M.Com. (Economics) / This study looked into the possible presence of structural inflation in South Africa. The South African rate of inflation has, by the time this study was undertaken, showed resistance to reduce in the face of several years of demand management policies. It was this resistance that led to the idea that the South African inflation rate might be the result of several structural factors in the economy. The study was done in three separate stages. In the first, a study of the conventional theories of inflation, the demand-pull and cost push theories, was done. The main objective was to establish whether inflation could be controlled by the medicine these theories prescribed. In section two, the different schools of thought as regards the structural approach to inflation were analyzed. The structuralist school, developed during the late 1950s, described inflation as the result of productivity discrepancies mainly between the agricultural and industrial sectors. The structural school, which developed during the early 1970s has two variations. The first, the Scandinavian variant, ascribes inflation to the existing productivity gap between the international competing sectors and the domestic sectors, whilst no corresponding gap in salaries between the relevant sectors exists. The second variant designates inflation to the gap existing between the labour productivity in the public and private sectors. Here again, no such salary gap exists between the sectors. The last structural inflation school of thought discussed was the one prevailing in the USA. This school saw inflation as the result of the unproductive use of capital and labour when measured against the incomes generated by the same factors of production. In section three of the study, the abovementioned theories of structural inflation were empirically applied in the South African context. In all cases very definite pointers, indicating the applicability ·of these theories in the South African situation were found. In all cases two main sector groups were constructed; each consisted as the sum of the weighted productivity of wages of the sectors belonging to that sector group i.e. internationally or domestically competitive and public or private competing groups. The constructed series for labour productivity and wages and salaries for the different sector groups were then compared.

D.Com. (Economics) / This study covers the possible causes of inflation in South Africa. Inflation is usually defined as a period of sustained increase in the general price level. The South African inflation rate has accelerated from a moderate start in the early 1960's, and has shown a persistent resistance to regain former levels ever since. This resistance called for an identification of the causes of inflation and for some light to be shed on the inflation process experienced in South Africa since 1965. The aim of the investigation was, firstly, to estimate an inflation function: and, secondly, to simulate the inflation rate. The study was carried out in two stages. In the first, a survey was carried out of all the applicable inflation theories. The conventional inflation theories, the quantity monetary theory and the demand-pull and cost-push theories were analysed. Consequently, the new inflation theories were discussed. The discussion starts off with an analysis of the Phillips curve, as interpreted by R. Lipsey, and the differentiation by Friedman and Phelps between the short-run and long-run Phillips curves, through to the criticism by the School of Rational Expectation.

AFRIKAANS: Die rol van plaaslike owerhede is nie slegs die van diensteleweraar nie, maar sluit in die ontwikkeling van plaaslike gemeenskappe om die lewenstandaard van almal in Suid-Afrika te verbeter. Die behoeftes van agtergeblewe gemeenskappe moet voorkeur geniet om deur plaaslike owerhede aangepak te word. Dit sal wesenlike finansiele bydraes vereis om die agterstande die hoof te bied. Plaaslike owerhede beskik skaars oor voldoende inkomstebronne om die verskaffing van noodsaaklike dienste na behore te onderneem. Die owerhede sal dus beswaarlik as ontwikkelingsinstellings kan dien. Elke plaaslike owerheid moet daarna streef om bestaande inkomstebronne optimaal te benut. Die belastingbasis kan uitgebrei word deur gebiede in te sluit wat nie voorheen aan eiendomsbelasting en paslike verbruikerstariewe onderworpe was nie. Addisionele inkomstebronne soos streeks- en vestigingsheffings, grondbelasting en brandstofheffing, wat as inkomstebronne vir plaaslike owerhede geskik is, moet verder ondersoek word. Indien verhogings van bestaande belastings of nuwe maatreëls ingestel word, moet dit met inagneming van die totale belastinglas, uitvoerbaarheid en politieke aanvaarbaarheid daarvan gedoen word. Plaaslike owerhede is geregtig op ‘n voorspelbare en regverdige verdeling van nasionale inkomste op vertikale sowel as horisontale basisse. Die horisontale verdeling is vanaf 1999 gebaseer op formules wat voordeliger vir plaaslike owerhede was. Vennootskappe van openbare en private instansies kan private instansies se bestuurskundigheid en kapitaal ten goede gebruik, maar behoorlike beleid en riglyne vir die uitvoering daarvan is nodig sodat nadelige mededinging nie tussen die twee sektore ontstaan nie. Lenings kan gebruik word om fondse vir kapitaalbesteding aan te vul, maar die nasionale regering moet duidelike riglyne stel om 'n sterk en innoverende sekondere mark vir lang- en korttermyn munisipale skuldbriewe te ontwikkel. ENGLISH: The role of local government is not restricted to service delivery, and includes the development of local communities to improve the standard of living for all in South Africa. Addressing the needs of disadvantaged communities must be accorded priority by local government. This will require major financial outlays in order to overcome the existing backlogs. Local governments generally have hardly sufficient revenue sources to render essential services satisfactory. They will thus find it difficult to serve as development institutions. Every local authority must strive to exploit existing revenue optimally. The tax base can be extended to include areas which were previously excluded from property taxation and appropriate user charges. Additional revenue sources such as regional service and establishment levies, land tax and fuel levies, which could be suitable revenue sources for local governments, should be investigated further. However, if new taxes were to be imposed, their impact on the total tax burden, practicability and political acceptance must be considered. Local governments are entitled to a predictable and equitable share of national revenue, on vertical and horizontal bases. Since 1999 the horizontal division has been based on formulas, which were more advantageous for local authorities. Partnerships of public and private institutions could make it possible for public institutions to better exploit the management expertise and capital of the private institutions, but this will require proper policies and guidelines to avoid detrimental competition between the two sectors. Loans may be used to supplement funds for capital expenditure, but the national government must provide clear guidelines to facilitate the development of a significant and innovative secondary market for short and long term municipal bonds. / Dissertation (MCom (Taxation))--University of Pretoria, 2006. / Taxation / unrestricted

The majority of South African learners attend public schools, all of which are encouraged to supplement government funding with private funds - namely through fees charged of learners' parents. A review of the literature suggests that school fees can impede the right to education and the achievement of other national development goals by restricting access for poor learners, or by diminishing the quality of education. While the issue of school fees has been hotly debated in South Africa, there is little information about what is actually happening in schools. This research, conducted in a peri-urban area outside of Durban, KwaZulu-Natal, is designed to explore the perspectives and experiences of principals with regards to the school fee policy. Eleven principals were interviewed: nine from relatively poor schools and two from a wealthier area, and their experiences with regards to the implementation of the school fee policy were compared and analysed. The findings suggest the implementation of the policy tends to be similar across schools of similar financial standing, but that there are considerable differences between the experiences of principals from poor and wealthy schools. The wealthier schools implemented the policy 'to-the-letter' and had hired staff and created systems to ensure all rules were properly followed. All of the poorer schools found parts of the policy impossible to implement in their schools and had adapted the policy in similar ways to better fit their situation. For example, amongst other adaptations, they allowed parents to apply for an exemption by simply discussing their circumstances with the principal, or obtaining an affidavit from the police, instead of making everyone fill out an official application form. Part of the problem is that the policy is based on assumptions which are not consistent with the reality of the South African context in that there are many different 'realities' faced by schools, yet there is only one rigid policy. Many schools find parts of the policy's processes to be impractical or irrelevant at best, and actually decreasing the quality of education they are able to provide at worst. Areas within which policy assumptions and reality did not match include: the implications of the distribution of income in South Africa on school financing; the power and access to information of parents and SGBs, and the ability or desire of parents to pay fees and/or be involved in the oversight of their children's education; and, the ability of provincial Departments of Education to properly support poor and/or Nonsection 21 schools. Additionally, Non-section 21 schools were found to be at an economic disadvantage compared with Section 21 schools. Another issue is that there are currently adverse incentives built into the policy. Amongst other effects these incentives encourage principals to minimise the number of exemptions approved, and for parents to either not pay at all, or to provide information to principals that underestimates their annual income. The significant contrasts in experiences between experiences of poor and wealthy schools and the adverse incentives built into the policy suggest the right question to ask may not be whether or not schools are implementing the policy correctly, but whether the policy is correctly designed to achieve the goals of the South African education system within the current context. / Thesis (M.A.)-University of KwaZulu-Natal, Durban, 2008.

This study reports the development and use of an original methodology to measure inflation credibility, as well as the first results of such measurement in terms of an inflation credibility barometer. The barometer is an instrument measuring the degree of acceptance of the accuracy of historic inflation figures. Despite the lack of knowledge about inflation and the low inflation credibility recorded by this first calculation of an inflation credibility barometer for South Africa, valuable information about inflation is unveiled to the authorities. The research results serve as a benchmark, but cannot be compared to earlier research, as this study represents the first systematic measurement of inflation credibility in South Africa. The barometer yields better results than the limited current international measurement of perceptions of the accuracy of historic inflation figures. The barometer (i) reports the credibility of inflation figures as a figure between zero and 100; (ii) will highlight changes in credibility over time with repeated use; (iii) can be explained easily to the general public; (iv) provides for international comparison between countries; and (v) can be used by all countries. The use of inflation credibility barometers and changes in barometer readings over time can also serve as an early warning system for changes in inflation perceptions that might feed through to inflation expectations. Sampling results used to calculate a South African inflation credibility barometer show little public understanding of the rate of inflation. Owing to an increased focus on inflation figures in countries using an inflation-targeting monetary policy, central banks entrusted with such a policy should adopt a communication strategy highlighting the calculation and measurement of the rate of inflation. This study shows that no generally accepted international benchmarks for successful central-bank communication strategies have been developed, but the use of the methodology developed in this study will assist in the assessment of the effectiveness of communication strategies. This study makes three further contributions of significance to available literature on inflation in South Africa. The first is an analysis of price increases and inflation over a period of 85 years (1921 to 2006) and a selected comparison of salaries and remuneration over a period of 78 years (1929 to 2006). To this end data sets were developed for comparative purposes, thereby distinguishing between perception and reality about the accuracy of inflation figures over time. As this comparison has not been done before, a methodology was developed that can be used in future research. Based on these comparisons an inflation accuracy indicator (JAI) is developed for the first time. The research showed no systematic over or under-reporting of price increases, therefore confirming the general accuracy of the consumer price index (CPI) over time. As with the inflation credibility barometer, this methodology can be used internationally to confirm the accuracy of countries' inflation figures over time. This methodology can also be used by developing countries with capacity constraints in economic modelling and forecasting. The second contribution to available literature is the first analysis of South Africa's experience with inflation over a period of 85 years from the perspective of the central bank. This analysis highlights not only the difficulties encountered by a central bank to contain inflation, but also focuses the attention on the policy errors of the authorities in their quest to contain rising prices. The third contribution is an analysis of international and domestic initiatives aimed at improving the accuracy and measurement of inflation. The implications of these initiatives for developing countries are considered in the interest of a level international playing field between developed and developing countries. / Thesis (Ph.D.)-University of KwaZulu-Natal, Durban, 2007.

This study analyses various perspectives on inflation targeting as a monetary policy framework in South Africa. The study uses semi-structured interviews with participants who represent the perspectives of trade unions, SARB, and academics amongst others. All the interviews were recorded on audio tape to ensure accuracy and effective data collection. The interviews of all participants were analyzed to establish degrees of similarities and differences amongst them. The study also looks at the relationship between inflation and interest rates. The use of interest rates as a tool to curb inflation is also discussed, as is the effect of the exchange rate on inflation. The Philips Curve Theory and the Fisher Hypothesis provide empirical evidence to support inflation targeting. Moreover, the perspective raised by the ANC Alliance partners were that an inflation band of 3% - 6% is too narrow, too low and hampers economic growth. Then Analysis suggests a significant policy shift away from inflation targeting after the 2009 elections, as a result of dissatisfaction from the Alliance partners of the ruling party. The main objective of this study is to solicit perspectives on inflation targeting from various political parties, trade unions, businesses, the SARB and academics, as well as investigate case studies from other countries. An underlying task of this study is to predict what South Africans should expect from a Zuma Government with regard to monetary policy. / Thesis (MBA)-University of KwaZulu-Natal, 2009.

Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2005 / The era kno"n as the Industrial Revolution was a period in which fundamental changes occurred in agriculture, textile and metal manufacture, transportation, the social structure and economic policies. The large number of unskilled people provided cheap labour and was used as easy replaceable tools. Employees have since become companies' most expensive '''assets''. The Internet was originally designed for military applications. The US military wanted a network that could withstand a terrorist attack and stilI work if important communication areas had been destroyed. The Internet, also known as the giant network of networks, has become a major catalyst for electronic business. The Internet caused the shape of companies to change and the way they conduct business. For example the Intemet enabled companies to be run from home and changed the old companies' structures. Sending data via a network is a lot faster and less expensive than making a telephone call or sending a messenger. Businesses have become more dependent on the Internet to generate revenue. E-commerce refers to the buying and selling of goods and services on the Internet and reduces the cost of doing business. The down side is that companies are also more exposed to inherent security risks. New technology with old methods of working is also no longer feasible. Many clerical tasks disappear and both the job functions of staff and the supervisory functions and procedures change. Information technology (IT) is increasing productivity, and thus, for a given output, a smaller number of people are employed. Increasing numbers of workers are retrenched when still in mid-career because labour is a most expensive commodity. The reduction in overheads and improved response of modem administrative systems increase the opportunities for organisations of all sizes to compete on an international level.

In March 1995, the South African government formulated the White Paper for the development and promotion of small business in South Africa to foster an environment in which small and medium enterprises could operate. SMMEs play an important role in job creation in South Africa. The survival of SMMEs is reliant on the abilities of the entrepreneur to succeed. An entrepreneur’s abilities and knowledge plays a very important role in the assessing process when applying for finance. There are various financial institutions in South Africa that have different criteria and turnover requirements to assess such applications. Financial institutions include banks, funds and privately owned institutions. The purpose of this study was to identify the financial success factors for SMMEs in the Eastern Cape. During the study, 32 success factors were identified. The most important factors amongst these include financials, knowledge of management, competition / market, past conduct of banking account, source of repayment, purpose, business ability / product, collateral, capital and industry risk / knowledge. These findings resulted in the various recommendations, as well as suggestions for further research opportunities.

The objective of this study was to investigate the effect of macroeconomic conditions on capital structure choices of listed South African firms. Three variables were identified to be of interest, namely: real gross domestic product (GDP) growth rate, inflation rate, and unemployment rate. The sample consisted of 230 listed firms, and analysis was done through fixed-effect regression. Macroeconomic variables were found to have an effect on capital structure choice of firms. Real GDP growth was found to have a positive influence on long term and overall leverage. Whilst inflation was found to have a negative effect on long term and overall leverage. Unemployment rate, on the other hand, was found to positively influence long term leverage, short term leverage and overall leverage. The findings from this study on the influence of both real GDP growth and inflation on leverage suggest that firm management make decisions on issuance of short term debt in a different manner to long term debt. The same was not true with unemployment rate though, this variable influenced both types for leverage in a similar manner. These findings have some implications for how managers should think about macroeconomic changes when making decisions on their firm‟s capital structure. / Dissertation (MBA)--University of Pretoria, 2014 / pagibs2015 / Gordon Institute of Business Science (GIBS) / Unrestricted

Thesis (MCom)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: “Within the context of the current market conditions, SCF may be one of the most attractive tools for companies to diversify funding basis, enrich and solidify their relationships with suppliers and their core banks.” – Michiel Steeman (Executive Director – Supply Chain Finance Community). (ING Group, 2013b). Insufficient cash flow is one of the major reasons for business failure in the current business environment. The spotlight is on collaboration between supply chain management and finance to release tied up cash in supply chains. Supply Chain Finance is a financial tool to help improve cash flow and optimise working capital to operate more efficiently. South Africa is one of the leading fruit exporters in the world with complex supply chains and even more complex financial arrangements. The need for Supply Chain Finance is aggravated by the long distances to overseas markets, and thus the long delay in payments after goods have been shipped. Supply Chain Finance is beneficial to the supplier, buyer and the financial service provider, creating a win-win-win situation. During this research the table grape export supply chain of Denau Farming is investigated to develop an explorative case study to implement Supply Chain Finance into their business model. During the research the problem of late payment received by buyers is explored by means of interviews and existing literature. A Concept Model is developed by adapting the Supply Chain Operations Reference Model (SCOR®) and the Management for Supply Chains (M4SC™) framework to identify the supply chain strategy during the current as-is physical and financial flow and to identify the gap in the supply chain. Two Supply Chain Finance solutions are identified based on Denau Farming’s financial needs in order to develop the to-be physical and financial supply chains and the resource changes required to facilitate the respective implementation. The final result determines how the proposed Supply Chain Finance solutions affect the expected cash-to-cash cycle time and the expected Economic Value Added (EVA®) in the case study. / AFRIKAANSE OPSOMMING: “Within the context of the current market conditions, SCF may be one of the most attractive tools for companies to diversify funding basis, enrich and solidify their relationships with suppliers and their core banks.” – Michiel Steeman (Executive Director – Supply Chain Finance Community). (ING Group, 2013b). Onvoldoende kontantvloei is een van die vernaamste redes waarom besighede in die huidige sakeomgewing misluk. Die kollig val op samewerking tussen voorsieningskettingbestuur en finansiering om kontant wat vasgevang is in voorsieningskettings te kan vrystel. Voorsieningsketting-finansiering is ‘n finansiële instrument wat kan help om kontantvloei verbeter en bedryfskapitaal te optimeer om meer doeltreffend te bedryf. Suid Afrika is een van die voorste vrugte-uitvoerders in die wêreld met komplekse voorsieningskettings en nog meer komplekse finansiële reëlings. Die behoefte vir voorsieningskettingbestuur-finansiering word vererger deur die lang afstande na oorsese markte, en dus die lang vertraging vir betaling nadat goedere reeds verskeep is. Voorsieningsketting-finansiering is voordelig vir die verskaffer, koper, en die finansiële diensverskaffer deur die skep van ‘n wen-wenwen situasie. As deel van hierdie navorsing is die tafeldruif-uitvoer voorsieningsketting van Denau Boerdery ondersoek as deel van die ontwikkeling van ‘n verkennende gevallestudie om sodoende voorsieningsketting-finansiering in hul sake-model te implementeer. Tydens die navorsing is die problem van laat betaling ontvang vanaf kopers in oorsese markte verder ondersoek deur middel van onderhoude en bestaande literatuur. ‘n Konsep model is ontwikkel deur die toepassing en aanpassing van die Supply Chain Operations Reference Model (SCOR®) en die Management for Supply Chains (M4SC™) raamwerk beginnende met die identifisering van ‘n voorsieningskettingstrategie tydens die huidige fisiese en finansiële vloei en die begin van ‘n gapings-identifisering vir die voorsieningsketting. Twee voorsieningsketting-finansiering oplossings is geidentifiseer gebaseer op Denau Boerdery se finansiële behoeftes en die ontwikkeling van ‘n verwagte toekomstige fisiese en finansiële voorsieningsketting asook die hulpbronveranderinge benodig wat die onderskeie implementerings kan help fasiliteer. Die finale navorsingsresultate bepaal tot watter mate die voorgestelde voorsieningsketting-finansiering oplossings die verwagte kontant-tot-kontant siklustyd asook die verwagte Ekonomiese Waarde Toevoeging (EVA®) in die gevallestudie beïnvloed.