Academic literature on the topic 'Industrial Development Corporation of South Africa – Finance'

Thesis (MDF)--Stellenbosch University, 2011.<br>This study considers the impact that the particular funding structure used in the financing of black economic empowerment (BEE) transactions has on the expected outcome. Various structures are evaluated, each with their particular advantages and disadvantages. The report details the history of South Africa, the Industrial Development Corporation (IDC), as well as the black economic empowerment phenomenon. An in-depth commentary on the financing structures used for BEE transactions within the IDC is presented together with a new, remodeled structure to be used in the analysis as part of a comparative study to determine whether the existing preferential Vanilla Special Purpose Vehicle (SPV) structure garners the most appropriate result for the BEE entrepreneur. The statistical study tests whether the Vanilla SPV structure, where the financier is reliant on dividends for the repayment of their preference shares, is a better structure than the reworked SPV structure, where the financier is reliant on free cash flow for repayment. The results infer that access to free cash flow is preferred by both the financier, as well as the BEE party, as vesting is higher and the bullet payment required to attain that vesting is significantly lower.

The need for social cost benefit analysis for appraising industrial projects by development finance institutions and developing economies has been seen to being relevant over the years and even since the 1960s. As such major global organisations, namely the United Nations Industrial Development Organisation (UNIDO), Organisation for Economic Cooperation and Development (OECD) and the World Bank have taken a step to sponsor research for developing practical methodologies for this purpose. It is quite evident that these organisations view social cost benefit analysis as a useful tool in project evaluation. These organisations have also issued various publications for this purpose. The first comprehensive methodologies for social cost benefit analysis were developed in the 1960s and this clearly provides the early rise of the usefulness and debate surrounding social cost benefit analysis. A study was performed in India in the early 90s where various projects from a state development finance institution were evaluated in order to conclude if a formal social cost benefit analysis was performed, would the projects been selected for investments by the state development finance institution. This research has been enthused by this Indian study as there is little to no research performed in the South African context for social cost benefit analysis in project evaluation. Previous literature from earlier years regarded the available methodologies for social cost benefit analysis as being too demanding in terms of the skill required as well as the information required for the performance. Over the years, UNIDO has developed software (COMFAR) in order to assist in the application of the methodology for social cost benefit analysis. This software has improved on the feasibility of performing social cost benefit analysis. This research follows the UNIDO Guidelines for Project Evaluation Methodology, which was also used in the Indian study. This methodology has also been incorporated in the COMFAR software. In summary, this research endeavours to conclude on whether there is any value in performing a formal social cost benefit analysis in project evaluation by DFIs.

Thesis (MDF)--Stellenbosch University, 2015.<br>ENGLISH ABSTRACT: The research on this topic was motivated by the concern about the state of disarray in the public hospitals infrastructure and that due to budget constrain across the globe, the governments can no longer afford to provide public health services alone without the assistance of the private sector. South African public healthcare system continues to function in a state of disarray. Public hospitals serve the vast majority of the South African population, but are underfunded and in most cases these hospitals have ailing infrastructure. The study will look at the mechanism to fund public hospitals. This study examines the role that the Industrial Development Corporation and the Development Bank of Southern Africa can play in addressing the gap that exists in funding public hospitals. It will attempt to answer the following questions of concern, how is public healthcare financed in South Africa, what are the major challenges in financing public hospitals, what is the current role played by the Industrial Development Corporation and the Development Bank of Southern Africa in funding the public hospitals and what are the other possible solutions to address these challenges. The findings indicate that, despite the government funding the public hospitals there is a shortfall of funds for hospitals to complete the project that they are engage in. Chris Hani Baragwanath Academic Hospital and other five cases of hospitals in KwaZulu Natal were looked at and confirmed that there is definitely a gap in funding public hospitals

Thesis (MDF)--Stellenbosch University, 2015.<br>ENGLISH ABSTRACT: The non-availability of funding for low-cost housing is a major stumbling block in the provision of housing for the poor in South Africa (Moss, 2001). Banks and other commercial institutions are generally reluctant to fund construction companies in this industry in view of the high level of risk involved. The Industrial Development Corporation of South Africa is a development finance institution that is involved in the financing of construction companies. This study looked at the effectiveness of IDC in financing construction companies that are involved in low cost housing development. The study also looked at whether the IDC's strategiC objectives of promoting job creation had been achieved by providing funding to the construction companies. Only those companies involved in low-cost housing as the only or part of their business activities have been chosen for the study. A qualitative method of research analysiS has been selected as the best way of analysing the research findings in this paper. The empirical analysis indicated that generally the respondents are satisfied with the funding provided by the Industrial Development Corporation, but have serious concerns regarding the turnaround times for credit approvals, completion of legal agreements, disbursement of funds and the fees charged.

In March 2002, the Coega Development Cooperation (CDC) announced that the infrastructure design was complete, and the Coega Industrial Development Zone (IDZ) was declared the first IDZ in South Africa. The Coega IDZ was established to improve the delivery of infrastructure in the Eastern Cape by addressing skill shortages, unemployment, constrained planning and project management capacity, under-expenditure, sub-standard infrastructure, and inefficiencies that characterise delivery of infrastructure by government in South Africa generally and the Eastern Cape Province in particular. In the process, socio-economic development and transformation in the Eastern Cape and South Africa as a whole will be advanced. The primary objective of the study was to investigate the extent to which the various determinants of foreign direct investment (FDI) influence the investment promotion strategy (IPS) used by the CDC, and how these determinants can be used in the IPS to increase the number of signed investors at the CDC.

Socially responsible investment (SRI) and now commonly known as sustainable responsible investment is starting to gain a momentum in South Africa among asset owners and managers. Of a particular interest is that the leading public pension fund manager, the Public Investment Corporation (PIC) which invests on behalf of the Government Employee Pension Fund (GEPF) has a significant interest in driving this phenomenon in South Africa. In actual fact, GEPF was the first public asset owner in South Africa to subscribe to the United Nations Principles of Responsible Investment in 2006. This is not surprising because a pension fund such as the Government Employees Pension Fund (GEPF) is one of the largest investors through the PIC in the South African economy and the fund is equivalent to 1/3 of the country's GDP with almost R1 trillion assets and has investments in all sectors of the economy. Given the significant power that this fund has in the South African economy, it was of particular interest for this research to link whether SRI agenda in the PIC is also embedded in a broader strategy/policy around South Africa economic development and by whom is this agenda is being driven in the PIC? Furthermore, this research helps to understand the key drivers, challenges, enablers for the PIC to advance SRI agenda in South Africa. The research adopts a case study approach to understand how entrenched is the SRI agenda in big public pension asset managers in South Africa. The research found that over the past few years, the PIC SRI strategy focused on equity and developmental investing with low focus towards fixed income and property asset classes. In general, the research has found that the PIC SRI Strategy responds to issues that that meet government objectives of ensuring growth and economic development of South Africa. In all four asset classes, the PIC SRI Strategy broadly addresses issues such as black economic empowerment, skills development, economic growth, economic and social infrastructure (roads, energy, housing, and education), enterprise development and job creation. However, the government has not taken any concrete steps for greater collaboration with the PIC on ESG issues in South Africa. PIC is advancing its SRI strategy mainly through active share ownership and developmental impact investing.

Economic development is seen as the best means of accomplishing the goal of eradicating extreme poverty, and at the heart of this development are for-profit companies, especially multinational corporations. The specific problem examined in this study was whether levels of poverty in South Africa had been significantly impacted by the activities of multinational corporations and the level of entrepreneurship in its 9 provinces. To build upon empirical research on the sources of poverty alleviation and the impact of large global enterprises, the purpose of this study was to examine the impact of entrepreneurship and multinational corporation presence on the change in poverty levels in the 9 provinces of South Africa. The theoretical framework of the study was based on the theories of economic development and market-based solutions to poverty alleviation that are created through entrepreneurship and the engagement of multinational firms. This quantitative longitudinal study used mixed method linear regression and trend analysis to assess the impact of multinational corporation presence, and the number of new businesses started in the regions of South Africa between 2002 and 2015 on poverty. A significant inverse relationship between poverty and entrepreneurship was identified. As new business registrations increased, poverty declined. There was not a consistently significant relationship for the impact of multinational corporation locations on poverty. Trends in the data were identified that supported economic development as an element in poverty reduction. Those provinces with lower poverty levels had more new businesses and multinational corporation locations. This study may promote positive social change by supporting economic development and market-based solutions in conjunction with other social welfare elements to engage multinational corporations and reduce poverty.

There is a consensus globally that climate change is one of the biggest challenges facing operations. Immediate actions are required to reduce the carbon footprint in order for the environment to endure future logistics processes and activities (The National Treasury department of South Africa, 2010). Greenhouse gases (GHGs) are emissions generated from manufacturing processes, distribution networks and treatments processes (Verfaillie and Bidwell, 2000). Companies globally are expected to monitor pollution and focus on reducing the discharge of pollutants. Logistics Managers are therefore pressured to reduce the carbon footprint as it affects the environment and our health. Companies are becoming more concerned with the impact of various activities and processes on the environment. Traditional logistics models, primarily focuses on minimising cost with little focus on the environmental impact and sustaining operations for the future (Sbihi and Eglese, 2009) General Motors (GM) is a multi-national vehicle manufacturer with operations in various countries. GM filed for bankruptcy in 2009 resulting in the formation of the new GM; one of the focus areas was to ensure sustainability which resulted in the introduction of the ‘Sustainability in motion’ program in 2009 (New York Times, 2009). General Motors South Africa (GMSAf) is a vehicle assembler with manufacturing facilities and head offices located in Port Elizabeth. The company is a wholly owned subsidiary of the multinational General Motors Company. The aim of the research is to determine whether a culture that promotes environmentally conscious behaviour exists within employees and their relationships within a team, with management, stakeholders and suppliers. The study will assist in highlighting areas which need improvement to enable the creation of environmentally sustainable initiatives and implementation thereof. The empirical study revealed that the following management commitment, education and training, performance management and participation and involvement were important factors in the effective implementation of an environmental sustainability program.

South Africa became a democracy after its election in April 1994. Thereafter, the country faced the daunting task of trying to fast-track economic growth and addressing social challenges. The Department of Trade and Industry was mandated by the newly elected government to spearhead economic development in order to address these challenges. Trade policy instruments such as industrial development zones formed part of government’s strategic economic instruments to achieve economic reform. The Coega Industrial Development Zone (CIDZ) near Port Elizabeth was one of many economic development zones created principally to promote export orientated manufacturing. The Coega Development Corporation (CDC) was registered as a company to develop, operate and manage the CIDZ. The literature suggests that strategic leadership is important for organizational success. Strategic leadership is described as the ability to influence others to make day-to-day voluntary decisions that enhance long-term viability while maintaining short term financial stability. Literature further suggests that strategic leaders deal with the evolution of organizations and their changing aims and transform them through their capabilities and strategic leadership roles such as being a figurehead, spokesperson, team builder, design school planner and so on. The aim of this research is to analyse the role of strategic leadership with the objectives to ascertain whether strategic leadership contributed to the success of the development of CDC, and identify possible challenges they are confronted with in the execution of their leadership duties. This research was conducted from an interpretivist perspective as the researcher attempted to develop insight into how the strategic leadership of CDC viewed and understood their role. The strategic leadership of CDC, who were the focus of this study, consisted of the executive management team of the organization, including the Chief Executive Officer (CEO). The research design was in the form of a case study of the CDC leadership, with data collected through semi-structured interviews and documents. The most prominent roles exercised by the leadership of CDC included creating a vision and strategy development and inculcating a teamwork corporate culture. Other roles identified include that of team builder, fostering innovation and developing human capital etc. A lack of stakeholder management as well as managing the culture of the organization as it expands and grows, remain critical challenges. Finally recommendations are made together with suggestions for future research.

Thesis (MPhil)--Stellenbosch University, 2014.<br>ENGLISH ABSTRACT: HIV counseling and testing (HCT) is a cornerstone of both HIV prevention and care in South Africa, but only one in five South Africans who are aware of HCT services have been tested for HIV and hence the uptake is reportedly low. This study investigated factors that prevent the uptake of HCT programme in the workplace. Specific factors that were looked at include: fear of learning about one‟s HIV status, HIV-stigma and discrimination and knowledge of and attitudes towards HCT. The study employed descriptive survey design; anonymous questionnaires were randomly distributed irrespective of age, gender, marital status, race, educational level, work position and experience. Closed and open-ended easy- to- answer questions which were written in English were asked; and they required fewer instructions. Ethical issues were considered and university guidelines followed. The results of this study showed that a great proportion of participants (93.8%) tested for HIV as compared to (6.2%) who had never tested. Of these, 59.4 % tested because they wanted to know their HIV status and, 43.8% of participants preferred using the workplace HCT programme for convenience; while 50% used private facilities for privacy and confidentiality. The study further established that fear of knowing one‟s HIV status, workplace discrimination, knowledge of and attitudes towards HCT were not associated with workplace HCT programme uptake. The results did however show that both participants who had tested and those who had not tested (68.8%) demonstrated significantly greater AIDS-related stigma. Supportive and collaborative efforts are necessary to create and promote an enabling and conducive environment in order to dispel workplace HIV-related stigma. In addition, it is imperative to develop and implement workplace stigma mitigation strategy putting in place interventions that aim to reduce all forms of stigma, as well as emphasizing on the benefits of testing.<br>AFRIKAANSE OPSOMMING: MIV/Vigs-voorligting en toetsing is die hoeksteen vir beide die voorkoming en versorging van MIV-pasiënte in Suid-Afrika. Ongelukkig is net ongeveer een uit elke vyf mense bewus van hulle MIV-status. Die doel van hierdie studie is 'n poging om vas te stel waarom so min mense gebruik maak van gratis toetsingsdienste in die werksplek. 'n Beskrywende studie-ontwerp is in hierdie navorsing gebruik met anonieme vraelyste wat ewekansig versprei is onder 'n steekproef waarin geen onderskeid ten opsigte van ras, geslag. opvoedkundige vlak, posisie in die werk en ervaring gemaak is nie. Geslote en oop-einde vrae is gebruik en Engels is as kommunikasiemedium gebruik omdat al die proefpersone dit verstaan het. Resultate van die studie het aangetoon dat beduidend meer mense hulle wel laat toets het teenoor die wat hulle nie laat toets het nie. Die studie het verder bevind dat faktore soos die vrees om status te weet; diskriminasie in die werksplek, kennis van en houding teenoor MIV/Vigs nie geassosieer kan word met die lae opname van vrywillige toetsing in die werksplek nie. Die studie het wel bevind dat diegene wat hulle . laat toets het, beduidend meer stigma in die werksplek ondervind. Ondersteunende dienste is uiters nodig ten einde stigma suksesvol in die werksplek te bestuur. Daar word voorgestel dat daar 'n volledige opleidingsprogram ,in die werksplek van die organisasie wat in die studie gebruik is, ontwikkel moet word ten einde die invloed van stigma tot 'n minimum te beperk.