The purpose of the research is to assess the financial viability of selected urban and rural municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient and often rely on grants and transfers to satisfy their immediate short-term goal of providing basic services to satisfy the needs of their communities. Therefore, finance is regarded as an overriding and decisive factor for determining the viability of municipalities. The study seeks to investigate the financial viability of selected urban and rural municipalities in the Eastern Cape. Its key research questions are: Are municipalities able to provide sufficient funds to provide a range of services at an acceptable service level? To what extent do municipalities rely on external funding? Do municipalities have revenue collection capacity and revenue policies? The study asserts that most municipalities lack the required financial resources. They depend mainly on transfers from Provincial Government and equitable share and conditional grants from National Government. Section 152 (1) of the Constitution of the Republic of South Africa, Act 8 of 1996, states, amongst other things, that Local Government should ensure the provision of services to communities in a sustainable manner. The constitution further states that a municipality must strive, within its financial and administrative capacity, to achieve its objectives. The Municipal Finance Management Act, Act 56 of 2003, creates a framework for municipalities to borrow money and determine the conditions for short- and long-term borrowing. The Act assigns clear roles and responsibilities to the various role players involved in local government financial management. According to the Act, an annual budget for a municipality may only be funded from realistically anticipated revenues to be collected. As revenue projections in the budget must be realistic, the Municipal Property Rates Act, Act 6 of 2004, facilitates the collection of revenue in municipalities and establishes a uniform property rating system across South Africa. Property tax is the biggest element of local government tax revenue and is central to municipal finance. The Municipal Systems Act, Act 32 of 2000, amongst its objectives, provides for the manner in which municipal powers and functions are exercised as well as establishes a simple framework for the core processes of planning, performance management and resource mobilisation. The Act also provides a framework for public administration and human resource development. Finally, it also empowers the poor and ensures that municipalities put in place service tariffs and credit control policies that take their needs into account. The research contends that, whilst there is legislation and structures to assist and direct municipalities, it has been established that municipalities do not properly collect rates and taxes due to them to augment their revenue. The study has shown nevertheless that metropolitan municipalities have the capacity to collect revenue for municipal services. This is confirmed by their collection rate which ranges between 94 % and 97 %. There is also the culture of non-payment by communities for services rendered by the municipalities. Rural municipalities are exempted from property tax, while other rural municipalities who have an urban component, have to collect. There is also the question of unemployment and poverty. Consequently, municipalities are not self-sufficient and rely on grants and equitable share to survive. As a result of this lack of self-sufficiency, it is difficult to implement service delivery and also difficult to attract skilled personnel. The study has investigated why some municipalities fail to collect revenue and depend on national grants. The study employed both qualitative and quantitative methods. The findings of the quantitative paradigm have been presented in the form of graphs and charts. The major findings include: All municipalities have limited borrowing capacity; have not exceeded their budgets in terms of their spending; small municipalities have households as their main contributor of revenue collected; metropolitan municipalities get the big slice of their revenue from business; small and rural municipalities rely on grants and transfers and are therefore not financially viable; metropolitan municipalities are, to a great extent, financially viable but lack skills and capacity to utilize their resources for effective service delivery; and all municipalities under-spend their budgets. The study, after elaborating on the findings, makes recommendations on how municipalities should become financially viable.

This study examined the impact of real exchange rates on economic growth in South Africa. The study used quarterly time series data for the period of 1994 to 2010. The Johansen cointegration and vector error correction model was used to determine the impact of real exchange on economic growth in South Africa. The explanatory variables in this study were real exchange rates, real interest rates, money supply, trade openness and gross fixed capital formation. Results from this study revealed that real exchange rates, gross fixed capital formation and real interest rates have a positive long run impact on economic growth, while money supply and trade openness have a negative long run impact on economic growth in South Africa. From the regression results, it was noted that undervaluation of the currency significantly hampers growth in the long run, whilst it significantly enhances economic growth in the short run. As such, the policy of depreciating the exchange rates to achieve higher growth rates is only effective in the short run and is not sustainable in the long run. Based on the findings of this study, the researcher recommended that misalignment (overvaluation and undervaluation) of the currency should be avoided at all costs. In addition, the results of the study showed that interest rates also have a significant impact on growth and since interest rates have a bearing on the exchange rate, it was recommended that the current monetary policy in South Africa should be maintained.

MAIR / Department of Development Studies / See the attached abstract below

MSc (Statistics) / Department of Statistics / Foreign direct investment plays an important role in the economic growth process in the host country, since foreign direct investment is considered as a vehicle transferring new ideas, capital, superior technology and skills from developed country to developing country. Non-parametric quantile regression is used in this study to estimate the relationship between foreign direct investment and the factors in uencing it in South Africa, using the data for the period 1996 to 2015. The variables are selected using the least absolute shrinkage and selection operator technique, and all the variables were selected to be in the models. The developed non-parametric quantile regression models were used for forecasting the future in ow of foreign direct investment in South Africa. The forecast evaluation was done for all models and the laplace radial basis kernel, ANOVA radial basis kernel and linear quantile regression averaging were selected as the three best models based on the accuracy measures (mean absolute percentage error, root mean square error and mean absolute error). The best set of forecast was selected based on the prediction interval coverage probability, Prediction interval normalized average deviation and prediction interval normalized average width. The results showed that linear quantile regression averaging is the best model to predict foreign direct investment since it had 100% coverage of the predictions. Linear quantile regression averaging was also con rmed to be the best model under the forecast error distribution. One of the contributions of this study was to bring the accurate foreign direct investment forecast results that can help policy makers to come up with good policies and suitable strategic plans to promote foreign direct investment in ows into South Africa. / NRF

The de-industrialisation process that was a common feature of North America and Western Europe in the 1970s, through into the 1980s has become an observable feature in African countries and South Africa in particular in the last two decades. Globally, hard hit areas include those associated with the early Industrial Revolution characterised by mass production and the agglomeration of iron and steel, coal and textile industries. General changes in the global market, especially the falling demand for extractive heavy minerals like coal and gold have also affected many countries region and localities. In the case of South Mrica, the previous high economic dependence on mined minerals like coal and gold has resulted in many once prosperous mining regions of the country being reduced to a shadow of their former selves. The worst affected areas in South Africa are those of the Klerksdorp Goldfields in the North West Province and Free State Goldfields, with the latter alone losing 100,000 jobs during the 1990s. This trend has also been acute in the coal-mining industry of the KwaZulu-Natal province since the late 1970s. The firms that had grown in the shadow of the major mining company supplyipg machinery, or who processed the semi-manufactured product are also severely affected by the closing down and restructuring in the mining and iron industries. These industries have often been forced to close down because of a break in the vital connections they developed with these mining industries. Such localised economic crisis has encouraged the universal trend towards the devolution of developmental responsibilities to the local governments and other local stakeholders to - empower them to respond to these changes. This study investigated the local economic initiatives which have been undertaken in the three municipalities of north-western KwaZulu Natal i.e. Utrecht, Dundee and Dannhauser to respond to the closures which have taken place in the mining industry of this region, which used to be among the most prosperous coal mining regions of South Africa. Using their new developmental mandate the local governments, in partnership with the communities and other external interveners have tried to respond to these localised economic crisis and also indirectly to the general poverty and underdevelopment, which characterises this region of KwaZulu-Natal. The effects of apartheid policies, and previous discriminatory rural development policies in, particular, and the Regional Industrial Development policy, which was intensively applied in the 1980s by the pre-1994 government regime, have further compounded the magnitude of the challenge. The lack of capacity in some municipalities has constrained successful implementation of Local Economic Development has led to some communities acting alone to face their situation with or without external intervention.

No abstract available / Development Studies / M.A. (Development Administration)

The Steel Merchant offers a service of stocking and distributing steel products and value added services throughout Africa. The company is the largest steel merchant in Africa employing over 5500 employees. The South African government implemented the Employment Equity Act, No 55, (1998) and Broad-Based Black Economic Act, No 53, (2003) to readdress the discrimination of the past and create fair opportunities for Previously Disadvantaged Individuals (PDI) in the workplace. The Steel Merchant's business environment is severely affected by these legislations and is required to comply with the provisions of the Act or will receive fines and penalties. Since the Acts inception the merchant continues to struggle in recruiting and retaining PDIs in professionally qualified and management positions. The organization has experienced strategic drift by falling from a Black Economic Empowerment (BEE) Procurement Recognition/Status Level of 5 down to level 6. The research identified various factors within the organization that are hindering its overall ability to adapt and progress in terms of Employment Equity (EE) and BEE. The study is focused on identifying the internal and external barriers that prevent the effective implementation of BEE and EE strategies in order to recruit and retain previously disadvantaged professionals at the Steel Merchant. The Research Objectives are: • To evaluate the effect of organizational culture and climate on the implementation of Employment Equity, Affirmative Action (AA) and BEE Strategies • To analyze the importance of Human Resource Management (HRM) in the development of recruitment and retention strategies of previously disadvantaged professionals • To investigate the differences in gender and race leadership qualities and behavior • To identify and assess the barriers in implementing employment equity recruitment and retention strategies • To determine how government legislation will influence the Steel Organizations' competitiveness internationally Internal secondary data was used to analyze the Merchant's Human Resource Management, EE and BEE performance. External secondary data from the South African government departments was used to analyze the legislative Acts and how the company performs compared to the industry standards. A quantitative research approach was followed in the investigation. A questionnaire was developed using closed-ended questions to obtain information related to the respondent's demographical background as well as their opinion on each objective. The questionnaire was distributed by email to 1 00 employees and weighted according to racial group (Black, White, Coloured and Asian) and gender (Male and Female). The method allowed the researcher to receive and analyze the information quickly at no financial cost. Descriptive statistics were used to interpret the results and describe the behaviour of each racial and gender group contained in the sample. The data methods used were: • Percentages • The mean, mode and median • Standard Deviation The conclusions from the sample were used to generalize about the steel merchant population whilst research from recognized academics was utilized to authenticate and substantiate the research findings improving the accuracy and reliability of the research. The results of the study identified the following factors have contributed to the merchant's inability to recruit and retain PDI at professionally qualified and management levels: • The Steel Merchant has a white male dominated organizational culture and ineffective HRM strategies • Black shareholders have contributed little towards previously disadvantaged development creating resentment by employees • Employment Equity, Black Economic Empowerment and Affirmative action has created racial divides, a lack of trust and will negatively influence the company's competitiveness internationally. The research identified various problems that hinder the implementation of EE and BEE policy at the steel merchant which makes it difficult to recruit and retain talented PDI. The following recommendations have been made to minimize resistance and integrate EE and BEE policies to improve recruitment and retention in the organization: • Define and communicate the BEE/EE vision and strategy • Delayer hierarchal levels • National Culture Training • Implement Performance Management Systems • lncentivize Knowledge Sharing • Re-evaluate the recruitment policies • Train, develop and mentor PDI • Develop career paths and succession plans • Create a leadership development program • Create a shared understanding of EE • Address white fears through empowerment • Black shareholders should be actively involved with the development of PO employees • Harness African culture to succeed internationally. EE and BEE is obligatory and will inevitably influence the company's performance. The Steel Merchant has the resources and capabilities to eliminate resistance and implement effective HRM strategies to recruit and retain talented POl in professional and management positions. By achieving this objective, the company's Broad Based Black Employment Equity (BBBEE) rating will advance resulting in a sustainable competitive advantage and more business opportunities in the future. / Graduate School of Business Leadership / M.B.A.

Momentous choices and opportunities have opened up in South Africa since a settlement was successfully negotiated and a new political and constitutional dispensation was created. Events such as the constitutional negotiations and the establishment of reconstruction and development initiatives have placed a renewed emphasis on development management, process facilitation and the development of policy. This study provides an overview of the broad field of policy studies and specifically focuses on policy process models. In particular, this study centres on the further development of the generic process model and provides an overview of the application thereof to the operational environment. From this, simulation exercises and case study material have been developed as policy learning methodologies. Institutional arrangements for policy processes and the institutionalisation of policy and related support capacities at intergovernmental and organisational level receive particular attention. The study demonstrates the application of the generic process model by applying the framework to a case study based on the provincial demarcation exercise. This study concludes that policy management, as a cross-cutting, lateral methodology, in conjunction with similar methodologies, such as strategic planning, research methodology and project management, should be regarded as a critical tool, by the academic community and development practitioners alike, for improving the decision-making capacity of government, the private sector and civil society. / D.Litt. et Phil. (Development Administration)

The Steel Merchant offers a service of stocking and distributing steel products and value added services throughout Africa. The company is the largest steel merchant in Africa employing over 5500 employees. The South African government implemented the Employment Equity Act, No 55, (1998) and Broad-Based Black Economic Act, No 53, (2003) to readdress the discrimination of the past and create fair opportunities for Previously Disadvantaged Individuals (PDI) in the workplace. The Steel Merchant's business environment is severely affected by these legislations and is required to comply with the provisions of the Act or will receive fines and penalties. Since the Acts inception the merchant continues to struggle in recruiting and retaining PDIs in professionally qualified and management positions. The organization has experienced strategic drift by falling from a Black Economic Empowerment (BEE) Procurement Recognition/Status Level of 5 down to level 6. The research identified various factors within the organization that are hindering its overall ability to adapt and progress in terms of Employment Equity (EE) and BEE. The study is focused on identifying the internal and external barriers that prevent the effective implementation of BEE and EE strategies in order to recruit and retain previously disadvantaged professionals at the Steel Merchant. The Research Objectives are: • To evaluate the effect of organizational culture and climate on the implementation of Employment Equity, Affirmative Action (AA) and BEE Strategies • To analyze the importance of Human Resource Management (HRM) in the development of recruitment and retention strategies of previously disadvantaged professionals • To investigate the differences in gender and race leadership qualities and behavior • To identify and assess the barriers in implementing employment equity recruitment and retention strategies • To determine how government legislation will influence the Steel Organizations' competitiveness internationally Internal secondary data was used to analyze the Merchant's Human Resource Management, EE and BEE performance. External secondary data from the South African government departments was used to analyze the legislative Acts and how the company performs compared to the industry standards. A quantitative research approach was followed in the investigation. A questionnaire was developed using closed-ended questions to obtain information related to the respondent's demographical background as well as their opinion on each objective. The questionnaire was distributed by email to 1 00 employees and weighted according to racial group (Black, White, Coloured and Asian) and gender (Male and Female). The method allowed the researcher to receive and analyze the information quickly at no financial cost. Descriptive statistics were used to interpret the results and describe the behaviour of each racial and gender group contained in the sample. The data methods used were: • Percentages • The mean, mode and median • Standard Deviation The conclusions from the sample were used to generalize about the steel merchant population whilst research from recognized academics was utilized to authenticate and substantiate the research findings improving the accuracy and reliability of the research. The results of the study identified the following factors have contributed to the merchant's inability to recruit and retain PDI at professionally qualified and management levels: • The Steel Merchant has a white male dominated organizational culture and ineffective HRM strategies • Black shareholders have contributed little towards previously disadvantaged development creating resentment by employees • Employment Equity, Black Economic Empowerment and Affirmative action has created racial divides, a lack of trust and will negatively influence the company's competitiveness internationally. The research identified various problems that hinder the implementation of EE and BEE policy at the steel merchant which makes it difficult to recruit and retain talented PDI. The following recommendations have been made to minimize resistance and integrate EE and BEE policies to improve recruitment and retention in the organization: • Define and communicate the BEE/EE vision and strategy • Delayer hierarchal levels • National Culture Training • Implement Performance Management Systems • lncentivize Knowledge Sharing • Re-evaluate the recruitment policies • Train, develop and mentor PDI • Develop career paths and succession plans • Create a leadership development program • Create a shared understanding of EE • Address white fears through empowerment • Black shareholders should be actively involved with the development of PO employees • Harness African culture to succeed internationally. EE and BEE is obligatory and will inevitably influence the company's performance. The Steel Merchant has the resources and capabilities to eliminate resistance and implement effective HRM strategies to recruit and retain talented POl in professional and management positions. By achieving this objective, the company's Broad Based Black Employment Equity (BBBEE) rating will advance resulting in a sustainable competitive advantage and more business opportunities in the future. / Graduate School of Business Leadership / M.B.A.

Broad-based black economic empowerment (BBEE) is a policy objective in South Africa. Farmworker equity-share schemes (FWES) satisfy several of the empowerment goals specified by the proposed AgriBEE Scorecard. Information about the costs and benefits of subscribing to an empowerment label will help managers to make more informed decisions about empowerment and could therefore promote BBEE. The Thandi label is an initiative to market fruit and wines originating from FWES and farms operated by previously disadvantaged farmers. A case study of the Thandi label was undertaken to determine whether or not the accredited empowerment attribute adds value to Thandi products. An exploratory-explanatory case study was adopted basing questions largely on the theoretical propositions of asymmetric information, the benefits of product labelling and the preconditions for a successful label. Primary data were collected via in-depth interviews with managers of Capespan, The Company of Wine People and empowerment farms participating in the Thandi label. The study made use of in-depth interviews with key informants to investigate issues considered (on theoretical grounds) to be critical in establishing a successful label. Responses were subsequently tabulated and compared, where relevant, across respondents in order to check for consensus views. Results indicate that the Thandi label had not succeeded in differentiating fruit, whereas the Thandi wine label had increased sales revenue and was covering accreditation costs incurred by farms as well as the recurring costs of maintaining and marketing the label. Thandi fruit had not grown its share of the domestic or export markets and did not command a price premium, Capespan subsequently discontinued the Thandi fruit label. Thandi wine, on the other hand, had grown its export market and consumers were prepared to pay a premium for Thandi wine products. The data indicate that empowerment attributes were useful in finding shelf space for products, but that quality is essential to grow market share and to earn price premiums. In short, accredited empowerment attributes can add value to quality products sold to discerning consumers who lack information about empowerment and quality attributes at the point of sale. Empowerment labels must include quality attributes. Government should at least absorb some of the transaction costs confronting producers and marketing agencies in negotiating standards for farms and firms participating in generic empowerment labels. It could also offer auditing services to local accreditation agencies to improve their credibility. Further research estimating consumers' willingness-to-pay for products branded with empowerment labels is necessary to estimate the size of premiums that different products may command. / Thesis (M.Ag.Man.)-University of KwaZulu-Natal, Pietermaritzburg, 2007.