A comparison of the values of water inflows into selected South African estuaries : the Heuningnes, Kleinmond, Klein, Palmiet, Cefane, Kwelera and Haga-Haga
- Authors: Dikgang, Johane
- Date: 2008
- Subjects: Estuaries -- South Africa -- Cost efffectiveness , Water-supply -- South Africa -- Economic aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8994 , http://hdl.handle.net/10948/804 , Estuaries -- South Africa -- Cost efffectiveness , Water-supply -- South Africa -- Economic aspects
- Description: “An estuary is a partially or fully enclosed body of watera) which is open to the sea permanently or periodically; b) within which the sea water can be diluted, to an extent that is measurable, with freshwater drained from inland” (National Water Act, 1998). Estuaries are ecologically important because they are habitats for birds, fish and plants and they are valuable because they provide human beings with food (fish) and recreational pleasure in the form of unique views, bird watching and opportunities for swimming and boating. It is in this context that they may be said to provide economic goods and services for current and future generations. The provision of these services is dependent on the inflow of freshwater into estuaries. The problem with estuarine freshwater demand is that estuaries are the ‘last in line’, literally and perhaps in the typical prioritisation of human wants by government. Clearly it is imperative that the value of freshwater inflows into estuaries be determined and these values incorporated into catchment management decision making. South African estuaries have in the past mainly been managed on a piecemeal basissometimes in the interest of fishermen, sometimes property development owners and sometimes other local interest groups. This situation changed with the National Water Act of 1998. One of its objectives was to address the mismanagement and inadequate research about water inflow impacts on estuaries (Allanson and Baird, 1999). The global warming phenomenon is going to negatively affect estuaries and put more pressure on the availability of freshwater inflows into estuaries, as well as the availability of drinking water. The majority of South African estuaries are temporally open/closed and experiencing reduced functioning due to reductions of freshwater inflow to them. Given the overwhelming evidence available on the significance of freshwater inflow to estuary functionality, it is clear that an important component of catchment management is the allocation of river water into estuaries. Economic guidance comes in the form of comparisons of value. There are seven estuaries for which values were generated, the Heuningnes, Kleinmond, Klein, Palmiet, Cefane, Kwelera and Haga- Haga. All of the seven estuaries fall in areas characterized by warm temperate climates and low rainfall levels. Estuary services, like many other environmental services, are not traded in the markets. For this reason, in order to estimate their value, reference must be made to proxy markets, and methods of valuation have to be employed that can use proxy market information - like the contingent valuation method (CVM), the travel cost method (TCM) and the hedonic pricing method (HPM). For the purpose of this research the CVM was preferred because it is best suited to including passive or nonuse values. The CVM estimated values are compared with other values generated using the TCM. The information required to make the CVs was gathered through surveys in at the seven selected estuaries from December 2005 to April 2006. From this information sample mean and median Willingness to Pay (WTP) values for freshwater were calculated, socio economic profiles were generated, the importance that respondents attached to various activities in the estuary was deduced, and, Tobit and Ordinary Least Squares (OLS) statistics models were used to predict household WTP. The Total WTP (TWTP) for each estuary was obtained by multiplying the median WTP by the total number of households that use the estuary. The median WTP is preferred to the mean WTP because of a skewed bid distribution of WTP among the users. The value per m3 of freshwater was obtained by dividing the TWTP by the total forecast reduction in water inflows into the estuary.
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- Date Issued: 2008
An analysis of the use of limited real rights in tax planning
- Authors: Green, Christopher Terrence
- Date: 2008
- Subjects: Tax planning , Income tax -- Law and legislation -- South Africa , Limited liability
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8958 , http://hdl.handle.net/10948/809 , Tax planning , Income tax -- Law and legislation -- South Africa , Limited liability
- Description: The aim of this treatise is to provide an analysis of the tax implications of making use of limited real rights in tax planning. In order to understand the tax implications of making use of limited real rights it is necessary to understand the nature and legal form of these rights. The importance of this understanding lies in the determination of the tax legislation applicable to the right in question, and the subsequent tax implications. The next step in working through an analysis of the tax implications of making use of limited real rights is therefore to define the scope of applicable legislation. This required an analysis of the scoping provisions of our tax legislation. Once the scope of applicable legislation had been defined, it was then possible to move onto an analysis of the application of the legislation identified to the various “stages” of limited real rights. The conclusion from this analysis is that the tax implications of making use of limited real rights are spread fairly broadly across several different pieces of legislation, and need to be carefully and fully considered when making a decision to make use of limited real rights in a tax planning strategy. The conclusion on the analysis of certain selected tax planning strategies that make use of limited real rights is that it is possible to make fairly substantial cash flow savings when deciding to implement a particular strategy which makes use of limited real rights. But, that use of these strategies is not without risk. For example, SARS may examine a particular strategy in terms of the “new” GAAR. The financial implications of the successful application of the GAAR may be disastrous to the taxpayer, and the tax planner will need to have considered and advised on the possibility of such a challenge from SARS. In addition, in some of the strategies, there are risks associated with the anticipated life expectancy of parties to the tax plan being shorter than anticipated. The conclusion is that the use of limited real rights in tax planning can be effective and provide savings, but that the use of such a strategy requires, inter alia, a very careful consideration of the interaction and application of our tax legislation to the strategy.
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- Date Issued: 2008
An economic evaluation of waste telecommunication cable disposal in South Africa : a case study
- Authors: Lottering, Tony
- Date: 2008
- Subjects: Recycling (Waste, etc.) -- South Africa , Refuse and refuse disposal -- South Africa , Telecommunication -- Equipment and supplies -- Environmental aspects
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8993 , http://hdl.handle.net/10948/808 , Recycling (Waste, etc.) -- South Africa , Refuse and refuse disposal -- South Africa , Telecommunication -- Equipment and supplies -- Environmental aspects
- Description: South African manufacturers, including those who produce electrical and telecommunication cables, are required by the National Waste Management Strategy (NWMS) (drawn up by the Department of Environmental Affairs and Tourism (DEAT)), to carry out waste management in a coordinated and controlled manner. It is also becoming more difficult for South African companies, who produce for export markets, to conduct business internationally if they do not have some form of environmental management system in place. While there will always be scrap generated in any manufacturing environment, the aim is, first and foremost, to reduce this to acceptable levels and, secondly, to dispose of all scrap produced in a socially responsible manner. This study focuses attention on waste management, in the form of recycling, in the cable manufacturing industry. The purpose of this study is twofold: first, to examine the economic case, by means of a cost-benefit analysis, for the establishment and operation of a telecommunication cable waste recycling plant for the purpose of recycling copper conductor; second, to examine the economic feasibility, by means of a cost-benefit analysis, of extending the existing facility in order to accommodate the recycling of the plastic fraction contained in the cable waste. A specific cost-benefit stream was generated over a project period of 20 years for both CBAs. In both CBAs costs and benefits were categorised as being either primary or secondary. The primary costs and benefits for both CBAs were all financial in nature and were valued using market prices. The secondary costs of establishing and operating a cable waste recycling plant for recycling the copper conductor included effluent costs and noise pollution costs. The secondary benefits, on the other hand, included the creation of downstream industries. The secondary costs of extending an existing cable waste recycling plant, so as to accommodate the recycling of the plastic component of cable waste, included costs related to the generation of greenhouse gases and asthma. The secondary benefits, conversely, included the increase in house prices due to the reduction of landfilling of the plastic component of cable waste. The determination of increased house prices due to landfill avoidance was carried out using the hedonic pricing method (HPM). The hypothesis was that house values would increase the further removed they were from the landfill site. Applying regression analysis to the derived hedonic pricing (HP) function showed that there is a definite correlation between the two. Properties positioned two kilometres from a landfill site in New Brighton Port Elizabeth, Eastern Cape, were found to have higher values than those positioned adjacent to the site. From the cost-benefit streams, net benefits were calculated for each CBA and discounted to present values in order to provide a standard of comparison. The social discount rate used in this study to calculate the present values reflected a combination of the social opportunity costs of capital and the social time preference rate. The rate used was calculated as the average annual rate between 2000 and 2005 and amounted to 6.72 percent. It was derived from a combination of the opportunity costs of government borrowings, household consumption borrowings and return on savings.
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- Date Issued: 2008
An evaluation of product quality and consumer satisfaction in the FMCG market : Pick 'n Pay hypermarket, Port Elizabeth
- Authors: Hallam, Edward James
- Date: 2008
- Subjects: Quality of products -- Management , Quality of products -- Evaluation , Consumer satisfaction -- South Africa -- Port Elizabeth
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9364 , http://hdl.handle.net/10948/974 , Quality of products -- Management , Quality of products -- Evaluation , Consumer satisfaction -- South Africa -- Port Elizabeth
- Description: In an intensely competitive retail market, keeping consumers satisfied has never been more important than currently. Retailers need to understand how to satisfy their customers in order to enhance their appeal and increase consumer loyalty. Globally people’s lifestyles are changing rapidly. Advances in technology, more flexi-time of customers, and the many other social and economic changes affecting family and home life are some of the reasons why, specifically in the Fast Moving Consumer Goods (FMCG) industry, it is important to act fast to service customers. In South Africa, there is indication of strong competition between the most dominant firms’ in the FMCG market, which include Pick ‘n Pay Holdings Limited (23.8 percent), Shoprite Holdings Limited (23.8 percent), the Spar Group Limited (14.9 percent), and Woolworths Holdings Limited (9.0 percent). As a result, it is unmistakable that in order for FMCG firms to grow and survive in the constantly changing, and competitive retail environment of South Africa, they must have a clear understanding of consumer’s expectations, as well as their actual shopping experiences. As stated, service quality for retailers of FMCG is of utmost importance to their level of success and ability to successfully cater for the market’s needs. Closely linked to this, is the focus of this study, namely to investigate consumers’ perceived levels of product quality, as well as the overall level of satisfaction experienced by customers. The purpose of this analytical research project is twofold: Firstly, to empirically test the hypothetical model and the associated hypotheses (as phrased in Section 1.4) by using confirmatory statistical techniques. Secondly, based on the findings of the research, to craft appropriate retail marketing strategies within the FMCG market that are suitable for implementation to address potential mismatches (gaps) of perceived product quality and consumers’ satisfaction. By the crafting of appropriate retail strategies, the potential to develop the FMCG industry in South Africa will be enhanced. Given the purpose and nature of the research in question, a positivistic research paradigm was adopted. The utilization of a Likert seven-point scale enabled primary data to be sourced from 301 consumers’ (respondents), who shared their perceptions on the expectations and actual experiences about the product quality of FMCG in South Africa. The statistical analysis of quantitative data comprised seven distinct phases. Firstly, the data was subjected to a confirmatory factor analysis to validate the measurement model by assessing the construct (convergent, discriminant and nomological) validity of the pre-specified (predicted) factors. Secondly, the reliability (internal consistency) of the research instrument was assessed by means of Cronbach alpha reliability coefficients. This phase was followed by a multiple linear regression analyses which were used to test the impact of independent variables on the intervening variable. In order to test the second set of hypotheses (null and alternative hypotheses dealing with consumers’ expected product quality and their actual experiences) matched paired t-tests were utilized. Additionally, mean scores and relative percentage ratings on consumers’ expected and perceived product quality levels were also calculated and interpreted. Finally, bivariate linear regression analyses were used to test the third set of hypotheses (impact of consumers perceived product quality on consumers overall level of satisfaction). The findings of the multiple linear regression analyses required that the hypothetical model be reconstructed. Two variables were removed from the hypothetical model, namely, ‘South African culture’ and ‘service promises’. The findings of the matched pair t-tests show that significant statistical differences do exist between the ‘expectations’ and ‘actual experiences’ of consumers’ perceived product quality to support the hypothesis H3.A, namely: “There are no perceived differences between consumers’ expectations and their perceptions (actual experience) of product quality”. Besides the matched pair t-tests, further descriptive statistical analyses were also performed to assess the magnitude of the “gap” between expectations and actual experiences of consumers on South African FMCG product quality, such as the values for Cohen’s d and relative percentage ratings. The findings reveal that the consumers’ were not completely satisfied with their actual experiences. Three sets of conclusions and recommendations were identified for this research. Firstly, conclusions emanating from secondary sources on product quality and consumers’ satisfaction literature were provided, such as consumer satisfaction is seen more as a psychological state, which reveals an overall feeling of consumers’ purchase and consumption experience with FMCG. Secondly, the conclusions linked to the interpretation of the empirical findings revealed significant statistical differences between the expectations and perceptions (actual experiences) of consumers’ on perceived product quality. Finally, recommendations on relevant FMCG retail marketing strategies can be grouped into five domains: To build customer-led firms which adhere to the principles of true marketing orientation where the focus is on consumers and their needs and wants. Identify and clearly define the FMCG market in South Africa which comprises different market segments that are of great importance for the retail firms. The decision on a proper positioning strategy entails the choice of the target market segments, which will determine where and how the FMCG firm competes and the choice of differential advantages. Retailers should apply suitable marketing strategies to benefit optimally from their FMCG retail marketing strategies. A sound feedback system is a necessary component in the strategic marketing plan to obtain proper feedback that would contribute to the “management by exception” principle. It further will facilitate performance evaluation of product quality and service delivery, as well as and enable corrective actions to be taken in the case of deviations from the norm.
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- Date Issued: 2008
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.
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- Date Issued: 2008