A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, In partial fulfilment of the requirements for the degree of Master of Management (Finance and Investment), March 2016 / DFIs play a very important role in economic development of most countries. In South Africa (SA), they have an additional role of addressing socio-economic development and transformation problems that were created by the previous Apartheid system. In particular, DFIs in SA address unemployment, redistribution of income, private sector development and manufacturing sector growth. However, it is not clear whether these DFI’s are having a positive impact on the socio-economic transformation as they are expected to, given the amount of money that the government budget for them each year. The aim of this research is to investigate whether SA DFI’s have significant impact on the country’s socio-economic development and transformation. DFI credit extension is found to have positive and significant impact on economic growth in in both South African and in emerging markets. Also, in both South Africa and in emerging markets, government consumption has negative impact on economic growth. An additional analysis further shows that DFI credit extension promotes increase in manufacturing-toGDP in SA and in other emerging markets. DFI has significantly positive impact on HDI in South Africa but not in emerging markets. There is a positive (albeit not significant) impact of DFI credit extension on poverty in South Africa, worse still, the relationship is significantly negative in other emerging countries. The results show that the government should bolster the DFI funding as these DFIs play a significant role in the economic development of the country. / GR2018

Research presented for the degree of Masters of Management in Public Policy to the Faculty of Commerce, Law and Management of the University of the Witwatersrand, School of Public and Development Management. March 2016 / The purpose of this study is to analyse the changing nature of South Africa’s Macroeconomic policy in the post-apartheid era for the period 1994-2010. The key focus of the study is to uncover the factors that are a direct cause or have contributed to the paradigm shifts in policy during the specified period; supplementary to this, the study will look at how the changing paradigms have contributed in ridding the South African economy of its apartheid legacy, characterised by the triple challenges of poverty, unemployment and inequality. This study has a strong qualitative approach, comprising a comprehensive document review process, as well as 8 in-depth interviews with relevant experts in the field. This is further complemented by a supplementary quantitative analysis of key socio-economic data and statistics. The findings are that the observed paradigm shifts in macroeconomic policy during the period under review are a result of a number of key factors, namely: the changing domestic political discourse; the global and domestic economic climate; and the influence of domestic institutional arrangements, all of which have a direct impact on the policy discourse. Despite these paradigm shifts, South Africa continues to be faced with the triple challenge of poverty, unemployment and inequality; macroeconomic policy in the democratic dispensation has failed to deliver the core aims of South Africa’s economic development strategy. With the failures of orthodox neo-liberal macroeconomic policy, and the apparent shortcomings of Keynesian influenced redistributive macroeconomic policy, the key question facing policy makers is what direction South Africa’s Macroeconomic paradigm should follow. The idea of the developmental state, and its success in building emerging economies in South East Asia, is considered a viable option for South Africa to achieve an inclusive growth path. / MT 2018

A research report submitted to the Wits Business School, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in Innovation Studies. March 2015 / The purpose of the research is to identify interventions required for Local Economic Development Agencies (LEDAs) to achieve their role in supporting local innovation. This study uses a qualitative research methodology of inquiry and analysis of LEDAs. The methodology is based on a process in which themes are developed from categories that emerge from the analysis of data collected through techniques such as unstructured discussions with most of the Industrial Development Corporation (IDC) grant-funded LEDAs’ management and administrative personnel; parent-municipalities’ management; political leadership (mayors and councillors); observations, documented case studies on the five (5) LEDAs under study (ILembe, ASPIRE, UMhlosinga, Mandela Bay, and Lejweleputswa); and other LEDAs within the South African context, and those in other developing and developed countries. Given that the IDC has to date funded almost thirty (30) LEDAs throughout the nine provinces of South Africa, the five (5) LEDAs sampled, have been purposively selected. This study addresses the challenges that LEDAs face if they are to be successful. These challenges involve striking the right balance between operational freedom or agility and the need for effective policy and strategy leadership and supervision from the public bodies involved. There are also critical communication challenges that have to be addressed. Despite widespread acceptance within government of the need to pursue active economic development policies, it is not immediately apparent to citizens or media commentators that this is a natural arena for local government activity, and there is limited appreciation of what is appropriate local development activity or investment. From the study, it is evident that, since local economies respond best to integrated approaches that combine physical, social, economic, and environmental interventions, and these are activities where responsibility is usually widely dispersed amongst a range of bodies and authorities, it is critical that there is effective leadership both within the LEDAs and within the wider range of bodies to achieve co- ordination. Leadership overcomes institutional rigidities and gaps in mandates by fostering an integrated vision and collaborative organisations. At the same time, the possible absence of leadership in local government, in the business community of a locality, and in the LEDAs themselves, would make an integrated approach and public confidence very difficult to achieve and sustain. Drawing on the results of the study on the five (5) IDC-funded LEDAs, it is evident that there is overwhelming confidence in the LEDA model across local municipalities within the South African landscape. This is also pertinent in most developing countries, as is also the case in Organisation for Economic Co-operation and Development (OECD) countries. Through analysing the findings of the study, it has emerged that research consistently proves that historically, numerous developed and developing countries have opted to use the LEDA models as a preferred vehicle to implement local economic development at local and district municipality levels. However, for all LEDAs, there is a primary need to first define what value the LEDA will add, with clear goals and roles to its locality, before it is established. Furthermore, the analysis does not focus only on the LEDA in isolation, but focuses on the coherence and efficiency of how all the relevant institutions and formations in a locality work together in a ‘local innovation system’ (LIS). There is a tendency in the economic development arena to expect that a LEDA should succeed ‘on its own’ rather than by working within a local innovation system (LIS). This study has observed that, for LEDAs to be effective, they should operate within the well designed and co-ordinated local innovation system. This implies that the system of organisations for local governments must be well managed and integrated. This requirement must not be placed on LEDAs alone, but on all the relevant institutions and formations within a particular LEDA’s locality. It can be concluded from the findings mentioned in Chapter 4 that there is a ‘golden-thread’ that is characteristic of the five (5) LEDAs discussed in the study. This ‘golden-thread’ serves as a recommendation for LEDAs to adopt for them to be successful in achieving their mandates.

A thesis submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in fulfillment of the requirements for the degree of Master of Management by Research and Dissertation / This study focuses on the gap-filling role of the Development Bank of Southern Africa (DBSA). The use of development banks as a policy instrument to spur economic growth has been a practice followed internationally since World War II. Development banks are intended to extend financing to undertakings in the market economy deemed by the private sector as posing too much financial risk. Usually, these are development-orientated, low-profit green-fields projects initiated by clients in the public sector. By financing such development projects traditionally excluded by the market, the development bank fills a gap in the market. The DBSA was established in 1983 to bridge the gap between the industrialised central government and the underdeveloped Bantustan states and independent territories. At the time, the Bank could finance any development project so long as it fell within the Southern African region. However, post 1994, the DBSA mandate changed, shifting its focus to the public sector – low-income municipalities – and to particularly, specialise in financing infrastructure projects. Now altered, its development finance functions extended far beyond the Bantustan territories and independent states. Interest in the DBSA’s gap-filling role was generated by the observation that it had not been providing development finance according to the traditional tenets of understanding development finance. The problem was two-fold. The Bank’s target client was not necessarily the most deserving. Additionally, projects financed by the DBSA did not automatically fall within the infrastructure development mandate. This thesis has explored how, in light of its financier role prior and post 1994, the DBSA interpreted and acted in relation to its mandate as set out in its policy documents and strategies. This study also delved into the nature of projects financed and if they were in line with the traditional understanding of gap-filling. As well, this report investigated factors contributing to the DBSA’s deviation from its gap-filling role. To carry out this research, case study methodology was used in tandem with the qualitative approach. To answer research questions in-depth-unstructured interviews and document analysis were used. The study was both an exploration of the DBSA’s gap-filling role as well as examination of development finance in action in the South African context. The study drew on literature in New Institutional Economics (NIE) as an umbrella theory best suited to explore the DBSA’s gap-filling role. It was found that prior to 1994 the DBSA did act in line with its gap-filling role. However, post 1994 the Bank most certainly deviated from its gap-filling role. Contributing factors to this divergence were found to be an increasingly competitive private sector, confusion over its development mandate, a challenging municipal client base and a self-sustainability funding model. Prior to 1994, the DBSA enjoyed a monopoly over its target client base, the Bantustan states and independent territories. It had a broad development mandate coupled with capital backing from the Republic of South Africa (RSA) central government. Post 1994, the DBSA mandate was infrastructure development targeted towards the public sector. The Bank was required to adopt a self-sustainability funding model. This, coupled with entry into a competitive private sector moving into the development space, placed a great deal of pressure on the Bank. Therefore, it became necessary to finance profit generating projects rather than those initiated by its mandated low-income high risk client base – poor municipalities. This study contributed to DFI literature by illustrating what functions DFIs are mandated to perform compared to what they do in reality. Also, this analysis has shown traditional market-failure studies assume DFIs perform a gap-filling role. This has to be re-examined taking into account the changing institutional environment. And, particularly in South Africa, more studies need to be conducted to further understand limitations and opportunities the DFI model offers for overall development.

No abstract available. / Thesis (Ph.D.)-University of Durban-Westvile, 2002.

Thesis (M.Com. (Economic & Economic History)) - Rhodes University, 2007. / Thesis in partial fulfilment of the requirements for the degree Master of Commerce, Financial Markets in Department of Economics and Economic History.

The apartheid Johannesburg was built on spatial divisions, uneven development was undertaken literally to ensure that whites and blacks were to live apart from each other. In the post-apartheid Johannesburg, uneven development persists, though no longer solely based on racial differences. These spatial divisions, as they did under apartheid, reinforce existing structures of the privileged, which mutually reinforce the system of spatial, economic and social exclusion, particularly for the unemployed poor. In the light of the continuation of this urban form, the study aimed to show that people are not unemployed only because there are no jobs generally available to people lacking marketable skills, as primarily argued by most researchers; but also because there is a strong correlation between unemployment and the spatial distribution of employment opportunities within the Johannesburg city. The study also aimed to test the applicability of various theories imported from USA and Europe, which are generally used to explain urban problems in South Africa, through identification of possible areas of contention. In attempt to explain the continuation of the apartheid urban form by the current government policy, the study adopted qualitative data collection techniques focusing on literature studies, documentary, personal observation and the design of a theoretical framework Based on the theoretical framework, the study came to the conclusion that the preoccupation with compact city development to eradicate the effects of uneven development and urban unemployment in Johannesburg is misdirected. It has revealed the need for the government to explore how best to improve the circumstances of low-income households in condition of urban sprawl. The outcome of the study in relation to uneven development is that, although Johannesburg exhibits apartheid patterns of racial oppression and exploitation, in post-apartheid South Africa, Johannesburg is characterized by structural inequality driven by two income gaps: between an increasingly multiracial middle class and the rest; and between the African urban working class and the African unemployed and marginalized poor. In this context, uneven development in Johannesburg can no longer be explained solely by race. High levels of intra-racial inequality, especially among the African population, mean that there are other social forces at work. The study also found that there has been the steady relocation of economic activities to the southern part of Johannesburg, particularly in Soweto. And that the vast majority of new households in Johannesburg are settling in and on the edges of existing townships, most often on the outer edges, mainly because of the informal housing and government's subsidised housing. Nonetheless, these developments continue to perpetuate the apartheid legacy of uneven development. According to the conclusion of the study there is evidence to suggest that employment accessibility within different population groups is largely caused by spatial factors, such as employment decentralisation and residential segregation. / Development Studies / D. Litt. et Phil. (Development Studies)

Rapid economic growth has always been one of the goals of the South African government after 1994. Despite the contradicting views of the theorists, the country considered the global market as one of the gateways to accelerated economic growth. In the early 1990s South Africa opened up to foreign markets by removing trade barriers. However, the results of such actions were not entirely as expected. Different economists suggest other barriers that may be the reason behind lower levels of national output. This study examined the causal relationship between exports and economic growth in South Africa using annual data from 1970 to 2014. However, in order to achieve the main objective of this study, it was necessary to include other variables in the model as suggested by both theoretical and empirical literature. The choice of these variables was informed by an extensive review of literature on both exports and economic growth. The VECM and Granger Wild test has been utilised to capture the short run and long run dynamics of the model. The results from those tests do not approve of the Export-Led growth hypothesis and did not approve any sort relationship between exports and GDP in the short run. In the long run however, using the VECM, the study proved that exports have a positive impact on GDP. The results further suggested a negative long run relationship between consumption and economic growth. Furthermore; the results suggested that government expenditure can be detrimental to the economy in the long run. With regards to private investments, the results of this study suggest a positive relationship between investments and economic growth. Therefore, if South African government seeks to increase economic growth it needs to dedicate a considerable amount of resources in promoting local markets to expand South African exports, cut on government expenditure and attracting investment into the county.

It has not been previously argued whether development finance can or should be regarded as a distinguishable academic discipline in its own right. The main objective of this study was to create an in-depth understanding of the current perceptions and misconceptions of development finance within the South African financial sector, which have not been formally captured or analysed previously. The research is important in determining the magnitude of contemporary interest in, and the emphasis of, development finance as a means of developing society. Furthermore, public perception influences the funding of future development finance research, the emerging theoretical framework and disciplinarity, access to education and training in the subject area, the level of student participation and enrolment in development finance courses and qualifications, as well as the supply of skilled practitioners. To accomplish the research objectives, an extensive literature review was conducted so as to provide a theoretical framework for the empirical study. Subsequently, self-administrable questionnaires were distributed to a non-probabilistic convenience sample of 319 individuals who have decision-making experience within the South African financial sector. Thirty-one respondents completed the questionnaire and the results were examined by means of non-probabilistic frequency distribution and qualitative analysis, where appropriate. Pervasive disagreement was found to exist among the respondents regarding a number of key issues, including the definition and characteristics of development finance, in addition to its pedagogy, professionalisation, and disciplinarity. A substantial majority of respondents agreed that there is a shortage of development finance experts in South Africa and that local universities should begin to offer students an undergraduate degree majoring in development finance specifically. It is recommended that in order for future development finance research, pedagogy, and practice to be more meaningful, greater conceptual clarity and more consistent usage of terminology and subject boundaries should be employed by stakeholders.

Sustainability reporting is becoming increasingly important, and governments and stock exchanges of many countries require or strongly encourage businesses to provide some level of sustainability reporting. South Africa is one of few emerging market economies and the only country in Africa which show substantial sustainability reporting activities. In South Africa, sustainable development has been recognised at a constitutional and legislative level. Companies listed on the Johannesburg Stock Exchange (JSE) must integrate sustainability reporting with financial reporting, or explain why they are not complying. Establishing a suitable sustainability reporting framework should therefore be part of the strategic integration of sustainability with other aspects of organisational planning and decision-making. This study suggests such a framework of standards and indicators for sustainability reporting in South African businesses, and evaluates it in South African listed companies. Mixed methods research was used in two phases. In phase 1, a critical analysis of the literature produced a framework of standards and indicators to be used as a measure to evaluate sustainability reporting in South Africa. In phase 2, first hand, original data was collected by performing a quantitative content analysis of sustainability reports of 84 companies listed on the Johannesburg stock exchange with the aim to identify standards and indicators that are applied in the content of sustainability reports in South Africa. Quantitative content analysis involves analysing material and then classifying it into various coding units or themes found in the material - it is a systematic way of converting text to numerical variables for quantitative data analysis.