Thesis (MDF)--Stellenbosch University, 2008. / ENGLISH ABSTRACT: High interest rates on credit products in South Africa are not unusual. This would be
beneficial to the South African consumers if the cost of incurring these credit products was
lower than the benefit derived from incurring them .This is unfortunately not the case to the
majority of the South African population.
The unlikelihood of this situation is a direct result of the lack of access to appropriate
savings and insurance products to a large number of South Africans. Most South Africans
use credit, in the form of microloans to augment their consumption patterns. The majority
of South Africans do not have a culture of saving; therefore they use credit as a substitute
for the lack of savings when consumption patterns exceed income. Using credit as a
substitute for the lack of savings becomes extremely costly for low income earners. The
result is a perpetual dependence on credit, lack of accumulation of wealth and a lack of
improvement in their standard of living. The perpetual dependence on credit has brought
about unscrupulous lenders who take advantage of the low income earners dependency
on credit for their daily existence.
It is due to such exploitations that the South African government through its Department of
Trade and Industry (DTI) intervened to bring normality in the South African credit market.
This intervention was done through the promulgation of the National Credit Act (NCA), Act
No.34 of 2005.
The purpose of this study is to focus on a sub set of the credit providers in South Africa
known as housing microfinance (HMF) lenders. The study explores the impact of the
National Credit Act in the South African credit industry. The Act’s intentions are elaborated
and the reality of the implementation of the Act on the drivers of profitability for the housing
microfinance institutions is measured. The finding is that housing microfinance institutions
have to restructure their business processes in order to be profitable and sustainable in
the ambit of the National Credit Act. / AFRIKAANSE OPSOMMING: Vir menige finansiële produkte in Suid-Afrika is rentekoerse wat wissel tussen 80 en 150
persent is nie ongewoon nie. In ekonomiese terme kan verbruikers slegs voordeel trek uit
hierdie hoë rentekoerse as die koste om hierdie krediet te verkry laer is as die voordeel
wat voortspruit uit die aangaan van die koste. Hierdie situasie is hoogs onwaarskynlik in
die oorgrote meerderheid van gevalle in Suid-Afrika.
Die onwaarskynlikheid van hierdie situasie is die direkte gevolg van die gebrek aan
toegang tot toepaslike spaar- en versekeringsprodukte vir ‘n groot aantal Suid-Afrikaners.
Die meeste Suid-Afrikaners gebruik krediet (naamlik mikrolenings) om hulle
verbruikerspatrone aan te vul. Die gebruik van krediet as ‘n plaasvervanger vir spaargeld
word uitermate duur vir die lae-inkomste verdiener. Die gevolg is ‘n ewigdurende
afhanklikheid van krediet, geen akkumulasie van welvaart nie en ‘n gebrek aan verbetering
van lewenstandaard. Die ewigdurende afhanklikheid van krediet het gewetenlose uitleners
geskep wat die lae-inkomste verdieners uitbuit wat afhanklik is van krediet vir hul
daaglikse bestaan.
Dit is as gevolg van hierdie tipe uitbuiting dat die Suid-Afrikaanse regering deur sy
Departement van Handel en Nywerheid tussenbeide getree het om normaliteit te bring in
die Suid-Afrikaanse kredietmark. Hierdie intervensie is gedoen deur die uitvaardiging van
die Nasionale Kredietwet, Wet No. 34 van 2005.
Die doel van hierdie studie is om te fokus op ‘n onderdeel van die kredietverskaffers in
Suid-Afrika bekend as die behuising-mikrofinansiering-uitleners. Die studie ondersoek die
impak van die Nasionale Kredietwet in die Suid-Afrikaanse kredietindustrie. Die Wet se
oogmerke word uiteengesit en die realiteit van die implementering van die Wet op die
drywers van winsgewendheid vir die behuising-mikrofinansiering-instansies word gemeet.
Die bevinding is dat behuising-mikrofinansiering-instansies hulle besigheidsprosesse moet
herstruktureer ten einde meer winsgewend en volhoubaar te wees binne die strekking van
die Nasionale Kredietwet.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/80647 |
| Date | 12 1900 |
| Creators | Ntoampe- Mahlelebe, Tsaliko |
| Contributors | Volschenk, Jako, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | x, 49 p. : ill. |
| Rights | Stellenbosch University |
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