South Africa achieved its formal democracy through a negotiated settlement in 1994. Formal democracy focuses on liberty, rights and basic freedom such as freedom of speech, and the right to vote, amongst others, while substantive democracy focuses on equality, social justice, and the area of economic rights with a focus on reduction of poverty, unemployment and increased equality. It is within the substantive democratisation theoretical framework, that South Africa’s democratic achievement has not necessarily been as great as its political achievements in constructing a constitutional democracy. This is evident in the continued patterns of racialised inequality and poverty, as well as the increase in service delivery protest action, which can destabilise the democratic success achieved in 1994. The objective of economic development is to create an environment where people can enjoy economic stability, job security and health, and lead productive lives, on one hand. On the other hand, political development seeks to create an environment where people can enjoy peace, rule of law and freedom. Politics and economics therefore go hand in hand to attain wealth benefits for people and create a sufficient level of political stability within a transitioning context. South Africa has made some strides towards getting political stability and a democratic state, but much still needs to be done to reduce poverty, unemployment and inequality. Hence an argument stressing the need for a Second Transition or Economic CODESA has recently entered the sphere of political public debate. This project seeks to deconstruct and explain the discourse of the Second Transition and Economic CODESA. The studies found that centre to this debate are key redistributive issues. Poverty, inequality and unemployment are key substantive challenges that have the potential to undermine political stability if they are not effectively dealt with.

It is widely accepted by governments of many developing countries that Foreign Direct Investment (FDI) is crucial to the socio-economic development of their nations and have developed various policies in an effort to attract FDI, as a result. FDI is a crucial source of technology, capital and skills for developing countries for economic growth that may ultimately lead to poverty reduction, employment creation and modernisation. However, results from many studies have been inconclusive and have failed to find a direct link between the increase of FDI and the associated socio-economic development of recipient nations. South Africa is no exception to this debate as it seeks to turn its back on decades long apartheid, which has entrenched poverty in the majority of its population and exacerbated social tensions. The main socio-economic challenges that South Africa faces include high unemployment, skills shortages, poverty and high inequality, and the 2008/2009 global financial and economic crisis has exacerbated the crisis. Despite these challenges South Africa‘s macro-economic strategies have had a good reputation since 2000. The monetary policy has turned out to be more transparent and predictable, and a sound fiscal policy has sustained its framework. The study analyses the role that FDI plays in the socio-economic development of South Africa since 1995 by focusing on selected case studies: ABSA Bank, General Motors South Africa (GMSA) and the Mining Sector of South Africa. The research concludes that although ABSA Bank has implemented several corporate social responsibility (CSR), and various employee development programmes, there is hardly any evidence to suggest that Barclays Bank‘s takeover of ABSA Bank has positively impacted on these programmes. General Motors South Africa (GMSA), which came into South Africa many decades ago through a Greenfield Investment, has played a positive role in the economy of the Eastern Cape Province as well as that of South Africa, having created jobs directly and indirectly. The company has also designed and implemented various educational, housing as well as health and awareness programmes for its employees and for the communities. Mining companies that operate in South Africa formed partnerships in the communities in which they operate in an effort to improve the lives of people. While these various projects have been a source of employment, they have had a limited impact on the core causes of social problems surrounding the mines. Many of these root causes relate to core business practices of the mining companies, especially employee recruitment, wages and housing. These root causes where witnessed in the Lonmin tragedy and in other strikes that spread throughout the sector in 2012. The study concludes that although FDI does play a role in the socio-economic development of South Africa, especially Greenfield investment, the same argument could not be made on Mergers and acquisitions (M&As). Finally, the South African government needs to play a proactive role in ensuring that foreign companies that invest in the country need to be well aware of the socio-economic needs of South Africa, and be willing to play a positive role in that regard.

M.Com (Economics) / The role of foreign aid in promoting economic growth and improving welfare has been the subject of much debate among development specialists, researchers, aid donors as well as recipients in general. Two very strong views have emerged in the literature; proponents of aid posit that foreign aid contributes to higher welfare levels and economic growth while also improving the socio economic conditions of the poor in the receiving countries. Detractors of the idea that foreign aid promotes growth have argued that aid is not the solution to deep rooted economic problems of recipient countries. According to the latter, aid does not breed an environment that allows nations to themselves develop local strategies to improve growth. The country selected for this study, South Africa, poses an interesting case study given the fact that while the country is not aid- dependent, it still receives a significant amount of official development assistance (ODA). In spite of the above fact and the perceived benefits of foreign aid for growth and development, there are few empirical studies that have investigated the nature of the relationship between foreign aid and economic growth in South Africa. The study found that while foreign aid has positively affected growth in South Africa, the impact is insignificant. Although such aids has ensured a good macroeconomic environment which have been growth- enhancing for the country.

The South African leather industry has undergone a significant transformation since the 1990’s and this can be attributed primarily owing to two major factors that occurred. The first being trade liberalisation, which meant the fall of trade barriers, and the second being the Motor Industry Development Programme (MIDP), which was implemented in South Africa on 1 September 1995. The MIDP was implemented in the context of the country’s political and economic liberalisation, and the major structural shift in government policy and the trade regime. South Africa became much more globally integrated and the South African leather industry benefited because of this, as well as the incentives that was offered under the MIDP. Automotive exports of stitched leather seat parts responded positively to the incentives offered under the MIDP and stitched leather seat parts, as a component under the MIDP, became one of the best performing components being exported from South Africa. The MIDP had been terminated at the end of 2012 and is now being followed by government’s latest rendition of automotive policy, namely the Automotive Production and Development Programme (APDP). The APDP focuses on value addition, which pursues beneficiation of the country’s raw materials to the final stages, to ensure maximum benefit to the South African economy. The findings of the study entail that the South African leather industry is now in a vulnerable state because of the new automotive policy. This is mainly because the APDP does not provide the same level, or type, of incentives that the MIDP had provided to the industry. / Business Management / M. Com. (Business Management)

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: This study project aims to investigate economic progress in South Africa through exploring the economic history in both the pre-1994 and post-1994 period. Special emphasis is placed on the areas of poverty alleviation, employment creation as well as the economic success that the country wishes to achieve. South Africa, as a developing nation, faced many key challenges after 1994 and together with these internal problems, the global operating environment was rapidly changing and this needed to be factored in. After ten years of democracy, it is important to examine what progress has been made and determine if South Africa is indeed on the path to prosperity. In establishing this, the author starts by defining the key issues that deserve consideration within the topic and sets a standard framework around which the topic will be studied. South Africa is not the first country in the world to experience related challenges and it is useful to examine some selected economies in the world, to extract key learning points as well as offer a means of benchmarking how South Africa compares. It is essential that the context and nature of the problems that exist currently be understood through an investigation of the past. The solutions that ultimately are applied to eradicate these problems must successfully address the inherited legacy or the solutions will be short term and inadequate. Much has happened after 1994 and this is examined both from a macroeconomic as well as the socioeconomic perspective. In determining whether South Africa remains on the correct trajectory, the key learning points are integrated with the progress made to date. The identified shortcomings are then presented as recommendations. / AFRIKAANSE OPSOMMING: Die studie mik om ekonomiese vordering in Suid-Afrika deur die bestudering van ekonomiese geskiedenis in beide die voor-en na-1994 tydperk te ondersoek. Spesiale klem is geplaas in areas van verligting van armoede, werkskepping sowel as ekonomiese sukses wat die land na streef. Suid-Afrika, as 'n ontwikkelende land, staar baie sleutel uitdagings na 1994 in die gesig en tesame met die interne probleme, het die globale funksionele omgewing vinnig verander en moes dit in ag geneem word . Na tien jaar van demokrasie, is dit belangrik om ondersoek in te stel na watter vordering gemaak was en vas te stel of Suid-Afrika inderdaad op pad is na positiewe groei. Deur dit vas te stel, het die skrywer begin om sleutel fokuspunte, binne die onderwerp wat verdien om in ag geneem te word, te definieer, en plaas 'n standaard raamwerk rondom die betrokke onderwerp wat bestudeer moet word. Suid-Afrika is nie die eerste land in die wereld om soortgelyke uitdagings te ondervind nie, en dit is prakties om sommige geselekteerde ekonomieë in die wereld te bestudeer, ten einde belangrike punte en mikpunte oor hoe Suid-Afrika vergelyk uit te beeld. Dit is noodsaaklik dat die konteks en natuur van die probleme huidiglik, verstaan word, deur die verlede te ondersoek. Die oplossings wat toegepas word moet suksesvol die nagelate erfenis addresseer, of die oplossings kortermyn en onvoldoende sal wees. Baie het gebeur na 1994 en dit is beide van 'n makro-ekonomiese sowel as die sosio-ekonomiese perspektief ondersoek. Om vas te stel of Suid-Afrika op die regte koers is, word die sleutel punte geintegreer met die vordering tot op datum. Die geidentifiseerde tekortkomminge word voorgelê as aanbevelings.

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: China has experienced phenomenal economic growth over the past 20 years and has developed from a pure socialist economy into a market driven economy_ However the transfonnation process is not yet complete. China has a pegged currency system (this was the case up until 2110712005) that is coupled to the US dollar. The result of this was that their currency fluctuated much less than other developing country currencies and hence became a very attractive investment destination. In addition to this labour in China is very cheap and access to economies of scale is available. But despite the many positive aspects of the Chinese economy there are also a number of elements that have very negative consequences for the economy and need to be addressed if China wishes to create prosperity for all its citizens. The value of the yuan has been a topic of great contention, and there are very different opinions as to what the currency value should be. After careful consideration of the various options available to China it was assessed that it would be highly detrimental for China to suddenly free float its currency. However it is essential for China to gradually liberate their monetary system so as to create more monetary autonomy. To ensure that liberalization is done in an orderly and non~djsruptjve way, it is important that China refonns other aspects of its economy (such as its banking system, its unprofitable state owned enterprises, its need for energy, income inequality, the protection of intellectual property, its legal system, worker rights and growing unemployment). South Africa, as an emerging economy, also faces a number of challenges to create more opportunities for its people (of whom many are still living in poverty). Obstacles to economic growth include the effects of HN and AIDS, low productivity, discrepancy between the available and the needed skills, unemployment, crime and so forth. A number of positive aspects also exist that need to be harnessed more creatively to ensure that South Africans reap the rewards of sustained economic development. However, it is important that all the people in the economy (i.e. government, business, communities and NGOs) work together to create a positive business environment. / AFRIKAANSE OPSOMMING: China het indrukwekkende ekonomiese groei oor die afgelope 20 jaar ervaar en het ontwikkel van 'n sosiale ekonomie tot 'n markgedrewe ekonomie. Die transforrnasie proses is egter nog nie voltooi nie. China het 'n gekoppelde geldeenheid (dit was die geval tot en met 21107/2005) wat aan die Amerikaanse dollar gekoppel was. Die resultaat was dat hulle geldeenheid minder gefluktueer het as ander ontwikkelende ekonomiee, en China het dus 'n gesogte beleggingsoord geword. Daarmee saam is die koste van arbeid in China baie goedkoop en kan daar van skaalvoordele gebruik gemaak word. Maar ten spyte van die positiewe aspekte. is daar ook 'n aantal elemente wat baie negatiewe gevolge vir die ekonomie inhou en wat aangespreek moet word as China voorspoed vir al sy landsburgers wil verseker. Die waarde van die Chinese yuan is die afgelope paar jaar 'n onderwerp van omstredenheid gewees wat baie verskillende opinies oor die werklike waarde van die eenheid tot gevolg gehad het. Na die oorweging van die verskeie opsies wat beskikbaar is vir China, is bevind dat 'n skielike vrystelling van die yuan baie negatiewe effekte op die ekonomie sal hê. Maar dit is belangrik dat China weI hul geldeenheid geleidelik liberaliseer sodat die regering meer outonomiteit kan hê (in terme van monetere besluitneming). Om te verseker dat die liberalisering op 'n ordelike en nie-ontwrigtende manier sal plaasvind nie, is dit belangrik dat daar ook liberalisering plaasvind in ander areas van die ekonomie (soos die bankstelsel, die nie-winsgewende staatsbeheerde besighede, die gebruik van energie, inkomste ongelykheid, die beskenning van intellektuele eiendom, die regstelsel, werkersregte en die groeiende werkloosheid). Suid-Afrika, as 'n ontluikende ekonomie, het ook 'n aantal uitdagings wat oorkorn moet word indien volhoubare ekonomiese groei behaal wil word. Hindemisse tot ekonomiese groei sluit in MIV en VIGS, lae produktiwiteit, die wanverhouding tussen benodigde en beskikbare vaardighede, werkloosheid, misdaad en ander sosiale probleme. Daarteenoor is daar wel baie positiewe aspekte wat meer effektief benut moet word om groei te dryf. Dit is ook baie belangrik dat al die kernpelers in die ekonomie hul kant bring (dus die regering, georganiseerde besigheid, werkers, werkloses en gemeenskapsorganisasies).

Thesis (MPhil)--University of Stellenbosch, 2001. / ENGLISH ABSTRACT: Following FW De Klerk's decision on the 2nd of February 1990 to unban black liberation movements, release of Mandela from prison and the uplifting of the state of emergence, a process of irreversible change was set in motion in South Africa. This process of change was captured in the four-year dramatic series of negotiations sometimes referred to as 'talks about talks' and the real negotiations at Kempton Park, which ensued immediately after De Klerk's ground-breaking speech in 1990. The negotiations ultimately resulted in the i~interim constitution of 1993 which served as the basis for the 1994 elections. The election in turn ushered South Africa into a new epoch of an electoral democracy characterised by most of the ingredients of a normal democracy. The new born "electoral democracy" met the seven conditional institutions/ principles for a polyarchy as prescribed by . Robert Dahl, namely universal suffrage; free and fair elections; right to run public office; freedom of expression; right to access information; freedom to form organizations of great variety and responsiveness of the government to voters and election outcomes. But the key question relates to its consolidation - is it consolidating? Responding to this question is the gist of this not-so comprehensive comparative thesis, whose particular focus is the presidency in the new South Africa - both of Mandela and Mbeki. This is done through the help of the both institutional as well as socio-economic approaches to democracy. That is, 'without appropriate state institutions, democracy is not possible' (Linz and Stepan .1996.p14) and without favourable socio-economic conditions, democratic institutions are unlikely to endure and consolidate. The institutional analysis puts under spotlight the presidency and decision-making trends, specifically the National Economic Development and Labour Council (Nedlac) for the Mandela's presidential era and the Policy Co-ordination Advisory Services (PCAS) Unit for the Mbeki's. On socio-economics it looks at how Mandela and Mbeki dealt with the inequality problem issue. This study will not deal with issues such as ethnic heterogeneity or class issues in relation to consolidation of democracy, except insofar as they illustrate something about policies on inequalities. It eventually assesses the implications for the consolidation of democracy in the new South Africa by contrasting Mandela and Mbeki's approaches to the economy i.e. Mandela's ROP and Nedlac and Mbeki's GEAR and International Investment Council. / AFRIKAANSE OPSOMMING: 'n Proses van onomkeerbare verandering in Suid-Afrika is in werking gestel met FW de Klerk se besluit op 2 Februarie 1990 om die bevrydingsbewegings te ontban, Mandela en ander politieke gevangenis vry te laat en die noodtoestand op te hef. Dié proses van verandering het op 'n vier jaarlange onderhandelingsproses uitgeloop wat aanvanklik getipeer was as "gesprekke oor gesprekke" en daarna die ware onderhandelings wat by Kemptonpark plaasgevind het. Hierdie onderhandelings het gelei tot die formulering van die interim grondwet van 1993 wat die basis gevorm het vir die eerste inklusiewe verkiesing in Suid-Afrika in 1994. Hierdie verkiesing het Suid-Afrika op die pad van 'n elektorale demokrasie geplaas wat die vereiste vir alle normale demokrasieë is. Hierdie elektorale stelsel in Suid-Afrika voldoen aan al Robert Dahl se sewe vereistes vir 'n poliargie, te wete algemene stemreg, vrye en regverdige verkiesings, die reg om aan openbare instellings deel te neem, die vryheid van spraak, die reg tot inligting, die vryheid om organisasies te vorm wat betrekking het op die verkiesingsproses. AI hierdie vereistes is noodsaaklik, maar nie noodwendig voldoende om 'n demokrasie te konsolideer nie. Die vraag is dus of Suid-Afrika konsolideer. Om hierdie vraag te beantwoord vereis 'n omvattende ondersoek. Hierdie tesis is egter meer beskeie en sal slegs konsentreer op die rol van die presidentskap in Suid-Afrika - Mandela en Mbeki, en te bepaal of die style wat hulle gevolg het en die beleide wat hulle toegepas het konsolidasie in die hand werk of nie. Daar sal gekyk word na die institusionele aspekte van die presidentskap se besluitnemingstrukture asook na enkele sosio-ekonomiese aspekte wat relevant vir demokratisering is. Die aanname in hierdie tesis was "without appropriate state institutions, democracy is not possible" (Linz & Stepan. 1996), maar sonder gunstige ekonomiese toestande (Przeworski en andere 1996), is die kanse dat 'n demokrasie volhoubaar is gering. Die instellings wat beskryf en ontleed word wat op die president se besluitnemingstyle dui is die National Economic Development and Labour Council (Nedlac) wat Mandela betref en die Policy Coordination Advisory Services (PCAS) wat Mbeki betref. Die sosio-ekonomiese aspekte wat ondersoek is handel in beide gevalle met hoe hierdie presidente die ongelykheids-problematiek in Suid-Afrika aangespreek het wat ook op nasiebou betrekking het. Hierdie studie sluit kwessies soos etniese heterogeniteit en die klassedebat uit, behalwe in soverre dit betrekking het op besluitneming en die hantering van ongelykheid. Die implikasies vir konsolidasie word uitgespel.

Thesis (MBA (Business Management))--University of Stellenbosch, 2007. / AFRIKAANSE OPSOMMING: Globalisering, tegnologiese vooruitgang, die Internet en veranderinge in Suid-Afrika vanaf 1994 het bygedra tot die huidige nuwe ekonomie. Indien organisasies wil oorleef in die nuwe ekonomie sal hulle moet aanvaar dat die nuwe ekonomie ‘n aantal nuwe uitdagings te weë gebring het tot die manier waarop besigheid gedoen word in Suid-Afrika en in die res van die wêreld. In die nuwe ekonomie moet organisasies takties te werk gaan om volgehoue sukses te verseker. Besluitnemers moet die impak wat die nuwe ekonomie op hulle besigheid en hul stand in die betrokke mark het analiseer en strategiese beplanning doen oor hoe die organisasie gaan aanpas in die nuwe ekonomie om oorlewing te verseker in ‘n mark wat aanhoudend verander. Verwantskappe met interne en eksterne belangegroepe en deelhebbers is van kardinale belang in die nuwe ekonomie. Organisasies moet hul fokus plaas op verwantskappe met belangegroepe wat deel is van die besigheidsproses en sodoende deelhebbers beïnvloed tot voordeel van die organisasie. ‘n Aantal nuwe toetreders tot die mark (klein tot medium ondernemings en internasionale organisasies wat investeer in Suid-Afrika) het ‘n beduidende toename in mededinging veroorsaak. Die toename in mededinging het op sy beurt gelei tot ‘n groter veskeidenheid aanbiedinge wat beskikbaar gestel word aan verbruikers en ander belangegroepe. Die reputasie van ‘n organisasie, sy produkte en sy werknemers speel ook ‘n baie belangrike rol in die nuwe ekonomie aangesien belangegroepe en deelhebbers verkies om geassosieer te word met geloofwaardige en suksesvolle organisasies, produkte en dienste. Dit is dus belangrik dat indien ‘n organisasie will oorleef in die nuwe ekonomie moet die organisasie homself onderskei van ander en seker maak dat hulle ‘n plek in die gedagtes van hulle belangegroepe en deelhebbers toe eien. Die enigste manier om ‘n mededingende voordeel binne die nuwe ekonomie te bewerkstellig is om die besigheid takties in die gedagtes van alle belangegroepe en deelhebbers te posisioneer. As gevolg van die uitdagings en veranderinge wat die nuwe ekonomie te weeg gebring het kan ‘n organisasie nie langer net staat maak op tradisionele bemarkingsbeginsels om hulle self te posisioneer nie. ‘n Posisionerings- (of plasings-) strategie moet ontwikkel en toegepas word deur ‘n stelsel benadering te volg waar die hele organisasie betrokke is in posisionering. Die navorser het hierdie studie aangepak omrede ‘n handleiding te ontwerp en daar te stel vir besluitnemers in organisasies wat hul betrokke organisasies takties wil posisioneer in die nuwe ekonomie. Om die konsepsionele model vir posisionering (of plasing) van ‘n organisasie in die nuwe ekonomie daar te stel het die navorser kwalitatiewe navorsing gedoen wat ‘n studie van gepaste vak-inhoud, teorieë, beskikbare studiemateriaal, opinies van deskundiges en ‘n inhouds-analise van steekproef onderhoude ingesluit het. Die resultaat van die studie is ‘n goed geformuleerde teoretiesie model vir posisionering van ‘n organisasie in die nuwe ekonomie wat enige organisaie wat dit toepas in sy geheel sal bevoordeel en sy posisionering sal versterk. / ENGLISH ABSTRACT: Globalisation, technological enhancements, the Internet and changes in South Africa from 1994 led to the current new economy. If a company wants to survive in the new economy it will have to realise that the new economy brings a number of challenges to the way that business is conducted in South Africa and abroad. Companies need to work tactically in the new economy business environment to ensure sustainability. Decision-makers are to access the impact that the new economy has on the company and its position in the market and strategise how to adapt to the new economy in order to survive in an ever changing market. In the new economy relationships with internal and external stakeholders have become more important and companies need to focus on the relationships within its value chain in order to influence its stakeholders to the benefit of the company. Competition has increased due to a number of new entrants to the market (small to medium enterprises and international companies investing in South Africa) which led to a vast amount of offerings being available to consumers and other stakeholders. The reputation of a company, its products and its employees also play an important role in the new economy as stakeholders want to be associated with a credible and successful company, product or service. It is thus important that if a company wants to survive in the new economy it needs to differentiate themselves from others and make sure to own an area in the minds of their stakeholders. The only way to create a competitive advantage in the new economy is to position a company tactically in the minds of all stakeholders. Due to the challenges and changes that the new economy brought about a company can no longer only use traditional marketing principles to position themselves. A positioning strategy needs to be developed and implemented from a systems point of view where the whole company is involved in its positioning. The researcher embarked on this study to create a tool for companies that will assist decision-makers in the tactical positioning of their companies within the new economy. In order to create a conceptual model for positioning of a company in the new economy qualitative research was conducted, that included a study of content, theories, available material, views from experts as well as a content analysis from sample interviews. The outcome of the study was a well formulated theoretical model for positioning of a company in the new economy that will benefit and enhance the positioning of any company that applies it in its entirety.

Thesis (MBA (Business Management))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: High levels of gross national savings reduce a country’s reliance and exposure to the vagaries of the global capital market. On an individual level, delaying consumption and providing for future needs and prosperity is a necessary condition to improve or maintain the quality of life. India and China’s gross national savings and, in particular, their household savings rates are higher than those of South Africa. Within the context of sustaining the global competitiveness of these developing countries - each with a burgeoning middle class – there is a need to ensure that policy formulation recognises the consumption and savings needs of this segment of the population. With a view to understanding the reasons why the household savings rates of China and India are so high in comparison to South Africa, this report investigates whether (and to what extent) South African policy makers can learn from China and India in the design of its policy framework to reduce consumption and create a savings culture. This research project is a comparative analysis of the determinants of household savings behaviour in China, India and South Africa, with specific reference to the consumer behaviour of the middle class consumer in each country. The comparative analysis draws on secondary sources such as journal articles, books, completed research and the Internet. While India and China have high household savings rates, this is not as a function of policy reforms that were introduced to encourage saving. Rather, an absence of sufficient financial sector development and a weak social safety net, coupled with a collective household culture and attitude that values saving ahead of consumption, that has resulted in households in India and China, and in particular middle income households, saving to ensure adequate provision is made. In South Africa, the impacts of financial liberalisation and a flawed social security system have resulted in a failure to provide broad based income protection. Increased consumer access to financial services coupled with a coherent social security structure and continued government investment are critical threads that must pervade the reform agenda in South Africa. / AFRIKAANSE OPSOMMING: Hoë bruto nasionale spaarvlakke verminder ’n land se afhanklikheid van en blootstelling aan die wisselvalligheid van die internasionale kapitaalmark. Op ’n individuele vlak is die uitstel van verbruiksbesteding en voorsiening vir toekomstige behoeftes en voorspoed ’n voorvereiste vir die verbetering of handhawing van lewenspeil. Indië en China se bruto nasionale spaarvlakke, en in die besonder hul huishoudelike spaarkoerse, is hoër as dié van Suid-Afrika. Binne die konteks van die volhoubare wêreldwye mededingendheid van hierdie ontwikkelende lande – elk met ’n ontluikende middelklas – is daar ’n behoefte om te verseker dat beleidsformulering die verbruiks- en spaarbehoeftes van hierdie segment van die bevolking erken. Om te probeer verstaan waarom die huishoudelike spaarkoerse in China en Indië so hoog is in vergelyking met Suid-Afrika, ondersoek hierdie verslag of (in en watter mate) Suid-Afrikaanse beleidvormers by China en Indië kan gaan kers opsteek ten opsigte van die ontwerp van sy beleidsraamwerk om verbruik te verminder en ’n spaarkultuur te skep. Hierdie navorsingsprojek is ’n vergelykende ontleding van die bepalende faktore van huishoudelike spaargedrag in China, Indië en Suid-Afrika, met spesifieke verwysing na die verbruikersgedrag van die middelklas verbruiker in elke land. Die vergelykende ontleding gebruik sekondêre bronne soos joernaalartikels, boeke, voltooide navorsing en die internet. Hoewel Indië en China hoë huishoudelike spaarkoerse het, is dit nie ’n regstreekse uitvloeisel van beleidshervormings wat ingestel is om spaar aan te moedig nie. Dit is eerder ’n gebrek aan voldoende finansiële sektorontwikkeling en ’n swak maatskaplike veiligheidsnet, tesame met ’n kollektiewe huishoudelike kultuur en ingesteldheid wat groter waarde aan spaar heg as aan verbruik, wat daartoe gelei het dat huishoudings in Indië en China, en veral middelklas huishoudings, spaar om genoegsame voorsiening te verseker. In Suid- Afrika het die impak van finansiële bevryding en ’n gebrekkige maatskaplike welsynstelsel gelei tot ’n onvermoë om breedgebaseerde inkomstebeskerming te verskaf. Groter verbruikerstoegang tot finansiële dienste, tesame met ’n samehangende maatskaplike welsynstruktuur en volgehoue staatsinvestering, is kritieke temas wat die hervormingsagenda in Suid-Afrika moet deurvleg.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Business persons engaging in BEE deals, pertaining to ownership, encounter many obstacles and challenges relating to the formulation of appropriate structures and solutions during the deal process. The SMME market is arguably one of the most critical contributors towards the SA GDP and a sector of the economy with the most growth potential as noted from recent history, especially relating to BEE ownership. It is in the above frame of reference that the research report attempts to follow a logical flow of events that the business persons in the SMME market would encounter. The report therefore has a holistic approach to this market and although many of the concepts could be applied to a variety of industries and even to other market segments, based on size, the primary objective and research has been centred around SMME’s. The core concepts that are covered relate to: - Understanding the essence of BEE and BBBEE as well as Government’s role as conduit to empowerment. The various elements under the BEE scorecard will also be a prominent factor as ownership only accounts for a portion of the entire BBBEE rating. - Aligning the BEE deal to strategy is a crucial consideration and entails attracting the right partner and ensuring that the BEE transaction is directed at value creation, growth and sustainability of the business. The transaction should make strategic and economic sense. - Determining firm value is in all probability one of the most complex issues and business owners should merely attempt to understand and interpret the vastly complicated process that may be presented by business brokers or valuers that facilitate the BEE deal. The fair value concept and required adjustments could be influential in the valuation process as well as choosing the correct valuation methodology. - Business tax structure. This is also a complex process that may vary significantly from business to business. Certain legislative impediments are influential and various amendments may also influence future structuring of BEE deals. The use of SPV’s is a prominent theme highlighted in this research report as it is very often the most preferred structure. - The BEE deal. This may have to consider hybrid financial solution from various sources, such as senior debt, franchise funding, mezzanine debt including venture capitalists, non-traditional lending sources and alternative supporting or indirect funders to the business. The lending criteria principles relating to cash conversion cycle, free cash flow and sustainable growth rate have also briefly been covered. BEE transactions inevitably enter an area of uncertainty for business persons when it comes to drafting business plans, determining the BEE scorecard, structuring the new shareholding and many other factors. In other words, they may not have the necessary business or financial acumen to prepare a satisfactory business proposal to attract lenders to the deal. It is therefore crucial to understand the different elements of the BEE deal formulation process, which is exactly the intent of this research report. / AFRIKAANSE OPSOMMING: Besigheidspersone wat SEB-transaksies met betrekking tot eienaarskap aangaan, ondervind baie struikelblokke en uitdagings in verband met die formulering van toepaslike strukture en oplossings wanneer die transaksie aangegaan word. Die KMMO-mark is stellig een van die mees kritieke bydraers tot die SA BBP en ’n sektor van die ekonomie met die meeste groeipotensiaal, soos die onlangse geskiedenis ons geleer het, veral met betrekking tot SEB-eienaarskap. Dit is met bogenoemde in gedagte dat hierdie navorsingsverslag poog om ’n logiese vloei van gebeure te volg wat die sakepersone in die KMMO-mark sal teëkom. Die verslag het dus ’n holistiese benadering tot hierdie mark en hoewel baie van die konsepte op ’n verskeidenheid nywerhede en selfs op ander marksegmente, gegrond op grootte, toegepas kan word, is die primêre doelwit en navorsing op KMMO’s gerig. Die kernkonsepte wat behandel word, het betrekking op: - Begrip van die kern van SEB en BBSEB asook die Regering se rol as geleibuis tot bemagtiging. Die verskillende elemente van die SEB-telkaart is ook ’n belangrike faktor aangesien eienaarskap net ’n gedeelte van die algehele BBSEB-aanslag verteenwoordig. - Die inlynstelling van die SEB-transaksie met die strategie is ’n kritieke oorweging en behels die lok van die regte vennoot en die versekering dat die SEB-transaksie tot waardeskepping, groei en volhoubaarheid van die besigheid gerig is. Die transaksie moet strategiese en ekonomiese sin maak. - Die bepaling van stewige waarde is in alle waarskynlikheid een van die mees komplekse kwessies en besigheidseienaars moet bloot probeer om die enorme gekompliseerde proses te verstaan en te interpreteer wat deur besigheidsmakelaars en waardeerders wat die SEB-transaksie fasiliteer, voorgelê word. Die billikewaarde-konsep en die vereiste regstellings kan invloedryk op die waardasieproses asook die keuse van die korrekte waardasiemetodologie wees. - Besigheidsbelastingstrukturering is ook ’n komplekse proses wat aansienlik van besigheid tot besigheid verskil. Sekere wetlike struikelblokke is invloedryk en verskeie wysigings kan ook toekomstige strukturering van SEB-transaksies beïnvloed. Die gebruik van SDV’s is ’n prominente tema wat in hierdie dokument uitgelig word aangesien dit in die reël die verkieslikste struktuur is. - Die SEB-transaksie sal moontlik hibridiese finansiële oplossings van verskeie bronne soos seniorskuld, franchise-befondsing, tussenskuld insluitend waagkapitaliste, nie-tradisionele uitleenbronne en alternatiewe ondersteunende of indirekte befondsers van die besigheid moet oorweeg. Die uitleenkriteriabeginsels met betrekking tot kontantomskeppingsiklus, vry kontantvloei en volhoubare groeikoers word ook kortliks gedek. SEB-transaksies betree onvermydelik ’n gebied van onsekerheid vir sakepersone wanneer dit kom by die opstel van besigheidsplanne, die bepaling van die SEB-telkaart, die strukturering van die nuwe aandeelhouding en baie ander faktore. Met ander woorde, hulle kan moontlik nie die nodige besigheids- of finansiële vernuf hê om ’n bevredigende besigheidsvoorlegging op te stel wat uitleners na die transaksie sal aantrek nie. Dit is dus kritiek om die verskillende elemente van die formulering van die SEB-transaksie te verstaan, wat presies die doel van hierdie navorsingsverslag is.