scholarly journals Determinants of debt financing in South African state-owned entities

2021 ◽  
Vol 3 (1) ◽  
pp. 40-52
Author(s):  
Ferina Marimuthu
Keyword(s):  
South Africa ◽  
Capital Structure ◽  
South African ◽  
Debt Crisis ◽  
African State ◽  
Generalized Method Of Moments ◽  
Debt Financing ◽  
Data Set ◽  
The Government ◽  
Debt Levels

Using debt to finance investments is a common feature in the balance sheets of state-owned entities (SOEs). The greater the degree of financial leverage, the higher the proportion of debt resulting in greater interest payments that negatively affect the earnings attributable to shareholders. This paper considers the determinants of debt financing in light of the debt crisis that the South African economy faces and, more so, the public sector and its validity under capital structure theories. The data set was analyzed for the financial period from 1995 to 2020 of thirty-three commercial SOEs in South Africa. Multiple regression models were tested using the Generalized Method of Moments estimator. The results highlighted that significant variables affecting state-owned entities’ debt levels are profitability, age, growth opportunities, liquidity, probability of bankruptcy, and non-debt tax shield. The policy recommendations are that the government prioritizes reducing debt levels for South Africa to develop and achieve sustainable development. The changes in firm-specific factors that affect the optimal capital structure and the entity’s value must be considered.

State, Myth, and Agency in the Construction of Chinese South African Identities, 1948–1994

2008 ◽  
Vol 4 (1) ◽  
pp. 69-90 ◽  
Author(s):  
Yoon Jung Park
Keyword(s):  
South Africa ◽  
South African ◽  
Social Acceptance ◽  
African State ◽  
Active Role ◽  
Fourth Generation ◽  
Chinese History ◽  
South Africans ◽  
Chinese Descent ◽  
Racial Ethnic

AbstractBased on the author's PhD research, this article focuses on the fluid and contested nature of the identities — racial, ethnic, and national — of people of Chinese descent in South Africa in the apartheid and post-apartheid eras. The research focuses on the approximately 12,000-strong community of second-, third-, and fourth-generation South African-born Chinese South Africans. It reveals that Chinese South Africans played an active role in identity construction using Chinese history, myths and culture, albeit within the constraints established by apartheid. During the latter part of apartheid, movement up the socio-economic ladder and gradual social acceptance by white South Africa propelled them into nebulous, interstitial spaces; officially they remained “non-white” but increasingly they were viewed as “honorary whites.” During the late 1970s and 1980s, the South African state attempted to redefine Chinese as “white” but these attempts failed because Chinese South Africans were unwilling to sacrifice their unique ethnic identity, which helped them to survive the more dehumanizing aspects of life under apartheid.

Effective Planning for Rural Development in A Democratic South Africa: The Prospects of Rural Cooperatives

2021 ◽  
Vol 18 (1) ◽  
Author(s):  
France Khutso Lavhelani Kgobe
Keyword(s):  
South Africa ◽  
Rural Development ◽  
South African ◽  
Rural Areas ◽  
Social Capital Theory ◽  
Capital Theory ◽  
Rural Cooperatives ◽  
The Government ◽  
Almost All ◽  
Effective Planning

This paper explores the potency of rural cooperatives for the effective planning and implementation of rural strategies to address poverty. Rural cooperatives function as a participatory approach that provides the potential to equip and empower people in rural areas with various skills. Hence, rural cooperatives represent the means and strategies to unshackle rural people from the vicious circle of poverty. The contestation about a deadlock of rural development has become pertinent in the recent and ongoing political transformation in South Africa. This paper is grounded on the social capital theory and its ideals. As such, it depends on a literature review for its premise, argument, crux and purpose, as well as drawing up results and conclusions. The paper gathers information in respect of various scholars’ notions on rural cooperatives and rural development from related articles, journals and books. The paper reveals that where the South African government is confronted and characterised by some form of upheaval and service delivery challenges, so rural cooperatives are fit to capacitate citizens to avoid depending on the government for scarce resources. The paper further reveals that rural cooperatives are deemed to ameliorate the long-standing patterns of developmental backlogs in almost all South African municipalities. The conclusion that can be made from this paper is that the authentic promotion of rural development in the formulation of a well-informed legislative framework, that is clear and unambiguous, can deal effectively with the challenges of rural cooperatives.

Risk management factors contributing to transgressions in the procurement practices in South African SOEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lindani Myeza ◽  
Naledi Nkhi ◽  
Warren Maroun
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Public Sector ◽  
South African ◽  
Public Procurement ◽  
African State ◽  
Political Influence ◽  
Structured Interviews ◽  
Content Type ◽  
Executive Level

PurposeThe study aims to deepen the understanding of why risk management principles are circumvented, thereby contributing to transgressions in public procurement for South African state-owned enterprises (SOEs). A deeper understanding of why risk management principles are circumvented is especially important in South Africa, given the high social, economic and environmental risks to which national and major SOEs are exposed in the procurement process.Design/methodology/approachThe study uses a qualitative design, based on detailed semi-structured interviews with 19 participants comprising management advisors, forensic investigators and auditors to explore why risk management principles are circumvented by South Africa SOEs.FindingsThe results of the study indicate that the tone that is set at political and executive level plays an important role in determining compliance with risk management principles by lower-level staff. Intense levels of political influence at SOEs are the main reason behind risk management systems being undermined.Originality/valueThe current study is one of the first explorations of why transgressions in public procurement continue to be evident despite risk management reforms being adopted by South Africa public sector. The research responds to the call for more studies on why reforms in South Africa public sector are not reducing transgression in public procurement. The study provides primary evidence on the importance of political and executive leadership in influencing the effectiveness of risk management reforms in the public sector.

Bank competition, government intervention and SME debt financing

2017 ◽  
Vol 7 (4) ◽  
pp. 478-492 ◽  
Author(s):  
Jianhua Du ◽  
Chao Bian ◽  
Christopher Gan
Keyword(s):  
Government Intervention ◽  
Generalized Method Of Moments ◽  
External Debt ◽  
Ordinary Least Squares ◽  
Debt Financing ◽  
Bank Loans ◽  
Bank Competition ◽  
Firm Level ◽  
Content Type ◽  
The Government

Purpose The purpose of this paper is to examine the effects of the government intervention and bank competition on small and medium enterprise (SME) external debt financing in Chinese capital market. Design/methodology/approach This study uses ordinary least squares with standard errors clustered at the firm level. In addition, the authors use the dynamic system generalized method of moments to address the possible endogeneity issue in the regressions. Findings Using a sample of 908 firms from 2000 to 2010, the authors found that SMEs are more likely to access bank loans only in regions with higher level of government intervention than median government intervention. Further, the result shows that the government is motivated to help SMEs to obtain more external debt in regions where the level of bank competition is lower than the median bank competition index. Last, the authors found evidence that firms with politically connected CEOs are likely to access bank loans. Research limitations/implications This paper highlights that government intervention enables the SMEs to secure more bank loans. Second, the authors’ results imply that the government is motivated to help SMEs to obtain more external debt in regions with low level of bank competition. Originality/value This study contributes to the current literature by revealing that government intervention is the driving force alleviating SMEs’ constraints in accessing external financing. Second, this study finds the evidence to supports the argument that government has a strong motive to help SMEs to secure long-term credits for political purpose (Fan et al., 2012), when the level of bank competition is low (Berger and Udell, 2006).

scholarly journals TRANSFORMATION OF GOVERNANCE IN STATE-OWNED COMPANIES: THE CASE OF SOUTH AFRICA AS A DEVELOPING COUNTRY

2021 ◽  
Vol 9 (7) ◽  
pp. 162-176
Author(s):  
Maphelo Malgas ◽  
Bonginkosi Wellington Zondi
Keyword(s):  
South Africa ◽  
South African ◽  
General Public ◽  
African State ◽  
South African Government ◽  
The South ◽  
African Government ◽  
Financial Reports ◽  
The People ◽  
The Will

The basis of this article is an article published by Thomas (2012) whose objective was to track over a two-year period the performance of five strategic South African state-owned enterprises with regards to issues of governance. These enterprises were ESKOM, South African Airways (SAA), South African Broadcasting Corporation (SABC), Telkom, and Transnet. The paper revealed that there were serious transgressions in these entities and recommendations were made to address these. The aim of this article therefore was to establish whether or not the transgressions reported by Thomas are still happening within these entities. The data was collected from the 2014/2015, 2015/2016, 2016/2017, and 2017/2018 financial reports of these entities. The study revealed that the transgressions are still taking place. With regards to issues of sustainability SAA and SABC continue to make loses, with SAA continuing to be bailed out by the South African government against the will of the South African general public. Fruitless and wasteful expenditure increased in all the five entities mentioned above and no serious action has been taken by the South African government to hold the people responsible accountable. While Telkom, Transnet and Eskom were making profits these profits are not at the envisaged level.

Companies convicted of economic crimes and their participation in government tender processes in South Africa: A comment on Namasthethu electrical (PTY) LTD v City of Cape Town and another (201/19) [2020] ZASCA 74 (29 JUNE 2020)

2021 ◽  
Vol 8 (1) ◽  
pp. 102-122
Author(s):  
Jamil Ddamulira Mujuzi
Keyword(s):  
South Africa ◽  
South African ◽  
Public Procurement ◽  
Cape Town ◽  
African Countries ◽  
The Public ◽  
South African Police Service ◽  
The Government ◽  
South African Police ◽  
Economic Crimes

In South Africa, persons or companies convicted of fraud or corruption or companies whose directors have been convicted are debarred from participating in bidding for government tenders. Although it is easy to establish whether or not a natural person has been convicted of an offence, because a certificate can be obtained from the South African Police Service to that effect, it is the opposite with juristic persons. This issue came up in the case of Namasthethu Electrical (Pty) Ltd v City of Cape Town and Another in which the appellant company was awarded a government tender although the company and its former director had been convicted of fraud and corruption. The purpose of this article is to analyse this judgment and show the challenges that the government is faced with when dealing with companies that have been convicted of offences that bid for government tenders. Because South Africa is in the process of enacting public procurement legislation, the Public Procurement Bill was published for comment in early 2020. One of the issues addressed in the Bill relates to debarring bidders who have been convicted of some offences from bidding for government tenders. Based on the facts of this case and legislation from other African countries, the author suggests ways in which the provisions of the Bill could be strengthened to address this issue.

South African Foreign Policy

2021 ◽  
Author(s):  
Fritz Nganje ◽  
Odilile Ayodele
Keyword(s):  
South Africa ◽  
Foreign Policy ◽  
South African ◽  
Foreign Relations ◽  
Lessons Learned ◽  
African National Congress ◽  
Liberal Democratic ◽  
The World ◽  
Role Conception ◽  
The Government

In its foreign policy posture and ambitions, post-apartheid South Africa is like no other country on the continent, having earned the reputation of punching above its weight. Upon rejoining the international community in the mid-1990s based on a new democratic and African identity, it laid out and invested considerable material and intellectual resources in pursuing a vision of the world that was consistent with the ideals and aspirations of the indigenous anti-apartheid movement. This translated into a commitment to foreground the ideals of human rights, democratic governance, and socioeconomic justice in its foreign relations, which had been reoriented away from their Western focus during the apartheid period, to give expression to post-apartheid South Africa’s new role conception as a champion of the marginalized interests for Africa and rest of the Global South. Since the start of the 21st century, this new foreign policy orientation and its underlying principles have passed through various gradations, reflecting not only the personal idiosyncrasies of successive presidents but also changes in the domestic environment as well as lessons learned by the new crop of leaders in Pretoria, as they sought to navigate a complex and fluid continental and global environment. From a rather naive attempt to domesticate international politics by projecting its constitutional values onto the world stage during the presidency of Nelson Mandela, South Africa would be socialized into, and embrace gradually, the logic of realpolitik, even as it continued to espouse an ethical foreign policy, much to the chagrin of the detractors of the government of the African National Congress within and outside the country. With the fading away of the global liberal democratic consensus into which post-apartheid South Africa was born, coupled with a crumbling of the material and moral base that had at some point inspired a sense of South African exceptionalism, Pretoria’s irreversible march into an unashamedly pragmatic and interest-driven foreign policy posture is near complete.

Strategic Litigation in South Africa and Uganda: Shared Perspectives and Comparative Lessons

2020 ◽  
pp. 1-21
Author(s):  
John C Mubangizi
Keyword(s):  
South Africa ◽  
South African ◽  
Health Care Services ◽  
Bill Of Rights ◽  
Advocacy Groups ◽  
Care Services ◽  
The World ◽  
The Government ◽  
South African Constitution ◽  
Strategic Litigation

Abstract The South African Constitution, particularly its Bill of Rights, is regarded as one of the most progressive in the world. The Ugandan Constitution, adopted around the same time as its South African counterpart, also has a Bill of Rights. Lawyers and advocacy groups in both countries have taken advantage of their constitutions to challenge the government to enforce several rights ranging from health care services, education, water and sanitation, to housing and social security, albeit at a lower scale and with less impact and significance in Uganda than South Africa. The purpose of this paper is to discuss and determine the constitutional impact of strategic litigation in South Africa and Uganda. The paper begins with a conceptual context of strategic litigation. The specific reasons for the choice of the two countries are highlighted before focusing, in a comparative way, on some relevant organizations and the various court decisions that have emanated from strategic litigation in both countries. The paper identifies similarities and differences between Ugandan and South African approaches to strategic litigation. Conclusions are then made after highlighting the comparative lessons that both countries can learn from each other, but also what other African states can learn from these two countries’ experiences.

Facilitating Consumers' Adoption of E-Government in South Africa

2019 ◽  
pp. 243-265
Author(s):  
Richard Shambare
Keyword(s):  
South Africa ◽  
South African ◽  
Communication Technologies ◽  
Information Communication Technologies ◽  
Supply Side ◽  
Information Communication ◽  
Review Of The Literature ◽  
Government Programs ◽  
Governance Systems ◽  
The Government

This chapter examines the diffusion and adoption of electronic governance systems (e-government) in South Africa. The purpose of the chapter is to determine how the supply side in South Africa has facilitated consumers' adoption of e-government. To achieve this objective, an extensive review of the literature encapsulating e-government, South African public services, information communication technologies (ICTs), and commerce was conducted. Findings revealed interesting results. First among many was that e-government is viewed by the government as a panacea to a plethora of socio-economic problems facing the country. It was further revealed that e-government initiatives at the municipality level are quite instrumental in driving the e-government agenda in South Africa. Of note, municipalities have rolled out various e-government programs. As a result, the country's overall e-government rankings were observed to have significantly improved in the recent past. The chapter concludes by highlighting several opportunities through which e-government could be further strengthened.

The Politics of Narcotic Medicines in Early Twentieth-Century South Africa

2018 ◽  
Vol 32 (3) ◽  
pp. 586-608 ◽  
Author(s):  
Thembisa Waetjen
Keyword(s):  
South Africa ◽  
Twentieth Century ◽  
South African ◽  
African State ◽  
Mining Industry ◽  
Boer War ◽  
Patent Medicines ◽  
British Occupation ◽  
Political Struggles ◽  
Parallel Streams

Summary Controls over trade and consumption of narcotic medicines emerged as both a concern and emblem of progressive governance around the turn of the twentieth century. This article traces political struggles over drugs regulation in the case of colonial South Africa. It focuses on two parallel streams of law-making by the British occupation regime in the Transvaal, following the Anglo-Boer war. Controversies over the availability of traditional ‘Dutch medicines’ to Boer farmers and prohibitions of certain patent medicines to African consumers were elements of, and contradictions within, the process of building a modern pharmaceutical economy. An influx to the region of new curatives coincided with the growth of vernacular newspapers as well as temperance campaigns. Working to nurture white national cohesion and support a mining industry premised on unskilled black labour, the South African state created race-based drugs controls. These developments proved significant to regulatory statecraft later in the century.

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