M.Com. (Economics) / Please refer to full text to view abstract

M.Com. (Economic Management) / South Africa, as a developing country, has an enormous need for capital. Between 1980 to 1983, an amount of RBO billion was spent on fixed capital investment alone in this country. A large component of this investment originates from external sources and was financed by way of off-shore loans and other credit facilities. The developed countries, in order to promote their exports, have long realised that in addition to offering a competitive price and high quality product, competition also required that credit be made available to the importer. Presently the competition between the leading export countries result in the development of subsidised export credit schemes to promote the sale of industrial machinery and equipment. In cases where the fixed export finance rate is lower than market rates, Governments make up the difference between the export finance rate and commercial lending rates. Normally a fixed interest rate for the credit period is available in the exporter's currency. An important consideration when borrowing overseas, is the foreign currency exposure. With continuous fluctuations in the value of currencies the borrower is faced with a foreign exchange risk. This risk can be partially eliminated by hedging on the forward exchange market. In this study an analysis was made of the most important export credit schemes as well as the possible influence of forward exchange considerations. An importer has the option to also make use imported capital goods. Specific reference installment sale financing and financial leasing of local finance to pay for is made in this study to as methods of local financing. The purpose of this study was twofold: Firstly, an analysis of historic interest rate patterns pertaining to medium-term leasing and installment sale financing in South Africa and secondly a determination of the cost of export credit finance for the .same period was made. In this . way the study endeavored to determine whether, from the point of view of the cost of capital, it had been worthwhile to U8e export credit financing.

Credit plays a significant role in agricultural growth, and it is understood that development of credit programmes will have a valuable impact on agricultural production earnings of smallholder farmers. It is also a strategic factor to poverty alleviation. In Gauteng, smallholder farmers source their loans commonly from informal moneylenders. This results in access to formal credit being at a low rate. Results show that low level of education, main occupation, group membership and household income are significant and have encouraging effects on access to credit financial services. The results also reveal that threats associated with borrowing are high interest rates and unavailability of credit financial institutions. These threats are the main challenges faced by smallholder farmers in this study. Financial institutions claim that farming is a risky business; the distance of getting to farmers makes the evaluation procedure challenging, and strict principles in the aspect of collateral is a main challenge in providing credit to smallholder farmers. It is recommended that accessibility to credit by smallholder farmers be developed by providing advanced financing schemes that will address problems of smallholder farmers who do not have security and thus reduce lengthy processing of documents and other requirements. In this manner, smallholder farmers may be stimulated to use formal credit and decrease their dependence on informal moneylenders, thus avoid higher interest rates, which will positively lead to increased smallholder farm production and household income.

This study was aimed at investigating the high level of consumer indebtedness in the South African retail market more specifically factors that contribute to consumer indebtedness. Recommendations on how to control the level of consumer indebtedness are also presented. Consumer indebtedness is a problem in many countries around the world and as witnessed during the 2008 global financial crisis, its impact can be disastrous. Not only does it create problems for the families but also for a country and even to the extent of the whole world. The literature conducted did not reveal a study undertaken to investigate factors that impact consumer indebtedness. Eight factors were identified and explored further in this study. Results were analysed in chapter three and outcomes presented in chapter four. The method used in conducting this study is the quantitative method. A questionnaire was developed based on the literature review conducted. The questionnaire was a five point Likert scale and was distributed to the respondents in the southern area of Tshwane Municipal district. In view of a manageable number of responses, results were analysed using an excel spreadsheet. Results were verified by an independent expert. From the eight factors that are identified, one (easy access to credit) was found to impact the high level of consumer indebtedness. Although there are other weaknesses, easy access to credit is found to be the main contributor. Recommendations on the findings are presented in chapter five of this study.

M.Com. (Business Management) / Please refer to full text to view abstract

A research project submitted to Wits Business School in partial fulfilment of the requirements for the degree of Master of Management in Finance & Investment February 2016 / South Africa has one of the highest income inequalities in the world. Although evidence suggests that access to secured credit has a positive impact on improving individuals’ earnings and reducing income inequality, secure credit has not been readily available to everyone in South Africa owing to past injustice of apartheid. This provided a business opportunity to credit providers who rolled out numerous unsecured lending financial products into the market. These are products historically target middle to low-income earners who don’t qualify for secured loans due to lack of collateral or good credit history. Small and Medium Enterprises (SMEs) also resort to these products when financial institutions don’t grant them secured loans because of their imbedded risky nature. Capitec Bank and African Bank are the biggest players in the South African unsecured lending market. During the 2008 worldwide economic and financial crisis, many people lost their jobs in South Africa. The impact of the crisis continued to be felt way after the modest recovery achieved globally and domestically. As a result, most individuals could no longer afford mortgages and basic needs and services because of their compromised economic situation. Henceforth majority of individuals resorted to alternative income means for their survival. For most individual, unsecured lending was viewed as the quickest way of securing additional income to supplement their minimal or no income. This resulted in exponential countrywide growth in unsecured loans. As unsecured lending attract a higher interest rate than secured loans, other formal banking institutions have been attracted to this market resulting in compounded overall growth of the loan book. This research paper aims to explore the unsecured lending landscape in South Africa with the intension of discovering how it has evolved over the years. It also explores whether unsecured lending has been a helping tool to the less fortunate through its impact on their subjective wellbeing. The findings of the research indicated that individuals with unsecured loans have a lower subjective view of their personal wellbeing when compared to those without unsecured loans. However, unsecured loans improve individuals’ personal wellbeing through its direct effect on individuals’ health, educational status and income. / GR2018

M.Com. (Business Management) / This dissertation deals with the subject of feasibility studies, as applied to the determination of the viability of a business idea or - concept. The first section of the study comprised a search for available material on the topic. Information regarding feasibility studies and business plans, and the difference between the two, was gleaned from contemporary literature covering the subject, such as tutorials by the Small Business Development Corporation, as well as several local and international text books, in order to construe an appropriate framework for the compilation of such a study. In the second section of the dissertation the framework decided on was applied to a specific business idea. Information for the completion of this section was obtained by interviewing representatives actually engaged in a similar enterprise, requesting information from various departments of state and business enterprises, as well as searches in relevant literature. The dissertation concludes by reiterating that the purpose of such a study is purely to determine the viability or feasibility of a project or business idea, and should it be necessary to obtain funds from third parties in order to initiate such a business (given a positive result from the feasibility study), a comprehensive business plan should be compiled...

MSAEC / Department of Agricultural Economics and Agribusiness

Text in Afrikaans / Professionele etiek word nie altyd in ag geneem met besigheidsbesluite nie. Die vordering van kredietversekeringspremies is waarskynlik 'n voorbeeld daarvan. Die uitneem van kredietversekering is dikwels 'n voorwaarde vir die verlening van krediet deur sommige meubelhandelaars. Geweldige finansiele voordele wat voortspruit uit kredietversekeringskemas lei tot uitbuiting van die publiek deur sekere meubelhandelaars. Die verskillende kredietversekeringskemas wat in die meubelhandel toegepas word, voldoen nie aan die vereistes van die Woekerwet, 1968, en die Versekeringswet, 1943, nie. Hierdie oortredings het dikwels 'n wesenlike uitwerking op die geopenbaarde finansiele inligting van verskeie meubelhandelaars. Dit is die ouditeur se verantwoordelikheid om die statutere vereistes met die vordering van kredietversekeringspremies in ag te neem, aangesien dit 'n onwettige optrede, asook 'n onreelmatigheid kragtens algemeen aanvaarde ouditstandaarde is. Die ouditeur behoort toepaslik verslag te doen oor gevolglike wanvoorstellings van die finansiele inligting van die betrokke meubelhandelaars. Hierdie verantwoordelikheid word egter nie deur alle ouditeure nagekom nie. / The taking out of credit insurance is often a condition for the granting of credit by certain furniture traders. Enormous financial gains arising from credit insurance schemes result in exploitation of the public by certain furniture traders. Various credit insurance schemes in the furniture trade contravene the Usury Act, 1968, and the Insurance Act, 1943. These contraventions often materially affect financial information disclosed by certain furniture traders. It is the auditor's responsibility to consider the statutory requirements for the collection of credit insurance premiums, as this is an illegal act and an irregularity in terms of general accepted auditing standards. The auditor's duty is to appropriately report on resulting misrepresentations of financial information of such furniture traders. Some auditors however, do not comply with this responsibility. / Auditing / M. Compt. (Auditing)

Thesis (MBA (Business Management))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: The National Credit Act came into being on the 1st of June 2007 and besides its other objectives was intended to make credit more accessible to all South Africans, to stop unreasonable practices by lenders and to protect consumers against reckless lending. This research study investigates the credit environment for the period since the implementation of the Act up to the fourth quarter of 2009 to determine whether South African credit users are indeed better off or whether we are heading for a credit crisis. A literature review was conducted to investigate the extension of credit to households during the period under review and to investigate consumers’ ability and willingness to repay their debt. Due to the global and local financial crisis that happened during this period and the losses and wealth destruction that ensued, the research was extended to consider the influence of the macroeconomic situation on the debtors’ ability to honour their debt commitments. To determine whether South African households are heading for a credit crisis the researcher reviewed literature relating to the financial vulnerability of households, the application of their monthly disposable income, the main reasons for entering into credit agreements, and lastly the extent of over indebtedness. The findings indicate that credit has indeed become more accessible to all South Africans as the number of credit active consumers continued to increase from quarter to quarter. With regards to the cost of credit and the minimum qualifying criteria, credit also became more accessible as individuals earning as little as R1 500 per month became eligible for credit and store cards that used to be exclusive to higher income earners. During the period under review the standing of credit active consumers continued to deteriorate with only 54% of credit active users classified as current at the end of the period, almost 10% lower than before the implementation of the act. It was also found that macroeconomic influences from around the world had a real influence on the ability of credit active consumers to honour their financial commitments. Increased interest rates, inflation, higher transport and energy costs, unemployment and many other factors influenced the income available for and the ability to repay debt over the period under review. Lastly it was found that households are increasingly vulnerable to any changes in their income, expenses, savings or debt position. It is increasing to such an extent that more than 50% of all credit active consumers surveyed during a previous study admitted to borrowing in order to re-pay debt and that a relatively large percentage of users are committed to debt repayments for more than 100% of their monthly income. These findings support the opinion that a credit crisis is on the loom in the South African credit industry. Due to the relatively short period covered by the research stretches and the multitude of income groups and credit agreements included, more research is needed to make specific recommendations to improve the position of credit active consumers. The challenges facing the industry are further complicated by the need credit and other needs of the lower income earners, the required price-for-risk-policies of credit providers and the low levels of financial education amongst users. All three these themes require more research. / AFRIKAANSE OPSOMMING: Die Nasionale Kredietwet wat op 1 Junie 2007 in werking getree het het onder meer ten doel gehad om krediet meer toeganklik te maak vir alle Suid Afrikaners, om onbillike praktyke deur krediegewers stop te sit en om gebruikers te beskerm teen roekelose kredietverlening. Hierdie navorsing verken die kredietomgewing vir die tydperk sedert inwerkingtreding van die wet tot en met vierde kwartaal van 2009 ten einde vas te stel of Suid Afrikaanse gebruikers inderdaad beter daaraan toe is, en of ons afstuur op n krediet krisis. ‘n Literatuurstudie is onderneem om die toestaan van die verskillende tipes huishoudelike krediet tydens hierdie termyn te ondersoek, sowel as die gebruikers daarvan se gewilligheid en vermoë om hul maandelikse skuldverpligtinge na te kom. Vanwee die ernstige finansiële krisis wat tydens hierdie periode in die wêreld en in Suid Afrika grootskaalse verliese en welvaartsvernietiging tot gevolg gehad het, is die literatuurstudie uitgebrei om ook oorweging te gee aan die invloed van hierdie gebeure op skuldenaars se vermoë om hul skuldverpligtinge te diens. Ten einde vas te stel of Suid Afrikaanse huishoudings afstuur op ‘n kredietkrisis het die navorser literatuur bestudeer rakende die finansiële kwesbaarheid al dan nie van huishoudings, die aanwending van hul beskikbare inkomste, die redes vir huishoudings om geld te leen en laastens die omvang van gebruikers wat meer veskuldig is as wat hulle kan bekostig. Die bevindinge dui daarop dat krediet weliswaar meer toeganklik is vir alle Suid Afrikaners aangesien die aantal krediet gebruikers gedurende die tydperk van kwartaal tot kwartaal gegroei het. Wat betref die koste daarvan en die minimum vereistes daarvoor het krediet ook meer toeganklik geword, en kwalifiseer individue wat so min as R1 500 per maand verdien nou vir kreditkaarte en winkel krediet wat voorheen net beskore was vir die hoër inkomste groepe. Tydens hierdie periode het die status van kredietgebruikers verder verswak en het die persentasie kredietgebruikers wat op datum is met hul verpligtinge so laag as 54% gedaal; bykans 10% minder as voor die inwerkingtreding van die wet. Daar is verder bevind dat makro ekonomiese toestande in die res van die wêreld en Suid Afrika ‘n daadwerklike invloed het op die vermoë van kredietgebruikers om hul skuldverpligtinge na te kom. Stygende rentekoerse, inflasie, duurder vervoer en energiekoste, werkloosheid en vele ander faktore het die kontant beskikbaar vir en die vermoë om skuld te delg baie nadelig geraak oor heirdie tydperk. Laastens is bevind dat huishoudings toenemend kwesbaar is vir enige veranderinge in hul inkomste, uitgawe, spaar of skuld verpligtinge. Soveel-so dat meer as 50% van alle gebruikers van krediet erken dat hulle by tye geld geleen het om ander skuld te betaal, en dat ‘n beduidelnde persentasie gebruikers tot meer as 100% van hul besteebare inkomste verbind is vir maandelikse terugbetalings. Bogenoemde bevindinge ondersteun die opinie dat daar n dreigende krisis in die Suid Afrikaanse kredietomgewing is. Aangesien hierdie navorsing beperk is tot ‘n relatiewe kort termyn en dit ‘n groot spektum van inkomstegroepe en kredietooreenkomste dek, is verdere navorsing nodig om spesifieke aanbevelings te maak ten einde Suid Afrikaanse kredietgebruikers in ‘n beter posisie te plaas. Die uitdagings in die industrie word verder gekompliseer deur die krediet en ander behoeftes van laer inkomstegroepe, die noodsaaklikheid vir uitleners om hul produkte te prys vir die inherente risikos wat daaraan gebonde is en die lae vlak van finansiële opleiding onder gebruikers. Al drie hierdie temas benodig verdere navorsing.