Thesis (MDF)--Stellenbosch University, 2014. / The aim of the study is to provide a framework for effective private sector participation in infrastructure development and finance, not to provide a rigid structure to guide the participation. Thus the framework is a flexible guide to guide the relationship with local governments. The study will be limited to the following aspects: - projects commissioned and managed by the local sphere of government in South Africa; - projects financed by funding outside of the national treasury budget allocations; and - infrastructure projects that may include physical infrastructure (roads), social infrastructure (clinic) and economic infrastructure (electrical substation). Even though the scope of the study may be limited, the study can provide critical insight in terms of private sector participation possibilities in infrastructure development in South Africa.

The following study is about business angels financing small business start-ups. It explores the aspect of starting up an entrepreneurial venture in which the entrepreneur seeks to secure start-up finance from lenders, raising the various issues that are known to characterise this engagement between the entrepreneur and the lender. Using the phenomenological paradigm, the study seeks to determine the awareness of small scale financing by entrepreneurs in South Africa, to determine the most commonly used source of start-up business funding in South Africa, to assess the extent to which business angel financing could be used to finance businesses in South Africa and to determine the factors impacting the use of business angel financing in South Africa. From these objectives, the study will also seek to determine the extent to which business angel networks could facilitate the financing of business start-ups. Small businesses invariably come up in different policy spheres as the main avenues to social and economic construction across national and regional lines. The importance of a successful business start up to a growing economy should not be underestimated. In line with this is the particular factor of gaining access to start up capital, which continues to emerge as a leading contributor to the success or failure of business start ups. Studies continue to verify that the most common challenge faced by most emerging entrepreneurs is start-up capital, either in the lack of this capital, the unfavourable conditions surrounding its availability, the lack of assets to serve as collateral for its use or the ambiguous flow of crucial information between lenders and providers of finance in the funding relationship (Abor and Biekpe, 2006: 69;Hernandez-Trillo, Pagan and Paxton, 2005: 435, ISPESE, 2005: 7, CDE, 2004: 5; Musengi 2003: 11). Roger Sorheim (2005: 179) refers to business angels as private individuals who offer risk capital to unlisted companies that are struggling to obtain start up capital to finance their business ideas. Business angels are further defined as high net-worth bearers of substantial private capital who predominantly invest in the early stage of high risk high potential return business ventures with a positive further growth potential. Business angel finance is typically a ‘once-off’ early stage form of small firm financing compared to the more frequent later stage venture capitalist funding. Studies show that business angels represent an underutilised wealth creation mechanism when it comes to small firm start-ups as most business angels contribute expertise in addition to finance to the start-ups they get involved in. This brings valuable business insight to the commercialisation of a good business idea. The business angel network exposes a range of potentially viable business prospects to willing investors by facilitating the flow of information about entrepreneurs and their businesses, thereby eliminating ambiguity, information asymmetry and transaction costs (Aernoudt and Erikson, 2002: 178; Van Osnabrugge and Robinson, 2000:374; Macht, 2006:1; Ehlrich, De Noble, Moore and Weaver, 1994:70; Sorheim, 2005:179). To achieve a holistic approach to a phenomenon which appears to be relatively new in South African business circles, the study will follow a qualitative approach in which two categories of populations will be used, one of small business operators and the other of business angels in South Africa. In the study, 20 small business operators and five business angels in Grahamstown will be approached using the convenience and snowballing sampling methods respectively. Face-to-face semi-structured interviews will be used as a data collection method and content analysis will be used as a data analysis tool (Collis and Hussey, 2003:156, Driver, Wood, Segal and Herrington, 2001:32, National Small Business Act ). There has been very limited research on business angels in the South African context, therefore the study would significantly contribute in entrepreneurship, government and small business development circles as it brings about attention to what the researcher predicts is an underutilised business start-up financing option.

Thesis (MScAgric)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: Maize is the most important field crop in South Africa. It is used for both animal feeds and human consumption. It is also used by many industries as an input, is a source of foreign exchange and of employment opportunities for many people in the country. It is an important component of the agricultural sector, plays an important role in the economy and presents opportunities in terms of agricultural investment and employment creation. The maize industry in South Africa has long history of government intervention where the price of maize was set by government through the office of the Minister of Agriculture. This was fuelled by the two Marketing Acts (of 1937 and 1968). During the period of these Acts, farmers were not exposed to international markets. However after the introduction of the Marketing of Agricultural Products Act (Act 47 of 1996), farmers have been exposed to international maize prices, i.e. to the forces of supply and demand. Farmers are no longer guaranteed a maize price during the beginning of the production season, and now have to use different methods to protect their income against a volatile maize price. Through forward contracting (hedging) their maize, farmers can minimize the price risk that they are facing. A number of instruments have been developed to assist farmers to protect themselves against price risk. In South Africa, SAFEX is used to reflect the expected future price of maize and it can be used by farmers as a reference for the expected price. Different factors affect the hedging decisions of farmers. The main objective of this study was to identify factors affecting the hedging decision of maize farmers in Gauteng, and hence their rate of adoption of hedging strategies. The study employed a number of methods in an effort to answer this question. Data analysis relating to factors affecting the hedging decision of the farmers was carried out using Excel and the SPSS statistical package and took the form of multiple cross tabulation. A Probit regression equation was estimated using the SPSS 20 statistical software package. In the case of the adoption rate of hedging by maize farmers in Gauteng, it was found that only 35 per cent of the maize farmers forward contract their maize against price risk. This implies that they are not protecting their income against price volatility through forward contracting. The results show that the factors that have the most influence on the decision whether to hedge are: the gender, age, and agricultural qualification of the principal decision maker; whether the decision maker is a member of a grain association and the size of that grain association; the length of period that the decision maker has been producing grain; the size of the farm; whether the farmer rents in land; the proportion of off-farm income earned and whether the farmer takes out insurance. These variables are all statistically significant at the 5 per cent level. / AFRIKAANSE OPSOMMING: Mielies is die belangrikste akkerbougewas in Suid-Afrika. Dit word gebruik vir beide dierevoere en menslike verbruik. Dit word ook in baie bedrywe as ’n inset gebruik, vorm ’n bron van buitelandse valuta en verskaf werksgeleenthede aan baie mense in die land. Dit is ’n belangrike komponent van die landbousektor, speel ’n belangrike rol in die ekonomie en verskaf geleenthede in terme van landboubelegging en werkskepping. Die mieliebedryf in Suid-Afrika het ’n lang geskiedenis van regeringsingryping waardeur die prys van mielies deur die regering, by name van die kantoor van die Minister van Landbou, vasgestel is. Dit is aangevuur deur twee Bemarkingswette (van 1937 en 1968). Gedurende die tydperk van hierdie wette is boere nie aan internasionale markte blootgestel nie. Met die aanvang van die Wet op die Bemarking van Landbouprodukte (Wet 47 van 1996) is boere aan internasionale mieliepryse blootgestel, m.a.w. aan die kragte van vraag en aanbod. Boere word nie meer aan die begin van die produksieseisoen ’n mielieprys gewaarborg nie, en moet nou ander maniere vind om hulle inkomste teen ’n onbestendige mielieprys te beskerm. Deur die koop van termynkontrakte op hulle mielies (verskansing) kan boere die prysrisiko’s wat hulle in die gesig staar, minimaliseer. ’n Aantal instrumente is ontwikkel om boere te help om hulleself teen prysrisiko te beskerm. In Suid-Afrika word SAFEX gebruik om die verwagte toekomstige prys van mielies te weerspieël en dit kan deur boere as ’n verwysing na die verwagte prys gebruik word. Verskeie faktore beïnvloed die verskansingsbesluite van boere. Die belangrikste doelwit van hierdie studie was om faktore te identifiseer wat die verskansingsbesluit van mielieboere in Gauteng beïnvloed, en dus die tempo waarteen hulle verskansingstrategieë in gebruik neem. Die studie het ’n aantal metodes gebruik in ’n poging om hierdie vraag te beantwoord. Data-analise m.b.t. die faktore wat die verskansingsbesluit van die boere beïnvloed, is met Excel en die SPSS statistiese pakket uitgevoer en het die vorm van meervoudige kruistabellering aangeneem. ’n Probitregressievergelyking is met behulp van SPSS 20 statistiese sagteware beraam. In die geval van die tempo van aanneming van verskansing deur mielieboere in Gauteng is daar gevind dat net 35 persent van die mielieboere termynkontrakte op hulle mielies gebruik om hulle teen prysrisiko te beskerm. Dit impliseer dat hulle nie hulle inkomste teen onbestendige pryse beskerm nie. Die resultate toon dat die faktore wat die grootste invloed het op die besluit om te verskans die volgende is: die geslag, ouderdom en landboukwalifikasie van die hoof besluitnemer; of die besluitnemer ’n lid van ’n graanvereniging is, en die grootte van dié graanvereniging; hoe lank die besluitnemer reeds graan produseer; die grootte van die plaas; of die boer grond inhuur; die proporsie van inkomste wat weg van die plaas af verdien word; en of die boer versekering uitneem. Hierdie veranderlikes is almal statisties betekenisvol by die 5 persent vlak.

Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: Inflation has many negative effects and for this reason the South African Reserve Bank, like central banks in most countries, is strongly opposed to inflation and uses its monetary policy to combat it. This action is necessary for continued economic growth, prosperity and a fair distribution of income and wealth. Low inflation and a stable financial environment are important prerequisites for the achievement of these objectives on a long-term basis. In order to combat inflation in South Africa it was announced in the Budget Speech on the 23 February 2000, that a policy of inflation targeting would be implemented in South Africa. The objective is to bring inflation within the target band of three to six percent by the year 2002. Inflation targeting has been successful in helping New Zealand, Canada, Israel, the United Kingdom, Sweden, Australia and Spain achieve and maintain low rates of inflation. This does not mean, however, that inflation targeting has been implemented without incurring costs in lost output and employment, but there is no evidence that the adoption of inflation targets has produced harmful effects to the real economy over the long-term. Instead, the low inflation rates achieved in the inflation targeting countries have improved the prospects for sustainable longterm growth. However, inflation targeting is not appropriate for all countries. There are certain developing countries that do not meet the basic requirements for adopting inflation targeting. In this study the viability of implementing inflation targeting as a policy solution to combat inflation in South Africa is examined. In order to determine this, focus is placed on the key characteristics and features of inflation targeting. The reasons why countries have implemented inflation targeting are viewed and the prerequisites that must be met before inflation targeting can be implemented are discussed. The advantages and disadvantages of this approach are also highlighted. Furthermore, focus is placed on how inflation targeting has been implemented in some of the advanced economies in order to determine whether it can be successfully implemented in developing countries, and if so, in which developing countries. Finally equipped with an .understanding of the theoretical aspects of inflation targeting and drawing from the lessons of the international experiences, focus is placed on how viable it is to implement inflation targeting in South Africa. / AFRIKAANSE OPSOMMING: Wêreldwyd neem Sentrale Banke van ontwikkelende lande, aktiewe stappe in die bekamping van inflasie. Die Suid Afrikaanse Reserwe Bank, net soos ander Sentrale Banke is ook gekant teen inflasie en maak gebruik van hulle monetêre beleid vir die bekamping van inflasie. Bekamping van inflasie is van kardinale belang om voortgesette ekonomiese groei, welvaart en 'n regverdige verspreiding van inkomste en rykdom te verseker. Lae inflasie en 'n stabiele finansiële omgewing is belangrike voorvereistes om hierdie finansiële doelwitte in die langtermyn te bereik. Ten einde inflasie in Suid Afrika te bekamp, het die Minister van Finansies in sy begrotingsrede van 23 Februarie 2000, aangekondig dat Suid Afrika 'n beleid van inflasie bekamping gaan implementeer. Die doelwit van so beleid sou wees om inflasie binne 'n drie tot ses persent teikenband te beperk teen die jaar 2002. Inflasie bekamping was suksesvol in die bekamping van inflasie in lande soos New Zealand, Kanada, Israel, Die Verenigde Koningkryk, Swede, Australia en Spanje, waar lae inflasie koerse behaal is en gehandhaaf word. Alhoewel 'n beleid van inflasie bekamping met indirekte koste en 'n verlies in produksie en werksgeleenthede gepaard gaan, is daar geen bewyse dat die implementering van inflasie teikens 'n wesenlike effek op die ekonomie in die langtermyn het nie. Inteendeel, lae inflasie in die teikengroep lande het verseker dat voortdurende ekonomiese groei oor die langtermyn gehandhaaf kon word. 'n Beleid van inflasie bekamping is nie wenslik vir alle lande nie. Daar is verskeie ontwikkelende lande wat nie aan die basiese voorvereistes vir die implementering van 'n beleid van inflasie bekamping voldoen nie. In hierdie studie word die wenslikheid, al dan nie vir die implementering van 'n beleid van inflasie bekamping, as 'n beleidsoplossing in die bekamping van inflasie in Suid Afrika ondersoek. Ten einde dit te bereik word die fokus op die hoof karaktertrekke en einskappe van inflasie bekamping geplaas. Die redes waarom lande inflasie bekamping implementeer, asook die voorvereistes waaraan voldoen moet word, alvorens 'n beleid van inflasie bekamping geimplementeer kan word, word bespreek. Die voor- en nadele van hierdie werkswyse word ook uitgelig. Voorts word gefokus op die implementering van inflasie bekamping in ontwikkelde ekonomieë, om te bepaal of dit op die ekonomieë van ontwikkelende lande toegepas kan word, en indien wel, watter ontwikkelende lande? Toegerus met 'n begrip van die teoretiese aspekte van inflasie bekamping, gepaardgaande met die internasionale ervarings, word daar gefokus op die wenslikheid, vir die implementering van 'n beleid van inflasie bekamping in Suid Afrika.

Thesis (MDF)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: The planet is at risk, which could be to the peril of its people. The current consumption rate of natural resources surpasses capacity and new ways are required to address the ecosystems threats and biodiversity losses the planet faces. This research reviewed the various threats Earth faces and ways to finance corrective action to ensure it remains inhabitable. The research aimed to review factors influencing fundraising of non-profit Environmental Funds and chose as case study, the World Wide Fund for Nature South Africa, given its long history in supporting conservation in the country. The research used the Seven-S strategy model as analysis framework and assessed four of the seven categories namely strategy, structure, systems and staff using data in the public domain. The World Wide Fund for Nature South Africa was found to be financially healthy, liquid and stable. This in itself confirmed its fundraising success over many years and not only during the period of review. It had a diversified funding mix and its largest type of income was derived from subscriptions and donations, which was confirmed by the reliance ratio calculations. There was a clear organisational purpose and direction, yet no specific fundraising strategy was stated. Findings from the supporter retention analysis indicated a possible shift in focus to obtain a larger unrestricted income base and to align with supporters that stay with the cause over longer periods. Structural aspects showed that there was a substantial increase of organisational sub-units supporting new programmes between 2008 and 2013. Contributed income mirrored the changes up to 2012 after which a drop in income was observed. Trustee composition changes and income derived from subscription and donation changes trended in similar patterns. Systems incorporating governance practices, financial reporting and auditing were observed to be sound and in line with good governance practices including King King Code of Governance. The staff analysis showed an increase in overall staffing numbers and concomitant rise in contributed income up to 2012. The retention of key managerial staff was prevalent.

<p>In South Africa, as in many developing countries, most households are poor and do not save, as a result of which they do not acquire any positive net worth and which also constrains access to formal means of finance. South Africa is a consuming nation, with increasing ratios of household consumption resulting in dissaving and often unsustainable levels of household debt, which is also stimulated by the current lower level of interest rates. This situation is worse amongst poorhouseholds who also often experience financial shocks, for instance because of the death of family membersas a result of HIV/AIDS. This report provided an overview of household saving in South Africa for the period 1983 to 2003. It identified the main factors responsible for the lack of a commitment to saving which are particularly relevant in the case of poor households.</p>

M. Com. (Financial Economics) / The success of a monetary policy framework depends mostly on whether economic agents, especially the financial market participants, understand monetary policy decisions and are able to predict them in advance. Academics and practitioners agree that a successful Central Bank should be “boring” such that surprises about monetary policy should not arise in the announcements and the actions of the Bank, but rather in the macroeconomic developments. Thus policies that enhance clarity, transparency and communication between a Central Bank and the market can contribute to strengthening monetary policy predictability and improve the effectiveness of monetary policy itself. This dissertation assesses the predictability of the South African Reserve Bank’s (SARB) interest rate decisions since the adoption of the inflation targeting monetary policy framework in February 2000. Firstly, in order to evaluate predictability, money market forward rates are used to test whether the financial market is able to forecast the future level of policy rates, using the unbiased forward rate hypothesis. Then, using an event study methodology, changes in the money market forward rates following a monetary policy announcement are used to test whether the financial market participants were surprised by the SARB’s monetary policy decisions. The results of the unbiased forward rate hypothesis (UFRH) and the event study analysis indicate that, at least in the short term, specifically on a one-month-forward period, financial market participants have been able to predict the SARB’s monetary policy decisions with a high degree of accuracy. Moreover, the results of the event study analysis show that the South African financial market is at least semi-strong efficient, in the sense that monetary policy decisions are quickly incorporated in the market interest rates following the announcements. The event study analysis also provided some evidence that volatility in financial markets at the time of interest rate decisions has been declining over time.

M.Com. (Economics) / The purpose of this dissertation was to investigate the contribution of the world economy to instability in the South African economy via inflation. Double digit inflation in the South African economy remains the most important and' sole major problem influencing stabilization policy in the country. This study concentrated on the instability of the economic growth path in South Africa since the recession period of 1976. From a multiplier-accelerator model the conclusion is reached that two of the main endogenous variables in the economy, namely private consumption and total investment have adapted to behaviour patterns since 1977, in such a way that an economic growth path which deviates monotonically from the equilibrium paths has been guaranteed. The. reason for this is found in the values of two main coefficients namely the propensity to consume and the propensity to invest. The openness of the South African economy is an exogenous threat to stability in the South African economy if a high inflation rate persists.

M.Com. (Financial Economics) / Forecasting inflation is an important concern for economists and business alike throughout the world. Despite the relative success of macroeconomic forecasting models in forecasting inflation, there is potential to improve these models to account for nonlinear relationships between inflation and the chosen independent variables. Artificial neural networks (ANNs) have found increased applicability as a potential nonlinear forecasting tool that accounts for nonlinearity found in data. In this study, we investigate the ability of genetically optimised neural networks to forecast South African inflation. The results were compared to economic forecasts obtained from traditional econometric models as well as macroeconomic structural models. The results obtained show that the genetically optimised neural networks indicate some ability to be used as potential forecasting tools. Their biggest advantage over the traditional forecasting techniques is that they do not impose the restriction of linearity on the data to be forecasted.

M.Com. (Development Economics) / The Local Government Equitable Share (LES) is a lump sum unconditional grant that is legally entitled to municipalities in South Africa. The grant aims to supplement municipal own revenues in the delivery of services. However, increases in the LES allocations to municipalities have coincided with increased service delivery protests and poor revenue management on the part of local government. Given these trends and the ultimate goal of the LES, it is important to assess the actual impact this grant is having on local government fiscal decision. This minor dissertation evaluates the impact of the LES on the expenditure and revenue decisions and performance of local government in South Africa. Specifically, the research seeks to ascertain the nature of such impacts in terms of how expenditure and revenue decisions are adjusted with this grant funding and whether such funds may be creating adverse incentives on the part of local governments to spend inefficiently and/or not maximising their effort in collecting own revenues. The analysis uses a cross sectional dataset for a sample of 129 municipalities for the 2009/10 municipal financial year, with the Stochastic Frontier Analysis as the primary methodology. The analysis finds that the LES has no statistically significant impact on municipal operating expenditure. This suggests that the funds from this grant might not have contributed to municipal service outputs in the 2009/10 financial year. Furthermore, the results found that the LES is positively correlated with expenditure inefficiencies and poor tax/revenue effort. This suggests that the LES funds create perverse incentives for local government to waste LES funds and not collect revenues from local taxes. The latter is due to municipalities substituting tax revenues with funds from the LES, hence resulting in the LES not having an impact on overall expenditure.