A study of some aspects of the poor white problem in South Africa
- Authors: Lewis, Robert Alexander
- Date: 1979
- Subjects: Poor white problem , Afrikaners -- Economic conditions , Poor -- South Africa , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: text , Thesis , Masters , MA
- Identifier: vital:2524 , http://hdl.handle.net/10962/d1001853
- Description: The first instance of the poor white problem being dramatically brought to the attention of white South Africa was in 1893 when Rev. Andrew Murray issued an open letter on the subject which resulted in the convening of the first of many Dutch Reformed Church conferences on the problem (Introduction, p. 1).
- Full Text:
- Date Issued: 1979
Trends in mobilisation and unionisation in South Africa and Germany: a comparative analysis
- Authors: Whiteley, Julianne Beverley
- Date: 2001
- Subjects: Industrial mobilization -- South Africa , Labor unions -- South Africa , Industrial mobilization -- Germany , Labor unions -- Germany , South Africa -- Economic conditions , Germany -- Economic conditions
- Language: English
- Type: Thesis , Masters , MSocSc
- Identifier: vital:3332 , http://hdl.handle.net/10962/d1003125 , Industrial mobilization -- South Africa , Labor unions -- South Africa , Industrial mobilization -- Germany , Labor unions -- Germany , South Africa -- Economic conditions , Germany -- Economic conditions
- Description: The purpose of this study is to investigate long-term trends in the union membership of South Africa and Germany, and to highlight trends in unionisation in both of these countries over a period of time. The long-term aspect of this study differentiates it from more detailed specific studies concerned with the individual fortunes of confederations or unions. The changing fortunes of trade unions have been associated with changes in work organisation, the influence of institutional pressures, or long term changes in the economic cycle. All these factors may, of course, shape and be shaped by each other. From a comparative perspective this dissertation determines whether the fortunes of unions are ultimately a product of the long waves of an economic cycle, or if other factors, such as variations in union/state relations, changes in the forms of work organisation and shifts in the employment market, impact upon union membership and mobilisation. It is hoped that the comparison of a transitional and an advanced economy may shed new light on the causes of union growth and decline, and the impact of specific social, legal and cultural variables thereon. The theoretical frame of reference for this study emerged from literature pertaining to union growth and decline. This literature discusses the historical, economic and sectoral challenges that confront the identity of unions and their ability to mobilise membership within contemporary labour markets. The entire study relies heavily on primary data collected from a wide range of sources in both countries. This method facilitates the comparison and cross-checking of information, which ensures a full and balanced study. A synthesis of the facts obtained led to certain suggestions relating to the areas in which both South African and German labour organisations could adapt their agenda and interests to the changing nature of the employment market in order to avert membership decline. The methodology of this research draws from Skopol’s work which argues that social studies ought to be grounded in historical experience in order to make sense out of specific social events that occur today. The research design utilises an initial comparative historical-political analysis of the emergence of unionism in South Africa and Germany, so as to establish those factors which have, in the past, affected union growth and decline in both countries. Thereafter, the impact of contemporary economic and sectoral trends that reoccur in the South African and German labour markets are examined and compared, in order to establish their influence on the growth or decline of union membership in both countries in the future. This study consists of four sections. The first section comprises a historical dimension that uses Valenzuela’s work relating to the political nature of labour movements to establish those factors which, in the past, have affected union growth and decline. This is done to determine whether the type of insertion of labour movements into historical national political processes, and the links formed between trade unions and political parties influences membership growth or decline. The following three sections deal with the present challenges that may affect the unions in the future. Section Two deals with factors of economic recession (namely, poverty and unemployment) which confront trade unions in the 1990s. Hyman’s Theory of Disaggregation is applied to determine if recessive socio-economic factors can account for the strength of decline of unions, as opposed to union mobilisation being purely linked to transitions between long waves of the economy as Kelly suggests. The relevance of these theories to the rise and decline of unionism in South Africa and Germany is compared and contrasted. The third section determines whether changes to more flexible forms of work organisation and shifts in the employment market can account for the contrasting strength of the South African labour movement and the decline of the German labour movement today. The way in which these issues impact negatively upon union strength in South Africa and Germany in the 1990s is compared and contrasted, again using Hyman’s Theory of Disaggregation. The final section establishes whether or not the roles adopted by the South African and German labour movements during their confrontation with labour repressive regimes impacts upon their ability to attract union membership today, despite the constraints imposed upon unions by prevailing economic and structural uncertainties. Therefore the historicity of the South African and German labour movements, (based upon the findings of the first part of this study), is referred back to. At the same time, the reactions of the South African and German labour movements to prevailing economic and structural realities, (as examined in the second part of this research) are re-examined. Three conclusions are reached. Firstly, regardless of their strengths or weaknesses, all labour organisations are capable of adjusting to the adverse changes taking place in contemporary employment markets if they prove willing to advance and defend the interests of all who work, including those in the informal sector. If unions continue to neglect the informal labour market, they run the risk of being transposed by social movements that are antagonistic to trade unions or new expressions of the workforce’s latent collectivism. Secondly, in successfully playing a social movement role that led to the downfall of Apartheid in 1994, the South African labour movement has evolved as an energetic body with a dimension of recumbent militancy that attempts to adapt its identity to the changing nature of the employment market. This enables the South African labour movement to continue to attract membership despite the prevailing economic uncertainties. In contrast, forced co-operation and consensus within the German industrial relations arena since World War Two has resulted in a less dynamic union movement that lacks initiative in adapting to the changing nature of the employment market. The result is a decline in unionism. Finally, the fortunes of unions are not, as Kelly suggests, purely a product of economic cycles. Political climates can also influence mobilisation, as has occurred in both South Africa and Germany. This implies that mobilisation is not only activated by the economic dissatisfaction of a union movement.
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- Date Issued: 2001
South Africa within SADC : hegemon or partner?
- Authors: Molefi, Tebogo Shadrack
- Date: 2003
- Subjects: Southern African Development Community , Political stability -- Africa, Southern , South Africa -- Economic conditions , South Africa -- Foreign relations -- Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:2866 , http://hdl.handle.net/10962/d1007674 , Southern African Development Community , Political stability -- Africa, Southern , South Africa -- Economic conditions , South Africa -- Foreign relations -- Africa , South Africa -- Economic policy
- Description: This study attempts to make a contribution to the debate on the role of South Africa within Southern African Development Community. An attempt is made to analyse this role within the context of regional integration debate. This role has been conceptualised within the dichotomies of hegemon versus partner. The study argues that South Africa is a hegemon in the region of SADC, and that given its overarching economic dominance and it has the potential of establishing its hegemony in the region. It maintains that there are several factors, which could facilitate South Africa's hegemonic dominance such as in military, technology and manufacturing sector. It concludes by arguing that given the changing geopolitical factors both within the region and the globe impedes South Africa from firmly expressing this hegemonic dominance. Furthermore, South Africa's pioneering role in the struggle to change the status quo globally in favour of the Southern states is another crucial factor, which imposes limitations on its hegemonic intentions regionally.
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- Date Issued: 2003
Development of the South African monetary banking sector and money market
- Authors: Patel, Aadil Suleman
- Date: 2005
- Subjects: South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:997 , http://hdl.handle.net/10962/d1002732 , South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Description: This thesis presents a theoretical analysis of developments in the South African monetary banking sector and money market. In the first section, evolution of the political, social and economic environments over the past few decades are discussed to provide the reader with an idea of some factors responsible for the underdeveloped nature of this market. It has been argued that the domestic political and economic landscape is relatively stable. Nevertheless, factors such as Zimbabwe’s political and ensuing economic turmoil, coupled with numerous financial crises in other developing nations have had negative consequences on domestic financial market development and economic growth. The current state of monetary policy is also analysed, within the economic environment, and various policy considerations have been put forth concerning the inflation targeting policy. The thesis then goes on to scrutinise the statutory and institutional environments within which the monetary banking institutions operate. Recent changes in the regulations governing the operations of these institutions are identified, together with the consequences of such laws on banking institutions and possible amendments have been suggested. In particular, a system of Asset Based Reserve Requirements (ABRR) has been recommended, in place of the current cash reserve requirement, to ensure regulators create a level playing field in the financial sector. The system can also provide authorities with the necessary control required to direct funds to the most desirable sectors of the economy. Development of the interbank market and the effect of reduced banking competition on the efficacy of the South African Reserve Bank’s refinancing operations and inflation targeting policy are also considered. Finally, the thesis analyses some effects of financial development on the South African economy, and whether it is in the best interests of the country to pursue financial reforms with such vigour. While financial development may bring South Africa closer to international standards of best practice, the timing and extent of the reforms will be critical to guarantee success.
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- Date Issued: 2005
Interest rate behaviour in a more transparent South African monetary policy environment
- Authors: Ballim, Goolam Hoosen
- Date: 2005
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1034 , http://hdl.handle.net/10962/d1004462 , South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: South Africa introduced inflation targeting as a monetary policy framework in 2000. This marked a sizable shift in monetary policy management from the previous "eclectic" approach and the explicit focus on M3 money supply before that. The study appraises the effectiveness of monetary policy under this new dispensation. However, the analysis does not centre on inflation outcomes, which can be a measure of effectiveness because they are the overriding objective of the South African Reserve Bank in effect, it is possible to have a target-friendly inflation rate for a length of time despite monetary policy that is ambiguous and encourages unpredictability in market interest rates. However, persistent policy opaqueness can, over time, damage a favourable inflation scenario. For instance, if the public is unsure about the Reserve Bank's desired inflation target, price setting in the wage and goods markets may eventually produce an inflation outcome that is higher than the Bank may have intended. Rather, this study adjudicates the effectiveness of monetary policy within the context of policy transparency, which is an intrinsic part of the inflation targeting framework. The study looks at the extent to which monetary policy transparency has enhanced both the anticipatory nature of the market's response to policy actions and the force that policy has on all interest rates in the financial system, particularly long-term rates. These concepts are important because through the transmission mechanism of monetary policy, the more deft market participants are at anticipating future Reserve Bank policy the greater the Bank's ability to steady the economy before the actual policy event. With the aid of regression models to estimate the response of market rates to policy changes, the results show that there is significant movement in market rates in anticipation of policy action, rather than on the day of the event or the day after. Indeed, the estimates for market rates movement on the day of and even the day after the policy action are generally minute. For instance, the R157 long-term government bond yield changes by a significant 41 basis points in response to a one percentage point change in the Reserve Bank's benchmark repo rate in the period between the last policy action and the day preceding the current action. In contrast, the R157 bond yield changes by an insignificant 2 basis points on the day of the current repo rate change and about 1 basis point the day after the current change. The results point to a robust relationship between policy transparency and the market's ability to foresee rate action. If this were not the case, it is likely that there would be persistent market surprise and, hence, noticeable movement in interest rates on the day of the rate action and perhaps even the day after. Another important observation is that monetary policy impacts significantly on both short- and long-term market rates. Again, certifying the robustness of monetary policy under the inflation targeting regime
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- Date Issued: 2005
The Grameen Bank model of microcredit and its relevance for South Africa
- Authors: Akpan, Iniobong Wilson
- Date: 2005
- Subjects: Grameen Bank , Microfinance -- South Africa , Microfinance -- Bangladesh , Credit -- Management , Risk management , Poor -- Finance, Personal , South Africa -- Economic conditions , Bangladesh -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:980 , http://hdl.handle.net/10962/d1002714 , Grameen Bank , Microfinance -- South Africa , Microfinance -- Bangladesh , Credit -- Management , Risk management , Poor -- Finance, Personal , South Africa -- Economic conditions , Bangladesh -- Economic conditions
- Description: Among the reasons for financial exclusion is the fact that the poor, being largely illiterate and unemployed, are traditionally perceived as ‘bad credit risks’. This is the dominant perception of the poor in the formal credit markets – a perception that also exists in the microcredit sector. In other words, while information asymmetry is a recognized problem in lender-borrower relationships, lenders consider the problem particularly severe when they contemplate doing business with the poor. A contrasting paradigm, such as the one adopted by Grameen Bank of Bangladesh, views the poor as possessing economic potentials that have not been tapped – that is, as ‘good credit risks’. Grameen Bank’s microcredit features appear to have successfully mitigated the problems of information asymmetry and, to a large extent, made it possible for the poor to access microenterprise credit. Using the Grameen Bank model as a benchmark, this study examined the lending features of private sector microlenders in South Africa and those of KhulaStart (credit) scheme. The aim was to identify how the lending features affect microenterprise credit access. Primary data were obtained through interviews, while relevant secondary data were also used in the study. A key finding of the study was that while the Khulastart scheme was, like Grameencredit, targeted at the poor, the method of its delivery appeared diluted or unduly influenced by the conventional (private sector) paradigm that pre-classifies people as ‘good’ or ‘bad’ credit risks. As a result, the scheme was not robust enough to support microenterprise credit access. This has consequences for job-creation and poverty reduction. Based on the findings, the study maintains that a realistic broadening of microenterprise credit access will not occur unless there is a fundamental paradigm shift in microcredit practices, and unless measures designed to mitigate information asymmetries are sensitive to the historical, economic and sociocultural realities of the South African poor.
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- Date Issued: 2005
The relationship between interest rates and inflation in South Africa : revisiting Fisher's hypothesis
- Authors: Mitchell-Innes, Henry Alexander
- Date: 2006
- Subjects: Fisher effect (Economics) , Interest rates -- South Africa , Interest rates -- Effect of inflation -- South Africa , Inflation (Finance) -- South Africa , Monetary policy -- South Africa , Banks and banking, Central -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:991 , http://hdl.handle.net/10962/d1002726 , Fisher effect (Economics) , Interest rates -- South Africa , Interest rates -- Effect of inflation -- South Africa , Inflation (Finance) -- South Africa , Monetary policy -- South Africa , Banks and banking, Central -- South Africa , South Africa -- Economic conditions
- Description: This thesis investigates the relationship between expected inflation and nominal interest rates in South Africa and the extent to which the Fisher effect hypothesis holds. The hypothesis, proposed by Fisher (1930), that the nominal rate of interest should reflect movements in the expected rate of inflation has been the subject of much empirical research in many industrialised countries. This wealth of literature can be attributed to various factors including the pivotal role that the nominal rate of interest and, perhaps more importantly, the real rate of interest plays in the economy. The validity of the Fisher effect also has important implications for monetary policy and needs to be considered by central banks. Few studies have been conducted in South Africa to validate this important hypothesis. The analysis uses the 3-month bankers’ acceptance rate and the 10-year government bond rate to proxy both short- and long-term interest rates. The existence of a long-run unit proportional relationship between nominal interest rates and expected inflation is tested using Johansen’s cointegration test. The data is analysed for the period April 2000 to July 2005 as the research aims to establish whether the Fisher relationship holds within an inflation targeting monetary policy framework. The short-run Fisher effect is not empirically verified. This is due to the effects of the monetary policy transmission mechanism and implies that short-term nominal interest rates are a good indication of the stance of monetary policy. A long-run cointegrating relationship is established between long-term interest rates and expected inflation. The long-run adjustment is less than unity, which can be attributed to the credibility of the inflation-targeting framework.
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- Date Issued: 2006
The yield curve as a forecasting tool : does the yield spread predict recessions in South Africa?
- Authors: Khomo, Melvin Muzi
- Date: 2006
- Subjects: Recessions -- South Africa , Monetary policy -- South Africa , Economic development -- South Africa , Economic indicators -- South Africa , Business cycles -- History -- 20th century , Business cycles -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1040 , http://hdl.handle.net/10962/d1004722 , Recessions -- South Africa , Monetary policy -- South Africa , Economic development -- South Africa , Economic indicators -- South Africa , Business cycles -- History -- 20th century , Business cycles -- South Africa , South Africa -- Economic conditions
- Description: This paper examines the ability of the yield curve to predict recessions in South Africa, and compares its predictive power with other commonly used variables that include the growth rate in real money supply, changes in stock prices and the index of leading economic indicators. The study also makes an attempt to find out if monetary policy explains the yield spread's predictive power with regards to future economic activity. Regarding methodology, the standard probit model proposed by Estrella and Mishkin (1996) that directly estimates the probability of the economy going into recession is used. Results from this model are compared with a modified probit model suggested by Dueker (1997) that includes a lagged dependent variable. Results presented in the paper provide further evidence that the yield curve, as represented by the yield spread between 3-month and IO-year government paper, can be used to estimate the likelihood of recessions in South Africa. The yield spread can produce recession forecasts up to 18 months, although it's best predictive power is seen at two quarters. Results from the standard probit model and the modified pro bit model with a lagged dependent variable are somewhat similar, although the latter model improves forecasts at shorter horizons up to 3 months. Compared with other indicators, real M3 growth is a noisy indicator and does not provide much information about future recessions, whilst movements in the All-Share index can provide information for up to 12 months but does not do better than the yield curve. The index of leading economic indicators outperforms the yield spread in the short run up to 4 months but the spread performs better at longer horizons. Based on the results from the study, it appears that changes in monetary policy explain the yield spread's predictive power. This is because the yield spread loses its explanatory power when combined with a variable representing the monetary policy stance of the central bank.
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- Date Issued: 2006
The role of small, medium and micro-sized enterprises (smm's) in the socio-economic development of Buffalo City
- Authors: Sinxoto, Nomhle Beauty
- Date: 2007
- Subjects: Small business -- South Africa -- Buffalo City , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8738 , http://hdl.handle.net/10948/793 , Small business -- South Africa -- Buffalo City , South Africa -- Economic conditions
- Description: Thirteen years in the new democratic South Africa, South Africa is still faced with socio-economic problems such as high rates of unemployment, shortage of housing, crime and HIV/Aids. Buffalo city falls within the Amathole District Municipality (ADM). ADM population is estimated at + 1, 67 million, being predominantly rural and living in low socio-economic conditions. The demographic trends of ADM population depict high poverty, illiteracy and unemployment rates, rendering them prone to high morbidity and mortality (www.amathole.gov.za, 2007). The aim of this research was to assess the role of the SMMEs in the socio-economic development of Buffalo City. This study is based on exploratory quantitative and qualitative research methodologies. Using a convenience sampling technique structured questionnaires were used to collect data amongst 28 SMMEs in Buffalo City. The findings of this study suggest that SMMEs play a vital role in the socio-economic development of Buffalo City. The SMMEs create employment and incomes; provide human capital investment in form of training programs and HIV/Aids programs; make donations to community structures; give sponsors to various sports clubs and food to the homeless. Finally SMMEs contribute towards tax revenues that in turn help reduce poverty and redistribute wealth. However, SMMEs in Buffalo City face a number of constraints, namely, lack of access to funding, lack of operating space, and high cost of property to lease and difficulty in finding trained competent staff. Further, the perceptions of the SMMEs about the adjudication of tenders was some biasness in the adjudication of tender in favour of those who were close to the public officials. There was no accountability and professionalism amongst the adjudicating officials. Finally the government was not doing enough to encourage SMME development in Buffalo City. In view of the socio-economic benefits of the SMMEs in Buffalo city, it is recommended that support programmes to the SMMEs should be enhanced. On the basis of the findings in this study, it is suggested that assistance to the SMMEs should go beyond institutional support such as Ntsika, Khula, DTI and/or SEDA but should be targeted to funding opportunities for the SMMEs. Commercial banks should be involved in ensuring that SMMEs obtain access to funding. Infrastructural facilities such as affordable business premises should be provided for the SMMEs. Affordable premises will reduce the overhead costs of the SMMEs and in turn increase the profits of these SMMEs. Increase the profits of the SMMEs will ensure the survival of the SMMEs and will in turn contribute towards the upliftment of the socio-economic status of the people who would have otherwise been unemployed, destitute and poor.
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- Date Issued: 2007
A public-private partnership model for the improvemnet of local economic development in South African metropolitan government
- Authors: Binza, Mzikayise Shakespeare
- Date: 2009
- Subjects: Economic development -- South Africa , Public-private sector cooperation -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: vital:8159 , http://hdl.handle.net/10948/923 , Economic development -- South Africa , Public-private sector cooperation -- South Africa , South Africa -- Economic conditions
- Description: The post-apartheid developmental state of South Africa had a challenge of turning around an economy that was on deficit which it inherited in 1994, to a positive growth that will be sustainable and shared. The process followed in creating a sustainable economic development was first establishing a constitutional democratic government which was constituted in terms of the provisions of the Constitution of the Republic of South Africa, 1996, as three equal spheres of government, viz: the national, provincial and local spheres of government. Initiatives on innovative economic development become a reconstruction programme not only of the national and provincial spheres of government, but also of the local sphere of government which is closest to the people it governs and deliver municipal goods and services to. For an example, section 152 (1) (c) of the Constitution of the Republic of South Africa, 1996, provides that the local sphere of government which is constituted by 283 wall-to-wall municipalities must “improve social and economic development” of the people. Out of the 283 municipalities, 6 are metropolitan municipalities, and are the: City of Cape Town, City of Johannesburg, City of Tshwane, Ekurhuleni, Ethekwini, and Nelson Mandela Bay Municipality. This research project is limited to the City of Cape Town (CCT) and the Nelson Mandela Bay Municipalities (NMBM). In the second process, a number of legislations and policies providing for external mechanisms to be used to improve local economic development (LED) in an inclusive, shared and equitable manner were introduced. Policies that were introduced by the democratic government and serve as policy directive for economic development are: the Reconstruction and Development Programme (RDP) of 1994; the Growth, Employment and Redistribution (GEAR) of 1996; and the Accelerated and Shared Growth Initiative of South Africa (ASGISA) of 2006. The relevant legislations to the local sphere of government which were introduced and provided for the appropriate mechanism for enabling sustainable growth of local economies by developmental local government in partnerships with other stakeholders such as private sector and civil society movements are: the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000); Municipal Service Policy of 2000; Guidelines on Municipal Service Partnerships of 2006-2010; and the National Framework for Local Economic Development in South Africa (NFLED) of 2006-2010. The above xviii legislations provide the following external mechanisms to improve local economic development in municipal areas, viz: public-private partnerships; public-public partnerships, and public-community partnerships. This research project is about the first external mechanism which is the public-private partnerships (PPPs) to enable municipalities to improve local economies that provide for job creations and employment for the local inhabitants. According to the National Treasury Regulation 16 (2004:1), PPP means a “commercial transaction between an institution, for example a metropolitan government, and a private party in terms of which: 1. The private party either performs an institutional function on behalf of the institution [in this regard a metropolitan government] for a specified or indefinite period or acquires the use of a state property for its own commercial purposes for a specified or indefinite period. 2. The private party receives a benefit for performing the function or by utilising state property, either by way of compensation from a revenue fund, or by charges or fees collected by the private party from users or customers of a service provided for them; or a combination of such compensation and such fees”. The first goal of this research project is to develop the most appropriate public-private partnership model for South African metropolitan government with special reference to the City of Cape Town (CCT) and the Nelson Mandela Bay Municipality (NMBM) in enabling and guiding them to improve and sustain local economic development (LED) in their respective areas of jurisdiction. The application of public-private partnerships (PPPs) as a policy strategy to achieve local economic development (LED) in CCT and NMBM was investigated, in order to determine whether these activities can be improved. Followed is the development of a conceptual framework for optimal PPP implementation in order to improve local economic development in the CCT and NMBM and other metropolitan and municipal areas in South Africa. A more appropriate PPP model called the Participatory Development Systems Model (PDSM) has been constructed for this purpose from a number of sources and proven good practices both locally in South Africa and internationally. The PDSM model uses the strategic prioritisation and management by a municipality of the integrated development of physical, economic, human and social capital in its region in a more participatory way, as a point of departure for PPPs. The PDSM model for PPPs also emphasises consistent systematic assessment of these strategies against the strategic LED goals of the municipality concerned in order to ensure that lessons are learnt from these experiences and used to refine or revise future LED and PPP strategies accordingly. This thesis makes an original contribution to the existing body of knowledge about the promotion of LED through PPPs in metropolitan municipalities in South Africa and elsewhere, by conceptualising PPPs in a clear and coherent way as an integrated dimension of strategic management processes in municipalities that need to be implemented in a more participatory way in order to achieve the overall strategic goal of sustainable LED.
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- Date Issued: 2009
The global financial crisis and its impact on the South African economy
- Authors: Madubeko, Vongai
- Date: 2010
- Subjects: Globalization -- Economic aspects , Global Financial Crisis, 2008-2009 , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11457 , http://hdl.handle.net/10353/363 , Globalization -- Economic aspects , Global Financial Crisis, 2008-2009 , South Africa -- Economic conditions
- Description: This dissertation investigates the effects of the financial crisis on the South African economy. In order to do this, an index which describes the financial conditions of the South African economy is constructed and computed. The index indicates that domestic South African financial conditions have deteriorated substantially during the period under study and so the study investigates how this has impacted on the country’s economic growth. A VAR model with South African variables is specified and used to assess the quantitative effects of the financial crisis on South African real GDP growth. Results suggest that the South African economy was not significantly affected by the crisis, but economic growth was slowed down and may still grow substantially slower in the next few years due to the financial crisis. These results corroborate the theoretical predictions and are also supported by previous studies.
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- Date Issued: 2010
The impact of economic downturn on black economic empowerment and banks
- Authors: Daniels, Sinclair Lonwabo
- Date: 2010
- Subjects: South Africa -- Economic conditions -- 21st century , South Africa -- Economic conditions , Business enterprises, Black -- South Africa , Blacks -- Employment -- South Africa , Employee empowerment -- South Africa , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8620 , http://hdl.handle.net/10948/1505 , South Africa -- Economic conditions -- 21st century , South Africa -- Economic conditions , Business enterprises, Black -- South Africa , Blacks -- Employment -- South Africa , Employee empowerment -- South Africa , Banks and banking -- South Africa
- Description: The purpose of this treatise is to ascertain the impact of economic downturn on Black Economic Empowerment (BEE) and Banks. This has been sparked by the huge speculations in the market as to what will happen to BEE and how will the banks cope in general with the impact of this scourge. It is imperative to understand the influence of the 2008+ economic downturn on socio-economic reconstruction and development in South Africa and the black economic empowerment and its funding mechanisms. The treatise has two phases the, namely the theoretical phase and a bit of narrative phase. In the theoretical phase the research study interrogates what the literature review reveals about the economic downturn, BEE as well as performances of different banks across the world. This shows the economic impact that the banks have had to endure during the economic downturn. This resulted in stock markets losing their value. The dividend earners were significantly affected including a sizeable number of BEE companies. The BEE companies are perceived to be too reliant on debt on to finance their deals and this treatise will look at various options of financing a BEE deal and what is deem to the most suited financing structure. The narrative phase involves semi-structured interviews that were conducted in order to ascertain the real impact that South African were faced with and how they have managed to steer clear of the turbulent waters. This also looked at how the BEE consultant views the current occurrences in the market.
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- Date Issued: 2010
An analysis of the long run comovements between financial system development and mining production in South Africa
- Authors: Ajagbe, Stephen Mayowa
- Date: 2011
- Subjects: Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:955 , http://hdl.handle.net/10962/d1002689 , Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Description: This study examines the nature of the relationship which exists between mining sector production and development of the financial systems in South Africa. This is particularly important in that the mining sector is considered to be one of the major contributors to the country’s overall economic growth. South Africa is also considered to have a very well developed financial system, to the point where the dominance of one over the other is difficult to identify. Therefore offering insight into the nature of this relationship will assist policy makers in identifying the most effective policies in order to ensure that the developments within the financial systems impact appropriately on the mining sector, and ultimately on the economy. In addition to using the conventional proxies of financial system development, this study utilises the principal component analysis (PCA) to construct an index for the entire financial system. The multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) was then used to estimate the relationship between the development of the financial systems and the mining sector production for the period 1988-2008. The study reveals mixed results for different measures of financial system development. Those involving the banking system show that a negative relationship exists between total mining production and total credit extended to the private sector, while liquid liabilities has a positive relationship. Similarly, with the stock market system, mixed results are also obtained which reveal a negative relationship between total mining production and stock market capitalisation, while a positive relationship is found with secondary market turnover. Of all the financial system variables, only that of stock market capitalisation was found to be significant. The result with the financial development index reveals that a significant negative relationship exists between financial system development and total mining sector production. Results on the other variables controlled in the estimation show that positive and significant relationships exist between total mining production and both nominal exchange rate and political stability respectively. Increased mining production therefore takes place in periods of appreciating exchange rates, and similarly in the post-apartheid era. On the other hand, negative relationships were found for both trade openness and inflation control variables. The impulse response and variance decomposition analyses showed that total mining production explains the largest amount of shocks within itself. Overall, the study reveals that the mining sector might not have benefited much from the development in the South African financial system.
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- Date Issued: 2011
Monetary policy transmission in South Africa: a comparative analysis of credit and exchange rate channels
- Authors: Sebitso, Nathaniel Maemu
- Date: 2011
- Subjects: Monetary policy -- South Africa , Foreign exchange market -- South Africa , Financial crises -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1129 , http://hdl.handle.net/10962/d1020851
- Description: This thesis focuses on monetary policy transmission and particularly seeks to examine the impact of credit and exchange rate channels of monetary policy transmission in the South African economy. South Africa's monetary policy has gone through several changes over the past thirty years. In this respect, there is a need for robust empirical evidence on the effects of these channels on inflation and output. The thesis employs a structural vector autoregressive (SVAR) model to identify monetary transmission in South Africa for the period 1994:q4 - 2008:q2. The form of the SVAR used in this thesis is based on the fact that South Africa is a small open economy, which means that external shocks are an important driver of domestic activity. The impulse responses and variance decomposition results show that the repo rate, credit and exchange rate play a role in terms of their impact on inflation and output. The dynamic responses to the identified monetary policy shock are consistent with standard theory and highlight the importance of the interest rate channel. A shock to the interest rate, increasing it by one standard deviation, results in a persistent fall in credit. The response of output is immediate as it falls and bottoms out within the second year. Inflation shows a lagged response, it is positive within the first year as the exchange rate depreciates but in subsequent quarters inflation responds negatively as expected. Inflation falls and reaches a minimum by approximately eight quarters then moves towards baseline. The exchange rate shows delayed appreciation. The shock to the repo interest rate leads to an immediate depreciation of the exchange rate in the first two quarters as output declines, followed by an appreciation in the third and sixth quarter. Due to larger error bounds the impact of the repo rate on the exchange rate could be less effective within the first two years. The impulse responses suggest that monetary policy plays an effective role in stabilising the economy in response to a credit shock, notwithstanding large standard error bounds. Hence, the monetary authority reacts by increasing the repo rate as a result of inflation. The impact of credit on output is positive but is offset to some extent by the rising repo rate. In response to the rand appreciation, the monetary authority reduces the repo rate significantly during the first year with the maximum impact in the second year and then returns to baseline thereafter. Therefore the monetary authority reduces the repo rate, probably to stabilise falling inflation. The result shows that inflation falls as a result of the rand appreciation. A shock to the exchange rate causes a rise in output, though small in magnitude, which is persistent but reaches baseline at the end of the period. This result could reflect the effects of the resultant fall in the repo rate and a persistent rise in credit over the whole period, which tends to increase output. The exchange rate shows an obvious and stronger immediate impact on inflation compared to credit impact on inflation. However, the credit shock has an obvious and stronger impact on output compared to an exchange rate impact on output. However, the large standard error bounds may imply that credit and exchange rate channels are not as effective in the short run. It is important to note that the results are based on the SVAR model estimated with percentage growth rate of the variables. The variance decomposition result is in line with the impulse responses and shows that the exchange rate and credit channels could be important transmission channels in South Africa over the chosen sample period. The exchange rate and credit shocks show a stronger effect on inflation than on output, looking at both the impulse responses and variance decomposition results. The reaction of the repo interest rate to the credit and exchange rate shocks comes out as expected. The repo rate increases as a result of an increase in the credit and falls as a result of the currency appreciation.
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- Date Issued: 2011
Social policy and the state in South Africa: pathways for human capability development
- Authors: Monyai, Priscilla B
- Date: 2011
- Subjects: Human capital -- South Africa , Apartheid -- South Africa , Equality -- South Africa , Poverty -- South Africa , Political participation -- South Africa , South Africa -- Economic conditions , South Africa -- Social conditions
- Language: English
- Type: Thesis , Doctoral , PhD (Social Science Dev)
- Identifier: vital:11439 , http://hdl.handle.net/10353/d1007230 , Human capital -- South Africa , Apartheid -- South Africa , Equality -- South Africa , Poverty -- South Africa , Political participation -- South Africa , South Africa -- Economic conditions , South Africa -- Social conditions
- Description: The main focus of this thesis is the challenges that are facing social policy development and implementation in South Africa in relation to the enhancement of human capability. The study adopted a historical approach to assess the model of social policy in South Africa and identified that social relations of domination inherited from the apartheid era continuing to produce inequalities in opportunities. Social policy under the democratic government has not managed to address social inequalities and the main drivers of poverty in the form of income poverty, asset poverty and capability poverty which are the underlying factors reproducing deprivation and destitution of the majority of the population Although South Africa prides itself of a stable democracy, social inequalities continue to undermine the benefits of social citizenship because political participation in the midst of unequal access to economic and social resources undermine the value of citizenship. Also, inequalities in the distribution of income and wealth, and in the control of economic production undermine political equality which is an ethic upon which social rights are predicated. As a result, state interventions are lacking inherent potential to build human capability for people to live the life that they have reason to value. The paradox of social policy in South Africa is that the majority of those who are marginalised are those who were excluded by the apartheid regime even though state intervention is claimed to be targeting them. This points to the failure of incremental equalisation of opportunities within a context of stark social inequities. It is also an indication that the economic growth path delivered by the political transition is working to reinforce the inherited legacy of deprivation and it is avoiding questions related to the structural nature of poverty and inequalities. Therefore, a transformative social policy is an imperative for South Africa. Such a framework of social policy should be premised upon a notion of human security in order to built human capability. Human security focuses on the security of individuals and communities to strengthen human development. It emphasises on civil, political and socioeconomic rights for individual citizens to participate fully in the process of governance. Although this thesis is a case study of social policy in South Africa, it can be used to appreciate the role of social policy in other developing countries, particularly the impact of political decision making on social distribution. Poverty and social inequalities are growing problems in developing countries and so is the importance of putting these problems under the spotlight for political attention.
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- Date Issued: 2011
An empirical analysis of the Austrian business cycle theory with respect to South Africa
- Authors: Nyika, Farai
- Date: 2012
- Subjects: Business cycles , Business cycles -- Austria -- Econometric models , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9031 , http://hdl.handle.net/10948/d1020867
- Description: In 2008, the global economy went into recession. Millions of jobs were lost, confidence in the financial markets fell and billions of dollars were lost by investors. Prior to the onset of the recession, the major economies of the world (USA, and Western Europe) had experienced a period of economic boom and expansion. Austrian Business Cycle Theory proposes that the roots of the current financial crisis and recessions in general, are found the actions of central banks through credit expansion and manipulation of interest rates. Central banks manipulate interest rates causing them to fall below the natural level, leading to credit expansion and malinvestments. Austrian Business Cycle Theory is based in capital theory. Capital theory incorporates the elements of time and money and allows the setting of a microeconomic foundation. The theory recognises that investment is not an aggregate (as do Keynesians and Monetarists). Opposition to empirical testing by Austrian economists has meant that few statistical analyses of Austrian Business Cycle Theory have been carried out. The apprehension toward empirical testing of Austrian Business Cycle Theory stems from some Austrian economists who argue that human behaviour cannot be captured in statistical terms. Recently, some Austrian economists have begun to do empirical research Austrian Business Cycle Theory and the thesis adds to that growing field. The thesis tests empirically for ABCT in South Africa by using Vector Error Correction Model and Granger causality techniques and the results are as follows: The Vector Error Correction Model shows that any disequilibrium adjustment in the structural equations influences correction mostly through changes in Manufacturing. The disequilibrium adjustment process for Investment is also found to have statistical significance. The results propose that Investment in South Africa is not inert. The Granger causality tests show that credit expansion causes interest rates to be artificially lowered leading to mal-investments. The main policy recommendation is that business cycles can be prevented by not manipulating interest rates and by not increasing credit availability.
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- Date Issued: 2012
Exchange rates and economic growth in emerging economies: the case of South Africa
- Authors: Sibanda, Bornapart
- Date: 2012
- Subjects: Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11464 , http://hdl.handle.net/10353/d1007045 , Economic development , Currency convertibility -- South Africa , Foreign exchange -- South Africa , Foreign exchange rates -- South Africa , Foreign exchange administration -- South Africa , South Africa -- Economic conditions
- Description: This study examines the impact of exchange rate volatility and misalignment on economic growth in South Africa. It applies the Johansen co integration test and the vector error correction model on quarterly data for the period 1990:01-2010:04. Exchange rate volatility is measured as the standard deviation of both the nominal and nominal effective exchange rate. The study constructs three measures of exchange rate misalignment, with two of the measures constructed using the Producer Price Index and Consumer Price index based Purchasing Power Parity. The third measure was based on the difference between the nominal and effective exchange rate. Contrary to pre-dominant findings in the exchange rate literature, the study finds a positive and significant relationship between exchange rate volatility and economic growth and attributes it to composition of the country’s exports that are largely made up of commodities that act as essential inputs in many production processes. As a result, the variability of prices caused by exchange rate volatility is not expected to deter demand for these commodities. A negative and significant relationship between exchange rate misalignment and economic growth was found. The findings of the study show that it is important for monetary authorities to ensure that the exchange rate is always at an appropriate level in order to avoid the negative implications of exchange rate misalignment on economic growth.
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- Date Issued: 2012
Stakeholder management for urban development projects in South Africa
- Authors: Mgemane, Lesley Musa
- Date: 2012
- Subjects: Economic development projects -- South Africa , Project management , City planning -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , DBA
- Identifier: vital:9014 , http://hdl.handle.net/10948/d1018588
- Description: The study arose from a research issue that is both practical and theoretical. The apparent challenges of a stakeholder management nature in the execution of urban development projects in South Africa led to the conception of the study. However, the most compelling need for the study was the theoretical gap – in the urban development theory, in the projects theory, and particularly in the stakeholder management theory – on the management of stakeholders in the South African urban development projects. As a result, the value of the study is both managerial and scholarly. The urban development concept is understood to be referring to the development of urban areas for the purpose of improving the quality of life in the cities, and the development of the infrastructure to enable economic growth. Urban development projects, as vehicles for accomplishing urban development, are important for a newly industrialised economy (NIE) like South Africa. Also, as a result of the political past – in the form of a systematic preferential development based on racial segregation by the previous government, and the two decades of subjection of South Africa to economic and cultural isolation by the international community – South Africa has a huge backlog with regard to the two general purposes of urban development: social progress and economic progress. Consequently, urban development projects in South Africa are very critical and important, particularly for geopolitical and socio-economic reasons. Judging by the extensive negative media coverage, many of the South African urban development projects demonstrate poor stakeholder management. The list of urban development projects that have experienced stakeholder related challenges in South Africa is endless: the Johannesburg BRT project, the Gauteng Freeway Improvement project, the Transnet multi-product pipeline-construction project, the Chapman’s Peak toll-road project, the Kusile and Medupi power stations construction projects, are some examples. The project management profession and body of knowledge view stakeholder management in a serious light, actually a failure in adequately implementing stakeholder management in a project is tantamount to a failure of the project itself. There is also a consensus among numerous researchers that there is a general lack of knowledge for project managers on how to manage stakeholders, particularly external stakeholders. Stakeholder management is a poorly understood and, usually a very badly implemented project management discipline. Managing projects in Africa, and by inference in South Africa, can be particularly complex – given the involvement of multiple stakeholders and their historical, geopolitical, economic relationships, and cultural differences. The study set out to develop a framework to improve the management of stakeholders in urban development projects – by investigating the critical success factors that have an influence on stakeholder management success in urban development projects in South Africa. This study is important primarily because there seems to be no previous research conducted on this important project management discipline, stakeholder management of urban development projects; and there seems to be a neglect of stakeholder management duties by urban development projects agencies, and by inference, projects practitioners in South Africa. A theoretical space was created for this study in the fraternal literature of previous studies on critical success factors and/or stakeholder management in construction projects – as there seem to be none undertaken in the urban development environment, particularly in the South African context.
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- Date Issued: 2012
The role of export diversification on economic growth in South Africa: 1980 - 2010
- Authors: Mudenda, Caroline
- Date: 2012
- Subjects: Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11463 , http://hdl.handle.net/10353/d1007044 , Economic development -- South Africa , International trade , Exports -- South Africa , Capital movements -- South Africa , Human capital -- South Africa , Free trade -- South Africa , Foreign exchange -- South Africa , South Africa -- Economic conditions
- Description: This study examined the role of export diversification on economic growth in South Africa. The study used annual time series data for the period covering 1980 to 2010 and employed a Vector Error Correction Model to determine the effects of export diversification and possible factors that affect it on economic growth. Possible factors that affect export diversification considered as independent variables in this study include gross capital formation, human capital, real effective exchange rate and trade openness. Results of the study reveal that export diversification and trade openness are positively related to economic growth while real effective exchange rate, capital formation and human capital have negative long run relationships with economic growth. The study recommended the continual implementation of trade liberalisation by the South African government. The South African government is also encouraged to promote the production of a diversified export basket through subsidisation, promotion of innovation and production of new products.
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- Date Issued: 2012
Assessing financial viability of selected urban and rural municipalities in the Eastern Cape
- Authors: Maclean, Sindisile
- Date: 2013
- Subjects: Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Doctoral , PhD (in Public Administration)
- Identifier: vital:11661 , http://hdl.handle.net/10353/d1007093 , Finance, Public -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape , Sustainable development -- South Africa -- Eastern Cape , Human services -- South Africa -- Eastern Cape , Municipal services -- South Africa -- Eastern Cape , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: The purpose of the research is to assess the financial viability of selected urban and rural municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient and often rely on grants and transfers to satisfy their immediate short-term goal of providing basic services to satisfy the needs of their communities. Therefore, finance is regarded as an overriding and decisive factor for determining the viability of municipalities. The study seeks to investigate the financial viability of selected urban and rural municipalities in the Eastern Cape. Its key research questions are: Are municipalities able to provide sufficient funds to provide a range of services at an acceptable service level? To what extent do municipalities rely on external funding? Do municipalities have revenue collection capacity and revenue policies? The study asserts that most municipalities lack the required financial resources. They depend mainly on transfers from Provincial Government and equitable share and conditional grants from National Government. Section 152 (1) of the Constitution of the Republic of South Africa, Act 8 of 1996, states, amongst other things, that Local Government should ensure the provision of services to communities in a sustainable manner. The constitution further states that a municipality must strive, within its financial and administrative capacity, to achieve its objectives. The Municipal Finance Management Act, Act 56 of 2003, creates a framework for municipalities to borrow money and determine the conditions for short- and long-term borrowing. The Act assigns clear roles and responsibilities to the various role players involved in local government financial management. According to the Act, an annual budget for a municipality may only be funded from realistically anticipated revenues to be collected. As revenue projections in the budget must be realistic, the Municipal Property Rates Act, Act 6 of 2004, facilitates the collection of revenue in municipalities and establishes a uniform property rating system across South Africa. Property tax is the biggest element of local government tax revenue and is central to municipal finance. The Municipal Systems Act, Act 32 of 2000, amongst its objectives, provides for the manner in which municipal powers and functions are exercised as well as establishes a simple framework for the core processes of planning, performance management and resource mobilisation. The Act also provides a framework for public administration and human resource development. Finally, it also empowers the poor and ensures that municipalities put in place service tariffs and credit control policies that take their needs into account. The research contends that, whilst there is legislation and structures to assist and direct municipalities, it has been established that municipalities do not properly collect rates and taxes due to them to augment their revenue. The study has shown nevertheless that metropolitan municipalities have the capacity to collect revenue for municipal services. This is confirmed by their collection rate which ranges between 94 % and 97 %. There is also the culture of non-payment by communities for services rendered by the municipalities. Rural municipalities are exempted from property tax, while other rural municipalities who have an urban component, have to collect. There is also the question of unemployment and poverty. Consequently, municipalities are not self-sufficient and rely on grants and equitable share to survive. As a result of this lack of self-sufficiency, it is difficult to implement service delivery and also difficult to attract skilled personnel. The study has investigated why some municipalities fail to collect revenue and depend on national grants. The study employed both qualitative and quantitative methods. The findings of the quantitative paradigm have been presented in the form of graphs and charts. The major findings include: All municipalities have limited borrowing capacity; have not exceeded their budgets in terms of their spending; small municipalities have households as their main contributor of revenue collected; metropolitan municipalities get the big slice of their revenue from business; small and rural municipalities rely on grants and transfers and are therefore not financially viable; metropolitan municipalities are, to a great extent, financially viable but lack skills and capacity to utilize their resources for effective service delivery; and all municipalities under-spend their budgets. The study, after elaborating on the findings, makes recommendations on how municipalities should become financially viable.
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- Date Issued: 2013