Despite recent economic growth over the last decade and high insurance penetration, the provision of insurance services to low-income households in South Africa is still neglected owing to pervasive information asymmetry. Even though households identify the importance of insurance, this has not translated into changed behaviour. According to KPMG, while 74% of households recognise their need for insurance, an overwhelming 34% lack any plans to address their perceived risk. Furthermore, there exists an incongruity between the perceived risks (such as job loss or loss of income) and the dominant insurance product in the market – which continues to be funeral cover. The study assessed the impact of microinsurance on the household welfare measured as household income per capita. The analysis draws on the nationally representative 2015 FINSCOPE survey, which contains in-depth data on the financial inclusion of 5000 households. Descriptive statistics were assessed to determine the nature of the identified variables and the relationship between them. The study performed multiple linear regression analysis using an Ordinary Least Squares (OLS) estimation. The empirical results provide evidence that microinsurance has a positive and significant effect on household welfare. Specifically, the results reveal that health and life insurance contribute favourably to household welfare, whilst credit life and funeral cover depict an inverse correlation. This suggests that health and life insurance better enable households to effectively manage risk and cope with adverse shocks. Furthermore, using household income per capita as a proxy for welfare, we observe that household size, dependency ratio, geographical location, gender of the household head, and marital status are statistically significant determinants of household welfare. Consistent with previous studies, where the educational attainment of the household head is at secondary and post-secondary level, households are empowered to utilise financial services to improve welfare and reduce incidence of poverty. Conventional insurance products do not appropriately serve the needs of lower income groups as often it is either too expensive or mismatched as coverage is possibly excessive, therefore we advocate for the creation of uniquely designed products and distribution systems that promote greater insurance inclusion for this segment of the market.

This study examined the relative information content of earnings and cash flow from operations data in predicting future (one-year-ahead) cash flow from operations across prevalent economic sectors in South Africa. Firstly, the ability of aggregate earnings is compared to that of cash flows from operations in predicting future cash flow from operations, and secondly, the study examines if there is any incremental benefit to disaggregating aggregate earnings information into cash flow from operations and accrual components in predicting future cash flows from operations. The study utilises a sample of 925 South African firms listed on the JSE over the period of 1994 to 2018 (25 years). The methodology made use of panel data regression techniques and instrumental variable regression techniques to estimate the relevant regression models. Moreover, to evaluate the robustness of the prediction performance of the regression models, both in-sample estimation tests over 1994-2015 and out-ofsample estimation tests over 2016-2018 were undertaken. The findings reveal that cash flow from operations is a superior predictor of future cash flows from operations as compared to aggregate earnings with respect to the full sample and the following economic sectors: (1) basic materials; (2) industrials; (3) consumer cyclicals; (4) consumer non-cyclicals; and (5) other. However, there is no evidence of either aggregate earnings or cash flow from operations being superior to one another in predicting future (one-year-ahead) cash flows from operations as it relates to either the financials or technology sector. The results further show that there is clear evidence of the explanatory gains with respect to disaggregated earnings data in predicting future cash flows from operations insofar as it relates to the full sample and the following economic sectors: (1) basic materials; (2) industrials; (3) consumer cyclicals; (4) consumer non-cyclicals; (5) technology; and (6) other. However, there is no such evidence of these same explanatory gains insofar as it relates to the financial sector. It follows that earnings disaggregated into cash flow from operations and accrual components is the best prediction model of future cash flow from operations for all sectors, excluding the consumer cyclicals sector, the financial sector as well as the full sample. Cash flow from operations and earnings disaggregated into cash flow from operations and accrual components are considered to be the best prediction models for the full sample and the consumer cyclicals sector with no apparent superiority of one over the other, whereas for the financial sector, the evidence is inconclusive as to the best model/s to utilise in predicting future cash flow from operations. In summary, this study highlights the explanatory variables that have a statistically significant effect on future cash flow from operations as well as the difference in persistence of the explanatory variables across economic sectors, thereby providing further insight into the unique cash flow generating process of each prevalent economic sector in South Africa. Therefore, users of cash flow information must consider the heterogeneity that exists amongst firms, industries and ultimately economic sectors when undertaking a study of this nature as such a consideration will enhance the identification of information content that is relevant to generating superior predictions of future cash flow from operations.

The topic of literacy has received a decent amount of attention over the years both academically and from various institutions and forums across the globe. The increased focus on addressing illiteracy drove the global illiteracy rate down from 40% in 1970 to 25% in 1990. Initiatives to promote universal literacy began as far back as the early 1950s yet the latest available data on literacy from UNESCO Institute for Statistics (UIS) indicates that 750 million adults in the world are still illiterate. With a world population of approximately 7.6 billion, that translates to one in every 10 people. Regionally, sub-Saharan Africa (SSA) and Southern Asia host the world's lowest literacy rates with a combined 20 countries holding literacy rates of below 50% while Central, Eastern and South-Eastern Asia, Europe and Northern America have literacy rates close to or at 100%. South Africa was rated number 50 out of 50 countries that participated in the Progress in International Reading Literacy Study (PIRLS) of grade four learners in 2016. Against this background, this study sought to provide insight on the social and economic impact of literacy in South Africa with a focus on how literacy influences unemployment, the HIV prevalence rate, crime and income inequality. The study employed fixed and random effects techniques to estimate a panel data of nine (9) provinces between 2008 and 2017. A provincial average of 90.79% for the literacy rate was derived from the data ranging from a minimum of 81.13% to a maximum of 98.10%. Gauteng had the highest literacy rate while the Northern Cape had the lowest. Gauteng also came out as the province with the highest average GDP per capita (GDPPC) while the Northern Cape had the lowest average crime and unemployment rates. The provincial averages for the dependent variables were 25.70% for the unemployment rate, 17.50% for the HIV rate, 1.13% for the crime rate and ZAR63,029 for GDPPC. The results showed that literacy was positively related to unemployment, HIV and GDPPC which indicate that increases in the literacy rate resulted in higher unemployment and HIV prevalent rates and higher income per capita across the nine provinces in South Africa. When the crime rate was analysed as the dependent variable, the results showed a positive correlation with literacy in the absence of unobserved variables and a negative correlation with literacy when unobserved variables were included. On the back of this study's results, which indicated a positive relationship between literacy and unemployment as well as GDPPC, policymakers need to consider an expanded view and focus of literacy by including financial, health and technology literacy and investing in those in addition to functional literacy. Furthermore, government needs to initiate a nationwide literacy campaign which targets communities with high illiteracy rates 2 across the country. This campaign would focus on reducing illiteracy with the primary objective of educating the community not only about HIV but the importance of HIV testing as well. Lastly, literacy campaigns need to integrate education on how the community can work with the police to combat crime as greater community participation could lower the crime rate

There is a constant need to seek new catalysts for economic growth in various regions of the world, particularly within Sub-Saharan Africa. Financial development and remittances could be potential catalysts, but this has been strongly debated in empirical research. This study, therefore, analysed the financial development-remittance-growth nexus, but from the context of the Southern African Development Community from 2004 to 2014. The aim of this study was two-fold. Firstly, it analysed the short-run dynamics of interaction between various aspects of financial development and remittances on the economic growth rate (real gross domestic product). Secondly, it analysed the long-run dynamics. In this study four broad institutional channels of financial development were analysed, namely, access, depth, efficiency, and stability. The empirical model was estimated using the two-stage least-squares technique and the two-step system generalised method of moments technique. The empirical findings showed a significant relationship with the interaction between financial efficiency and remittances on the economic growth rate, but only in the short run (ceteris paribus). However, this study could not establish whether this interaction had a positive or negative effect on the economic growth rate. Nonetheless, financial access and financial stability had a significantly negative effect on the economic growth rate, both in the short and long run (ceteris paribus). Remittances and foreign direct investments generally had an insignificant effect on the economic growth rate (ceteris paribus). Further findings suggest that remittances were a-cyclical in nature. Overall, it is recommended that policy discussions analyse implications of increasing competition among financial institutions and remittance service providers to reduce intermediation costs.

Electronic (internet and mobile) banking is inevitably the future way of banking across all market spectrum in Namibia. Although most business categories have migrated to the technological banking, small and medium enterprises (SME) business operator are still utilising the conventional and traditional method of banking particularly those in the least developed area of the country. The objective of this research is to study and assess the factors that influence the behavioural intention to use and actual usage of electronic (mobile and internet) banking services among SMEs in Namibia. This study utilizes quantitative approach by administering survey questionnaires to collect data from the targeted sample of 132 SMEs in three towns of Otjiwarongo, Oshakati and Outapi. The study has used structured questionnaires based on the UTAUT2 model to assess and provide answers to the factors that affect the behavioral intention to use and usage behaviour of mobile and internet banking. The data were analysed using confirmatory factor analysis to examine the reliability, composite reliability and average variances explained of the constructs assessed. Finally, ordinary least squares and logistic regression techniques were employed to identify the explanatory of behavioural intention to use and usage behaviour of electronic banking services. From the analysis, the results shows that factors such as performance and effort expectancy, social influence and facilitating conditions influence the acceptance of the banking technologies however habit has been found to have a considerable prediction power in explaining the behavioural intention to use internet and mobile banking among SMEs in Namibia to adopt the electronic banking while facilitating condition and habit are the strongest drivers of the acceptance of technology in the consumer settings. The study provides practical recommendations and challenges to banks, regulator and mobile operator to develop alternative strategies to absorb the SME sector into the new banking platform.

Zimbabwe has been experiencing an unprecedented increase in Non-performing loans (NPLs), since the adoption of the multi-currency regime in 2009. The NPL ratio which stood at 15.92% as at 31 December 2013, has attracted much attention considering its impact on banking sector stability and its effect on the real sector. The banking sector has since reduced its risk appetite, adopting conservative lending strategies, in response to the scourge, in an environment where industry is in need of funding thus causing second round effects. There has been conflicting views in literature on factors influencing the rise in NPLs. Shareholders and bank management have placed the blame of the increase in NPLs on the macroeconomic environment, while regulatory authorities and policy makers have attributed the levels to corporate governance weaknesses. This study sets out to ascertain the factors that have been instrumental in driving the level of non-performing loans in Zimbabwe and the extent to which each of these factors has contributed to this trend. The population of study was the Zimbabwean banking sector which comprised 21 banking institutions as at 31 December 2013. The factors that were investigated were: lending interest rates, shareholding structure, GDP growth, inflation rate, management efficiency, capital adequacy, loan tenure, size of the institution and the lagged NPLs. The study used statistical techniques, in particular panel data analysis for bank level data collected on a quarterly basis over a 5 year period beginning March 2009 and ending December 2013. The findings indicate that all the macroeconomic factors were not statistically significantly related to the rise of the NPLs. On the other hand bank specific factors with the exception of loan tenure and lending rates, were found to be significantly related to the rise in NPLs. Lagged NPLs were found to be more influential implying that the country is blight with credit indiscipline. Findings of this study, with the exception of size were found to be generally consistent with previous literature on determinants of NPLs. An interesting observation made was that bank size was found to be positively related to NPLs, contrary to literature, indicating that larger banks are not benefiting from diversification benefits. Based on the findings, the research recommends enhanced monitoring of banking institutions by the supervisory authority coupled with a collaborative NPL resolution options. Banking institutions are encouraged to tighten their credit risk management systems and practices.

South Africa's utility scale renewable energy industry began in earnest in November 2012. November 2012 saw the 1st round of utility scale renewable energy projects reaching financial close. These, renewable energy independent power producer, projects will be integrated into the national electricity grid and become part of South Africa's electricity generation mix. South Africa's renewable roll-out is set against a period of strong growth in the international renewable energy market particularly 2010 and 2011. The recent slowdowns in the market in Spain and Germany make South Africa highly attractive to foreign developers, financiers and suppliers. The path to reaching financial close for the first round of renewable energy project in South Africa was an uncertain one. South Africa switched from the more popular feed-in tariff (FiT) to a competitive bidding system in late 2010, causing delays and decreased confidence in the South African market. Within the new, competitive bidding programme there were complicated surety, economic development, financing and structuring requirements. These requirements reflect the myriad and sometimes unaligned goals of National Treasury, the Department of Energy (DoE), the Economic Development Department (EDD) and the Department of Trade and Industry (the dti). By the end of 2012, bids for the first two rounds of projects had been concluded, preferred bidders announced and financial close of round 1 achieved. This progress has raised questions. Were the goals of value for money and economic development attained? Are there additional areas where South Africa could improve the process to yield a more politically, socially or financially desirable result? Where is the job creation in these projects and what portions of the projects are localised? This research paper will consider the impact of the competitive bid on local manufacturing, specifically in the photovoltaic industry, and develop an understand where jobs are created along the value chain. This research paper will assess the competitiveness of locally manufactured photovoltaics? It will identify the portions of the value chain that yield high relative concentrations of jobs, and whether policy makers could design incentives and regulations that focus on the portion of the value chain which increases 'value for money' in South Africa?

The purpose of this study is to investigate the impact of taxes in general and across the major three tax types, PIT, CIT and VAT on economic growth in South Africa. South Africa faces critically low growth levels amidst other challenges of high unemployment levels and significant inequalities. Government has a role of intervening in the economy through provision of public goods and services promoting economic development. This is facilitated through the levying of taxes. With the current concerns around tax policy and imminent tax increases in South Africa, it is imperative that a causal relationship between taxes and growth be investigated. The study covers the period 2003 to 2016, employing the ARDL framework to establish a long run relationship between taxes and growth at aggregate tax level, as well as major tax type level, where the model specified is derived from the GDP aggregate income approach. Results obtained indicate a long run equilibrium only at tax type level. This is followed by the Granger causality test that supports a demand-following hypothesis of growth over taxes in aggregate and PIT and CIT in particular, as well as a bi-directional relationship between growth and VAT, considered and indirect tax, consistent with the supply-leading hypothesis of consumption over growth. The results thus suggest that a positive relationship exists between taxes and growth where increases in tax lead to increases in growth in the VAT instance, then in the instance of increases in PIT and CIT, a result of increases in growth. It is recommended the Davis Tax Commission consider an increase in VAT rather than in the other tax types so as to bring about a more impactful, positive increase in economic growth, in alignment to the NDP.

South Africa has been experiencing an unprecedented increase in youth unemployment in the past 5 years and the level of entrepreneurial activities amongst young people is very low reported at 8.9% below international average of 11.9 % as at 2014. This situation still manifest itself even after the government of the Republic of South Africa (RSA) took a policy stance in tasking the National Development Agency (NYDA) to place youth entrepreneurship at the core of its programs to ensure that young people in their numbers participate in the mainstream economy. Previous research conducted in the country about the state or levels of youth entrepreneurship, attributed the shortcomings to funding gaps left by commercial banks, lack of business skills, lack of concerted efforts to have curriculum that is focused on entrepreneurship in universities but at the core of it all, funding is cited as the biggest challenge experienced by young people willing to start and run their own businesses. In the country with a sophisticated financial sector and DFIs highly liquid, yet we still have funding challenges and procedural bottlenecks experienced by sectors of society interested in establishing businesses. It is out of these challenges that this research seeks to investigate into the mechanisms used by South African DFIs (NYDA and Awethu projects) to fund youth enterprises in the country. This Research used a qualitative approach to analyse primary and secondary data collected from the NYDA, Awethu projects and IDC This research found that public DFIs have a wider reach compared to private DFIs because it is easy to set up offices in municipalities like the case of the NYDA and the IDC. Private DFIs will also struggle against public DFIs in servicing a wider range of youth enterprises because of government guarantees that could always be activated in times of financial stress. It also made a finding that Awethu projects emphasise the need for employment creation when qualifying enterprises from one funding band to the next compared to the NYDA. The three institutions have sound and functional credit committees that ensure that prejudice is eliminated from the appraisal processes. Lastly the NYDA spends majority of its budget on salaries compared to the mandate which it exists for. On average, about 39% of its budget goes to servicing internal human resource issues as compared to 8.31% budgeted to fund youth businesses.

The subject of financial development has received a great deal of attention, both theoretically and through empirical research. Earlier work focussed on the relationship between financial development and economic growth, with both policy makers and academics seeing financial liberalisation and the development of financial systems as a way to quickly improve the welfare of a country's citizens. Practically the steps taken to liberalise and develop financial systems have had mixed results, indicating the pitfalls of any 'one size fits all' approach to development. Still, there is almost unanimous acceptance of a strong linkage between the financial system and the wider economy. Financial development in Africa is also of particular interest given the economic challenges that many African countries face (and related issues such as poverty). Financial development can act as a lever to spur economic growth and ultimately the welfare of much of the continent. However, it is widely recognised that African financial systems are under-developed. Allen et al. (2013) show that even compared to other developing economies, African financial systems score significantly lower across most measures of development. More recent studies have therefore shifted focus towards answering questions related to the determinants and drivers of financial development itself. Given the accepted benefits of an effective financial system, what policies and interventions can be put in place to assist with financial development? Ultimately, any inquiry into the realm of financial development is constrained by the study's ability to select the appropriate indicators for, and accurately measure the financial system. Even under ideal circumstances this can be challenging, as there is certainly no consistent view as to how best measure financial development. Approaches have changed over time, from traditionally focussing on simply the size and depth of a financial market to more modern indicators related to stability and financial inclusion – more aligned to the long term welfare outcomes in the economy rather than merely measuring the properties of a system. In reality, studies have to account for inconsistent and often missing data sets, especially for developing economies (which tend to be the focus of research into development). The assertion of La Porta et al. (1998) that measuring the size of financial markets "is a bit tricky" somewhat understates the challenges related to the measurement of financial systems. This study aims to explore the theory and empirical studies related to financial development, its impact on economic growth in Africa and the various ways to measure financial markets and institutions. The rest of this report is structured as follows; Section 2 contains the context and case for the study and lays out the objectives for the research. It also provides a summary overview of the key functions of financial systems as a reference for the rest of the paper. Section 3 provides a comprehensive review on the literature around three core areas (1) The relationship between financial development and economic growth, (2) the determinants of financial development and (3) the approaches to measuring financial development. Section 4 contains the discussion on this study's methodology and hypotheses. Section 5 discusses the key results and findings from the analysis. Section 6 provides a conclusion and recommendations for future research, followed by the Appendices.