Thesis (MDF (Business Management))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: This paper gives an insight of the uniqueness of the South African Private Equity Industry and the underlying reasons for that. It also highlights the differences between the South African Private Equity Industry and both the African Private Equity Industry as well as the Global Private Equity Industry. It highlights challenges that all three industries are facing, both as a result of the global financial meltdown, the resulting global economic recession, and otherwise. Additionally, the paper highlights challenges and trends that are unique to South Africa. Further, it discusses views of industry experts and academics through proposals aimed at addressing these challenges and the roles of industry stakeholders. The discussions around the trends are mainly to highlight certain characteristics about the industry, globally, in Africa and in South Africa. The evidence provided in this paper, shows that the South African Private Equity Industry, owing mainly to regulatory and legislative causes, has proven to be much more resilient than the Global Private Equity Market; as such, it is still able to operate and do business. This finding is not only applicable to the Private Equity industry, but cuts across the financial services industry as a whole. The evidence provided also shows that the one solution that cuts across most of the challenges that the South African Private Equity industry is facing, is educating the stakeholders about the industry and doing a much better job at marketing the industry to them.

Thesis (MDF (Development Finance))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Small and Medium Enterprises (SMEs) are regarded as core drivers of private sector development in many countries. By their nature, SMEs encounter enormous problems, ranging from usage of appropriate technology, access to raw materials, lack of skills, etc. However, access to finance is frequently cited as the most prominent problem facing the SMEs. Access to finance is defined as the easiness to access credit from financial institutions and the costs associated with accessing credit from such institutions. This study focuses on credit guarantee schemes as one of financial instruments commonly used to encourage banks to provide credit to small businesses and first time borrowers. Specifically, we review the performance of the two schemes initiated by the Government of Lesotho through assistance of the donor community. The first scheme (Comprehensive Export Finance Scheme) was administered by the Central Bank of Lesotho through Lesotho National Development Cooperation between 1988 and 1996. The second scheme (Facility for small-scale financing scheme) was funded by United Nation Capital Development Fund, United Nations Development Programme and Lesotho Government. The latter was operated by Basotho Enterprise Development Corporation (BEDCO), Women in Business and Lesotho Council of Non Governmental Organisations (NGOs) between 1992 and 1997. We analyse the performance of these schemes in relation to their diversification and outreach objectives. We also compare these schemes in terms of the design features and operational issues as per global best practices. Further, some of the factors that affected effectiveness of the two schemes under consideration and the overall financial intermediation process in Lesotho are outlined. One of the findings of this study is that generally the two schemes failed to achieve the intended objectives as a result of a number of problems. Apart from the deficiencies of the scheme itself, problems in the business and financial sector affected the performance of these schemes. A striking common feature of these schemes is that they concentrated in few sectors. We also observed a general negligence by the banks in relation to screening and monitoring as a result of low risk exposure. In retaliation of poor due diligence by the banks, and a resultant high default rate by borrowers, guarantors repudiated claims and this led to the eventual erosion of the credibility of the schemes, and ultimate deterioration of guarantor lender relationships. From the findings, we have concluded that the schemes should be designed and be operated according to global best practices. For example, risk exposure should be shared in such a way that all the three parties, that is guarantor, lenders and borrowers, are exposed to some degree of risk. At the same time, where defaults occur, we recommend a speedy processing of claims by the guarantor, and that loan loss recovery activities are continued even when claims have been paid. We also make some recommendation in respect of the financial sector and business sector respectively. For the financial sector the recommendations include the establishment of credit bureaus and a National Identification System so that financial institutions can isolate good clients and price products accordingly. In respect of the business sector, key recommendations include the improvement of basic infrastructure, decentralisation of key support services to the districts, linking smaller entrepreneurs with large foreign firms, and increasing vocational and technical training in Lesotho. / AFRIKAANSE OPSOMMING: Kleinsake word in baie lande as die vernaamste dryfkrag van groei in die privaatsektor beskou. Vanwee hulle aard ondervind kleinsake egter 'n wye reeks probleme, wat strek van die benutting van gepaste tegnologiee en die toegang tot natuurlike hulpbronne tot die beskikbaarheid van die regte vaardighede. Toegang tot finansiering word dikwels as die mees belangrike probleem van klein sake beskou. Dit word gesien as die toeganklikheid van finansiele instellings vir krediet aan kleinsake en die koste van sodanige finansiering. Hierdie studie plaas die klem op kredietwaarborgskemas as een van die finansiele instsrumente om banke aan te moedig om krediet aan kleinsake en sakebeginners toe te staan. Binne die konteks van Lesotho kyk ons na twee sodanige skemas, geinisieer deur die regering van Lesotho, in samewerking met buitelandse donateurs. Die eerste skema (die "Comprehensive Export Finance Scheme") is gedurende die jare 1988 en 1996 deur die Central Bank of Lesotho geadministreer, in samewerking met die Lesotho National Development Corporation. Die tweede skema (die "Faculty for Small-Scale financing") is geborg deur die UN Capital Development Fund, die UNDP en die regering van Lesotho. Dit is geadministreer deur die Basotho Enterprise Development Corporation (BEDCO), "Women in Business" en die Lesotho Council of NGOs en was aktief gedurende die jare 1992 en 1997. Die studie ontleed die werking van kredietwetskemas met die oog veral op hul dekkingswydte en trefkrag. Daar word ook gekyk na die aard en operasionele besonderhede van die skemas, teen die agtergrond van wereldwye praktyke. Ten derde word gekyk hoe die skemas ingepas het by die breer finansiele proses van Lesotho. Die studie toon dat albei skemas, vanwee 'n hele reeks faktore, in hul oogmerke gefaal het. Afgesien van 'n reeks tekortkominge van die twee skemas self het probleme in die sakemilieu en die finansiele sektor hul werking nadelig beinvloed. Een van die tekortkominge van die skemas was 'n te eng fokus op slegs enkele sektore. Daar was ook 'n gebrek aan deeglike voorondersoeke en monitereing, o.a. as gevolg van 'n lae risikoblootstelling aan die kant van die banke. Een van die gevolge van die beperkte aandag van banke en die hoe mislukkingskoers van kleinsake was 'n toenemende onbereidwilligheid van die skemas om eise te erken. Dit weer het die geloofwaardigheid van die skemas in gevaar gestel en verhoudings tussen die uitleners (banke) en waarborgvoorsieners vertroebel. Die ondersoeke kom tot die slotsom dat die skemas volgens die beginsels van internasionale skemas van die soort hersien behoort te word. Dit sluit in die behoorlike deling van risikos (tussen lener, uitlener en waarborgverskaffer). Dit behoort ook 'n spoediger afhandeling van eise in te sluit. Die studie maak ook enkele voorstelle gerig op die wyer finansiele en sakesektor van Lesotho, soos bv. die noodsaaklikheid van "kredietburo's" en 'n nasionale identifikasiestelsel. Op 'n nog wyer vlak word verwys na die belangrikheid van 'n beter kommunikasie-infrastsruktuur, die desentralisasie van ondersteuningsdienste, nouer skakeling tussen klein sake en groter ondernemings asook beter tegniese- en sakeopleiding.

Thesis (MDF (Development Finance))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: The purpose of this study is to determine the effects of the global financial, economic, and food price crises on microfinance institutions (MFIs), and on the microfinance industry in general as well as to illuminate microfinance‘s way forward in the medium-term (2-3 year) future. The research report took the form of an international survey representing the responses of 59 MFIs in 39 countries. It is unique in its focus on microfinance practitioners from MFIs of all sizes and profit orientations, and that it only sought responses from the six developing regions of the world—Latin American and the Caribbean, Eastern Europe and Central Asia, the Middle East and North Africa, Sub-Saharan Africa, South Asia, and East Asia and the Pacific. This report identifies 23 impacts of the crises and groups them into four classifications—client impacts, liquidity and profitability impacts, MFI growth and development impacts, and political and reputational impacts. This study demonstrates that the crises have affected MFIs around the world profoundly, and that MFIs have faced a resilient hierarchy of impact groups. Across MFI regions, sizes, ages, product offerings, registration status classifications, and affiliations, the four impact groups were shown to maintain the same order of severity, with client impacts being the category of biggest concern of MFI respondents. Also severe were liquidity and profitability impacts. The least severe categories of impacts were found to be MFI growth and development impacts and political and reputational impacts, respectively. Through quantitative and qualitative analysis of microfinance practitioner responses, this report establishes an overall ranking of the 23 impacts the global crises are having on the industry. The analysis has further revealed that Sub-Saharan Africa reported the highest impacts of the crises out of all the regions surveyed. The size of an MFI affects its resilience against the crises, with small MFIs being more severely affected than large MFIs. Age was found to have an inverse relationship with MFI impact ratings, and there were very few significant differences between for- and non-profit MFIs. This research report has demonstrated that the benefits afforded to MFIs by accepting deposits may have been over-promoted by industry observers during the early stages of the crises, as no apparent benefits have emerged from responses to this survey. The report concludes with a summary of respondent indications about the way forward for the microfinance industry.

Thesis (MDF (Development Finance))--University of Stellenbosch, 2010.

Thesis (MDF)--Stellenbosch University, 2008. / ENGLISH ABSTRACT: This study focuses on the factors that hinder the growth of the microfinance industry in Namibia. The actual issues of the sector are not known as not much research has been undertaken on it. However, it is possible to establish the constraints that limit the growth of the microfinance environment in the country. The study presents the identified limitations with associated solutions as experienced in different countries and reported by various authors and academics. The desired situation would be for the microfinance sector to operate effectively by serving the poor and unemployed but economically active people. Although this is not the all encompassing solution to the plight of the rural and urban poor, it is, however, the beginning at the attempt to move out of poverty. The questions that the respondents answered were designed specifically to clarify which sector of the low income section of society that was accessing the loans available on the market. This fact will enable policymakers to focus on resolving the hindrance that will produce the most results than taking haphazard actions that bring minimal results. The results could also be useful to microfinance providers in that they can use the information to identify business opportunities for the diversification of the products they offer. Finally, the constraints hindering the growth of microfinance such as the restrictive regulatory environment for one are not unique to Namibia. Hence, the experience and solutions from other countries are available for study. However, the local industry would have to initiate their own solutions to match and meet local conditions. / AFRIKAANSE OPSOMMING: Hierdie studie fokus op die faktore wat die groei van mikrofinansies in Namibie belemmer. Die werklike probleme is nie bekend nie omdat baie min navorsing nog in hierdie verband gedoen is. Dit is egter wel moontlik om die beperkinge tot groei van die mikrofinansies industrie in Namibie te bepaal. Die studie bied 'n oorsig van bekende beperkinge en moontlike oplossings soos ervaar in verskillende lande en soos gerapporteer deur verskeie outeurs en akademici. Die ideale situasie sal wees dat die mikrofinansies sektor effektief funksioneer deur die armes en werkloses, maar ekonomies aktiewe, gemeenskap te dien. Hoewel dit nie 'n alomvattende oplossing bied vir die behoeftes van plattelandse en stedelike armes nie, is dit egter 'n poging om hierdie mense uit armoede te lig. Die vrae wat respondente moes antwoord het spesifiek gepoog am te bepaal watter sektor van die samelewing die lenings wat beskikbaar is in die mark gebruik. Hierdie kennis sal wetgewers in staat stel om te fokus op probleme wat die grootste struikelblokke is, eerder as om lukraak probleme aan te spreek met minimale resultate. Die bevindinge mag ook van belang wees vir mikrofinansies voorsieners wat die inligting kan gebruik om besigheidsgeleenthede te identifiseer om sodoende hulle produk-reeks te diversifiseer. Laastens, die beperkinge in die mikrofinansies sektor soos die beperkende regulatoriese omgewing is nie uniek tot Namibie nie. Dus, die oplossings vanuit ander lande kan toegepas word in Namibie. Die Namibiese industrie sal egter hulle eie oplossings moet vind om die plaaslike omstandighede die hoof te bied.

Thesis (MDF)--University of Stellenbosch, 2010. / The level of poverty in Namibia is relatively high. Access to finance is cited as one of factors hampering economic growth and poverty alleviation. Microfinance is seen as one of the effective tools that can address poverty alleviation by engaging the poor in sustainable economic activities. Microfinance services have existed in Namibia since the late 1990s, yet they have not attained growth. The main providers of microfinance services consist mainly of Micro-lenders, Non-Governmental Organizations (NGOs), Savings and Credit Cooperative Societies (SACCOS), Public Financial Institutions (PFI) and to a less extent Commercial Banks (CB). This research report aimed to study and identify the problems that impact on the growth of microfinance finance institutions (MFIs) in Namibia. The findings of this study revealed that lack of regulatory and policy framework, lack of capital and high operational costs were the main problem areas hampering the growth of MFIs in Namibia. The study made recommendations which are aimed at enhancing the growth of microfinance institutions.

Thesis (MDF (Development Finance))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: This study examines whether there is a solution to the challenges being faced in the capital markets in Zambia. Literature on how other countries have overcome these challenges is reviewed to determine whether there is a solution to these challenges. The study also tests for the market efficiency of the Lusaka Stock Exchange (LuSE). The Random Walk Model is used to test for weak form efficiency using the Augmented Dickey-Fuller (ADF) Test. The ADF Test is conducted for the period May 1995 to October 2008 using individual stocks, depending on the date the stock was listed on the LuSE. The result of this study shows that there is a solution to some of the challenges being faced in the capital markets in Zambia. The results also show that the LuSE market is a weak form of efficiency. / AFRIKAANSE OPSOMMING: Hierdie studie ondersoek die vraag of daar ʼn oplossing is vir die uitdagings waardeur die kapitaalmarkte in Zambië in die gesig gestaar word. Literatuur oor hoe ander lande hierdie uitdagings te bowe gekom het, word nagegaan om te bepaal of daar ʼn oplossing is vir dié uitdagings. Die studie toets voorts die markdoeltreffendheid van die Lusaka-aandelebeurs (LuSE). Die stogastiese bewegingsteorie word gebruik om met behulp van die Augmented Dickey-Fuller (ADF)-toets vir swak vormdoeltreffendheid te toets. Die ADF-toets is met behulp van individuele effekte gedurende die tydperk Mei 1995 tot Oktober 2008 uitgevoer, na gelang van die datum waarop die effek op die LuSE genoteer is. Die slotsom waartoe hierdie studie kom, is dat daar ʼn oplossing is vir sommige van die uitdagings waarvoor die kapitaalmarkte in Zambië te staan kom. Die resultate toon ook dat die LuSE-mark swak is wat betref vormdoeltreffendheid.

Thesis (MDF)--Stellenbosch University, 2011. / ENGLISH ABSTRACT: The study undertakes an extensive literature review and analysis of the South African Government’s venture towards adopting accrual accounting in the national and provincial spheres of government. The venture is benchmarked against similar ventures of New Zealand, Australia and the United Kingdom. The experiences of other countries are used only to the extent needed to shed further light on certain issues and do not constitute a meaningful portion of the study. The study examined whether the accruals basis of accounting will increase the value of the system of accounting in the broader strategy to improve service delivery in the national and provincial spheres of government in South Africa. Two subsidiary issues are also examined: whether the departments are ready and able to cope with a change to accrual accounting in the foreseeable future; and the risks inherent in the change The main observations of the study are that the Government of South Africa (GoSA) faces a serious service delivery crisis. The government has identified that a broad package of reforms, including an improved system of accounting, is needed to address the service delivery dilemma. The change from the current modified cash to the accruals basis of accounting in the national and provincial spheres of government forms part of this solution. The change to accrual accounting is aimed at producing additional and more sophisticated information that will be used to improve decision making and ultimately the quality and cost of government services. This move is consistent with the requirements of the PFMA, which requires the government’s accounting system to operate within the GRAP framework, an accrual accounting format. The paper finds that although accrual accounting is a superior model in theory, in practice there is an increasing sense of disillusionment with the outcomes of accrual accounting, hence an accompanying decline in the interest shown by governments across the world in changing to this format. In all three countries studied there is evidence that accrual accounting reform has underperformed relative to the original expectations. Causes of this scenario are linked to the adoption of a model of accrual accounting that is not properly configured for the nuances of the public sector, poor implementation and in some cases the unrealistic expectation of seeing results too soon after implementation. These countries have had to take additional measures to obtain value, some of which nevertheless remain elusive. All three countries nevertheless cited improved asset management as the prime benefit of the accrual accounting system. It is noted that, when the information produced through the system of accrual accounting is used effectively, it ought to result in a more effective, efficient and transparent use of resources – a precondition for improving service delivery. The paradox is that accrual accounting is used in the South African municipalities and public entities, yet, the majority of these institutions have dismal service delivery records. This illustrates that accrual accounting in and of itself will not make a significant impact on the quality of service delivery and that there is a need for an intensive programme of control, governance and skills improvement alongside the accrual accounting reform. In the final analysis the study finds that there is a paucity of evidence showing the causality between the adoption of accrual accounting and improvements in service delivery; in the main because accrual accounting was introduced within a broader set of reforms and it has not been possible to isolate its impact. It is also observed that the national and provincial departments are underprepared for accrual accounting and that there are significant risks to implementing the change in the foreseeable future. Given this scenario, the hypothesis that the accruals basis of accounting is a superior model for addressing the service delivery challenges in the GoSA cannot be confirmed. / AFRIKAANSE OPSOMMING: Die studie onderneem 'n omvattende literatuurstudie en analise van die Suid-Afrikaanse Regering se onderneming tot die goedkeuring van Toevalling rekeningkunde in die nasionale en provinsiale sfere van die regering. Die onderneming is teen soortgelyke ondernemings van Nieu-Seeland, Australië en die Verenigde Koninkryk vergelyk. Die ervarings van ander lande word slegs gebruik in die mate wat nodig is om meer lig te werp op sekere kwessies en maak nie 'n betekenisvolle gedeelte van die studie uit nie. Hierdie studie ondersoek of die toevalling rekeningkundige grondslag die waarde van die rekeningkundige stelsel van toename in die breër strategie om dienslewering in die nasionale en provinsiale sfere van die regering in Suid-Afrika sal verbeter. Twee addisionele kwessies word ook ondersoek om te bepaal of departemente binne die afsienbare toekoms gereed en in staat sal wees om aan te gaan met 'n verandering aan die Toevalling rekeningkunde asook die risiko's wat inherent in die verandering is sal kan hanteer. Die belangrikste waarnemings van die studie is dat die Regering van Suid-Afrika 'n ernstige dienslewering krisis in die gesig staar. Die regering het vasgestel dat 'n breë pakket van die hervorming, insluitend 'n verbeterde stelsel van rekeningkunde, nodig is om die dienslewering dilemma aan te spreek. Die verandering van die huidige rekeningkundige stelsel na die toevalling basis van rekeningkunde in die nasionale en provinsiale sfere van die regering vorm deel van hierdie oplossing. Die verandering aan die toevalling rekeningkundige is gemik op die vervaardiging van addisionele en meer komplekse inligting wat gebruik sal word om besluitneming en uiteindelik die kwaliteit en koste van die regering se dienste te verbeter. Hierdie stap is in ooreenstemming met die vereistes van die PFMA, wat vereis dat die regering se rekeningkundige stelsel te bedryf binne die raamwerk van die GRAP, 'n toevalling rekeningkundige formaat. Die ondersoek het bevind dat hoewel Toevalling rekeningkunde 'n uitstekende model in die teorie is dat daar in die praktyk 'n toenemende gevoel van ontnugtering met die uitkomste van toevalling rekeningkundige is en die belangstelling wat deur die regerings regoor die wêreld in die verandering na hierdie formaat ‘n beduidende afname toon. In al drie lande wat ondersoek is, is daar bewyse dat die hervorming van die boekhoudsysteem onder presteer het met betrekking tot die oorspronklike verwagtinge wat gestel was. Die oorsake hiervan is gekoppel aan die aanvaarding van 'n model van die toevallingsgrondslag rekeningkundige wat nie behoorlik ingestel vir die nuanses van die openbare sektor, swak uitvoering en in sommige gevalle die onrealistiese verwagting dat resultate vinnig na die implementering gesien sal word. Hierdie lande het bykomende maatreëls ingestel om waarde te verkry maar sommige van die waardes bly steeds ontwykend. Al drie lande is dit eens dat verbeterde besluitneming, die primêre voordeel van die boekhoudsysteem, die kritiese insette bly vir verbeterde dienslewering. Dit is bekend dat wanneer die inligting wat deur die stelsel van toevalling rekeningkundige geproduseer word, doeltreffend gebruik word, dit tot 'n meer effektiewe, doeltreffende en deursigtige gebruik van hulpbronne behoort te lei - 'n voorvereiste vir die verbetering van dienslewering. Die paradoks is dat toevalling rekeningkunde in die munisipaliteite en openbare entiteite gebruik word, maar die meerderheid van hierdie instellings het 'n swak dienslewering rekord. Dit illustreer dat toevalling rekeningkunde in en van opsigself nie 'n beduidende impak op die gehalte van dienslewering sal maak nie en dat daar 'n behoefte vir 'n intensiewe program om beheer, bestuur en vaardighede te verbeter bykomend tot die oplopende rekeningkundige hervorming moet wees. Die studie het bevind dat daar 'n gebrek aan bewyse tussen die aanneming van toevallingrekeningkundige en die moontlike verbeterings in dienslewering met die stelsel is. In hoofsaak is die boekhoudsysteem binne 'n breër stel hervormings ingestel en kan die moontlike impak daarvan nie geisoleer word nie. Dit is ook waargeneem dat die nasionale en provinsiale departemente swak is in die toevallingrekeningkundige stelsel en dat daar beduidende risiko's vir die implementering van die verandering in die afsienbare toekoms. In lig van hierdie opsomming kan die hipotese nie bevestig word dat die toevallings rekeningkunde as ‘n beter model bevestig is om die dienslewering uitdagings aan te spreek in die Regering.

Thesis (MDF)--Stellenbosch University, 2011. / In the past it was believed that the payment of dividends would decrease the funds available to finance growth, and would therefore lead to lower future earnings growth. This belief was challenged in recent years with research that tested the relationship between dividend payout and future earnings growth, both on the individual company and aggregate market level in different countries. The results contradicted popular belief, and showed that companies with high payout ratios tend to realise stronger future earnings growth. This study tested the same relationship in South Africa and concluded that even in a developing country, dividend payout will still lead to higher future earnings growth.

Thesis (MDF)--Stellenbosch University, 2013. / This study on the effective implementation of financial decentralisation in Namibia has explored how effective the development budget is utilised to address development challenges in Oshana Region. Namibia is faced with different development challenges of unemployment and unequal distribution of income, amongst other issues, and the government has introduced some initiatives to address these challenges. The implementation of the Enabling Decentralisation Policy (Decentralisation Act of 2000), which aims to transfer power, functions and resources to the regional government, can be regarded as a guideline to the effective utilisation of the development budget in Namibia. A qualitative methodology was used to explore the effectiveness of the development budget, since the findings of the research depended on the response of the participants. Financial decentralisation is a new concept in many countries, including Namibia. Purposive sampling was employed and the employees working with the development budget, especially those from the National Planning Commission at the Development Budget Sub-Division, Ministry of Regional, Local Government and Rural Development and the Oshana Regional Council – the custodians of the development budget - were the main sources to provide the required data. The results of the study indicate that there is a lack of proper monitoring mechanisms for the utilisation of development funds at both regional and central government level. Stakeholders from central and regional government do not have data and information of the total amount allocated and executed in Oshana region. The development budget in Namibia, despite the Decentralisation Policy, is highly centralised and institutions are working in isolation, which makes it challenging for the Regional Council of Oshana to effectively monitor utilisation of resources. Lack of capacity and highly complex institutional arrangements are perceived as the main possible challenges impeding the effective implementation of financial decentralisation and utilisation of the development budget in Oshana Region. It is recommended that Government address the challenges identified in this study.