Dissertations / Theses on the topic 'Industrial Development Corporation of South Africa – Finance'

Thesis (MDF)--Stellenbosch University, 2011.
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.
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.
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.
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.
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.

Thesis (MDF (Business Management))--Stellenbosch University, 2008.
ENGLISH ABSTRACT: Economic development depends on a number of variables, including the ability of the economy to innovate technologically. Innovation depends to a large extent on the value, both qualitative and quantitative, of the research and development (R&D) happening in an economy. R&D in turn require various activities and inputs, including human resources, capital and infrastructure. The focus of this study is on the alternatives available to the public sector for funding public R&D. Most of the current public R&D infrastructure comes from the fiscus, which is strained under the pressure of many competing and immediate needs. An alternate model for funding public R&D infrastructure is that of public private partnerships (PPPs), which are private sector-supported initiatives for delivery of public goods and services. These are used all over the world to deliver public services with a high degree of success in sectors such as health (hospitals and services) and transport (roads, airports). This study looks at how this model can be applied in the delivery of public R&D infrastructure, which has not been popular in South Africa to date. A questionnaire was designed to look at five key areas for investigation with regard to R&D infrastructure, namely: the type of infrastructure as a determinant for the success of the PPP; the perception regarding the risk of the transaction; the incentives available to the private participants; the availability of capital in the market; and the effect of regulations on the transaction. These are investigated through the use of a questionnaire to get responses from people who have an understanding of PPP transactions in the country. The results show that R&D PPPs are possible and should be explored. One of the main reasons why they are currently not popular is because they are under-explored. The respondents felt that: the PPP regulations may have to be changed or adapted to be effective in the administration of PPP transactions; the risks for R&D PPPs seem to be high; sufficient capital exists to fund these transactions; the type of the infrastructure being financed is not necessarily a hindrance; and there are sufficient incentives for the private sector to participate in these transactions.
AFRIKAANSE OPSOMMING: Ekonomiese ontwikkeling hang af van 'n aantal veranderlikes, onder andere die ekonomie se vermoë om tegnologies te innoveer. Sodanige innovasie word in 'n groot mate bepaal deur die waarde, beide kwalitatief en kwantitatief, van die navorsing en ontwikkeling wat binne die ekonomie plaasvind. Navorsing en ontwikkeling vereis weer verskeie aktiwiteite en insette, waaronder menslike hulpbronne, kapitaal en infrastruktuur. Hierdie studie fokus op alternatiewe wat vir die openbare sektor beskikbaar is ten opsigte van die befondsing van openbare navorsing en ontwikkeling. Die huidige openbare navorsing- en ontwikkelinginfrastruktuur kom hoofsaaklik van die fiskus, wat weens verskeie mededingende en dringende behoeftes onder druk is. 'n Publieke-private venootskap (PPV) bied 'n moontlike alternatiewe model vir befondsing van 'n openbare navorsing- en ontwikkelinginfrastruktuur. Openbare goedere en dienste word hiervolgens gelewer deur middel van inisiatiewe wat deur die privaatsektor ondersteun word. Die model word wêreldwyd baie suksesvol aangewend in sektore soos gesondheid (hospitale en dienste) en vervoer (paaie, lughawens). Hierdie studie ondersoek hoe die model toegepas kan word in die skep van 'n openbare navorsing- en ontwikkelinginfrastruktuur in Suid-Afrika, hoewel dit tot dusver nie hier gewild was nie. 'n Vraelys is ontwerp om vyf sleutelareas ten opsigte van navorsing- en ontwikkelinginfrastruktuur te ondersoek, naamlik: tipe infrastruktuur as 'n determinant vir die sukses van die PPV; persepsie aangaande risiko met betrekking tot die transaksie; aansporing wat aan private deelnemers gebied word; beskikbaarheid van kapitaal in die mark en die uitwerking van regulasies op die transaksie. Hierdie vraelys is aangewend om reaksie te verkry van persone wat begrip van publieke-private ondernemings in die land het. Die resultate wys dat PPV's binne 'n navorsing- en ontwikkelinginfrastruktuur moontlik is en verder ondersoek behoort te word. Een van die hoofredes waarom dit tans nie gewild is nie, is die gebrek aan toepaslike navorsing. Respondente het aangedui dat: PPV regulasies moontlik verander of aangepas sal moet word om effektief te wees in die administrasie van sodanige transaksies; die risiko's vir PPV's in navorsing en ontwikkeling hoog voorkom; voldoende kapitaal vir befondsing van transaksies beskikbaar is; die tipe infrastruktuur wat befondsing ontvang nie noodwendig 'n hindernis is nie en dat voldoende aansporing vir die privaatsektor gebied word om aan hierdie transaksies deel te neem.

The process of globalisation has had a large impact on the world economy over the past three decades. Economic globalisation has manifested itself in the increasing integration of goods and services through international trade and the integration of financial markets. As a consequence the existence of co-movements in economic variables of different countries has become more evident. The extent to which globalisation causes a country’s economy to move together with the rest of the world concerns policy-makers. When such co-movement is significant, the influence of policy-makers on their respective domestic economies is significantly reduced. South Africa re-entered the international economy in the early 1990s when the forces of globalisation, especially for developing countries, seemed to gain momentum. Empirical research such as Kabundi and Loots (2005) found strong evidence of international co-movement between the world business cycle and the South African business cycle, particularly following South Africa’s integration into the global economy. This study examines the relationship and interdependence between South Africa and four of its major developed trading partners. More particularly, the study examines the question of whether business cycles are transmitted from Germany, Japan, US and UK to South Africa, and/or from South Africa to Germany, Japan, the US and UK. The study employs structural vector autoregressive (SVARs) models to analyse monthly data from 1980:01–2008:04 on industrial production, producer prices, short-term interest rates and real effective exchange rates. The results show that South Africa benefits from economic growth in both the UK and US. They also indicate significant price transmission from Germany and Japan to South Africa, with transmission in the opposite direction being statistically insignificant. The impulse response graphs show that a positive one standard deviation shock to both German and Japanese producer prices has a negative impact on South African output (industrial production) growth. Furthermore, South African monetary policy is relatively unresponsive to international monetary policy stances. The findings of this study indicate that South African policymakers need to take into consideration economic performance of the country’s major trading partners, with particular emphasis on the UK and US economies.

The Industrial Development Corporation is the largest provider of development funding in South Africa. Despite having documented processes for assessing funding applications, which include traditional performance measures, the impairments as a percentage of outstanding funding book are increasing. However, scholarly literature indicates that traditional performance measures seem inadequate, with Economic Value Added providing more detailed performance company. The study assesses the Industrial Development Corporation employee’s perceptions on stipulated and additional performance measures and its funding processes. The study followed a quantitative research design using a questionnaire. The Statistical Package for Social Sciences was used to analyse the data. The study found that stipulated performance measures are mostly used, but not Economic Value Added. Funding processes could be enhanced through more performance measures and additional pre and post investment processes. It is recommended that processes be enhanced and the addition of Economic Value Added be investigated to assist in reducing impairments.
Management Accounting
M. Phil.

M.B.A.
The Industrial Development Corporation (IDC) is a self-financing, state owned, national development finance institution that provides risk financing to entrepreneurs engaged in a multitude of industries. Its vision is to be the primary driving force of commercially sustainable industrial development in South Africa. International research has shown that the catalyst for promoting and sustaining industrial development in many countries is the contribution made by Small and Medium Enterprises (SMEs). In South Africa, extensive research has shown that the growth of these enterprises is currently stifled by the lack of access to finance, mainly from commercial banks and private equity financiers, who have imposed onerous lending criteria on this market sector. The literature also reveals that alternative state and private sector financial institutions have been unable to fill this finance vacuum adequately. The IDC, as a national development finance institution, currently operates in the SME market by making loan finance available to these companies, provided that they meet its' extensive funding criteria. This dissertation examines the role the IDC is currently playing in the financing of SMEs by undertaking an assessment of the IDC's loan criteria. Recommendations based on the assessment are made with a view to improving the number of SMEs helped with financial assistance by the IDC.

M.Comm.
This study evaluates the impact of leadership development programmes for women in the Industrial Development Corporation of South Africa (IDC) and provides comments on the leadership competencies and skills acquired. An evaluation research methodology was chosen and .Kirkpatrick‟s Four Level Evaluation Model defined the parameters of this study. A mixed-method approach was adopted, since it provided a vehicle for the researcher to make recommendations for improving further programmes as they evolved and substantiate findings from different sources to ensure the validity of the data and conclusions that emanated from this study. Female leadership studies conducted worldwide draw conclusions that highlight the unique challenges that women face as they ascend into the leadership ranks of organisations. This study also explored the challenges and opportunities that women in the Industrial Development Corporation of South Africa (IDC) encountered in their quest for leadership roles and responsibilities. The women‟s leadership development programmes received considerable praise from the participants and the results of this study conclude that the programme outcomes were met in providing an opportunity for them to learn and implement individual leadership competencies .The leadership competencies that were enhanced were self-awareness and confidence, collaboration, cultural competence, communication, networking and relationship building. In addition, various leadership theories were explored and the participants identified with transformational leadership in particular. The participants reported favourably on the mentoring and coaching aspects of the leadership development initiatives and some have indicated an interest and willingness to support others through mentoring and coaching. However, the leadership competencies have not been applied optimally into the organization and the participants would need the continued support of the organisation by way of additional platforms to apply these acquired leadership competencies. This can help the organisation realise the unique contribution of IV women in the organisation, and if the programmes that have been implemented are sustained over time and the leadership competencies applied, this could lead to organisational transformation. An interesting aspect of this study was that the majority of the women believed that the organisation provided sufficient opportunities for women to progress and encouraged the continuation of these leadership development initiatives, but not to the exclusion and marginalisation of men in the organisation. As progressive as this kind of thinking is, it typically illustrates the transformational leadership tendencies of women in keeping with research that recommends leader development (i.e. individual leaders such as the women‟s leadership development initiatives), as well as leadership development (i.e. broader organisational focus on enhancing the organisational leadership competencies). The Industrial Development Corporation of South Africa will reap rewards in future should it continue on the path of leadership development for women; but also in general as this critical mass of leaders who apply cutting-edge leadership thinking will contribute to organisational success over a sustained period of time.

Thesis (M.M. (Finance & Investment)--University of the Witwatersrand, 2011.
This paper attempts to answer if the Industrial Development Corporation (IDC) can or should emulate the funding methodology of the Brazilian Economic and Social Development Bank (BNDES). The funding methodology of BNDES is discussed in terms of how it sources and applies its funds within the Brazilian economy following the Brazilian government’s strategy; compares this to industrial policy formulation in the South African economy and the IDC taking into consideration the South African economic structures, banking system and the multiple developmental institutions South Africa has. The conclusion answers if South Africa will be able to emulate BNDES.

Die bestaande belastingaansporingsmaatreels in Suid-Afrika is nagevors. Belastingaansporingsmaatreels wat vroeer in gebruik was, is ook ondersoek. Aandag is gegee aan die kontantaansporingsmaatreels wat vir vervaardigingsondernemings beskikbaar is in Suid-Afrika. Programme wat deur onder andere die Nywerheid-Ontwikkelingskorporasie van Suid-Afrika Beperk en die Kleinsake-Ontwikkelingskorporasie aangebied word is ondersoek. Ondersoek is ingestel na die bevindings van die Margo kommissie Verslag wat in 1986 uitgereik is. Die verslag van die Katz-kommissie wat in 1994 uitgereik is, is ook nagevors. Aandag is gegee aan die 1994, 1995 en 1996 begrotings asook sommige van die aspekte van die Algemene Ooreenkoms op Tariewe en Handel. Die belastingkoerse en aansporingsmaatreelsprogramme wat deur die Verenigde State van Amerika, Verenigde Koninkryk en Kanada beskikbaar gestel word aan ondernemings is ondersoek. Moontlike oplossings vir die probleme wat tans ondervind word in SuidAfrika se aansporingsmaatreelstelsel is geformuleer.
The existing tax incentives in South Africa were researched. Tax incentives that were previously in use, were also investigated. Attention was given to the cash incentives available to manufacturing enterprises in South Africa. Amongst others the programmes offered by the Industrial Development Corporation of South Africa Limited and the Small Business Development Corporation were investigated. The findings of the Margo Commission Report issued in 1986 were investigated. The Katz Report issued in 1994 was also researched. Attention was given to the 1994, 1995 and 1996 budgets as well as some of the aspects of the General Agreement on Tariffs and Trade. The taxation rates and incentive programmes available to enterprises in the United States of America, United Kingdom and Canada were investi gated. Possible solutions for the problems currently experienced in South Africa with regard to incentives have been formulated.
School of Computing
M.Sc (Computer Science)

M.Com. (Business Management)
South African companies now realise that they have a responsibility to ensure that the natural resources as well as the people living within the communities in which they operate must be preserved and nurtured to ensure that future generations enjoy their benefits as much as the current generation does today. Companies are under ever-increasing pressure from both internal and external stakeholders to consider the environmental and social impacts of their operations and to mitigate these impacts. To this end, sustainable development (SD) has gained significant importance and the reporting of sustainability performance is the means by which companies communicate their efforts to their stakeholders. This study analyses the relationship between sustainability performance and financial performance to ascertain whether the ‘business case’ for sustainability exists in South African listed companies. There has been a substantial amount of research on the topic of SD and its implications for companies; the focus for this study however is on whether sustainability initiatives are important indicators of financial performance. Research conducted by Montabon, Sroufe and Narashiman (2007:998), assessed the relationship between corporate reporting, environmental management practices and company performance, however the unit of analysis was North American, British and Australian companies. This study will replicate the study of Montabon et al, with a focus on South African Johannesburg Stock Exchange (JSE) listed companies. In addition, comparisons will be drawn between developed world companies and companies within an emerging market. Pertinent literature on the topic has been reviewed and the results will be compared to the work of Artriach, Lee, Nelson, and Walker, J. (2010); Reed (2001) as well as Porter and van der Linde (1995). The results of the study reveal that an overall positive relationship exists between sustainability performance and financial performance thus, the research supports the notion that efforts to preserve and nurture environmental and human resources lead to improved financial performance.

Private sector sugar millers and Ithala Development Finance Corporation (Ithala) implemented a graduated mortgage loan repayment scheme in the 1995/96 sugarcane production-season to try and improve access to farmland by aspirant commercial farmers in KwaZulu-Natal. By March 2001, the scheme had financed 106 "medium scale farmers" (MSFs), 99 of whom were still in the scheme (one loan had been repaid from own funds, and another six from the proceeds of life insurance policies). The first aim of this study was to analyse factors affecting whether or not the MSFs were current or in arrears on loan repayments as at 31 March 2001. A logit model based on full information for 83 MSFs shows that the estimated probability of a MSF being current on loan repayments was higher for clients with higher levels of average annual gross turnover relative to loan size, and for clients with access to substantive off-farm income. This suggests that farm size (proxied by annual farm gross turnover) does matter when policymakers in South Africa consider future similar schemes designed to improve access to commercial farmland by people that previously could not buy farmland. Smaller-sized, creditworthy farms with loan sizes that are relatively low compared to the expected average annual gross income may also be viable. Access to off-farm income could also be considered as a criterion in selecting potential farmers for future similar schemes, as it helps to provide additional liquidity to fund future operations and debt repayments, and can reduce leverage levels. The second aim was to conduct personal interviews with the 99 MSFs between July and September 2001 in order to identify what aspects of the scheme could be improved for new members . Responses from 88 of these MSFs show that 68% of them would opt to first rent land before purchasing, while 78% of them recognize, or have experienced, the cash flow problem associated with land purchase. Most of the MSFs felt that long-term sugarcane supply agreements constrain enterprise diversification, and that the quality of mentorship that they currently received was not satisfactory. Industry players could consider leveraging donor funding for empowerment projects to improve the quality of future mentorship programmes. There is also some scope for Ithala to improve the client-lender relationship by better clarifying the structure of the graduated repayments, sending loan statements on time, and helping clients to interpret loan statements. Growers perceive the need for a coordinator to monitor, and advise on how to improve, their financial performance this could be a new commercial service opportunity. Using an independent valuer to conduct farm valuations may also be necessary to avoid perceptions of bias in the value of farms offered for sale by the millers. A logit model of the MSFs' preferences for first renting land before purchase shows that new growers joining this scheme, or similar schemes for other farm products, with relatively less liquidity and less farming experience should be given the choice to rent land with an option to purchase. The preference for first renting by most of the surveyed MSFs could indicate that many very highly leveraged MSFs still experience cash flow stress despite the interest rate subsidy. A second policy implication, therefore, is that the current subsidy level, which reduces the effective starting interest rate level to about ten per cent relative to a typical five per cent current return on land, could be increased to promote access to farmland markets. Alternatively, loan terms in the next round of the scheme could be changed to require higher proportions of own equity (lower leverage levels), or to permit the deferral of principal payments, or to permit the purchase of smaller farms by creditworthy, part-time farmers. Another strategy to improve liquidity is to advise growers to limit family drawings in the early years after farmland purchase.
Thesis (M.Sc.Agric.)-University of Natal, Pietermaritzburg, 2003.