, Kariega, Mngazi and Mngazana, were surveyed as part of this study in order to determine users’ willingness to pay (WTP) for changes in freshwater inflows. Considerable research time was devoted at the estuaries getting to know how things worked around and in the estuaries. The Swartkops estuary is a permanently open system within the Nelson Mandela Bay metropolitan area. The estuary has the third largest salt marsh in South Africa. Its banks are highly developed with residential and industrial property and it is heavily used for both recreation and subsistence fishing by locals. The Kariega estuary is located near the semi-rural town of Kenton-on-sea, between Port Elizabeth and East London. Although it is permanently open, the Kariega estuary has very low inflows of river water. It is mainly used by retired pensioners living in holiday houses at Kenton-on-sea. The Kariega is not heavily used for recreation and subsistence fishing, except during holidays and the festive season because of its proximity to other estuaries such as the Bushmans and the Kleinemond. The Mngazi and the Mngazana estuaries are located in the Wild Coast area of the Eastern Cape, in the Port St Johns Municipal district. The Mngazi is a temporarily open/closed system which does not have high botanical ratings, although it is heavily used by visitors to the well known Mngazi River Bungalows, a highly rated hotel near the mouth of the Mngazi River. The Mngazana estuary is a permanently open system renowned for its Mangrove forests and excellent fishing spots. Both the Mngazi and Mngazana estuaries are located in rural areas and are heavily used by local village residents for subsistence purposes.
- Full Text:
- Date Issued: 2007
- Authors: Mlangeni, Moses Mbendela
- Date: 2007
- Subjects: Contingent valuation -- South Africa -- Eastern Cape , Water quality management -- South Africa -- Eastern Cape , Swartkops Estuary (Eastern Cape, South Africa) , Kariega Estuary (Eastern Cape, South Africa) , Mngazi Estuary (Eastern Cape, South Africa) , Mngazana Estuary (Eastern Cape, South Africa)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9004 , http://hdl.handle.net/10948/569 , http://hdl.handle.net/10948/d1011690 , Contingent valuation -- South Africa -- Eastern Cape , Water quality management -- South Africa -- Eastern Cape , Swartkops Estuary (Eastern Cape, South Africa) , Kariega Estuary (Eastern Cape, South Africa) , Mngazi Estuary (Eastern Cape, South Africa) , Mngazana Estuary (Eastern Cape, South Africa)
- Description: Many South African estuaries are currently believed to be generating lower levels of services than they used to in the past due to substantially reduced inflow of river water, among other reasons. The basis by which river water is allocated in South Africa has had to be re-examined. Local authorities are now required to integrate into their development planning sensitivity to the ways estuaries work; the relevant legislation being the Municipal Systems Act No. 32 of 2000. Sound water resource management requires that the benefits and costs of different water allocations be compared and an optimum determined. The Contingent Valuation Method (CVM) is used in this study to estimate the benefits of changing allocations of river water into estuaries. This study builds on a CVM pilot project done at the Keurbooms Estuary in the Southern Cape in year 2000 (Du Preez, 2002). Further CVM studies were conducted at the Knysna, Groot Brak and Klein Brak estuaries (Dimopolous, 2004). The CVM is a valuation technique based on answers given to carefully formulated questions on what people are willing to pay for specified changes of freshwater inflows into estuaries. The CVM depends on there being a close correspondence between expressed answers given to hypothetical questions and voluntary exchanges in competitive markets that would be entered into if money did actually change hands. The fact that it has proved very difficult to establish this correspondence has led to CVM being subject to criticism. However, many aspects of this criticism have been addressed in the form of methods to reduce biases, and the application of the technique has grown steadily in popularity during the past 25 years. Four estuaries, the Swartkops, Kariega, Mngazi and Mngazana, were surveyed as part of this study in order to determine users’ willingness to pay (WTP) for changes in freshwater inflows. Considerable research time was devoted at the estuaries getting to know how things worked around and in the estuaries. The Swartkops estuary is a permanently open system within the Nelson Mandela Bay metropolitan area. The estuary has the third largest salt marsh in South Africa. Its banks are highly developed with residential and industrial property and it is heavily used for both recreation and subsistence fishing by locals. The Kariega estuary is located near the semi-rural town of Kenton-on-sea, between Port Elizabeth and East London. Although it is permanently open, the Kariega estuary has very low inflows of river water. It is mainly used by retired pensioners living in holiday houses at Kenton-on-sea. The Kariega is not heavily used for recreation and subsistence fishing, except during holidays and the festive season because of its proximity to other estuaries such as the Bushmans and the Kleinemond. The Mngazi and the Mngazana estuaries are located in the Wild Coast area of the Eastern Cape, in the Port St Johns Municipal district. The Mngazi is a temporarily open/closed system which does not have high botanical ratings, although it is heavily used by visitors to the well known Mngazi River Bungalows, a highly rated hotel near the mouth of the Mngazi River. The Mngazana estuary is a permanently open system renowned for its Mangrove forests and excellent fishing spots. Both the Mngazi and Mngazana estuaries are located in rural areas and are heavily used by local village residents for subsistence purposes.
- Full Text:
- Date Issued: 2007
A feasibility study for improving Uganda's water to drinkable standards: lessons from Kampala
- Authors: Wasswa, Francis
- Date: 2007
- Subjects: Water quality -- Uganda , Groundwater -- Uganda , Water-supply, Rural -- Uganda
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9007 , http://hdl.handle.net/10948/802 , http://hdl.handle.net/10948/d1012068 , Water quality -- Uganda , Groundwater -- Uganda , Water-supply, Rural -- Uganda
- Description: An enthusiastic global campaign on intervention in water in the Lower Income Countries (LICs) was launched by the UN at the International Conference on Water and the Environment (ICEW), in Rio de Janerio, in January of 1992. In June of the same year, in Dublin, a plan of action was devised and a commitment to the water related goals highlighted in Rio de Janerio was made. Close to fifteen years on, there is little to show by way of success in the intended countries. Over 1.1 billion people in the LICs lack safe water. The direct impact of this is a higher risk of waterborne diseases. The waterborne diseases claim 42,000 lives every week in the LICs. By any standards this is a serious depletion of the human capital stock. Looked at in light of the fact that these countries still heavily rely on labour in production, amplifies the need to preserve health. The inherent danger posed by the poor quality water‐ as can be drawn from the above statistics‐ seems to suggest that improving the quality of water would go a long way in improving and preserving societal health in the LICs. By implication this would improve the productivity of the workers. Other benefits include cost mitigation, improved investor confidence as well as increased tourists’ confidence‐ all of which are vital for LICs’ growth prospects. It begs the question of why these countries have not improved their water quality. With specific reference made to Uganda, this research is bent on answering this question. In Uganda, there is consensus among scientists that the ground and open water sources are degraded to dangerous levels. Water quality parameters like turbidity, coliform count, and colour are all above the WHO minimum specifications for potable water and are on the rise in the country. This is indicative of water quality deterioration and it heightens the risk of waterborne diseases to the users. The waterborne burden of disease in Uganda is on the rise with a high fatality rate of 440 lives every week. The need to improve water quality in the country has been acknowledged. However, attempts to address the problem have only been undertaken on a small scale, most notable of these being the PuR home water treatment vii program. There is evidence in the country that the water quality would have apparent benefits. Strong correlations have been found between improved health in HIV patients and improved water quality in the country. In the economics of health, improving societal health inherently improves workers’ performance and productivity, leading to higher growth of the economy. There is an economic imperative therefore, as to why countries like Uganda should improve their water quality. In spite of this, even the country’s most urbanized setting‐ Kampala‐ lacks potable water. This study therefore investigates why, in a time when not only the global agenda is more supportive than ever and when the country’s water resources have been found to be risky to use, Uganda has not improved water quality. Kampala is used as the model district for this study. The district accounts for three quarters of users of treated water in the country. The problem is investigated by assessing the efficiency case of such a project (a water quality improving project) in the country; the methodology employed to this end is the Cost Benefit Analysis (CBA). The methodology compares the costs and benefits of a project, in monetary terms, in the same analysis, over its useful life. In the application of CBA one allows for the time value of money by using the discount rate to make the costs and benefits of the project occurring in different years comparable. In principle, the methodology is simple to apply‐ only that issues arise in the quantification of benefits and the determination of the discount rate. Benefits of the Kampala water quality, improving project include non‐market values and for this reason a non‐market valuation technique, the Contingent Valuation Method (CVM), was employed in their quantification. The CVM technique estimates the benefits by measuring the individuals’ willingness to pay for the improved scenario‐ in this case the scenario was one with a water quality‐improving project. The application of the CVM across many disciplines has invited a lot of criticism over the reliability of its estimates as a measure of value. A panel assembled by the North Oceanic and Atmospheric Administration (NOAA) to investigate the reliability of the CVM resolved that as long as the CVM was well conducted, the generated results would reliably predict non‐market values. The Kampala CVM, for the benefits’ quantification, was conducted with the NOAA guidelines in mind. The final value of the project’s benefits was the WTP predicted for the viii median respondent namely Ushs 385.07/= per cubic meter of water. The discount rate was deemed to be the social opportunity cost of capital in the country, viz 12 percent, this being that rate of return foregone by investing in another sector. The project’s costs were arrived at through liaison with water engineers and consulting past data from Uganda’s Water suppliers. From this, the project’s fixed costs were predicted to be Ushs 1451/= per cubic meter of water and the operation and maintenance costs predicted to be Ushs 591.7/= per cubic meter of water. The project’s useful life was deemed to be the average life of a Ugandan, namely 52 years; this choice reflecting the belief that the benefits would last over the users’ whole life. The results of the Kampala water quality‐improving project indicate that the project would not be feasible. It did not matter what discount rate one employed, the project’s operating and maintenance (OM) costs exceed the benefits. The results offer an indication as to why water quality has not been improved in Uganda‐ because the paying population is unwilling to pay for the entire cost of the project. This deduction is not to suggest that the users do not recognize the benefits of the project. The unpleasant truth is that the users’ incomes are typically stretched so thin by other demands that a decision to make more deductions from these incomes is not an inviting one. However, there is a need to improve water quality in LICs like Uganda, as can be deduced from the analysis of the risks of not doing so and benefits of doing so. Accordingly, such projects have to be funded by mechanism that does not require the users to cover the whole cost, but only part of such a cost, with the remainder from other sources like NGOs and foreign aid.
- Full Text:
- Date Issued: 2007
- Authors: Wasswa, Francis
- Date: 2007
- Subjects: Water quality -- Uganda , Groundwater -- Uganda , Water-supply, Rural -- Uganda
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9007 , http://hdl.handle.net/10948/802 , http://hdl.handle.net/10948/d1012068 , Water quality -- Uganda , Groundwater -- Uganda , Water-supply, Rural -- Uganda
- Description: An enthusiastic global campaign on intervention in water in the Lower Income Countries (LICs) was launched by the UN at the International Conference on Water and the Environment (ICEW), in Rio de Janerio, in January of 1992. In June of the same year, in Dublin, a plan of action was devised and a commitment to the water related goals highlighted in Rio de Janerio was made. Close to fifteen years on, there is little to show by way of success in the intended countries. Over 1.1 billion people in the LICs lack safe water. The direct impact of this is a higher risk of waterborne diseases. The waterborne diseases claim 42,000 lives every week in the LICs. By any standards this is a serious depletion of the human capital stock. Looked at in light of the fact that these countries still heavily rely on labour in production, amplifies the need to preserve health. The inherent danger posed by the poor quality water‐ as can be drawn from the above statistics‐ seems to suggest that improving the quality of water would go a long way in improving and preserving societal health in the LICs. By implication this would improve the productivity of the workers. Other benefits include cost mitigation, improved investor confidence as well as increased tourists’ confidence‐ all of which are vital for LICs’ growth prospects. It begs the question of why these countries have not improved their water quality. With specific reference made to Uganda, this research is bent on answering this question. In Uganda, there is consensus among scientists that the ground and open water sources are degraded to dangerous levels. Water quality parameters like turbidity, coliform count, and colour are all above the WHO minimum specifications for potable water and are on the rise in the country. This is indicative of water quality deterioration and it heightens the risk of waterborne diseases to the users. The waterborne burden of disease in Uganda is on the rise with a high fatality rate of 440 lives every week. The need to improve water quality in the country has been acknowledged. However, attempts to address the problem have only been undertaken on a small scale, most notable of these being the PuR home water treatment vii program. There is evidence in the country that the water quality would have apparent benefits. Strong correlations have been found between improved health in HIV patients and improved water quality in the country. In the economics of health, improving societal health inherently improves workers’ performance and productivity, leading to higher growth of the economy. There is an economic imperative therefore, as to why countries like Uganda should improve their water quality. In spite of this, even the country’s most urbanized setting‐ Kampala‐ lacks potable water. This study therefore investigates why, in a time when not only the global agenda is more supportive than ever and when the country’s water resources have been found to be risky to use, Uganda has not improved water quality. Kampala is used as the model district for this study. The district accounts for three quarters of users of treated water in the country. The problem is investigated by assessing the efficiency case of such a project (a water quality improving project) in the country; the methodology employed to this end is the Cost Benefit Analysis (CBA). The methodology compares the costs and benefits of a project, in monetary terms, in the same analysis, over its useful life. In the application of CBA one allows for the time value of money by using the discount rate to make the costs and benefits of the project occurring in different years comparable. In principle, the methodology is simple to apply‐ only that issues arise in the quantification of benefits and the determination of the discount rate. Benefits of the Kampala water quality, improving project include non‐market values and for this reason a non‐market valuation technique, the Contingent Valuation Method (CVM), was employed in their quantification. The CVM technique estimates the benefits by measuring the individuals’ willingness to pay for the improved scenario‐ in this case the scenario was one with a water quality‐improving project. The application of the CVM across many disciplines has invited a lot of criticism over the reliability of its estimates as a measure of value. A panel assembled by the North Oceanic and Atmospheric Administration (NOAA) to investigate the reliability of the CVM resolved that as long as the CVM was well conducted, the generated results would reliably predict non‐market values. The Kampala CVM, for the benefits’ quantification, was conducted with the NOAA guidelines in mind. The final value of the project’s benefits was the WTP predicted for the viii median respondent namely Ushs 385.07/= per cubic meter of water. The discount rate was deemed to be the social opportunity cost of capital in the country, viz 12 percent, this being that rate of return foregone by investing in another sector. The project’s costs were arrived at through liaison with water engineers and consulting past data from Uganda’s Water suppliers. From this, the project’s fixed costs were predicted to be Ushs 1451/= per cubic meter of water and the operation and maintenance costs predicted to be Ushs 591.7/= per cubic meter of water. The project’s useful life was deemed to be the average life of a Ugandan, namely 52 years; this choice reflecting the belief that the benefits would last over the users’ whole life. The results of the Kampala water quality‐improving project indicate that the project would not be feasible. It did not matter what discount rate one employed, the project’s operating and maintenance (OM) costs exceed the benefits. The results offer an indication as to why water quality has not been improved in Uganda‐ because the paying population is unwilling to pay for the entire cost of the project. This deduction is not to suggest that the users do not recognize the benefits of the project. The unpleasant truth is that the users’ incomes are typically stretched so thin by other demands that a decision to make more deductions from these incomes is not an inviting one. However, there is a need to improve water quality in LICs like Uganda, as can be deduced from the analysis of the risks of not doing so and benefits of doing so. Accordingly, such projects have to be funded by mechanism that does not require the users to cover the whole cost, but only part of such a cost, with the remainder from other sources like NGOs and foreign aid.
- Full Text:
- Date Issued: 2007
An analysis of bank risk management and its relevance for the non-bank corporate sector
- Authors: Dietrich, David Roland
- Date: 2007
- Subjects: Bank management , Risk management , Corporations -- Finance , Financial institutions , Banks and banking
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:949 , http://hdl.handle.net/10962/d1002683 , Bank management , Risk management , Corporations -- Finance , Financial institutions , Banks and banking
- Description: This thesis, entitled “An analysis of bank risk management and its relevance for the non-bank corporate sector”, investigates the extent to which financial risk management by the banking sector can be applied to the non-bank corporate sector. As banks’ risk management techniques are more sophisticated than those of the non-bank corporate sector we have endeavoured to ascertain the applicability of these established risk management methods to the non-bank corporate sector. The main objectives of this study were to analyse the banking sectors’ risks and management thereof, and compare them to the risks faced by the nonbank corporate sector. This analysis was then used to present a theoretical financial risk management model for the corporate sector. This analysis was conducted using qualitative research. The thesis engaged in an in-depth investigation of financial risk management through a documentary, literature and media analysis. It was elucidated that not all companies face the same financial risks and therefore each company requires its own unique financial risk management model. Furthermore, it was established that there are several risks that both banks and non-bank corporates are subjected to. However, the management of these risks is not necessarily the same for these two types of institutes. This thesis concludes by putting forward a financial risk management model which presents all the possible financial risks that non-bank corporates may face.
- Full Text:
- Date Issued: 2007
- Authors: Dietrich, David Roland
- Date: 2007
- Subjects: Bank management , Risk management , Corporations -- Finance , Financial institutions , Banks and banking
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:949 , http://hdl.handle.net/10962/d1002683 , Bank management , Risk management , Corporations -- Finance , Financial institutions , Banks and banking
- Description: This thesis, entitled “An analysis of bank risk management and its relevance for the non-bank corporate sector”, investigates the extent to which financial risk management by the banking sector can be applied to the non-bank corporate sector. As banks’ risk management techniques are more sophisticated than those of the non-bank corporate sector we have endeavoured to ascertain the applicability of these established risk management methods to the non-bank corporate sector. The main objectives of this study were to analyse the banking sectors’ risks and management thereof, and compare them to the risks faced by the nonbank corporate sector. This analysis was then used to present a theoretical financial risk management model for the corporate sector. This analysis was conducted using qualitative research. The thesis engaged in an in-depth investigation of financial risk management through a documentary, literature and media analysis. It was elucidated that not all companies face the same financial risks and therefore each company requires its own unique financial risk management model. Furthermore, it was established that there are several risks that both banks and non-bank corporates are subjected to. However, the management of these risks is not necessarily the same for these two types of institutes. This thesis concludes by putting forward a financial risk management model which presents all the possible financial risks that non-bank corporates may face.
- Full Text:
- Date Issued: 2007
An analysis of neural networks and time series techniques for demand forecasting
- Authors: Winn, David
- Date: 2007
- Subjects: Time-series analysis , Neural networks (Computer science) , Artificial intelligence , Marketing -- Management , Marketing -- Data processing , Marketing -- Statistical methods , Consumer behaviour
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:5572 , http://hdl.handle.net/10962/d1004362 , Time-series analysis , Neural networks (Computer science) , Artificial intelligence , Marketing -- Management , Marketing -- Data processing , Marketing -- Statistical methods , Consumer behaviour
- Description: This research examines the plausibility of developing demand forecasting techniques which are consistently and accurately able to predict demand. Time Series Techniques and Artificial Neural Networks are both investigated. Deodorant sales in South Africa are specifically studied in this thesis. Marketing techniques which are used to influence consumer buyer behaviour are considered, and these factors are integrated into the forecasting models wherever possible. The results of this research suggest that Artificial Neural Networks can be developed which consistently outperform industry forecasting targets as well as Time Series forecasts, suggesting that producers could reduce costs by adopting this more effective method.
- Full Text:
- Date Issued: 2007
- Authors: Winn, David
- Date: 2007
- Subjects: Time-series analysis , Neural networks (Computer science) , Artificial intelligence , Marketing -- Management , Marketing -- Data processing , Marketing -- Statistical methods , Consumer behaviour
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:5572 , http://hdl.handle.net/10962/d1004362 , Time-series analysis , Neural networks (Computer science) , Artificial intelligence , Marketing -- Management , Marketing -- Data processing , Marketing -- Statistical methods , Consumer behaviour
- Description: This research examines the plausibility of developing demand forecasting techniques which are consistently and accurately able to predict demand. Time Series Techniques and Artificial Neural Networks are both investigated. Deodorant sales in South Africa are specifically studied in this thesis. Marketing techniques which are used to influence consumer buyer behaviour are considered, and these factors are integrated into the forecasting models wherever possible. The results of this research suggest that Artificial Neural Networks can be developed which consistently outperform industry forecasting targets as well as Time Series forecasts, suggesting that producers could reduce costs by adopting this more effective method.
- Full Text:
- Date Issued: 2007
An analysis of the turn-of-the-year effect in South African equity returns
- Authors: Potgieter, Damien
- Date: 2007
- Subjects: Johannesburg Stock Exchange , FTSE International , Stock exchanges -- South Africa , Stock price indexes -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1063 , http://hdl.handle.net/10962/d1007605 , Johannesburg Stock Exchange , FTSE International , Stock exchanges -- South Africa , Stock price indexes -- South Africa
- Description: This study investigates FTSE/JSE All Share index monthly and daily equity returns for evidence of the January and TY effect. Four different measures of monthly return are analysed for the 1995-2006 period, whilst daily returns are analysed during the 1995-2005 period. In addition to this, analysis is conducted on monthly Fama-MacBeth risk premium estimates tor the FTSE/JSE All Share Index. Descriptive statistics are first analysed, followed by ANOV A or Kruskai-Wallis tests, the paired t-test and finally dummy variable regression analysis in investigating the seasonality of FTSE/JSE All Share Index returns and risk premia. Analysis on monthly returns reveals an absence of the January effect, however a positive slightly statistically significant December effect is found. Thus, investors earn abnormal returns on equity during the month of December. The results from the Fama-MacBeth risk premia estimates reveals highly statistically significant negative risk premia seasonal patterns during March, July and September. Thus, investors are in fact penalised for investing in equities during these months. In addition, the analysis reveals an absence of a December effect in risk premia, which contradicts the risk-return trade-off central to modem finance. The daily return analysis reveals a highly significant Turn-of-the-Year effect (TY), which suggests that investors earn abnormal returns on days at the turn of the year. Therefore, it is concluded that a December effect is apparent in South African equity monthly returns, whilst a March, July and September effect is apparent in South African equity risk premia contradicting the risk-return trade-off central to modem finance. In addition to this, a TY effect is present in South African equity daily returns.
- Full Text:
- Date Issued: 2007
- Authors: Potgieter, Damien
- Date: 2007
- Subjects: Johannesburg Stock Exchange , FTSE International , Stock exchanges -- South Africa , Stock price indexes -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1063 , http://hdl.handle.net/10962/d1007605 , Johannesburg Stock Exchange , FTSE International , Stock exchanges -- South Africa , Stock price indexes -- South Africa
- Description: This study investigates FTSE/JSE All Share index monthly and daily equity returns for evidence of the January and TY effect. Four different measures of monthly return are analysed for the 1995-2006 period, whilst daily returns are analysed during the 1995-2005 period. In addition to this, analysis is conducted on monthly Fama-MacBeth risk premium estimates tor the FTSE/JSE All Share Index. Descriptive statistics are first analysed, followed by ANOV A or Kruskai-Wallis tests, the paired t-test and finally dummy variable regression analysis in investigating the seasonality of FTSE/JSE All Share Index returns and risk premia. Analysis on monthly returns reveals an absence of the January effect, however a positive slightly statistically significant December effect is found. Thus, investors earn abnormal returns on equity during the month of December. The results from the Fama-MacBeth risk premia estimates reveals highly statistically significant negative risk premia seasonal patterns during March, July and September. Thus, investors are in fact penalised for investing in equities during these months. In addition, the analysis reveals an absence of a December effect in risk premia, which contradicts the risk-return trade-off central to modem finance. The daily return analysis reveals a highly significant Turn-of-the-Year effect (TY), which suggests that investors earn abnormal returns on days at the turn of the year. Therefore, it is concluded that a December effect is apparent in South African equity monthly returns, whilst a March, July and September effect is apparent in South African equity risk premia contradicting the risk-return trade-off central to modem finance. In addition to this, a TY effect is present in South African equity daily returns.
- Full Text:
- Date Issued: 2007
An empirical investigation into the determinants of stock market behaviour in South Africa
- Authors: Olalere, Durodola Oludamola
- Date: 2007
- Subjects: Johannesburg Stock Exchange , Stocks -- Prices -- South Africa , Stock exchanges -- South Africa , Macroeconomics -- South Africa , Interest rates -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:998 , http://hdl.handle.net/10962/d1002733 , Johannesburg Stock Exchange , Stocks -- Prices -- South Africa , Stock exchanges -- South Africa , Macroeconomics -- South Africa , Interest rates -- South Africa , Foreign exchange rates -- South Africa
- Description: The argument with regards to whether macro-economic fundamentals determine stock market behaviour is very important because of the roles it plays in an economy. Such roles include: pooling and trading of risks, mobilization of savings, provision of liquidity and allocation of capital. However, the stock market will only perform such roles effectively if the macro-economic environment is conducive. This study examined the behaviour of the All Share Index (ALSI) and market capitalization on the Johannesburg Stock Exchange in response to changes in the domestic and international macro-economic fundamentals such as the consumer price index, rand-dollar real exchange rates, domestic GDP, yield on South African government bonds, yield on United States government bonds and United States GDP. The study used cointegration and error correction techniques proposed by Johansen and Juselius (1990) to test for long run relationship. Two separate models were estimated and results obtained show that the two proxies for the stock market behaviour (All share Index and market capitalization) are true endogenous variables, but react differently to economic fundamentals. The consumer price index has a significant negative impact on the JSE share price index while market capitalization is determined predominantly by the yield on South African government bonds. The exchange rate seems to have had little or no influence on the share price index, but becomes negative and significant in the case of market capitalization. The yield on United States government bonds also produced a strong influence on both the share price index and market capitalization. While it has a negative significant impact on share prices, it produced a positive significant impact on market capitalization. In order to ascertain whether the South African interest rate or the United States interest rate is more important in explaining the share price and market capitalization, each of the variables were estimated in the model separately, the result obtained reveals that the United States interest rate is more important than the domestic interest rate in explaining the share price and market capitalization on the JSE. This implies that investors need to observe the USA interest rate before investing in South African equities. A comparison of the responses of share price index and market capitalization to impulses from the macro-economic variables tested reveals that both proxies elicit a positive response from aggregate output. The share price index responds more significantly to impulses from output growth than the market capitalization, meaning that, as aggregate production increases, the share price index tends to respond positively and quickly. The exchange rate produced mixed result from the two proxies, while it produced a positive response from the market capitalization; an initial positive response was noted in the share price index that immediately turned negative. Another glaring contrast was identified in the response of both proxies to impulses from the United States interest rate. The share price index responded positively while the market capitalization produced a negative response. This finding reveals that the two proxies actually respond differently to macro-economic variables. The variance decomposition of both stock prices and market capitalization reveals that the yield on United States government bonds has a more significant absorption potential than the South African government bonds. However, the absorption process is slower in the case of the market capitalization. The exchange rate has a greater impact on the market capitalization than stock prices. The overall assessment shows that share prices respond faster than market capitalization to macro-economic fundamentals. The study also shows that the increased openness of the South African economy by way of relaxation of the exchange control on capital account transaction has allowed the USA market to play a crucial role in equity prices in South Africa. Three main policy recommendations results from the study. Firstly, if inflation is well monitored, then the local equity market is bound to perform strongly resulting in strong shares earning growth. Secondly, the exchange rate should be made to be less volatile so that long term investment plans across borders can be further enhanced. Thirdly, financial analyst and investors in South Africa need to analyse macro-economic developments in the United States before investing in equities in South Africa.
- Full Text:
- Date Issued: 2007
- Authors: Olalere, Durodola Oludamola
- Date: 2007
- Subjects: Johannesburg Stock Exchange , Stocks -- Prices -- South Africa , Stock exchanges -- South Africa , Macroeconomics -- South Africa , Interest rates -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:998 , http://hdl.handle.net/10962/d1002733 , Johannesburg Stock Exchange , Stocks -- Prices -- South Africa , Stock exchanges -- South Africa , Macroeconomics -- South Africa , Interest rates -- South Africa , Foreign exchange rates -- South Africa
- Description: The argument with regards to whether macro-economic fundamentals determine stock market behaviour is very important because of the roles it plays in an economy. Such roles include: pooling and trading of risks, mobilization of savings, provision of liquidity and allocation of capital. However, the stock market will only perform such roles effectively if the macro-economic environment is conducive. This study examined the behaviour of the All Share Index (ALSI) and market capitalization on the Johannesburg Stock Exchange in response to changes in the domestic and international macro-economic fundamentals such as the consumer price index, rand-dollar real exchange rates, domestic GDP, yield on South African government bonds, yield on United States government bonds and United States GDP. The study used cointegration and error correction techniques proposed by Johansen and Juselius (1990) to test for long run relationship. Two separate models were estimated and results obtained show that the two proxies for the stock market behaviour (All share Index and market capitalization) are true endogenous variables, but react differently to economic fundamentals. The consumer price index has a significant negative impact on the JSE share price index while market capitalization is determined predominantly by the yield on South African government bonds. The exchange rate seems to have had little or no influence on the share price index, but becomes negative and significant in the case of market capitalization. The yield on United States government bonds also produced a strong influence on both the share price index and market capitalization. While it has a negative significant impact on share prices, it produced a positive significant impact on market capitalization. In order to ascertain whether the South African interest rate or the United States interest rate is more important in explaining the share price and market capitalization, each of the variables were estimated in the model separately, the result obtained reveals that the United States interest rate is more important than the domestic interest rate in explaining the share price and market capitalization on the JSE. This implies that investors need to observe the USA interest rate before investing in South African equities. A comparison of the responses of share price index and market capitalization to impulses from the macro-economic variables tested reveals that both proxies elicit a positive response from aggregate output. The share price index responds more significantly to impulses from output growth than the market capitalization, meaning that, as aggregate production increases, the share price index tends to respond positively and quickly. The exchange rate produced mixed result from the two proxies, while it produced a positive response from the market capitalization; an initial positive response was noted in the share price index that immediately turned negative. Another glaring contrast was identified in the response of both proxies to impulses from the United States interest rate. The share price index responded positively while the market capitalization produced a negative response. This finding reveals that the two proxies actually respond differently to macro-economic variables. The variance decomposition of both stock prices and market capitalization reveals that the yield on United States government bonds has a more significant absorption potential than the South African government bonds. However, the absorption process is slower in the case of the market capitalization. The exchange rate has a greater impact on the market capitalization than stock prices. The overall assessment shows that share prices respond faster than market capitalization to macro-economic fundamentals. The study also shows that the increased openness of the South African economy by way of relaxation of the exchange control on capital account transaction has allowed the USA market to play a crucial role in equity prices in South Africa. Three main policy recommendations results from the study. Firstly, if inflation is well monitored, then the local equity market is bound to perform strongly resulting in strong shares earning growth. Secondly, the exchange rate should be made to be less volatile so that long term investment plans across borders can be further enhanced. Thirdly, financial analyst and investors in South Africa need to analyse macro-economic developments in the United States before investing in equities in South Africa.
- Full Text:
- Date Issued: 2007
An examination of internet usage patterns by mature travellers
- Authors: Correia, Sérgio Barradas
- Date: 2007
- Subjects: Tourism -- Marketing , Internet marketing , Internet users , Older people -- Travel , Older consumers -- Travel
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1194 , http://hdl.handle.net/10962/d1008182 , Tourism -- Marketing , Internet marketing , Internet users , Older people -- Travel , Older consumers -- Travel
- Description: The tourism industry has been identified as the industry with the most potential to create jobs and contribute largely to economic growth. In order to live up to this potential, tourism businesses need to create tourism products for potential tourists which need to be promoted successfully through a number of mediums. The use of the Internet as a medium for promoting and selling tourism products is increasing, however, in order for tourism businesses to successfully promote the tourism product through the Internet, they have to understand the needs and wants of their current and potential target markets. One segment of the tourism market that has come under increasing attention is the mature traveller market. This market is defined as travellers who are 50 years of age and older. Generally, the mature traveller market is viewed as a small homogenous group of old consumers with little or no spending power. However, evidence suggests that this market is comprised of an increasing number of diverse people, who use the Internet and like to spend on tourism products. Therefore, this research will examine differences between Internet users and Internet non-users in the mature traveller market. Specific attention will be paid to investigate differences in demographic, socioeconomic, Internet use and travel-related characteristics. The identification of these characteristics will enable a profile to be d~veloped for each group, which can be used by tourism businesses to effectively promote tourism products over the Internet to the mature market In order to collect data from potential respondents, a questionnaire which was used in a similar study conducted in the US was used. Data was collected using a convenience sample of Internet users and Internet non-users from the Eastern Cape and Gauteng provinces of South Africa. Cronbach alpha and factor analysis were used to assess the reliability and validity of the research instrument and measurement scales. In order to test whether differences did exist between the two groups the Chi-square and t-test statistics were used. Finally in order to examine which factors where influential in differentiating between Internet users and Internet non-users discriminant analysis was employed. The findings in the present study suggest that there are significant differences in demographics, socioeconomic, Internet use and travel-related characteristics between Internet users and Internet non-users in the mature market. By understanding the differences between Internet users and Internet non-users, tourism businesses can identify marketing strategies that appeal to mature travellers who use the Internet and to those do not, by utilising information gathered from Internet users and Internet non-users demographic, socio-economic and travel-related characteristics.
- Full Text:
- Date Issued: 2007
- Authors: Correia, Sérgio Barradas
- Date: 2007
- Subjects: Tourism -- Marketing , Internet marketing , Internet users , Older people -- Travel , Older consumers -- Travel
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1194 , http://hdl.handle.net/10962/d1008182 , Tourism -- Marketing , Internet marketing , Internet users , Older people -- Travel , Older consumers -- Travel
- Description: The tourism industry has been identified as the industry with the most potential to create jobs and contribute largely to economic growth. In order to live up to this potential, tourism businesses need to create tourism products for potential tourists which need to be promoted successfully through a number of mediums. The use of the Internet as a medium for promoting and selling tourism products is increasing, however, in order for tourism businesses to successfully promote the tourism product through the Internet, they have to understand the needs and wants of their current and potential target markets. One segment of the tourism market that has come under increasing attention is the mature traveller market. This market is defined as travellers who are 50 years of age and older. Generally, the mature traveller market is viewed as a small homogenous group of old consumers with little or no spending power. However, evidence suggests that this market is comprised of an increasing number of diverse people, who use the Internet and like to spend on tourism products. Therefore, this research will examine differences between Internet users and Internet non-users in the mature traveller market. Specific attention will be paid to investigate differences in demographic, socioeconomic, Internet use and travel-related characteristics. The identification of these characteristics will enable a profile to be d~veloped for each group, which can be used by tourism businesses to effectively promote tourism products over the Internet to the mature market In order to collect data from potential respondents, a questionnaire which was used in a similar study conducted in the US was used. Data was collected using a convenience sample of Internet users and Internet non-users from the Eastern Cape and Gauteng provinces of South Africa. Cronbach alpha and factor analysis were used to assess the reliability and validity of the research instrument and measurement scales. In order to test whether differences did exist between the two groups the Chi-square and t-test statistics were used. Finally in order to examine which factors where influential in differentiating between Internet users and Internet non-users discriminant analysis was employed. The findings in the present study suggest that there are significant differences in demographics, socioeconomic, Internet use and travel-related characteristics between Internet users and Internet non-users in the mature market. By understanding the differences between Internet users and Internet non-users, tourism businesses can identify marketing strategies that appeal to mature travellers who use the Internet and to those do not, by utilising information gathered from Internet users and Internet non-users demographic, socio-economic and travel-related characteristics.
- Full Text:
- Date Issued: 2007
An investigation of ICT project management techniques for sustainable ICT projects in rural development
- Authors: Pade, Caroline Ileje
- Date: 2007
- Subjects: Educational technology -- South Africa , Information technology -- Study and teaching -- South Africa , Project management -- South Africa , Rural development projects -- South Africa , Rural development projects -- South Africa -- Case studies , Rhodes University Mathematics Education Project , Dwesa ICT Project
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1140 , http://hdl.handle.net/10962/d1002769 , Educational technology -- South Africa , Information technology -- Study and teaching -- South Africa , Project management -- South Africa , Rural development projects -- South Africa , Rural development projects -- South Africa -- Case studies , Rhodes University Mathematics Education Project , Dwesa ICT Project
- Description: Poverty alleviation by means of rural development has become a priority among developing countries. In turn, rural development may be significantly enhanced and supported by Information and Communication Technologies (ICTs), the use of which is highlighted by the emerging importance of information and knowledge as key strategic resources for social and economic development. An analysis of rural case studies where ICTs have been introduced, suggests that there are a number of barriers and constraints that are faced when taking advantage of these technologies. These include access to infrastructure, limited formal education, insufficient training and capacity building, financial and political constraints, and social and cultural challenges. These challenges threaten the success and sustainability of rural ICT projects. Sustainability is key to the effectiveness of a rural ICT project; therefore it is important to understand the concept and categories associated with ICT project sustainability in rural areas. The categories of sustainability which include social and cultural, institutional, economic, political, and technological, reveal critical success factors that need to be considered in the implementation and management of rural ICT projects. The project management discipline acknowledges the importance of understanding the project’s environment, particularly environmental factors associated with rural communities. The complexity of the environment therefore implies the need for a project to be undertaken in phases comprising the project life cycle. Project management practice for rural ICT project sustainability can therefore be examined, adapting the traditional project life cycle to a rural ICT project. A Rural ICT Project Life Cycle (RICT-PLC) that is sensitive to the critical success factors of sustainability is therefore proposed. In order to further investigate the phases of the life cycle of a rural ICT project, two case study investigations are explored: the Dwesa ICT community project, and the Rhodes University Mathematics Education Project (RUMEP) (MathsNet). A multiple case study analysis confirms the practices associated with the RICT-PLC model, and identifies additional characteristics, phases and practices associated with rural ICT projects. Finally, an enhanced RICT-PLC model is developed, that sets sustainability guidelines for ICT project management in rural areas and identifies the people, environments, technologies, systems, and requirements for ICTs to support rural development activities.
- Full Text:
- Date Issued: 2007
- Authors: Pade, Caroline Ileje
- Date: 2007
- Subjects: Educational technology -- South Africa , Information technology -- Study and teaching -- South Africa , Project management -- South Africa , Rural development projects -- South Africa , Rural development projects -- South Africa -- Case studies , Rhodes University Mathematics Education Project , Dwesa ICT Project
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1140 , http://hdl.handle.net/10962/d1002769 , Educational technology -- South Africa , Information technology -- Study and teaching -- South Africa , Project management -- South Africa , Rural development projects -- South Africa , Rural development projects -- South Africa -- Case studies , Rhodes University Mathematics Education Project , Dwesa ICT Project
- Description: Poverty alleviation by means of rural development has become a priority among developing countries. In turn, rural development may be significantly enhanced and supported by Information and Communication Technologies (ICTs), the use of which is highlighted by the emerging importance of information and knowledge as key strategic resources for social and economic development. An analysis of rural case studies where ICTs have been introduced, suggests that there are a number of barriers and constraints that are faced when taking advantage of these technologies. These include access to infrastructure, limited formal education, insufficient training and capacity building, financial and political constraints, and social and cultural challenges. These challenges threaten the success and sustainability of rural ICT projects. Sustainability is key to the effectiveness of a rural ICT project; therefore it is important to understand the concept and categories associated with ICT project sustainability in rural areas. The categories of sustainability which include social and cultural, institutional, economic, political, and technological, reveal critical success factors that need to be considered in the implementation and management of rural ICT projects. The project management discipline acknowledges the importance of understanding the project’s environment, particularly environmental factors associated with rural communities. The complexity of the environment therefore implies the need for a project to be undertaken in phases comprising the project life cycle. Project management practice for rural ICT project sustainability can therefore be examined, adapting the traditional project life cycle to a rural ICT project. A Rural ICT Project Life Cycle (RICT-PLC) that is sensitive to the critical success factors of sustainability is therefore proposed. In order to further investigate the phases of the life cycle of a rural ICT project, two case study investigations are explored: the Dwesa ICT community project, and the Rhodes University Mathematics Education Project (RUMEP) (MathsNet). A multiple case study analysis confirms the practices associated with the RICT-PLC model, and identifies additional characteristics, phases and practices associated with rural ICT projects. Finally, an enhanced RICT-PLC model is developed, that sets sustainability guidelines for ICT project management in rural areas and identifies the people, environments, technologies, systems, and requirements for ICTs to support rural development activities.
- Full Text:
- Date Issued: 2007
Estimating the willingness-to-pay for restoring indigenous vegetation at selected sites in South Africa
- Authors: Tessendorf, Sharon Erica
- Date: 2007
- Subjects: Water resources development -- South Africa , Water-supply -- South Africa , Alien plants -- South Africa , Restoration ecology -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8999 , http://hdl.handle.net/10948/617 , Water resources development -- South Africa , Water-supply -- South Africa , Alien plants -- South Africa , Restoration ecology -- South Africa
- Description: The Working for Water (WfW) Programme is a public works programme designed to clear South Africa of invasive alien vegetation and to restore lowwater consuming indigenous vegetation in the areas that have been cleared. Funds to clear alien invasives were initially secured on the basis that such a programme would increase water runoff, facilitate biodiversity and ecosystem functioning, and provide social benefits through job creation. The economic merits of the Programme, in terms of increased water yields, has been established in the Western Cape and KwaZulu-Natal, but questioned in the Eastern and Southern Cape. However, there are economic aspects of the studies carried out in the Eastern and Southern Cape that merit more attention than was given them; one of these being the issue of non-water benefits. Preliminary figures emanating from contingent valuation pilot studies conducted at six WfW projects sites indicated that one of these non-water benefits, namely the biodiversity and ecosystem resilience benefit, could be substantial. As such, the primary objective of the present study was to apply the contingent valuation method (CVM) to value people’s preference for indigenous vegetation. This value was intended to serve as a proxy for increased biodiversity and ecosystem resilience at three WfW sites. Despite the controversy surrounding the CVM, it has been found that it is a credible valuation tool. The CVM’s merits lie in its versatility and in the fact that it is the only method available which is capable of obtaining estimates of both nonuse and use values, thus making it applicable for valuing biodiversity. The primary aim of a CVM study is to determine an estimate of the total willingness-to-pay (WTP). In this study, the total WTP figure was calculated by multiplying the median WTP for the local WfW Programme by the total number of user households. The respective total WTP amounts are shown in Table 1. It was anticipated that respondents would be willing to pay more for the national WfW Programme, than for the less inclusive good (i.e. the local WfW Programme). The results correspond with this expectation at the Port Elizabeth and Underberg sites. However, due to strategic factors Worcester respondents were willing to pay more for the local WfW Programme than for the national Programme.
- Full Text:
- Date Issued: 2007
- Authors: Tessendorf, Sharon Erica
- Date: 2007
- Subjects: Water resources development -- South Africa , Water-supply -- South Africa , Alien plants -- South Africa , Restoration ecology -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8999 , http://hdl.handle.net/10948/617 , Water resources development -- South Africa , Water-supply -- South Africa , Alien plants -- South Africa , Restoration ecology -- South Africa
- Description: The Working for Water (WfW) Programme is a public works programme designed to clear South Africa of invasive alien vegetation and to restore lowwater consuming indigenous vegetation in the areas that have been cleared. Funds to clear alien invasives were initially secured on the basis that such a programme would increase water runoff, facilitate biodiversity and ecosystem functioning, and provide social benefits through job creation. The economic merits of the Programme, in terms of increased water yields, has been established in the Western Cape and KwaZulu-Natal, but questioned in the Eastern and Southern Cape. However, there are economic aspects of the studies carried out in the Eastern and Southern Cape that merit more attention than was given them; one of these being the issue of non-water benefits. Preliminary figures emanating from contingent valuation pilot studies conducted at six WfW projects sites indicated that one of these non-water benefits, namely the biodiversity and ecosystem resilience benefit, could be substantial. As such, the primary objective of the present study was to apply the contingent valuation method (CVM) to value people’s preference for indigenous vegetation. This value was intended to serve as a proxy for increased biodiversity and ecosystem resilience at three WfW sites. Despite the controversy surrounding the CVM, it has been found that it is a credible valuation tool. The CVM’s merits lie in its versatility and in the fact that it is the only method available which is capable of obtaining estimates of both nonuse and use values, thus making it applicable for valuing biodiversity. The primary aim of a CVM study is to determine an estimate of the total willingness-to-pay (WTP). In this study, the total WTP figure was calculated by multiplying the median WTP for the local WfW Programme by the total number of user households. The respective total WTP amounts are shown in Table 1. It was anticipated that respondents would be willing to pay more for the national WfW Programme, than for the less inclusive good (i.e. the local WfW Programme). The results correspond with this expectation at the Port Elizabeth and Underberg sites. However, due to strategic factors Worcester respondents were willing to pay more for the local WfW Programme than for the national Programme.
- Full Text:
- Date Issued: 2007
Financial instability in South Africa : trends and interactions within the financial markets
- Authors: Shikwambana, Jamela
- Date: 2007 , 2013-08-06
- Subjects: Finance -- South Africa , Financial institutions -- South Africa , Economic stabilization -- South Africa , Stock exchanges -- South Africa , Stocks -- Prices -- South Africa , Interest rates -- South Africa , Equilibrium (Economics)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1043 , http://hdl.handle.net/10962/d1005911 , Finance -- South Africa , Financial institutions -- South Africa , Economic stabilization -- South Africa , Stock exchanges -- South Africa , Stocks -- Prices -- South Africa , Interest rates -- South Africa , Equilibrium (Economics)
- Description: This study seeks to investigate the trends and interactions of market volatility as a source of instability in the South African financial markets. Financial instability can be manifested in the form of banking and currency crisis, institutional failures and extreme asset price volatility. This study, however, focuses on a single aspect of financial instability - asset price volatility. Asset price volatility reflects changes in market expectations as investors react to such changes, and thus on its own is not necessarily a source of instability. However, volatility spillovers can propagate volatility shocks across the market, increasing the risk of widespread instability. Using a combination of graphical and trend analysis as well as more formal estimation techniques, the study examined volatility in the stock, money and foreign exchange markets. To obtain estimates of market volatility, the study experimented with various volatility models that include the GARCH, TARCH and EGARCH. An analysis of volatility interactions and the transmission of volatility shocks across the market is crucial to understanding financial instability. To examine volatility interaction and the transmission of volatility shocks, a VAR model was estimated. This framework allowed us to examine the propagation of shocks across the markets. Volatility in the financial markets was found to be highly persistent and in the case of exchange rates, volatility was also characterised by an increasing trend. Significant linkages between the financial markets were found. The links also extended to the volatility relationship as evidenced by significant volatility spillovers across the markets. While volatility spillovers from the money market were found in the stock market and the foreign exchange market, no volatility spillovers from these markets were found in the money market. Thus the money market was identified as the major source of volatility spillovers and shocks in the financial markets. These results highlighted the role of monetary policy in the financial system, specifically the need to make monetary policy stable and predictable to ensure that interest rate shocks are not an additional source of instability. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
- Date Issued: 2007
- Authors: Shikwambana, Jamela
- Date: 2007 , 2013-08-06
- Subjects: Finance -- South Africa , Financial institutions -- South Africa , Economic stabilization -- South Africa , Stock exchanges -- South Africa , Stocks -- Prices -- South Africa , Interest rates -- South Africa , Equilibrium (Economics)
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1043 , http://hdl.handle.net/10962/d1005911 , Finance -- South Africa , Financial institutions -- South Africa , Economic stabilization -- South Africa , Stock exchanges -- South Africa , Stocks -- Prices -- South Africa , Interest rates -- South Africa , Equilibrium (Economics)
- Description: This study seeks to investigate the trends and interactions of market volatility as a source of instability in the South African financial markets. Financial instability can be manifested in the form of banking and currency crisis, institutional failures and extreme asset price volatility. This study, however, focuses on a single aspect of financial instability - asset price volatility. Asset price volatility reflects changes in market expectations as investors react to such changes, and thus on its own is not necessarily a source of instability. However, volatility spillovers can propagate volatility shocks across the market, increasing the risk of widespread instability. Using a combination of graphical and trend analysis as well as more formal estimation techniques, the study examined volatility in the stock, money and foreign exchange markets. To obtain estimates of market volatility, the study experimented with various volatility models that include the GARCH, TARCH and EGARCH. An analysis of volatility interactions and the transmission of volatility shocks across the market is crucial to understanding financial instability. To examine volatility interaction and the transmission of volatility shocks, a VAR model was estimated. This framework allowed us to examine the propagation of shocks across the markets. Volatility in the financial markets was found to be highly persistent and in the case of exchange rates, volatility was also characterised by an increasing trend. Significant linkages between the financial markets were found. The links also extended to the volatility relationship as evidenced by significant volatility spillovers across the markets. While volatility spillovers from the money market were found in the stock market and the foreign exchange market, no volatility spillovers from these markets were found in the money market. Thus the money market was identified as the major source of volatility spillovers and shocks in the financial markets. These results highlighted the role of monetary policy in the financial system, specifically the need to make monetary policy stable and predictable to ensure that interest rate shocks are not an additional source of instability. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
- Date Issued: 2007
Mores, fault and fides: are these acceptable criteria when income tax deductions are claimed
- Authors: Swanepoel, Marius G
- Date: 2007
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:889 , http://hdl.handle.net/10962/d1001643
- Description: The two “pillars” on which taxable income is based are the definition of “gross income” in section 1 of the Income Tax Act, 58 of 1962, and the “general deduction formula” comprising the preamble to section 11, section 11(a) and section 23(g) of the Act. Many of the terms used in these sections are not defined in the Income Tax Act. Case law in relation to these sections reveals that morality issues, the negligence of taxpayers and the good faith of taxpayers have from time to time been treated as relevant considerations by the courts, both abroad and in South Africa, in allowing or disallowing deductions from the gross income of taxpayers. In some instances this occurred apparently unwittingly. In other instances, earlier decisions were followed without a thorough consideration of the correctness of the underlying reasoning or of the criteria which were applied in the earlier decisions. In relation to the definition of “gross income”, however, fides, mores and fault have not been a consideration. In CIR v Delagoa Bay Cigarette Co Ltd 1918 TPD 391 Bristowe, J stated: “I do not think it is material for the purpose of this case whether the business carried on by the company is legal or illegal.” There were a number of cases heard in relation to income from illegal activities (for example, COT v G, 1981 (4) SA 167 (ZA), 43 SATC 159, and ITC 291, 7 SATC 335, which related to the misappropriation of funds, ITC 1545, 54 SATC 464, which dealt with the proceeds of the sale of stolen diamonds and ITC 1624, 59 SATC 373, which dealt with overcharging customers). In these cases, the question turned on whether or not the amounts were received by the taxpayers for their own benefit and therefore to be included in gross income, or whether the taxpayers incurred a concomitant liability to repay the amounts, and did not involve the question of fides, mores or fault. The research concludes that, providing an even-handed approach is applied to both income and expense considerations, fides and mores may continue to play a role as a useful yardstick in this context. However, that fault, particularly the causal negligence of taxpayers in the process of sustaining a loss or incurring expenditure whilst conducting their income generating operations, has effectively been jettisoned as an irrelevant consideration, is a salutary development which has contributed to legal certainty.
- Full Text:
- Date Issued: 2007
- Authors: Swanepoel, Marius G
- Date: 2007
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:889 , http://hdl.handle.net/10962/d1001643
- Description: The two “pillars” on which taxable income is based are the definition of “gross income” in section 1 of the Income Tax Act, 58 of 1962, and the “general deduction formula” comprising the preamble to section 11, section 11(a) and section 23(g) of the Act. Many of the terms used in these sections are not defined in the Income Tax Act. Case law in relation to these sections reveals that morality issues, the negligence of taxpayers and the good faith of taxpayers have from time to time been treated as relevant considerations by the courts, both abroad and in South Africa, in allowing or disallowing deductions from the gross income of taxpayers. In some instances this occurred apparently unwittingly. In other instances, earlier decisions were followed without a thorough consideration of the correctness of the underlying reasoning or of the criteria which were applied in the earlier decisions. In relation to the definition of “gross income”, however, fides, mores and fault have not been a consideration. In CIR v Delagoa Bay Cigarette Co Ltd 1918 TPD 391 Bristowe, J stated: “I do not think it is material for the purpose of this case whether the business carried on by the company is legal or illegal.” There were a number of cases heard in relation to income from illegal activities (for example, COT v G, 1981 (4) SA 167 (ZA), 43 SATC 159, and ITC 291, 7 SATC 335, which related to the misappropriation of funds, ITC 1545, 54 SATC 464, which dealt with the proceeds of the sale of stolen diamonds and ITC 1624, 59 SATC 373, which dealt with overcharging customers). In these cases, the question turned on whether or not the amounts were received by the taxpayers for their own benefit and therefore to be included in gross income, or whether the taxpayers incurred a concomitant liability to repay the amounts, and did not involve the question of fides, mores or fault. The research concludes that, providing an even-handed approach is applied to both income and expense considerations, fides and mores may continue to play a role as a useful yardstick in this context. However, that fault, particularly the causal negligence of taxpayers in the process of sustaining a loss or incurring expenditure whilst conducting their income generating operations, has effectively been jettisoned as an irrelevant consideration, is a salutary development which has contributed to legal certainty.
- Full Text:
- Date Issued: 2007
Securitisation and its application to low cost housing finance in South Africa
- Authors: Zimbwa, Allan Golden
- Date: 2007
- Subjects: South Africa. Constitution , Human rights -- Government policy -- South Africa , Right to housing -- South Africa , Housing -- Law and legislation -- South Africa , Housing policy -- South Africa , Low income housing -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1011 , http://hdl.handle.net/10962/d1002746 , South Africa. Constitution , Human rights -- Government policy -- South Africa , Right to housing -- South Africa , Housing -- Law and legislation -- South Africa , Housing policy -- South Africa , Low income housing -- South Africa
- Description: Section 26 of the Constitution of South Africa Act 108 of 1996 provides that housing is a basic human right and that the government must take reasonable legislative and other measures to achieve the realisation of this right. A number of measures were taken to try to resolve this socio-economic issue. A number of housing institutions were established , various pieces of legislation were passed and housing subsidies were provided. However, housing backlogs remain a challenge. In March 1994 the housing backlog was estimated between 1,3 and 1,8 million units. When more than a million houses were provided by 2001 , the housing backlog had increased to between 2 and 3 million houses. To date subsidies in excess of R29 billion have been spent on housing provision. A study by the Department of Housing concluded that, at the current rate of increase of housing funding vis-a-vis the growing backlog and rapid urbanisation, the household backlog will not be changed in ten years' time. The United States of America (USA) had a similar low cost housing problem, but securitisation alleviated it with the participation of government agencies Fannie Mae, Ginnie Mae and Freddie Mac. In South Africa, the NHFC tried to emulate the USA model by establishing Gateway Home Loans (Pty) Limited (Gateway) in 1999. Gateway, however, was not a success. This research investigates whether securitisation can be applied in South Africa to alleviate the low cost housing issue. The study finds that there is a credit availability gap for the low income sector earning less than R8 000 per month because of the perceived risk of default and unwillingness by banks to lend to this sector. The increase in housing backlog that continues unabated, inadequate housing finance system to low income earners, the lessons learnt from the failure of Gateway, the success factors of the USA securitisation model and the sound and sophisticated South African financial system are the rationale for applying securitisation. A proposal of how to effectively apply securitisation to low cost housing in South Africa is provided with recommendations to revive the primary market.
- Full Text:
- Date Issued: 2007
- Authors: Zimbwa, Allan Golden
- Date: 2007
- Subjects: South Africa. Constitution , Human rights -- Government policy -- South Africa , Right to housing -- South Africa , Housing -- Law and legislation -- South Africa , Housing policy -- South Africa , Low income housing -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1011 , http://hdl.handle.net/10962/d1002746 , South Africa. Constitution , Human rights -- Government policy -- South Africa , Right to housing -- South Africa , Housing -- Law and legislation -- South Africa , Housing policy -- South Africa , Low income housing -- South Africa
- Description: Section 26 of the Constitution of South Africa Act 108 of 1996 provides that housing is a basic human right and that the government must take reasonable legislative and other measures to achieve the realisation of this right. A number of measures were taken to try to resolve this socio-economic issue. A number of housing institutions were established , various pieces of legislation were passed and housing subsidies were provided. However, housing backlogs remain a challenge. In March 1994 the housing backlog was estimated between 1,3 and 1,8 million units. When more than a million houses were provided by 2001 , the housing backlog had increased to between 2 and 3 million houses. To date subsidies in excess of R29 billion have been spent on housing provision. A study by the Department of Housing concluded that, at the current rate of increase of housing funding vis-a-vis the growing backlog and rapid urbanisation, the household backlog will not be changed in ten years' time. The United States of America (USA) had a similar low cost housing problem, but securitisation alleviated it with the participation of government agencies Fannie Mae, Ginnie Mae and Freddie Mac. In South Africa, the NHFC tried to emulate the USA model by establishing Gateway Home Loans (Pty) Limited (Gateway) in 1999. Gateway, however, was not a success. This research investigates whether securitisation can be applied in South Africa to alleviate the low cost housing issue. The study finds that there is a credit availability gap for the low income sector earning less than R8 000 per month because of the perceived risk of default and unwillingness by banks to lend to this sector. The increase in housing backlog that continues unabated, inadequate housing finance system to low income earners, the lessons learnt from the failure of Gateway, the success factors of the USA securitisation model and the sound and sophisticated South African financial system are the rationale for applying securitisation. A proposal of how to effectively apply securitisation to low cost housing in South Africa is provided with recommendations to revive the primary market.
- Full Text:
- Date Issued: 2007
The demand for broad money (M2) in Botswana
- Authors: Tsheole, Thapelo
- Date: 2007
- Subjects: Monetary policy -- Botswana , Demand for money -- Botswana , Botswana -- Economic conditions , Quantity theory of money
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:966 , http://hdl.handle.net/10962/d1002700 , Monetary policy -- Botswana , Demand for money -- Botswana , Botswana -- Economic conditions , Quantity theory of money
- Description: There has been extensive theoretical and empirical research on the subject of demand for money function. This particularly stems from the important role demand for money plays in macroeconomic analysis, especially in the design and implementation of monetary policy. The increase in studies, especially in developing countries, can also be attributed to a number of factors like: the impact of moving towards flexible exchange rate regimes, globalisation of financial markets, ongoing financial liberalisation, innovations in domestic financial products, the advancement in econometrics techniques and other country-specific events. This study estimates and examines the nature and stability of the demand for broad money (M2) in Botswana. This is particularly important in that the usefulness of a money demand function in the conduct of monetary policy depends crucially on its stability. The stability of the money demand function is crucial in that a stable money demand function would mean that the quantity of money is predictably related to a set of key economic variables linking money and the real economic sector. Therefore, this will help central banks to select appropriate monetary policy actions. Based on the findings, the study also proposes policy interventions. The vast majority of the literature on demand for money has underscored the fact that variable selection and representation, and the framework chosen are the two major issues relevant to modelling and estimation of the demand for money function. In modelling and estimating the demand for money function in Botswana, this study surveys a stream of theoretical and empirical literature on money demand in developed and developing countries, including countries that have similar financial sector similar to Botswana. Due consideration is also given to the macroeconomic and financial sector development in Botswana to help in the identification of the variables that are included in the demand for money equation. Most importantly, this helped in getting meaningful results that are free from theoretical and estimation problems. In particular, this study applied the multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) to estimate the relationship between broad money (M2), real income, interest rate, South African treasury bill rate, inflation rate and US dollar/pula bilateral exchange rate. The study obtains one unique long run relationship between money and the scale and opportunity cost variables. The coefficients of the long run relationship are then modelled along the general to specific approach as proposed by Campos, Ericsson and Hendry (2005). In this type of approach the general model is reduced by sequential elimination of statistically insignificant variables and checking the validity of the reductions at every stage to ensure congruence of the finally selected parsimonious model. In accordance with the economic quantity theory of money, the long run income elasticity obtained is 0.8021, which is close to the value one (unitary) suggested by economic theory. The coefficients of real income, exchange and inflation rate have the expected positive signs and were significant in the long run. Therefore, the long run demand for money (M2) in Botswana was found to be positively affected by real income, inflation rate and exchange rate. The lack of statistical significant of the own rate of money (88 day commercial bank deposit rate) and the foreign opportunity cost variable (South African Treasury bill rate) is attributed to multi-collinearity problems between these two interest rates. This could be caused by the fact that short term rates in Botswana are very responsive to movements in the money markets rates in South Africa. The short run dynamics of the demand for money function shows the slow speed of adjustment to equilibrium of about 2.9 percent in the first quarter and this is reflective of the lack of sufficient availability of banking services and the low returns on financial assets which could allow economic agents to re-establish equilibrium levels of money holdings faster. The final parsimonious model obtained clearly reflects a well specified stable demand for money function. Therefore, based on the findings we can be precise in stating that targeting a monetary aggregate can be a viable policy for the monetary authorities in Botswana.
- Full Text:
- Date Issued: 2007
- Authors: Tsheole, Thapelo
- Date: 2007
- Subjects: Monetary policy -- Botswana , Demand for money -- Botswana , Botswana -- Economic conditions , Quantity theory of money
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:966 , http://hdl.handle.net/10962/d1002700 , Monetary policy -- Botswana , Demand for money -- Botswana , Botswana -- Economic conditions , Quantity theory of money
- Description: There has been extensive theoretical and empirical research on the subject of demand for money function. This particularly stems from the important role demand for money plays in macroeconomic analysis, especially in the design and implementation of monetary policy. The increase in studies, especially in developing countries, can also be attributed to a number of factors like: the impact of moving towards flexible exchange rate regimes, globalisation of financial markets, ongoing financial liberalisation, innovations in domestic financial products, the advancement in econometrics techniques and other country-specific events. This study estimates and examines the nature and stability of the demand for broad money (M2) in Botswana. This is particularly important in that the usefulness of a money demand function in the conduct of monetary policy depends crucially on its stability. The stability of the money demand function is crucial in that a stable money demand function would mean that the quantity of money is predictably related to a set of key economic variables linking money and the real economic sector. Therefore, this will help central banks to select appropriate monetary policy actions. Based on the findings, the study also proposes policy interventions. The vast majority of the literature on demand for money has underscored the fact that variable selection and representation, and the framework chosen are the two major issues relevant to modelling and estimation of the demand for money function. In modelling and estimating the demand for money function in Botswana, this study surveys a stream of theoretical and empirical literature on money demand in developed and developing countries, including countries that have similar financial sector similar to Botswana. Due consideration is also given to the macroeconomic and financial sector development in Botswana to help in the identification of the variables that are included in the demand for money equation. Most importantly, this helped in getting meaningful results that are free from theoretical and estimation problems. In particular, this study applied the multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) to estimate the relationship between broad money (M2), real income, interest rate, South African treasury bill rate, inflation rate and US dollar/pula bilateral exchange rate. The study obtains one unique long run relationship between money and the scale and opportunity cost variables. The coefficients of the long run relationship are then modelled along the general to specific approach as proposed by Campos, Ericsson and Hendry (2005). In this type of approach the general model is reduced by sequential elimination of statistically insignificant variables and checking the validity of the reductions at every stage to ensure congruence of the finally selected parsimonious model. In accordance with the economic quantity theory of money, the long run income elasticity obtained is 0.8021, which is close to the value one (unitary) suggested by economic theory. The coefficients of real income, exchange and inflation rate have the expected positive signs and were significant in the long run. Therefore, the long run demand for money (M2) in Botswana was found to be positively affected by real income, inflation rate and exchange rate. The lack of statistical significant of the own rate of money (88 day commercial bank deposit rate) and the foreign opportunity cost variable (South African Treasury bill rate) is attributed to multi-collinearity problems between these two interest rates. This could be caused by the fact that short term rates in Botswana are very responsive to movements in the money markets rates in South Africa. The short run dynamics of the demand for money function shows the slow speed of adjustment to equilibrium of about 2.9 percent in the first quarter and this is reflective of the lack of sufficient availability of banking services and the low returns on financial assets which could allow economic agents to re-establish equilibrium levels of money holdings faster. The final parsimonious model obtained clearly reflects a well specified stable demand for money function. Therefore, based on the findings we can be precise in stating that targeting a monetary aggregate can be a viable policy for the monetary authorities in Botswana.
- Full Text:
- Date Issued: 2007
The influence of service quality perceptions and customer satisfaction on patients' behavioural intentions in the healthcare industry
- Authors: Gray, Beverley Ann
- Date: 2007
- Subjects: Patient satisfaction -- South Africa , Medical care -- South Africa -- Evaluation , Hospitals, Proprietary -- Consumer satisfaction -- South Africa , Hospital patients -- South Africa -- Attitudes
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9294 , http://hdl.handle.net/10948/514 , Patient satisfaction -- South Africa , Medical care -- South Africa -- Evaluation , Hospitals, Proprietary -- Consumer satisfaction -- South Africa , Hospital patients -- South Africa -- Attitudes
- Description: Healthcare today has become a competitive industry, not only locally, but on a global level as well. In the South African economy the healthcare sector presently offers healthcare seekers two options to satisfy their healthcare needs – either through private business enterprises in the private sector or public enterprises in the public sector. Likewise, in the healthcare sector's hospital environment, patients can receive treatment from either private or public hospitals. As private business enterprises offering a relatively 'pure', but generally unsought-after service, private hospitals compete aggressively to attract patients. Patients are a hospital's lifeblood and they rightfully expect a high standard of customer service throughout the stay. With today's consumers being better informed, more sophisticated and more demanding than in the past, experts agree that the key to survival in the service industry today, almost without exception, is the quality of the service. The cornerstone of the service industry is without doubt the ability to deliver superior service quality that results in customer satisfaction. And the healthcare industry is no exception. Most consumers will experience a need for healthcare services at some time in their lives, but in South Africa, escalating medical costs in general and private hospitals in particular, have made private healthcare increasingly more expensive for the majority of the country's healthcare seekers. This situation raises the question of customer service in the private hospital industry and how patients' perceive service quality and evaluate customer satisfaction after a hospital stay. There is a growing body of empirical evidence from United States studies to show that service quality and customer (patient) satisfaction positively influence patients' behavioural intentions to reuse the hospital or recommend it to others (word-of-mouth endorsements). However, in South Africa, empirical studies to investigate these relationships have not been adequately addressed. This study was therefore an attempt to address the lack of scientific evidence and debate in the area of patient satisfaction. Against this background, the primary objective of this study was to measure patients' perceptions of service quality and customer satisfaction with a private hospital experience and to estimate the effect that each of these constructs will have on future behavioural intentions. More specifically, the present study was an attempt to assess empirically the most important dimensions of service quality and transaction-specific customer satisfaction dimensions that drive both patient loyalty and ‘overall’ or cumulative satisfaction in the South African private hospital industry. For the purpose of this study, buying intentions was used as a surrogate measure of loyalty as measured by willingness to reuse the hospital and/or willingness to recommend it to others (word-of-mouth endorsements). Initial exploratory research was conducted with the aim of assessing the views of three private hospital stakeholder groups, namely former patients, doctors and management about what the quality of service and customer satisfaction meant to each individual interviewed. A service enterprise that specialises in patient satisfaction surveys in the US provided particularly useful information during this phase of the study. Several case studies of patient satisfaction programmes, mostly at US hospitals, provided additional insights in this area. The study was conducted nationally at private hospitals owned by one of South Africa's three major hospital groups. Five private hospitals in four major centres were selected on a non-probability convenience basis to participate in the study. The hospital group's senior management and the management at each selected hospital gave their full commitment to ensure that the survey was successfully conducted in their hospital wards. Data were collected by means of a quantitative study using a selfadministered, structured questionnaire. Patients had to meet certain qualifying criteria which included being of adult age, in the hospital for an operation and at least one overnight stay. A total of 3 800 questionnaires was distributed to patients on a random basis in selected wards at the five hospitals by senior hospital staff designated for this task. From this distribution, 425 questionnaires were returned of which a final sample of 323 could be statistically analysed. To confirm the internal reliability of the measuring instrument, Cronbach alpha coefficients were calculated for each of the factors identified by the exploratory factor analysis. In order to assess the discriminant validity of the measuring instrument used to measure both service quality and customer satisfaction, the items were subjected to an exploratory factor analysis. The factors that emerged after the exploratory factor analysis were then used as independent variables in the four subsequent multiple regression analyses to assess the study's four hypothesised relationships. The findings revealed that the service quality dimensions that impact positively on both loyalty and cumulative satisfaction are Empathy of nursing staff and Assurance. The customer satisfaction dimensions to impact positively on both loyalty and cumulative satisfaction are Satisfaction with the nursing staff, Satisfaction with meals, and Satisfaction with fees charged.
- Full Text:
- Date Issued: 2007
- Authors: Gray, Beverley Ann
- Date: 2007
- Subjects: Patient satisfaction -- South Africa , Medical care -- South Africa -- Evaluation , Hospitals, Proprietary -- Consumer satisfaction -- South Africa , Hospital patients -- South Africa -- Attitudes
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9294 , http://hdl.handle.net/10948/514 , Patient satisfaction -- South Africa , Medical care -- South Africa -- Evaluation , Hospitals, Proprietary -- Consumer satisfaction -- South Africa , Hospital patients -- South Africa -- Attitudes
- Description: Healthcare today has become a competitive industry, not only locally, but on a global level as well. In the South African economy the healthcare sector presently offers healthcare seekers two options to satisfy their healthcare needs – either through private business enterprises in the private sector or public enterprises in the public sector. Likewise, in the healthcare sector's hospital environment, patients can receive treatment from either private or public hospitals. As private business enterprises offering a relatively 'pure', but generally unsought-after service, private hospitals compete aggressively to attract patients. Patients are a hospital's lifeblood and they rightfully expect a high standard of customer service throughout the stay. With today's consumers being better informed, more sophisticated and more demanding than in the past, experts agree that the key to survival in the service industry today, almost without exception, is the quality of the service. The cornerstone of the service industry is without doubt the ability to deliver superior service quality that results in customer satisfaction. And the healthcare industry is no exception. Most consumers will experience a need for healthcare services at some time in their lives, but in South Africa, escalating medical costs in general and private hospitals in particular, have made private healthcare increasingly more expensive for the majority of the country's healthcare seekers. This situation raises the question of customer service in the private hospital industry and how patients' perceive service quality and evaluate customer satisfaction after a hospital stay. There is a growing body of empirical evidence from United States studies to show that service quality and customer (patient) satisfaction positively influence patients' behavioural intentions to reuse the hospital or recommend it to others (word-of-mouth endorsements). However, in South Africa, empirical studies to investigate these relationships have not been adequately addressed. This study was therefore an attempt to address the lack of scientific evidence and debate in the area of patient satisfaction. Against this background, the primary objective of this study was to measure patients' perceptions of service quality and customer satisfaction with a private hospital experience and to estimate the effect that each of these constructs will have on future behavioural intentions. More specifically, the present study was an attempt to assess empirically the most important dimensions of service quality and transaction-specific customer satisfaction dimensions that drive both patient loyalty and ‘overall’ or cumulative satisfaction in the South African private hospital industry. For the purpose of this study, buying intentions was used as a surrogate measure of loyalty as measured by willingness to reuse the hospital and/or willingness to recommend it to others (word-of-mouth endorsements). Initial exploratory research was conducted with the aim of assessing the views of three private hospital stakeholder groups, namely former patients, doctors and management about what the quality of service and customer satisfaction meant to each individual interviewed. A service enterprise that specialises in patient satisfaction surveys in the US provided particularly useful information during this phase of the study. Several case studies of patient satisfaction programmes, mostly at US hospitals, provided additional insights in this area. The study was conducted nationally at private hospitals owned by one of South Africa's three major hospital groups. Five private hospitals in four major centres were selected on a non-probability convenience basis to participate in the study. The hospital group's senior management and the management at each selected hospital gave their full commitment to ensure that the survey was successfully conducted in their hospital wards. Data were collected by means of a quantitative study using a selfadministered, structured questionnaire. Patients had to meet certain qualifying criteria which included being of adult age, in the hospital for an operation and at least one overnight stay. A total of 3 800 questionnaires was distributed to patients on a random basis in selected wards at the five hospitals by senior hospital staff designated for this task. From this distribution, 425 questionnaires were returned of which a final sample of 323 could be statistically analysed. To confirm the internal reliability of the measuring instrument, Cronbach alpha coefficients were calculated for each of the factors identified by the exploratory factor analysis. In order to assess the discriminant validity of the measuring instrument used to measure both service quality and customer satisfaction, the items were subjected to an exploratory factor analysis. The factors that emerged after the exploratory factor analysis were then used as independent variables in the four subsequent multiple regression analyses to assess the study's four hypothesised relationships. The findings revealed that the service quality dimensions that impact positively on both loyalty and cumulative satisfaction are Empathy of nursing staff and Assurance. The customer satisfaction dimensions to impact positively on both loyalty and cumulative satisfaction are Satisfaction with the nursing staff, Satisfaction with meals, and Satisfaction with fees charged.
- Full Text:
- Date Issued: 2007
The term structure of interest rates and economic activity in South Africa
- Authors: Shelile, Teboho
- Date: 2007
- Subjects: Finance -- South Africa , Monetary policy -- South Africa , Interest rates -- South Africa , Economic development -- South Africa , South Africa -- Economic conditions -- 21st century
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:994 , http://hdl.handle.net/10962/d1002729 , Finance -- South Africa , Monetary policy -- South Africa , Interest rates -- South Africa , Economic development -- South Africa , South Africa -- Economic conditions -- 21st century
- Description: Many research papers have documented the positive relationship between the slope of the yield curve and future real economic activity in different countries and different time periods. One explanation of this link is based on monetary policy. The forecasting ability of the term spread on economic growth is based on the fact that interest rates reflect the expectations of investors about the future economic situation when deciding about their plans for consumption and investment. This thesis examined the predictive ability of the term structure of interest rates on economic activity, and the effects of different monetary policy regimes on the predictive ability of the term spread. The South African experience offers a unique opportunity to examine this issue, as the country has experienced numerous monetary policy frameworks since the 1970s. The study employed the Generalised Method Moments technique, since it is considered to be more efficient than Ordinary Least Squares. Results presented in this thesis established that the term structure successfully predicted real economic activity during the entire research period with the exception of the last sub-period (2000-2004) when using the multivariate model. In the periods of financial market liberalisation and interest rates deregulation the term structure was found to be a better predictor of economic activity in South Africa. These findings emphasise the importance of considering the prevailing economic environment in testing the term structure theory.
- Full Text:
- Date Issued: 2007
- Authors: Shelile, Teboho
- Date: 2007
- Subjects: Finance -- South Africa , Monetary policy -- South Africa , Interest rates -- South Africa , Economic development -- South Africa , South Africa -- Economic conditions -- 21st century
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:994 , http://hdl.handle.net/10962/d1002729 , Finance -- South Africa , Monetary policy -- South Africa , Interest rates -- South Africa , Economic development -- South Africa , South Africa -- Economic conditions -- 21st century
- Description: Many research papers have documented the positive relationship between the slope of the yield curve and future real economic activity in different countries and different time periods. One explanation of this link is based on monetary policy. The forecasting ability of the term spread on economic growth is based on the fact that interest rates reflect the expectations of investors about the future economic situation when deciding about their plans for consumption and investment. This thesis examined the predictive ability of the term structure of interest rates on economic activity, and the effects of different monetary policy regimes on the predictive ability of the term spread. The South African experience offers a unique opportunity to examine this issue, as the country has experienced numerous monetary policy frameworks since the 1970s. The study employed the Generalised Method Moments technique, since it is considered to be more efficient than Ordinary Least Squares. Results presented in this thesis established that the term structure successfully predicted real economic activity during the entire research period with the exception of the last sub-period (2000-2004) when using the multivariate model. In the periods of financial market liberalisation and interest rates deregulation the term structure was found to be a better predictor of economic activity in South Africa. These findings emphasise the importance of considering the prevailing economic environment in testing the term structure theory.
- Full Text:
- Date Issued: 2007
The value of freshwater inflows into the Kowie, Kromme and Nahoon Estuaries
- Authors: Sale, Michael Charles
- Date: 2007
- Subjects: Estuaries -- South Africa , Freshwater ecology -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9003 , http://hdl.handle.net/10948/599 , http://hdl.handle.net/10948/d1011689 , Estuaries -- South Africa , Freshwater ecology -- South Africa
- Description: An estuary can be defined as a partially enclosed, coastal body of water which is either permanently or periodically open to the sea and within which there is a measurable variation of salinity due to the mixture of sea water with fresh water derived from land drainage. Estuaries are extremely important environmental assets and the management of them is dependent on the active involvement of the people whose livelihoods depend on them. There have been steady decreases in freshwater inflows into them during the past century due to abstraction of river water for human consumption and alien tree and plant infestations. Due to these decreases in freshwater inflows, many estuaries have become smaller and are providing reduced recreational services to users, such as boaters, fishermen and birders. This reduction in recreational service provision has adverse economic consequences. The scale of these consequences have become of great interest to river catchment planners. Of particular interest is the value of the freshwater inflows into estuaries relative to other abstractions of this water. The value referred to here is in terms of the environmental services yielded to recreational users. From a management perspective, it is desirable that these marginal values be compared with marginal cost values of this water in its best alternative use in order to guide the allocation of inflows into the respective estuaries. The aim of this study is to place a monetary value on this freshwater inflow at the Kowie, Kromme and Nahoon estuaries. Due to the fact that the freshwater flowing into estuaries is not a traded good, an alternative method to market price must be used to value it. The method of valuation used in this study is the contingent valuation method. The contingent valuation method (CVM) is a survey technique which asks individuals to place values upon changes to environmental assets. The questionnaires used in the surveys differed slightly. The one administered at the Nahoon Estuary was revised in the light of experience gained at the administration of the ones at the Kowie and the Kromme estuaries. Some questions in the latter two surveys were found to be confusing to the respondents and were made clearer and some of the questions were found to yield little extra information and were scrapped from the Nahoon Estuary survey.
- Full Text:
- Date Issued: 2007
- Authors: Sale, Michael Charles
- Date: 2007
- Subjects: Estuaries -- South Africa , Freshwater ecology -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9003 , http://hdl.handle.net/10948/599 , http://hdl.handle.net/10948/d1011689 , Estuaries -- South Africa , Freshwater ecology -- South Africa
- Description: An estuary can be defined as a partially enclosed, coastal body of water which is either permanently or periodically open to the sea and within which there is a measurable variation of salinity due to the mixture of sea water with fresh water derived from land drainage. Estuaries are extremely important environmental assets and the management of them is dependent on the active involvement of the people whose livelihoods depend on them. There have been steady decreases in freshwater inflows into them during the past century due to abstraction of river water for human consumption and alien tree and plant infestations. Due to these decreases in freshwater inflows, many estuaries have become smaller and are providing reduced recreational services to users, such as boaters, fishermen and birders. This reduction in recreational service provision has adverse economic consequences. The scale of these consequences have become of great interest to river catchment planners. Of particular interest is the value of the freshwater inflows into estuaries relative to other abstractions of this water. The value referred to here is in terms of the environmental services yielded to recreational users. From a management perspective, it is desirable that these marginal values be compared with marginal cost values of this water in its best alternative use in order to guide the allocation of inflows into the respective estuaries. The aim of this study is to place a monetary value on this freshwater inflow at the Kowie, Kromme and Nahoon estuaries. Due to the fact that the freshwater flowing into estuaries is not a traded good, an alternative method to market price must be used to value it. The method of valuation used in this study is the contingent valuation method. The contingent valuation method (CVM) is a survey technique which asks individuals to place values upon changes to environmental assets. The questionnaires used in the surveys differed slightly. The one administered at the Nahoon Estuary was revised in the light of experience gained at the administration of the ones at the Kowie and the Kromme estuaries. Some questions in the latter two surveys were found to be confusing to the respondents and were made clearer and some of the questions were found to yield little extra information and were scrapped from the Nahoon Estuary survey.
- Full Text:
- Date Issued: 2007