MCom (Economics) / Department of Economics / This study assesses the level of financial literacy and its impact on financial decision making exercised by the tertiary students in South Africa, using the University of Venda (Univen) as a case study. The study does this in three steps. First, it provides the financial literacy levels of students at Univen assessed through an evaluation score that the sampled students responded to. Second, it analyses the relationship between the demographic and socio-economic characteristics of students and their financial literacy levels. Third, it assesses the possible effects of financial literacy on financial decision making among students using correlation and regression analysis. The study uses primary data gathered by the author from the University of Venda registered students in the form of questionnaires. A stratified random sampling method was used to identify the students to form the sample of the study, which is 373. Percent slightly above 50 per cent of these students were found to be financially literate and there were more female students who were financially literate compared to male counterparts. Using the odds ratios, the study compared the financial literacy levels of all schools to the school of Management Sciences, respectively. Only students in Environmental Sciences and Law have higher literacy levels, which are statistically significant, compared to the students in the school of Management Sciences. The results also show that the age and the parent’s educational background have a statistically significant relationship with the student being financial literate. Furthermore the results indicate that there is a statistically significant relationship on good financial decision making (that is, budgeting, savings and investments) and being financial literate, compared to being financial illiterate. This result is not true when borrowing is used as a measure of financial decision making. / NRF

The aim of this study was to investigate reasons for non–payment by residents for services rendered by the Vhembe District Municipality. The municipalities are responsible for delivering such services as water supply, electricity, road maintenance, refuse collection and sanitation. Multistage sampling techniques were employed. The subjects in the study were grouped into clusters and a sample was taken from each cluster. In this case the municipalities that took part in the study were selected first, followed by wards, villages and households. Households in the selected villages were selected randomly to participate in the study. The results showed that although the municipalities were making an effort to raise and send bills to the residents, the residents were not forthcoming with payments. The reasons advanced for the unwillingness to pay services by residents include ignorance, poverty and simple unwillingness to pay. / Public Administration & Management / M.P.A. (Master of Public Administration and Management)

Financial innovation is a process that is not fully understood because of ~ts nebulous nature and the difficulties in determining its causes and effects. The pace of financial innovation has increased rapidly in recent years. With this increased level of new financial instruments and processes has also come the realisation that financial innovation may well influence the successful application of monetary policy. Under certain circumstances monetary policy may hampered or may be rendered ineffective by financial innovation. This dissertation examines the nature and causes of financial innovation and its implication for the successful application of monetary policy both internationally and in South Africa. / Economics / M. Com (Economics)

Thesis (MDF)--University of Stellenbosch, 2010. / The constraints that impede the growth of smallholder farmers have been attributed to lack of access to markets and technical expertise. This has led to mainstream banks classifying smallholder farmers as high risk and therefore unwilling to finance smallholder farmers. Contract farming has developed as a model that may be able to link smallholder farmers with agribusinesses who have the expertise and have built marketing channels that can be utilised by the smallholder farmers. Despite its potential to bring smallholder farmers into the mainstream agriculture industry, literature on contract farming has indicated that contract farming can be skewed in favour of the agribusiness due to their superior bargaining power and information asymmetry in favour of the agribusiness. This study examines the Industrial Development Corporation (IDC)’s Kat River Development Scheme to finance nine farmers through a contract farming arrangement with Riverside (Pty) Ltd. More particularly, the study examines how this financing model contributes to improved access to finance, markets and technical expertise for the farmers. It also examines how the arrangement contributes to reducing the risk of financing smallholder farmers for IDC. The empirical analysis indicates that, despite the fact that the farmers are able to obtain access to finance, market and technical expertise, the ability for the scheme to meet its objectives in the long term is dependent on improving transparency between the agribusiness and the farmers, providing appropriate incentives for the farmers to apply the required effort and the farmers buying into the long term strategic aim (or “big picture”) of the scheme.

Thesis (MComm (Business Management))--University of Stellenbosch, 2006. / For the last 40 years, academics advocated the use of the traditional Discounted Cash Flow (DCF) techniques but these suggestions were ignored by practitioners for a long time. The Net Present Value (NPV), Internal Rate of Return (IRR) and Present Value Payback Period (PVPP) are now some of the more widely used traditional DCF-based techniques, especially among large firms. However, academics are now criticising these techniques as they are based on rigid assumptions that ignore the management of flexibility in projects. The Real Option Valuation (ROV) is suggested as an alternative technique because it implicitly incorporates this flexibility in project valuation. With ROV, opportunities in projects are treated as real options and are therefore valued using financial option principles. Real options give the firm the opportunity to act on an investment project (invest, abandon, rescale) at a later date, when more information is available. As with the traditional DCF-based techniques in the past, few firms seem to have adopted ROV despite academics’ recommendations. This study is thus aimed at determining through a survey, whether the largest firms in South Africa, specifically those included in the JSE/FTSE Top 40 index, are using ROV. Based on the results of the survey, it is concluded that firms generally do not use ROV as only nine percent of the respondents were found to be using it. This is largely attributed to managers being unaware of the technique, and to some extent, to the technique’s complexity. On the other hand, managers were generally found to recognise the flexibility despite not using ROV, although it was not confirmed whether they quantify this flexibility.

Thesis (MPA)--University of Stellenbosch, 2011. / Since its inception in 1861 when the first public accounts committee was established in the United Kingdom, this oversight mechanism has developed into a model for non-executive financial oversight and accountability at the national and provincial levels of government throughout the Commonwealth and beyond. A few municipalities in South Africa have also established public accounts committees, but they are a few isolated cases. The hesitance on the part of South African municipalities to establish a good governance mechanism with a proven track record is a cause of concern, especially in view of the poor financial management that prevails throughout the local sphere of government. In this case study of the public accounts committee established in the City of Cape Town in 2006, the researcher explores the feasibility of the implementation of the public accounts committee model within the local government sphere in South Africa. Twenty internationally recognised public accounts committee practices were identified and used to probe the selected case to gain in-depth knowledge of the extent to which the committee adheres to these recognised practices. Where the committee deviated from accepted practices, the reasons for the deviation and its impact on the effectiveness of the committee were analysed. Finally, the key lessons learnt from the experience of the public accounts committee in the City of Cape Town are used in order to make two sets of recommendations: Firstly, recommendations on how the public accounts committee of the City of Cape Town can become more effective than it currently is – recommendations which are also relevant to any municipality wishing to establish a public accounts committee. The second set of recommendations is addressed to the national authorities in charge of finance and local government, as the challenge of establishing improved governance systems in local government is of national importance, and it is within the power of these authorities to remove a few key obstacles in the way of establishing municipal public accounts committees.

Thesis (MPA)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: The need for sustainable human settlements, particularly for the poor, is crucial in South Africa (SA). This is because of the apartheid spatial constructs that segregated the black population groups from white minority and denied them equal access to economic opportunities, housing, as well as basic and social services (Smeddle-Thompson, 2012). Many South Africans remain without basic services in the many informal settlements. Even those who have jobs and a consistent salary find it difficult to sustain a decent quality of life, as they fall outside of the subsidy bracket but at the same time are unable to afford and access the mortgage products available from commercial banks (Department of Human Settlement, 2009). Consequently, the South African government is faced with the task of developing sustainable human settlements and improving quality of household life. For this reason, many initiatives such as legislative frameworks, policies and programmes to drive housing delivery have been established since 1994 and millions of rands have been used to implement such initiatives. However, housing delivery remains a challenge. Thus, the researcher sought to investigate the viability of rural housing finance in creating sustainable human settlement in rural areas, with special focus on Moletlane Village as a case study. Like many rural areas in SA, Moletlane village is still faced with a challenge of housing delivery. This study was conducted within the interpretive qualitative paradigm. Techniques to collect data focused on questionnaires and interviews for validity purposes and to counter subjectivity. For the survey, 100 participants were purposefully selected based on their knowledge and their expertise in rural housing finance. The survey was followed by in-depth interviews with key personnel of Moletlane Village and a few ordinary community members to verify and complete some answers. The researcher used data collected to draw findings and made recommendations. The foremost findings revealed that rural housing finance plays a major role in rural development as it provides people with the opportunity of improving their houses and rescues them from living in substandard conditions. The overall sentiments from the respondents are that rural housing finance has led to an increase in the economic activity and job creation which is a solid foundation for the creation of sustainable human settlements. This study has established a link between rural housing finance and rural development. It is clear from the findings that participants believe in rural housing finance and value it. They see it as a good strategy to liberate their lives and of realising sustainable human settlement. However, they all acknowledged that institutions that provide housing finance are not doing much to assist rural households and that there is a gap in as far as rural housing finance is concerned. Almost all of them indicated their wish to see rural housing finance across the country. Moreover, they are of the opinion that a paradigm shift is required to tackle the rural housing finance shortfall. Hence, the study present to policy makers and government a set of recommendations discussed in full in chapter 6. / AFRIKAANSE OPSOMMING: Volhoubare menslike nedersettings veral vir die armes, is van deurslaggewende belang in Suid-Afrika. Dit is as gevolg die ruimtelike afbakenings van apartheid dat die swart bevolkingsgroepe van die wit minderheid gesegregeer is en hulle gelyke toegang tot ekonomiese geleenthede, behuising, asook basiese en maatskaplike dienste ontneem is (Smeddle-Thompson, 2012). Die meeste huishoudings kan nie bekostig om in ordentlike huise te woon of bekostig om goedgeleë grond te besit nie. Gevolglik staar die taak van behuisingsverskaffing die regering in die gesig. Vele wetgewende raamwerke, beleide en programme om aan behuisingsverskaffing te voldoen, is sedert 1994 in die lewe geroep. Miljoene rand is gebruik om behuisingverskaffing te implementeer, tog bly behuisingsverskaffing ’n uitdaging. Hierdie navorsing ondersoek die haalbaarheid van landelike behuisingsfinansiering deur volhoubare menslike nedersettings in landelike gebiede te skep, met spesiale fokus op Moletlane Village as ’n gevalle-studie. Hierdie studie is ’n gevalle-studie wat binne die interpretatiewe kwalitatiewe paradigma uitgevoer is. Tegnieke wat gebruik is om data in te samel het op vraelyste en onderhoude gefokus vir die doel van geldigheid en om subjektiwiteit teen te werk. Vir die opname is 100 deelnemers doelbewus gekies, gebaseer op hulle kennis en sommiges vanweë hulle kundigheid in landelike behuisingsfinansiering. Die opname is gevolg deur deurdringende onderhoude met sleutelpersoneel van Moletlane Village en ’n paar gewone gemeenskapslede te voer om sommige antwoorde te kontroleer en te voltooi. Data wat ingesamel is, is gebruik vir bevindinge en om voorstelle te maak. Bevindinge het openbaar dat daar ’n groot aanvraag vir landelike behuisingsfinansiering is. Dit speel ’n belangrike rol in landelike ontwikkeling, want dit plaas landelike mense op dieselfde vlak as diegene in townships en voorstede. Dit maak dit moontlik vir landelike mense om kwaliteit behuising met spoeltoilette, lopende water, warmwatersilinders, sanitasie en ander geriewe te hê wat as vreemd vir landelike gebiede voorkom. Die algehele sentimente van die respondente is dat landelike behuisingsfinansiering tot ’n toename in ekonomiese aktiwiteit en werkverskaffing gelei het, wat as ’n vaste grondslag dien vir die skepping van volhoubare menslike nedersettings. Oor die algemeen het landelike behuising lewens verander, mense van die vernedering gespaar wat onder gesubstandaardiseerde omstandighede lewe en sodoende die waardigheid van die mense herstel. Dit word bewys dat instellings wat behuisingsfinansiering verskaf, nie veel doen om landelike huishoudings te help nie, maar indien hulle hul daartoe verbind, kan hulle die behuisingsfinansiële mark uitbrei. Deur hierdie navorsing, is ’n skakel tussen landelike behuisingsfinansiering en landelike ontwikkeling teweeggebring. As gevolg hiervan, is ’n aantal aanbevelings in hierdie studie gemaak wat breedvoerig in hoofstuk 6 bespreek word.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Small and medium enterprises have an important role to play in the South African economy. The success of SME’s will lead to economic growth, that will play a major role in reducing unemployment in South Africa. It will also be the main driver for black economic empowerment. As elsewhere in the world one of the main problems that SME’s face is the need for finance and access to finance. Banks play a major role in providing finance to SME’s by providing different forms of finance to SME’s. The finance that the shareholders / directors can access in their personal capacity plays a critical role in the provision of finance to SME’s. Banks will require security when advancing credit facilities and the security that is offered by the shareholders / directors play an important role in the decision of banks to advance credit. The risk that the banks carry when granting credit facilities to SME’s is reduced when personal suretyships of the directors / shareholders are required. The personal assets of the shareholders / directors are used as security to obtain credit facilities for the SME’s. If the SME’s should fail, the banks will liquidate the personal assets of the directors / shareholders to settle the credit facilities that were granted to the SME’s. Customers are not aware of the dangers when signing surety. Banks have fiduciary duties towards their customers to inform them of any risks and what possible solutions might exist that will minimize the adverse financial effect of such risk consequences. If the surety should die, the bank will have the option to liquidate the assets of the sureties to settle the debts of the entities for which the surety has signed personal surety. Life cover can be affected on the lives of the sureties that will provide the necessary liquidity to settle the debts of the entities without the bank having to liquidate the personal assets of the sureties. Consumer protection has become widespread where the phrase caveat emptor has been replaced by caveat vendor – let the seller be aware. In addition to this the South African Government has also enacted legislation that banks have to adhere to that will lead to customers making informed decisions. The National Credit and the Financial Advisory and Intermediary Services Acts have been introduced to afford the customer more protection. The banking industry has adopted the Code of Banking Practice which places responsibility on the banks to fully disclose all risks to their customers. It is especially the surety, the person that provides security for the debts of others that now enjoys increased protection. The National Credit Act affords a surety the same protection as the principal debtor and the Code of Banking Practice also contains very specific references with regards to sureties. Banks have become a business and the traditional notion that holds that business ethics and absolute adherence to legislation, industry codes and its own code of ethics will have an adverse effect on business, no longer holds. Many reasons have been given by ABSA Bank as to why the financial planners of ABSA Brokers should not be part and parcel of each transaction where credit facilities are extended to their customers. The reality however is that the Financial Planners must be made part of the process when credit facilities are extended. The Financial Planners must provide a financial needs analysis to the customer that will enable the customer to make an informed decision as to whether to implement life cover or not. By making the financial planners part of the process ABSA Business Bank will ensure adherence to legislation, industry codes and most importantly, it will fulfill the fiduciary duty that it has towards its customers. / AFRIKAANSE OPSOMMING: Klein en medium ondernemings (KMO’s) speel ‘n belangrike rol in die Suid-Afrikaanse ekonomie. Die sukses van klein en medium ondernemings sal lei tot ekonomiese groei, wat sal bydra tot ‘n afname in werkloosheid in Suid Afrika. Dit sal ook die hoof drywer wees van swart ekonomiese bemagtiging. Soos elders in die wêreld is een van die hoofprobleme wat deur KMO’s in die gesig gestaar word die behoefte aan finansiering en die toegang tot finansiering. Banke speel ‘n belangrike rol in die verskaffing van finansiering deurdat finansiering in verskeie vorme aan KMO’s beskikbaar gestel word. Die finansiering wat aandeelhouers / direkteure in hulle persoonlike hoedanigheid kan bekom speel ‘n kritieke rol in die verskaffing van finansiering aan KMO’s. Banke vereis sekuriteit wanneer kredietfasiliteite beskikbaar gestel word en die sekuriteit wat deur die aandeelhouers / direkteure aangebied word speel ‘n belangrike rol in die banke se besluit om krediet te verskaf. Die risiko’s wat banke loop wanneer kredietfasiliteite aan KMO’s beskikbaar gestel word, word verminder wanneer persoonlike borgskappe van aandeelhouers / direkteure vereis word. Die persoonlike bates van die aandeelhouers / direkteure word gebruik as sekuriteit om kredietfasiliteite vir KMO’s te bekom. Indien die KMO’s sou misluk, sal die banke die persoonlike bates van direkteure / aandeelhouers te gelde maak om die kredietfasiliteite wat aan die KMO’s beskikbaar gestel was af te los. Kliënte is nie bewus van die gevare wat hulle loop wanneer hulle borgskappe verleen nie. Banke het fidusiêre pligte teenoor hulle kliënte om hulle in te lig aangaande enige risiko’s en watter moontlike oplossings daar bestaan wat enige nadelige finansiële gevolge sal beperk. Indien die borggewer tot sterwe sou kom, het die bank die opsie om die bates van die borggewer te gelde te maak om die skulde te delg van die entiteite waarvoor die borggewers persoonlike sekuriteite verskaf het. Lewensdekking kan aangegaan word op die lewe van die borggewers wat die nodige likiditeit sal verskaf om die skulde van die entiteite te delg sonder dat die persoonlike bates van die borggewers te gelde gemaak hoef te word. Verbruikersbeskerming geniet hedendaags voorrang waar die frase 'caveat emptor' - laat die koper op sy hoede wees - vervang is deur 'caveat vendor' – laat die verkoper bedag wees. Hiermee saam het die Suid-Afrikaanse regering ook wetgewing in plek gestel waaraan banke moet voldoen wat daartoe sal lei dat kliënte ingeligte besluite kan neem. Die Nasionale Kredietwet en die Finansiële Adviseurs- en Tussengangerswet is in werking gestel om meer beskerming aan die verbruiker te verleen. Die bank industrie het ook die Kode van Bankpraktyk aanvaar wat groter verantwoordelikhede op banke plaas om alle risiko’s ten volle aan hulle kliënte te openbaar. Dit is veral die borggewer, die persoon wat sekuriteit verskaf vir die skulde van ander persone / entiteite wat groter beskerming geniet. Die Nasionale Kredietwet bied aan die borggewer dieselfde beskerming as die hoofskuldenaar en die Kode van Bankpraktyk bevat ook spesifieke verwysing na die regte van borggewers. Bankwese het ‘n besigheid geraak en die tradisionele siening dat sake etiek en streng onderworpenheid aan wetgewing, industrie kodes en banke se eie etiese kodes ‘n negatiewe effek op besigheid sal hê, dra nie meer water nie. Verskeie redes is al deur ABSA Bank aangevoer oor hoekom die finansiële beplanners van ABSA Makelaars nie deel moet wees van elke transaksie waar krediet aan kliënte verleen word nie. Die realiteit is egter dat die finansiële beplanners deel van die proses gemaak moet word. Die finansiële beplanners moet ‘n finansiële behoefte ontleding aan die kliënt beskikbaar stel wat die kliënt in staat sal stel om ‘n ingeligte besluit te neem om lewensdekking te implementeer al dan nie. Deur die finansiële beplanners deel van die proses te maak verseker ABSA Besigheidsbank nakoming aan wetgewing en industrie kodes. Wat egter meer belangrik is, is dat die bank dan ook sy fidusiêre plig wat die bank teenoor sy kliënte het, sal nakom.

Thesis (MBA)--Stellenbosch University, 2011. / The Islamic Banking industry has been one of the fastest growing industries worldwide with a compound annual growth rate of 28% between 2006 and 2009(Reuters, 2010). These growth rates were experienced amidst the worst economic meltdown the world has seen in decades. This is a clear indication that there is a high level of confidence in the industry. Although the industry has existed for centuries, the past few decades have brought about a revival in Islamic banking. Many Western countries are recognising the industry’s importance and have taken various steps in supporting the establishment of it. South Africa has also taken such steps and has a vision of becoming a hub for Islamic banking on the African continent. This mini thesis examines the differences in nature of the underlying principles of Islamic and conventional banking which then brings to the fore the various challenges that exist in the unhindered functioning of Islamic banks within Western countries. These challenges revolve around institutional and legal frameworks, regulatory and supervisory bodies, South African Reserve Bank requirements, interest, taxation and conceptual understandings. In order to provide recommendations to address these challenges, case studies of Islamic banking in both, Islamic and Western countries were conducted. These case studies provided insight into how countries have addressed similar challenges and to what degree were they successful. This provided the basis from which recommendations were made for Islamic banking to function efficiently and effectively in South Africa and for the country to achieve its goal of becoming a hub of Islamic banking on the African continent.

Thesis (MComm (Education))--Stellenbosch University, 2008. / In enquiring after the best means of financing basic local services in South Africa, the thesis begins by reviewing the arguments for fiscal decentralisation and the efficiency criteria for expenditure and revenue assignment. The role of local government within South Africa’s system of intergovernmental fiscal relations is then evaluated. A chapter is devoted to the efficient pricing of infrastructure for household services. However, it is emphasised that such pricing is unlikely to meet equity criteria for access and affordability. The equity aspect of providing basic local services is explored further from the perspective of South African Constitutional obligations and the current basic services policy framework. A concluding chapter discusses issues arising out of the work and provides some recommendations.