Thesis (MDF)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: Poor financial management and a lack of financial performance are some of the major challenges that affect local government in South Africa. This has raised concern with regard to the financial sustainability of local government in South Africa. Furthermore, the poor state of financials in local government has directly impacted the ability of local government to execute and deliver on its constitutional mandate to deliver basic public services and goods to local communities. The lack of service delivery by local government has since resulted in service delivery protests around the country which have often turned violent. The improvement of the financial function in local government is said to have the ability to improve the general functioning of local government and lead not only to the delivery of basic public services to communities but also facilitate development in those communities. Thus, the objective of this study was to analyse and determine the drivers of financial performance and financial sustainability of local government in South Africa. The data that was used for the study is from all 278 municipalities in South Africa for the year 2013/2014. The study used regression analysis (Chi-Squared) with financial distress (performance) as a dependent variable and the following as explanatory variables: Type of municipality, cash cover, cash balances, reliance on grants and transfers, overspending, underspending, debtor growth, debtors as a percentage of own revenue and capacity in the key positions of the municipality. The regression analysis was supported by a contingency table and decision tress. The results and findings of the study are consistent with literature and indicate that the type of municipality, the degree to which a municipality relies on government grants and transfers, the manner in which a municipality manages it debtors, cash, creditors, its spending (in comparison to its budgets) as well as the extent to which municipalities adhere to legislative compliance all affect financial performance in local government in South Africa.

In an attempt to address the challenges of audit queries in a sustainable way and improve service delivery. Municipality should deal with causes of disclaimer and adverse opinion which are reflected on their audit report. This study focuses on the role of the Municipal Public Accounts Committee in the financial management of the Intsika Yethu Local Municipality. Challenges facing the Municipal Public Accounts Committee include lack of capacity, lack of co-operation from municipal departments and lack of knowledge and skill in municipal management. This study investigated the role of the Municipal Public Accounts Committee in the financial management of the Intsika Yethu Local Municipality. Particular attention was paid to the various roles played by the Municipal Public Accounts Committee making a contribution towards improving municipal financial management.

M.Comm. / The aim of this study is to examine the appropriateness of inflation targeting as the future monetary policy strategy of South Africa. In keeping with international trends, South Africa needs to recognise the changing financial environment in which the Reserve Bank must now operate. The purpose of this study is to show whether South Africa's economic environment and the SARB as the monetary authorities, are indeed ready for implementing inflation targeting in South Africa. Given the limited experience with inflation targeting, the theoretical analysis has formed the foundation that has shaped and influenced the thinking on this strategy monetary policy. The rationale for price stability as the long-term goal of monetary policy is pivotal to all the strategies for controlling inflation: exchange rate pegging; monetary targeting; nominal GDP targeting; the "Just Do It" policy; and lastly, inflation targeting. This study examines the key features and concepts of inflation targeting in order to determine their relevance in a framework for South Africa. Transparency and accountability are central to the inflation-targeting regime and depend largely on the independence of the central bank. It is important to establish the credibility and flexibility of the inflation-targeting framework through frequent communication and by ensuring the accountability of the central bank to the government and the public. Policymakers are faced with many issues and choices when designing the inflation targeting strategy and the potential benefits of the framework will depend on how effectively the strategy is formulated and implemented. It is vital that the design of the strategy attempt to effectively balance both the transparency and the flexibility of the framework. Once we have the theoretical basis we do a detailed analysis of the international experience with inflation targeting. The 1990's saw a number of countries adopting explicit inflation targets as the goal of monetary policy: New Zealand, Canada, the United Kingdom, Sweden, Australia, Finland, Israel, Spain and the Czech Republic. Each country had its own challenges and issues with designing the inflation-targeting framework. We draw on the lessons from the international experience to assess the applicability of inflation targeting for South Africa. After looking at a brief history of South African monetary policy we consider whether the institutional framework in South Africa is appropriate for effectively implementing inflation targeting. We also take a look at the issues of design and implementation that are relevant to the South African situation while considering the central question of whether South Africa is indeed ready for inflation targeting. Finally, we show that the success of an inflation-targeting framework in South Africa will depend on the ability of the Reserve Bank to ensure the transparency of monetary policy and the reliability of the inflation forecasts. At the same time, the credibility of the inflation-targeting regime will depend, not only on a political commitment by the government, but also on the unfailing support of the labour market and the general public. Thus, the biggest challenge facing the Reserve Bank is to prepare itself and the South African market for the new age of direct inflation targeting as an anchor for monetary policy.

M.Comm. / The overall objective of this study was to determine the appropriateness of Inflation Targeting to South Africa, or of South Africa's suitability for Inflation Targeting. For that reason, I shall produce information that will aid in the determination of whether the South African Reserve Bank has been correct in their adoption of this framework, and to propose an alternative, more all-encompassing option. The research design used in this study in terms of Tripodi, Fellin and Meyer's (1982:40) classification can be termed as a hybrid of the exploratory and the quantitative-descriptive designs. Chapter 1 introduces the reader to the research paper. This chapter incorporates the rationale and importance of the study, its methodology, hypothesis, limitations, aims, and referencing method. It sets out clear aims and objectives for the thesis while providing an overview of the material. To facilitate the analysis of Inflation Targeting in South Africa it was vital to have a clear and accurate understanding of what Inflation Targeting is. The definition and an analysis of the definition are covered in Chapter 2. As other authors have detailed this aspect voluminously, it is just dealt with summarily in this section. Chapter 3 discusses the requirements for Inflation Targeting as set out by the authorities. These factors are primarily of a technical nature. While the information garnered for this section is invaluable, it is inadequate in isolation. Countries' individual circumstances play an important role, and need to be considered along with the purely technical requirements for Inflation Targeting. This chapter is important in the analysis as it provides an important yardstick for the analysis of the requirements in South Africa. In order to attain an enhanced grasp of Inflation Targeting and its potential impact and effects on South Africa, it is imperative to take lessons from other countries where the framework has been implemented. Chapter 4 analyses international experiences with Inflation Targeting, with the main aim of learning from the experience of developed and, more importantly, developing nations. The paper then moves into the most important section: that of South Africa. Once a full understanding of what Inflation Targeting involves is obtained, both theoretically and empirically, we are in a position to consider where South Africa fits in. South African monetary policy is evaluated briefly, while the technical requirements of Inflation Targeting are analysed in their South African context. Various problems are discussed with the applicability of the framework to South Africa. The later part of this section analyses technical and socio-political complicating factors, while a description is provided of a suggested alternative framework. The final chapter concludes that South Africa is, indeed, almost certainly "less than suitable" for Inflation Targeting and suggests that a more holistic framework of a "GEAR-type" nature is more likely to be appropriate to a country with the uniqueness of South Africa.

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.

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.

This study examined whether or not financial intermediation can explain the variations in the savings-investment ratio in South Africa during the period 1990 to 2012. The study specifically tests the McKinnon Conduit Effect hypothesis which states that increasing interest rate raises the capacity of financial savings via financial intermediaries based on data from South Africa. Apart from informal graphical test, this study employed formal tests such as the Augmented Dickey-Fuller and Phillips Perron stationarity tests to test the properties of the variables considered, including interest rates, for stationarity. In order to ascertain the long-run and short-run dynamics between its variables, the Johansen co-integration test is utilized, while the Error Correction Mechanism is also employed. Results from the study state that financial assets (a proxy for financial intermediation), income and real interest rate all positively impact the savings-investment ratio. Additionally, short-run analysis results showed that income, financial assets and real interest rates positively influence the savings-investment ratio. Real interest rates were seen as being both positive and statistically significant. Therefore the study recommended that the financial services sector and the South African Reserve Bank (SARB) should work together as this will result in the improvement of efficiencies in price discovery with regards to bank charges, access to banking facilities and the timely provision of services in order to encourage savings (for investment purposes) in the South African economy.

M.B.A. / The aim of this study is to investigate whether the economic, policy / regulatory and market environments are conducive for the introduction of securitisation as a medium to attract capital to be deployed in the financing of housing in the low-to-moderate income sector. The objectives of this study are: To motivate a narrowing of the Credit Gap — the unavailability of suitable finance for houses between R20 000 and R60 000. To encourage the creation of an environment where holders of capital will be comfortable in investing such capital in housing finance and the borrowers would be willing and able to repay loans obtained for housing needs. To encourage the coming together of all stakeholders in the low-tomoderate income sector with a view to jointly addressing the problem of South Africa's housing backlog.

Thesis (M.M.)--University of the Witwatersrand, Faculty of Commerce, Law and Management, Wits Business School, 2016. / Alternative funding models for small and medium sized enterprises (SMEs) are more often than not reviewed from the perspective of the entrepreneur, in line with the need for funding in each growth phase. This research addresses the problem of funding availability for SMEs by interrogating what funding models are viable from the supply side through the growth phases of a small business in South Africa. The variables employed are loan amount advanced to the small business sector, risk appetite structures and measures, such as size, product, lending rate and sector. Using individual firm data in a cross section regression framework, the results of the study indicate a positive relationship between the size of the firm and the loan amount advanced. Evidence is presented that suggests that macroeconomic factors, such as the interest rate, do not have significant influence on lending. Further, and in confirmation of previous literature, this study indicates that there is a general lack of knowledge on how to fund small businesses in South Africa, and this research contributes to the existing literature by providing insights on the alternative models used by lenders to supply funding to SMEs. / GR2018

Thesis (DTech (Public Management))--Cape Peninsula University of Technology, 2017. / From a municipal perspective non-payment means that consumers, rate-payers and citizens are not fulfilling their obligations towards a particular municipality, contributing to a situation of insufficient available cash for day-to-day service delivery. The current debt situation in municipalities can be linked to the creation of a culture of non-payment due to the political situation in South Africa pre- and post-1994. Sections 1.1, 1.2 and 1.3 present the contributions and reasons for the current debt situation per the three spheres of government. South African municipal debt increased by 88 percent (R44 billion) over the last five financial years, from R50 billion in 2009/2010 to R94 billion in 2013/2014. The trend of 15- 20 percent per year increase in debt precludes the effective, efficient and economic provision of essential and emergency services to communities. All municipalities need to ensure that an effective collection relationship exists and that municipalities implement policies, by-laws, processes, procedures and systems in this regard. However, many municipalities fail in their quest for effective collection, or lack the capacity to utilise enabling legislation to implement an efficient and effective debt collection framework. This research study was conducted in response to this scenario, to identify and document existing problems through the development of guidelines and a framework for effective cash and debt collection. The guidelines will assist municipalities in collecting their outstanding debts.