This paper addresses the issue surrounding the valuation of valuing large-scale infrastructure projects located in emerging and frontier market countries. These are economies which, traditionally, have been characterised as having high levels of risk and uncertainty, thus presenting a significant challenge to capital allocation decisions and the associated theme of narrowing the finance gap. In light of this, a case study is used to investigate the impact that simulation has on the valuation of an actual infrastructure project located in a sub-Saharan African economy. Specifically, a Monte Carlo simulation-based cash flow model is presented of an investment into a renewable energy project located in South Africa. Results of the simulation process indicate the degree to which certain variables affect the output factors, juxtaposed with an initial base case. A clear need is established for a more sophisticated valuation method in order to accurately judge the investment opportunity and Monte Carlo simulation is presented as a viable solution.

This research highlights the value of Real Options Analysis (ROA) as a process in the evaluation of an oil extraction project in Sub-Saharan Africa. It shows the benefits it can bring to not only the final project evaluation but also to the project design selection process. The research then extends the application of ROA by developing and applying a framework which incorporates the fact that project flexibility has a positive impact on the projects value in the face of downside risk. ROA, by virtue of its explicit cash flow volatility modelling provides a framework for a consideration of the optimal level of project debt. In this case it suggests that the project can carry more debt than would have been acceptable if the more traditional NPV method was used in its evaluation.

This study examines the capital structures' differences across industry classification for 221 firms listed on the Johannesburg Stock Echange, from 2007 to 2016. A panel multiple regression model which takes into account the determinants of capital structure was used to identify the effect of firm level characteristics on the capital structure across the industrial sectors. The findings indicate that firms in the health care services, utilities and industrial sectors employ a higher percentage of leverage in the mix of capital, compared to the others. From the panel regression analysis, asset tangibility, profitability and firm size were found to have a significant effect on total debt, with varying effects observed for long-term and short-term debt. On the industrial determinants of capital structure, firms in the basic material industry, total debt ratio is mainly determined by the fixed-asset ratio, indicating that firms in this sector rely on tangibility of assets to secure debt financing. Profitability has a negative relationship with total debt, indicating possibly the presence of the pecking order theory. The consumer goods and consumer service industry firms' leverage ratios are mainly determined by the firms' profitability. The health care industry shows signs of the Trade-off Theory being present as the main determinant, being the effective tax rate which has an inverse relationship with the total debt ratio. The industrial industry has an inverse relationship with profitability, also indicating a possible pecking order theory at play. The main determinants for the technology industry are asset tangibility, profit and the effective tax rate. The telecommunication industry determinant of total debt is profit.

Background: Since the introduction of legislation in Zimbabwe allowing private participation in generation, there has been significant investor interest in financing independent power producers (IPPs). However, this interest has not materialized into actual investment. Of the 29 IPPs licensed by the Zimbabwe Regulatory Authority (ZERA), only seven have reached financial closure and are supplying the grid. This dismal performance in the IPP space is a major concern for policy makers, particularly in light of the persistent power shortages plaguing the country. Stop gap measures such as the imports of power and load shedding are not sustainable and have detrimental effects on economic productivity. Expansion of private power generation is the only viable long term solution. In light of this, it is imperative to understand the factors that contribute towards successfully financing IPPs. Purpose: The purpose of this study is to explore and identify the critical success factors (CSFs) for financing IPPs in Zimbabwe and specific strategies to improve the implementation of IPPs, to ensure as far as possible, a win-win scenario for all stakeholders. Methodology: This thesis employs a mixed methods approach consisting of a qualitative first phase of expert interviews to identify a core list of success factors, followed by a quantitative second phase, in which a questionnaire survey is used to examine the relative importance and ranking of the factors and to determine whether the ranking of factors varies by stakeholder grouping. Findings: A total of 40 success factors were identified, and 38 of the 40 were rated as critical for financing IPPs in Zimbabwe by stakeholders. The study also revealed that the expected debt paying ability of the project; a transparent and cost reflective tariff framework and upholding of contracts are the most critical factors for all stakeholders. The results indicated that there is low agreement in the the ranking of CSFs between the private sector and public sector. Value: This study provides a valuable reference for all stakeholders that are interested in developing IPPs in Zimbabwe.

This paper builds on earlier work in business cycle theory, particularly in the growth cycle tradition of (Lucas, 1976), to analyse business cycles in Africa's Frontier Market Economies (FMEs), which include the following countries: Botswana, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Tanzania, Uganda and Zambia. This paper extends the work of (Agenor, McDermott, & Prasad, 2000), (Rand & Tarp, 2002) and (R. L. Male, 2009) who have established a set of stylised facts for the fluctuations of business cycles in developing countries, to examine the impact of world shocks on the FMEs through the development of the stylised facts for these economies. This paper goes on to assess the suitability of the stylised facts that have been established for developing countries for Africa's FMEs. This thesis makes an important contribution to the literature, by focussing on Africa's FMEs which are also considered to be the anchors of growth and future development for the continent. In accordance with existing business cycle literature, this study examines the impact of endogenous and exogenous factors on the business cycles of the FMEs, to assess firstly how these factors impact the FMEs business cycles, and secondly whether there are similarities with other developing countries in terms of how these business cycles react to these impacts. The analysis is conducted through the examination of the volatility, persistence and cross-correlation between domestic output (gross domestic product) and a large group of macroeconomic variables (including consumption, fiscal variables, trade variables as well as monetary variables) to establish the stylised facts for the FMEs, which are then compared to the generalised stylised facts established for developing countries. The results indicate that only selected stylised facts for the analysis of business cycles of developing countries are valid for the FMEs, such as the volatility of output, public sector revenue and expenditure, and consumption. However, many aspects of the business cycles of these economies are significantly different to the stylised facts such as the lower than expected volatility of investment, as well as the volatility of exports which is double the expected value. The policy implications of the findings for Africa's FME's are also reflected upon.

The recent surge in Chinese Foreign Direct Investments (FDI) in the African continent has brought about much debate and speculation around the potential implications both for the continent as a whole, and for individual African countries. There are mixed sentiments regarding the impact of Chinese FDI in Africa and speculation as to whether the continent has been benefiting more from Chinese investments than it has been losing. Shen (2013) points to two opposing views on China's investment in Africa. On one side China is hailed for bridging the technological and capital gap that has been hampering economic growth in Africa, and for coming to Africa's rescue by being more willing to invest in the continent than the West has been, especially after the financial crisis of 2008. However, the other side sees China as a ruthless investor, intent on plundering the African continent's resources and ultimately taking over its economies (Kolstad & Wiig, 2012). The current research focuses on an area of particular interest and importance for the African continent: specific ways in which Chinese FDI has impacted economic growth and employment in Sub Saharan Africa (SSA). The study employed a panel Autoregressive Distributed Lag model and conducted Granger causality tests on a sample of the top ten SSA recipients of Chinese FDI for the period 2003 to 2017. The results of the analysis revealed that Chinese FDI had a positive effect during this period on both employment and economic growth in Sub-Saharan Africa, with a 1% increase in Chinese FDI resulting in a marginal 0.20% increase in employment, and a 0.17 % increase in economic growth. The findings of the research support the FDI-Led economic growth theory and Robert Solow's neo-classical growth model, which argues that economic growth is achieved through an increase in capital growth, labour force, and technical knowledge (Solow, 1957). Granger causality tests indicated the presence of a bi-directional relationship between Chinese FDI and economic growth. As this was a quantitative study, and significant factors pertaining to Chinese FDI in developing countries in Africa are qualitative in nature, it is recommended that qualitative studies be conducted in order to obtain a more comprehensive picture of the impact of Chinese FDI in African countries.

The focus of the study is to explore on the role of Foreign Direct Investment (FDI) in the Economic Development of South Africa. South Africa is a developing country and, just like other developing countries around the world, it requires FDI for its socio-economic and political development. Using the quantitative research methods, and following the descriptive analysis of data gathered from a questionnaire, the study is presented based on the relevant information gathered on the role of FDI on Economic Development of South Africa. This study found that FDI plays an important part within South Africa. Firstly, the study gathered information about factors that impact on the flow of FDI within South Africa. Amongst these factors there is the political nature of the country in which more stable political environment and the investment policies. FDIs within South Africa are a source of external capital which can lead to economic development. Furthermore, within the country, the study concludes that FDI leads to increased revenue and to the development of new industries. Technological advancements have also been brought about by FDI leasing to the socio-economic development of South Africa. The study however concludes that within South Africa, FDI can be a hindrance to domestic investment since it challenges the survival of domestic industries. The thrust with FDI is the focus on resources and capital elsewhere other than the investor's home country. In this regard, FDI has a negative impact on the country's investment. Ideally, the rules that govern foreign exchange rates and investments negatively impact on the investing country. The study therefore recommends the adjustment of investment policies that attract investments, such as policies promoting fair business practices.

Small and Medium Enterprises (SMEs) are touted as engines of sustainable economic growth. They span a wide spectrum of economic domains and are inclined to foster innovative entrepreneurship and gratify a variety of socio-economic objectives such as poverty alleviation, income generation, employment creation and reduction in societal inequalities. The SME sector in South Africa is challenged by slow growth in young businesses and dying at infancy due to lack of financial support. Inadequate funding results from a myriad of factors which include comprehensive enforcement of regulatory requirements, information asymmetry, moral hazards, lack of sound information on credit performance and technological divide. This study investigated this funding conundrum by assessing the success rate of SME applications for commercial funding. A quantitative cohort analysis was used on overdraft facilities obtained from one of the leading financial institutions in South Africa to determine the drivers of default. A time series view of macroeconomic factors and macroprudential indicators in conjunction with the demand and supply trends was analysed using vector autoregression techniques to determine the impact of the economic environment and financial market condition on access to funding. Unit root tests and cointegration analyses were applied to examine stationarity, shortrun and long-run relationships. The SME scorecard was developed using logistic regression on cohorts of applications over a seven-year observation period to determine the drivers of default as part of credit risk management. SME application scorecards were developed including and excluding bureau information. The ensuing models' ability to differentiate risk were assessed using Receiver Operating Characteristic (ROC) curves. The results show that, the demand and supply of SME credit is influenced by trends in the domestic, economic and financial environment. The robustness, stability and relevance of an application scorecard is enhanced by reject inference and the inclusion of bureau information. Small businesses operating in the service sector and having a long-standing rapport with the bank can easily access commercial bank funding. SMEs in the construction industry with a high number of credit enquiries are unlikely to survive the stringent conditions of the bank lending criteria. It is the prerogative of the principal business owner to honour their financial obligations across the credit industry if commercial bank funding is desired. Their credit quality forms the fulcrum of the lender's SME application scorecard.

The topic of the impact of government spending on economic growth has previously been extensively researched, however the evidence is inconclusive to make a ruling. The purpose of this study was to examine the empirical relationship between government spending and economic growth for the BRICS (Brazil, Russia, India, China and South Africa) over the period 1994-2014 by observing GDP as the dependent variable and Education, Health, Infrastructure and Defense as the independent variables. The study was based on panel data analysis of data obtained from secondary sources. The analysis process began with summarizing the data using descriptive statistics. Following this was the process of regression analysis in order to determine the relationships between GDP and Health, Education, Defense and Infrastructure. We checked for Multicollinearity using Variance Inflation Factors (VIF's) and used the Hausman Test to determine which statistical model to use. The study followed the fixed effects statistical model. The empirical results support the null hypotheses that health, education and defense have a long-tern relationship with GDP. The study however found that there was no long-term relationship between GDP and infrastructure.

This research examined the impact of diaspora remittances on the economic growth of Zimbabwe using data collected from 1995 to 2018. The study further assessed whether the impact was realisable in the short-run or in the long-run. The results from the cointegration test and the causality test show that Diaspora Remittances have a long-run causal impact on economic growth in Zimbabwe. The results also show that the causal impact is unidirectional running from remittances to economic growth. In the short-run, the results reflected that remittances were failing to have a significant impact on the country's economic growth. These findings thus suggest that the nation of Zimbabwe requires complete and concise solutions to drive the country's economic growth. Particular attention should be paid to the country's growth enhancers in the long-term like diaspora remittances. The policy-makers should strive to develop a strong institutional framework that facilitates the channeling of remittances to productive uses. Finally, the policy-makers should craft policies that aim at increasing the diaspora remittances inflows through formal channels as one of the measures to enhance sustainable economic growth of the country.