scholarly journals Implementation of South African national credit act and its impact on home loans market: The case of First National Bank

2013 ◽  
Vol 3 (2) ◽  
pp. 18-29
Author(s):  
Bathmanathan Vasie Naicker ◽  
Md. Humayun Kabir
Keyword(s):  
South Africa ◽  
South African ◽  
Value Chain ◽  
Credit Market ◽  
The South ◽  
Current State ◽  
Retail Credit ◽  
National Bank ◽  
National Credit Act ◽  
Credit Granting

Since it has been observed that credit granting is a serious problem across the entire credit market, South Africa introduced National Credit Act 34 of 2005 in order to regulate the credit industry and protect credit consumers from becoming over-indebted. The study highlights and examines the implementation of the Act in relation to the South African home loans market, focussing on First National Bank home loans portfolio. The study documents that the current state of consumer indebtedness shows that both credit institutions and consumers were responsible for over extending retail credit. The study noticed that credit industry has significantly managed to regulate the retail credit through the implementation of the Act. Furthermore, the study finds that a new stakeholder such as a debt counsellor has been introduced into the retail credit value chain for debt counselling for over-indebted clients. However, the study recommends that internal forums within banks as well as industry-wide forums should be used in order to ensure that the implementation of a regulation that impacts the entire credit industry is implemented with all stakeholders to limit any possible misinterpretation of key sections of a new regulation.

scholarly journals The competitive status of the South African Wheat Industry

2016 ◽  
Vol 9 (3) ◽  
pp. 651-666 ◽  
Author(s):  
Johannes Van der Merwe ◽  
Philippus Cloete ◽  
Herman Van Schalkwyk
Keyword(s):  
South Africa ◽  
Competitive Advantage ◽  
South African ◽  
Wheat Flour ◽  
Value Chain ◽  
Institutional Environment ◽  
The South ◽  
Wheat Market ◽  
The Usa ◽  
Trade Partners

This article investigates the competitiveness of the South African wheat industry and compares it to its major trade partners. Since 1997, the wheat-to-bread value chain has been characterised by concentration of ownership and regulation. This led to concerns that the local wheat market is losing international competitiveness. The competitive status of the wheat industry, and its sub-sectors, is determined through the estimation of the relative trade advantage (RTA). The results revealed declining competitiveness of local wheat producers. Compared to the major global wheat producers, such as Argentina, Australia, Brazil, Canada, Germany and the USA, South Africa’s unprocessed wheat industry is uncompetitive. At the same time, South Africa has a competitive advantage in semi-processed wheat, especially wheat flour. The institutional environment enables the importation of raw wheat at lower prices and exports processed wheat flour competitively to the rest of Africa.

scholarly journals Alternatives to Bankruptcy in South Africa that Provides for a Discharge of Debts: Lessons from Kenya

2019 ◽  
Vol 22 ◽  
pp. 1-34
Author(s):  
Zingaphi Mabe
Keyword(s):  
South Africa ◽  
South African ◽  
The South ◽  
Insolvency Law ◽  
Debt Restructuring ◽  
Wide Range ◽  
Insolvency Proceedings ◽  
National Credit Act

The problems faced by debtors in South Africa is not that there are no alternatives to insolvency proceedings, but that the available alternatives do not provide for a discharge of debt as with a sequestration order, which is ultimately what the debtor seeks to achieve. Debtors in South Africa can make use of debt review in terms of the National Credit Act 34 of 2005 or administration orders in terms of the Magistrates' Court Act 32 of 1944 to circumvent the sequestration process. However, both debt review and administration orders do not provide for a discharge of debt and provide for debt-restructuring only, in order to eventually satisfy the creditor's claims. Attention is given to the sequestration process and the alternatives to sequestration as they relate specifically to the discharge or lack of a discharge of a debtor's debts. The South African law is compared to Kenyan Law. This article seeks to analyse the alternatives to the bankruptcy provisions of the newly enacted Kenyan Insolvency Act 18 of 2015 in order to influence the possible reform of insolvency law in South Africa. Like the South African Insolvency Act, the old Kenyan Bankruptcy Act (Cap 53 of the Laws of Kenya) also did not have alternatives to bankruptcy. The old Kenyan Bankruptcy Act, however, contained a provision on schemes of arrangement and compositions. The Kenyan Insolvency Act now caters for alternatives to bankruptcy and provides a wide range of alternatives to bankruptcy, some of which allow debtors in different financial positions to obtain a discharge.    

scholarly journals The impact of the credit legislation on consumers

2016 ◽  
Vol 6 (4) ◽  
pp. 503-509 ◽  
Author(s):  
Hlako Choma ◽  
Thifulufhelwi Cedric Tshidada ◽  
Tshegofatso Kgarabjang
Keyword(s):  
South Africa ◽  
South African ◽  
Consumer Protection ◽  
The Other ◽  
The South ◽  
Other Hand ◽  
Credit Agreement ◽  
Financial Obligation ◽  
The Impact ◽  
National Credit Act

The purpose of this paper is to examine two South Africa legislations dealing with over indebtedness of a consumer. It is clear that in terms of the South African law, section 129 (1) and 130 (3) of the National Credit Act provide that a creditor provider who wishes to enforce a debt under a credit agreement must first issue a section 129 (1) (a) notice to the consumer (the purpose of the notice is to notify the consumer of his/her arrears). On the other hand, the South African National Credit Act encourages the consumers to fulfil the financial obligations for which they are responsible. The second legislation to be examined which serve or appear to serve same purpose as the National Credit Act is the Insolvency Act. It therefore, postulated that the compulsory sequestration of a consumer in terms of the Insolvency Act would stand as an alternative remedy for a credit provider before she/he can have recourse mechanisms, such as debt review that are focused on satisfaction of the consumer’s financial obligation , in terms of the provisions of the National Credit Act. The paper determines to what extend these measures comply with the constitutional consumer protection demands. The legislature had been pertinently cognizant of the Insolvency Act when it lately enacted the National Credit Act. This is much apparent from the express amendment of section 84 of the Insolvency Act to the extent set out in schedule 2 of the National Credit Act

International Bank for Reconstruction and Development

1959 ◽  
Vol 13 (4) ◽  
pp. 635-639
Keyword(s):  
South Africa ◽  
New York ◽  
World War Ii ◽  
South African ◽  
Public Investment ◽  
World War ◽  
The South ◽  
International Bank ◽  
National Bank ◽  
Trust Company

The International Bank for Reconstruction and Development announced on June 10, 1959, a loan equivalent to $11.6 million to the Union of South Africa. The funds were to help carry out a railway expansion program, executed by the South African Railways and Harbors Administration, that had been one of the chief objects of public investment in the Union since the end of World War II. Twelve banks participated in the loan for a total amount of $2,484,000, representing the first three maturities and parts of the fourth and fifth maturities which were to fall due between December 1961 and December 1963. Among the participating banks were: the Bank of America, Continental Illinois National Bank and Trust Company, The Philadelphia National Bank, The New York Trust Company, Morgan Guaranty Trust Company of New York, National Shawmut Bank of Boston, The First National Bank of Chicago, The Chase Manhattan Bank, First National City Bank of New York, The Northern Trust Company, and the Swiss Bank Corporation (Basle). Amortization of the loan, which was for a term of ten years and bore interest of 6 percent, was to begin in December 1961.

The Macroeconomic Landscape of Post-Apartheid South Africa: A Critical Review of the Effect of the Broad-Based Black Economic Empowerment (BBBEE) Program on the Success of Female SMEs Operators

2017 ◽  
Vol 7 (1) ◽  
pp. 145-150 ◽  
Author(s):  
B.N.O. Irene
Keyword(s):  
South Africa ◽  
South African ◽  
Value Chain ◽  
Deep Understanding ◽  
Black Population ◽  
High Rate ◽  
Business Strategies ◽  
The South ◽  
Economic Activities ◽  
The Impact

Abstract Previous business research has highlighted the impact of government policy in the processes of formulating business strategies and in the decision-making process of organizations. In the South African context, a review of this impact on organizational strategy is for the most part important especially after the fall of apartheid as businesses have been saddled with widespread institutional change the purpose of which is to redress historic inequalities that characterized the apartheid regime. Specifically, the introduction of a far-reaching B-BBEE policy aimed at increasing participation of PIDs in economic activities. Previous researchers have been focused on the impact of B-BBEE policy on mergers and acquisitions, strategic decisions and value chain structures, as well as ROEs. The current report from STATS-SA indicates that the failure rate for women-owned businesses remains at a high rate despite the implementation of the B-BBEE policy. Therefore, research on the impact of BBBEE on business strategy and success of female SMMEs operators may provide an accurate and deep understanding that will be beneficial to policymakers because of the social pressures to emphasis more on a 'broad-based' BEE (B-BBEE) policy aimed at increasing the participation of the black population (and in particular women) in economic activities as well as increasing the number of black ownership in businesses or creating employment for the black population. This study used appropriate data tools and techniques to analyze the data drawn from a sample of female entrepreneurs in South Africa. The study applies culturally instantiated facets of the debate on gender entrepreneurship as part of a detailed and empirically sophisticated consideration of the status of female entrepreneurship within South Africa. This paper involves an in-depth survey using the ten dimensions of business performance as a basis to study small South African women-owned businesses given that the approach is useful in the development of a theory in fields where not much research has been undertaken. The businesses studied for this research are based on a setting where B-BBEE program is a principal factor in the strategic framework of the South African female business owner. This paper contributes to existing literature on the implications of the BBBEE program on SMEs by studying the relationship between business strategies, outcomes, and the B-BBEE program.

scholarly journals The Impact of the National Credit Act 34 of 2005 on the Enforcement of a Mortgage Bond: Sebola v Standard Bank of South Africa Ltd 2012 5 SA 142 (CC)

2017 ◽  
Vol 16 (3) ◽  
pp. 376 ◽  
Author(s):  
Michelle MM Fuchs
Keyword(s):  
South Africa ◽  
South African ◽  
Constitutional Court ◽  
Post Office ◽  
The South ◽  
Reasonable Approach ◽  
Credit Agreement ◽  
The Impact ◽  
National Credit Act

                        When a mortgagor is in default and the mortgagee wants to enforce the debt the National Credit Act (hereafter the NCA) may apply. A credit agreement may be enforced in court by a credit provider against a defaulting debtor only once the requirements of sections 129 and 130 of the NCA have been adhered to. If a mortgagor (who is a protected consumer in terms of the NCA) is in default, the mortgagee must deliver a section 129(1) notice to the consumer, thereby drawing the default to the attention of the consumer. For a number of years there has been uncertainty about the interpretation of section 129(1) and how it affects the execution procedure in the case of a mortgage bond over immovable property. The recent Constitutional Court judgment of Sebola v Standard Bank 2012 5 SA 142 (CC) overturns, to my mind, the more reasonable approach to such notices in Rossouw v Firstrand Bank Ltd (2010 6 SA 439 (SCA)). It was held in Sebola that before instituting action against a defaulting consumer, a credit provider must provide proof to the court that a section 129(1) notice of default (i) has been despatched to the consumer's chosen address and (ii) that the notice reached the appropriate post office for delivery to the consumer, thereby coming to the attention of the consumer.  In practical terms the credit provider must obtain a post-dispatch "track and trace" print-out from the website of the South African Post Office. There is now a much heavier burden on a bank to ensure that proper proof is provided that the notice was sent and delivered to the correct address. Consequently it places another hurdle in the path of a mortgagee who wishes to foreclose.

scholarly journals The extent of benchmarking in the South African financial sector

2014 ◽  
Vol 9 (3) ◽  
pp. 315-321 ◽  
Author(s):  
W Vermeulen
Keyword(s):  
South Africa ◽  
South African ◽  
Financial Sector ◽  
The South ◽  
Improve Performance ◽  
Research Project ◽  
Effective Implementation ◽  
Current State ◽  
Business Excellence ◽  
Research Findings

Benchmarking is the process of identifying, understanding and adapting outstanding practices from within the organisation or from other businesses, to help improve performance. The importance of benchmarking as an enabler of business excellence has necessitated an in-depth investigation into the current state of benchmarking in South Africa. This research project highlights the fact that respondents realise the importance of benchmarking, but that various problems hinder the effective implementation of benchmarking. Based on the research findings, recommendations for achieving success are suggested. 

scholarly journals Integrating eHealth in HIV/AIDS intervention programmes in South Africa

2015 ◽  
Vol 17 (1) ◽  
Author(s):  
Babasile D. Osunyomi ◽  
Sara S. Grobbelaar
Keyword(s):  
South Africa ◽  
Service Delivery ◽  
South African ◽  
Value Chain ◽  
Care Delivery ◽  
Status Quo ◽  
The South ◽  
The Status ◽  
Depth Interviews ◽  
Hiv Aids

Background:With an estimated 12.2% of its population infected in 2012, South Africa has the highest percentage of people living with the human immunodeficiency virus and acquired immunodeficiency syndrome (HIV/AIDS) in the world. Although the mortality rate of the epidemic is decreasing, it has adverse impacts on the socio-economic development status and human capital of South Africa.Objective: The key aim of this article is to explore the status quo of the implementation of information and communication technologies (ICTs) in selected intervention programmes in the South African HIV/AIDS care delivery value chain. The contribution of this article is the mapping of key intervention activities along an HIV care value chain and to suggest a roadmap towards the integration of ICTs in service delivery programmes.Method: 20 managers of HIV/AIDS intervention programmes were surveyed, followed by semi-structured in-depth interviews with these respondents. A further five in-depth interviews were conducted with experts in the ICT area for exploring the uses of and barriers to integrating ICTs in the HIV/AIDS care delivery value chain.Results: The researchers mapped the barriers to implementation and ICT tools utilised within the HIV/AIDS care delivery value chain, which proves to be a useful tool to explore the status quo of technology in such service delivery programmes. The researchers then considered the wider policy environment and provided a roadmap based on the analysis and the South Africa eHealth strategy for driving development in this sector.Conclusion: The authors found that South Africa’s eHealth environment is still nascent and that the South African eHealth strategy does not place enough emphasis on systems integration and stakeholder engagement or the planning and process of uptake of ICTs by target audiences.

scholarly journals Perceptions of the National Credit Regulator on the usefulness of the debt counselling process in South Africa

2018 ◽  
Vol 9 (6) ◽  
pp. 208
Author(s):  
K. H. Masilo
Keyword(s):  
South Africa ◽  
South African ◽  
Business Management ◽  
Qualitative Approach ◽  
Training Curriculum ◽  
Counselling Service ◽  
The South ◽  
Counselling Process ◽  
National Credit Act ◽  
And Training

The South African National Credit Regulator is responsible for the regulation of credit industry, registration and training of debt counsellors, enforcement and monitoring compliance of the provisions of the National Credit Act. The aim of this paper is therefore to analyse the perceptions of the National Credit Regulator on the usefulness of debt counselling process in South Africa. A qualitative approach, which was exploratory in nature, was adopted for this study. Ten employees from the National Credit Regulator’s office were interviewed. There was no evidence that debt counsellors were managing the debt counselling service effectively. It was also observed that the debt counsellors received insufficient support from the National Credit Regulator.  The paper recommends that the National Credit Regulator should adequately support the debt counsellors so that they can effectively manage debt counselling service and ultimately assist the overindebted consumers. Debt counsellors training curriculum should also be outcomes- based approach with exposure to business management. 

scholarly journals Perceptions of the National Credit Regulator on the usefulness of the debt counselling process in South Africa

2018 ◽  
Vol 9 (6(J)) ◽  
pp. 208-214
Author(s):  
K. H. Masilo
Keyword(s):  
South Africa ◽  
South African ◽  
Business Management ◽  
Qualitative Approach ◽  
Training Curriculum ◽  
Counselling Service ◽  
The South ◽  
Counselling Process ◽  
National Credit Act ◽  
And Training

The South African National Credit Regulator is responsible for the regulation of credit industry, registration and training of debt counsellors, enforcement and monitoring compliance of the provisions of the National Credit Act. The aim of this paper is therefore to analyse the perceptions of the National Credit Regulator on the usefulness of debt counselling process in South Africa. A qualitative approach, which was exploratory in nature, was adopted for this study. Ten employees from the National Credit Regulator’s office were interviewed. There was no evidence that debt counsellors were managing the debt counselling service effectively. It was also observed that the debt counsellors received insufficient support from the National Credit Regulator.  The paper recommends that the National Credit Regulator should adequately support the debt counsellors so that they can effectively manage debt counselling service and ultimately assist the overindebted consumers. Debt counsellors training curriculum should also be outcomes- based approach with exposure to business management. 

Sign in / Sign up

Export Citation Format

Share Document