Thesis (MDF)--University of Stellenbosch, 2011. / The continent of Africa is often recognised more for its problems and conflicts than for its
successes. Blessed with an abundance of natural resources, the continent has also suffered from
the ‘resource curse’ with many of its troubles directly linked to resource conflicts. Project-finance
provides a unique opportunity for unlocking the continent’s resources by structuring arrangements
which can allay investor concerns. This report contributes to the discourse on Africa’s development
by unpacking some of the key issues which will enable and fast-track future investment on the
continent.
The primary purpose of this study was to investigate how subjective risk analysis and decision
making affect risk-based lending. Tied to this was the examination of five risk categories and how
these influence the decisions of project-finance loan officers. The particular focus of this study was
in the mining sector.
This study reviewed a comprehensive body of the literature which found that corruption and
political risk were of great influence on lenders’ perception of risk. This study also reviewed the
cognitive psychology literature in order to understand how decision makers process information
cues. A quantitative method was then employed in order to understand how project-finance lenders
respond to project-finance risk information cues. The results of the study were that, when
considering mining projects in Africa, political and market risk have significant influence on the
decisions of lenders. This finding confirms that there remain key issues which must be recognised
and addressed if the continent is to generate and sustain long-term wealth.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/14639 |
| Date | 03 1900 |
| Creators | Chimuti, Shingirai |
| Contributors | Tinsley, R., University of Stellenbosch. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : University of Stellenbosch |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Rights | University of Stellenbosch |
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