The dualism of South Africa's economy is reflected, most notably, in the country's high Gini coefficient which in 2010 was recorded at 63.14. The recent labour and social unrest in the country may be attributed in part to the socio-economic disparity between the first and second economy. Twenty-one per cent of the population lives on R1 000 or less. The majority of the population, 52 per cent, lives on R1 800 a month. Furthermore, only 29 per cent of the adult population in South Africa is employed full time. The unemployment rate in 2011 was 24.9 per cent and the unemployment rate for women remained higher than the national average between 2008 and 2012. Although the unemployment rate for both men and women increased in 2012, women were 1, 2 times more likely to be unemployed than men. The South African government has made some strides in alleviating poverty through various interventions, including formulating a job creation strategy aiming to create 5 million new jobs by 2020, providing social grants to the poor and adopting policies such as the Broad-Based Black Economic Empowerment policy support to promote black-owned businesses. However, the financial services sector has not been sufficiently addressed in these interventions despite the pressing need for reforms. There are currently six leading or mainstream banks which provide the full spectrum of financial services to the South African population. Many of these banks provide little or no access to the marginalised groups in society including women and alternative sources of finance for the poor are also limited. This study proffers that microfinance can be an effective mechanism which can be used to deliver financial services to the unbanked or those who only have access to informal banking services. More specifically, it focuses on how microfinance can be used to empower women and promote the growth and sustainability amongst women. The main objectives of the study are to identify and assess the critical success factors and shortcomings of the Kenyan microfinance model, which is well-developed and regulated and make recommendations for the South African microfinance sector. The study places specific emphasis on microfinance models tailored for women and women-owned businesses. The research approach adopted in this study was intended to be flexible, explorative and comparative. It draws from the lending models applied by Equity Bank in Kenya and Women's Development Business in South Africa. Both primary and secondary data was used in order to achieve the objectives of the study. The key findings of the study reveal that, the critical success factors of microfinance institutions which lend to women include the adoption of a multi-faceted lending methodology, group-based and individual lending, encouragement and facilitation of savings. Other critical success factors are educational and business skills training interventions and product innovation and diversification to meet the needs of these women.

South African regulation requires pension funds and their trustees to act in the best interest of their beneficiaries, according to their fiduciary duty. According to the preamble to Regulation 28 of the Pension Fund Act of 1956, this includes responsible investing (RI). However, the South African RI landscape, barring a few exceptions, is dominated by financial institutions other than pension funds who do not necessarily have the same legal and fiduciary imperatives. Using data gathered from semi-structured interviews with key people in the industry a grounded theory approach and content analysis this research addresses why there is limited RI action on the part of pension funds. The findings show that pension fund trustees lack understanding of RI as well as the full scope of their fiduciary duties mainly due to issues with trustee competency, resource allocation, and legacy behaviour and interpretations of legislation. Additionally, there is little accountability to both the regulators and members in this regard. The importance of addressing these reasons is brought into focus by considering the role of pension funds as constituents of the social security system, as savings institutions, as allocators of capital, and as part-owners of companies making RI consideration a natural and integral part of decision making. Based on the findings, this paper recommends appropriate training interventions for trustees, in addition to a review of trustee selection, appraisal and tenure. Furthermore, industry consolidation and agreement around RI frameworks and definitions would serve to improve understanding of RI. To improve accountability, the paper recommends the introduction of non-prescriptive, demonstrative reporting requirements. Important themes for further research include the competency of South African trustees and the development of frameworks for the understanding of RI in the industry.

This study investigates the relationship between financial innovation and economic growth in twenty-five countries in Africa. The relationship is estimated in a panel of countries, utilising Fixed and Random Effects Testing, and compared with the results when the same relationship is tested between individual African countries using the Ordinary Least Squares (OLS) method. Three proxies for financial innovation the growth in bank credit to the private sector, the ratio of broad money to narrow money and mobile penetration and data for four financial innovations automated teller machines, mobile money accounts and mobile money agents and mobile transactions are used in the estimations. The results indicate that measures which have a significant effect on growth and non-mobile related proxy measures, are generally negative. The mobile financial innovations generally have a positive effect, particularly in countries with low levels of financial development. This study firstly concludes that mobile linked financial innovation has a positive effect on growth in Africa, therefore policy and regulation should be geared towards encouraging further positive impact. Secondly, this study concludes that the level of financial development in African countries impacts the extent and the manner in which financial innovation impacts growth. It is recommended that the focus on improving financial inclusion, utilising financial innovation, particularly mobile financial innovation should be continued, in order to improve financial depth and efficient allocation of resources and financial intermediation. Further research is also required into the effects of financial innovation specific to individual countries, and the nuances between them, as well as the role of regulation and financial development on financial innovations effect on growth.

Small and Medium Enterprises play a very big role in an economy by creating jobs and value addition. There is no universal definition of Small and Medium Enterprises. Despite this important role, Small and Medium Enterprises are faced by numerous challenges such as lack of access to finance among several others. To circumvent this challenge Namibia has developed Development Financial Institutions namely Development Bank of Namibia as well as Small and Medium Enterprise Bank to ease the access to funding. Development Finance Institutions are established to finance the projects or activities that commercial banks may shy away. The establishment of these two institutions is supposed to result in significant growth and increase of the Small and Medium Enterprises in Namibia economy. This study therefore investigates the impact of these institutions in supporting the growth of Small and Medium Enterprise. The research used a case study research strategy that followed a descriptive-exploratory research design. The sample of eighty participants that were drawn from the Small and Medium Enterprises that were duly registered with the Ministry of Industrialisation, Trade and Small and Medium Enterprises Development. Data analysis was done by means of descriptive statistics such as tables, frequencies and percentages. Data analysis showed that, access to finance is a key obstacle towards the development of Small and Medium Enterprises in Windhoek as development finance institutions are approving relatively a small number of Small and Medium Enterprises. Recommendations were also made in relation to what needs to be done to ensure that Small and Medium Enterprises grow and development in viable ventures. Thus, the paper therefore suggested that the loans should be more affordable for the Small and Medium Enterprises to acquire necessary equipment. The Small and Medium Enterprises also need to approach Development Finance Institutions to access funds available. The growth of the bank's loan book has showed a growth in access to funding among the Small and Medium Enterprises.

This research investigates the factors that affect the performance of funded Small, Medium and Micro Enterprises (SMMEs) in the KwaZulu Natal (KZN) province of South Africa. Many studies have shown that access to financing is the major challenge facing small enterprises in Africa due to a number of factors which include information opacity and lack of collateral. Other researches however noted that many of the SMMEs in South Africa that had received funding from agencies set by the government or other private sources of funding struggled to attain sustainable growth and many of them failed, something which is puzzling to authorities and academics alike. This study sought to investigate possible causes of such failures through investigating a sample of 300 SMMEs that had received agency funding and operating in the KZN province. The study reveals that there are poor management practices within the funded SMMEs, with weak financial management and control systems in place. The study also reveals the lack of use of technology to leverage business growth. In addition the study reveals that there are no additional support structures put in place for funded enterprises which adversely affect their growth prospects. The study also raises important questions about the affordability and the structuring of the terms of financial support facilities made available to the SMMEs. Finally the study proffers policy recommendations to support the growth of SMMEs and ultimately to see them grow into large corporations.

Family businesses have been prevalent throughout history for the way in which they are able to combine family interests with those of the business. However, it is only recently-that the world has begun to recognize its significance and uniqueness. Stimulated by this recognition, there is a steadily growing body of academic knowledge that has started to consolidate more insight into the characteristics of the family birthed and operated enterprise as a viable business model. The history suggests that family businesses have played an integral role in nation building and for an emerging market environment like South Africa, could hold one of the keys to accelerate much needed broad-based economic advancement and participation. This study was shaped from a keen interest in investigating the tacit value that family owned business models can yield by conducting a comparative panel study of performance between family and non-family firms in the Clothing and Textiles manufacturing industry in the South African IDC portfolio (2009-2011). Key financial metrics, namely to return on assets, return on equity, income security cover, outside funds to cash flow and shareholders' funds to total assets were referenced. Regression analysis was used to estimate the relationship between performance and firms. Both qualitative and quantitative approaches were employed in the study to arrive at the results. Although studies have been conducted to show that family-controlled firms seem to perform worse than non-family firms, the results from this study show that family business performed better on return on assets when applying the data set in a regression analysis technique. The results also show that, founder and first generation owners have a significant impact on family business performance. Given the importance of family businesses, in terms of employment creation, informal training (skills development) and the economy at large, it is therefore critical that all efforts be made to assist the owners of family businesses to deal with the complex challenges they face to ensure their survival and growth.

It is customary to postulate that International Monetary Fund (IMF) agreements or arrangements in Sub-Saharan Africa (SSA) will facilitate foreign capital investments or FDI inflows from multinational corporations and or foreign investors. Through empirical observations, and using a two-stage modelling technique, this research tested and examined this hypothesis. It empirically showed that SSA countries that had IMF interventions for the period 1980 to 2015 attracted FDI inflows into their economies. The study rebutted the claim that countries with previous IMF interventions were likely to appeal to multinational corporations (MNCs) or foreign investors and thereby cause the inflow of FDI into Sub-Saharan Africa.

South Africa has in the recent past endeavoured to attract foreign direct investment through the liberalisation of capital controls. The question that has been raised is whether, in the wake of the recent global financial crisis and the corresponding response of economists that now more than ever the re-introduction of capital controls is necessary, the liberalisation of capital controls in South Africa is necessary. Therefore the study endeavours to investigate, taking cognisance of the pecularity of the country, whether the liberalisation of capital controls in the form of exchange controls has had a positive effect in attracting foreign direct investment. Other determinants of foreign direct investment are considered to identify whether focus should perhaps be on these determinants to inform policies implemented to attract foreign direct investment.

The mining industry in South Africa has been involved in communities for many decades. Mining companies found themselves in the 'spotlight' for the conditions linked to the migrant labour system they adopted. Similarly, it is important to note that mining in South Africa is the major contributor to the GDP and plays an important role in economic growth and community development, given the country's legacy of mineral resources. To deal with the negative perception of mines, the mines responded by trying to mend their tarnished images through engaging in various CSR-linked initiatives, although such initiatives are seen as mere philanthropic acts by the affected communities; in this case, the Dube, Mbonambi, Mkhwanazi and Sokhulu (DMMS) communities in Richards Bay, KwaZulu Natal. Consultation needs to begin before any mine development takes place, not after the mine has begun operating, which is often the case. The persistent problems within the Richards Bay Minerals (RBM) vicinity are viewed by the DMMS communities as those that the company gives salience to without consideration of the communities' needs. Genuine CSR policies must be implemented and be updated according to needs of the surrounding communities, to avoid bias and to be seen to be doing well to the community while in actual fact the programmes are not sustainable. The research which was conducted using a qualitative methodology had a total of 16 respondents taking part. The study was conducted using the interview technique. Some of the key findings included that fact that respondents were unhappy with the numbers of community members who were employed at RBM's mining operations. The community members also felt that the mining company had not invested adequately in community projects. In order to address the challenges the company is facing with the DMMS communities, some of the respondents suggested that job opportunities should be awarded to the communities on a proportional basis depending on the size of the community. The respondents also suggested that more people from the host communities should be given jobs at RBM. Some of the recommendations that have been made in order to address the challenges RBM has been facing with its host communities include conducting a study in order to understand the host community better in order to better structure its CSR projects aimed at benefitting the DMMS communities. The other recommendation is frequent engagements with the community members regarding CSR project plans.

The recent global financial crisis which began in the United States of America in 2007, spread to almost all economies in the world and evolved into a world economic downturn. Governments around the world introduced different rescue interventions to avoid the collapse of the financial and banking system and to stimulate economic growth. In addition to large scale economic stimulus packages, other forms of Government interventions were introduced in direct support of non-financial firms including Small and Medium Sized Enterprises (SMEs). These Government interventions have attracted little empirical attention with recent studies pointing out to the need for more evaluation of the impact of direct support interventions. This study attempts to contribute to the literature which focuses on the impact of interventions introduced by governments in developing countries, to resolve market failure in non-financial corporate companies as well as SMEs. This study is focused on assessing the effectiveness of the IDC distressed funding scheme in rescuing distressed companies in South Africa following the recent global financial crisis. We investigate the effects of the scheme on the financial performance of beneficiary companies. Our results show that overall the funding had a positive impact on beneficiary companies. The impact was greatest on the solvency, capital structure and leverage of the awarded companies. The funding was most effective in the first year following the injection of the capital into the business. The profitability and liquidity of the beneficiary company did not change significantly following accessing of the funding.