Browsing by Author "Motsepe, Dikgang"

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    Examining the extent which the SAIVCET support institute for TVET colleges in South Africa has accomplished its primary roles one to six
    (University of the Witwatersrand, Johannesburg, 2023) Tutu, Bongiwe; Motsepe, Dikgang
    The National Development Plan (NDP) envisions South Africa’s economic transformation by focusing on higher education and skills development. Since its adoption in 2012, it has emphasised the crucial role of Technical, Vocational Education and Training (TVET) colleges as the major institutions to improve education, skills development and to enhance economic growth. Despite this realization, there are shortfalls that remain within TVET colleges, whereupon the NDP states, “the FET (TVET) system is not effective, it is too small and the output quality is poor” (NDP, 2012: 40). The Department of Higher Education and Training (DEHET) established the South African Institute for Vocational and Continuing Education and Training (SAIVCET) to support the TVET colleges. The SAIVCET was established on six primary roles and three implementation objectives. Using the qualitative survey research approach, adopting questionnaires and semi-structured interviews to gather and assess data, this research examines the extent to which the institute has accomplished the six primary roles and fulfilled the purpose behind its establishment. Through the purposive sampling of the research participants used, this research has found that the rationale and importance for the SAIVCET to strengthen the TVET and CET sector is unquestionable. However, research findings and conceptual analysis indicates that there have been challenges to the formal implementation of the SAIVCET. The institute was projected for 2012, however has yet to be established due to funding and governance constraints. As a result, SAIVCET has no governance structure. In the interim, a “SAIVCET Project” which is an informal body was formed to fulfil some of the functions and primary roles of the main SAVICET body. In a recent 2020/21 DHET Annual Performance Plan, the SAIVCET is still presented as a planned initiative, which has been projected for implementation in the period 2020 – 2025 (DHET, 2020: 10). In examining the primary roles of the SAIVCET support institute for TVET colleges in South Africa, this research has found that, the extent to which the SAIVCET, even as acting through the SAIVCET Project, fulfilled its primary roles is poor. The findings indicate that the SAIVCET has attained average to poor results in effectively fulfilling of its primary roles. Each of the primary roles received consolidated scores that are below average (below 50 percent) from the participants’ primary data. The conceptual framework and analysis further indicates the lacking impact of the institute, particularly under assessments of the Good governance framework and the Education policy implementation framework. This research recommends DHET uphold publishing annual reports to the functions and progress of the SAIVCET and SAIVCET Project, in order to enable public awareness and engagement on developments within higher education. Further, this research recommends a two-year progress review of the SAIVCET once it has been established. Further, this research study recommends coordinated efforts among various ministries, stakeholders, public and private sectors and higher education institutions, on the functions and resources for SAIVCET. Furthermore, this study recommends an institutional push for shifts in mind-sets, particularly among employers with bias when selecting candidates from higher education institutions and TVET colleges. Furthermore, this research recommends funding and resources, which are allocated without reservations, but for the sole purpose of advancing progress
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    Measuring the Fiscal Space for South Africa to Support Economic Growth and Development
    (University of the Witwatersrand, Johannesburg, 2023) Motsepe, Dikgang; Pillay, Pundy
    A number of developing and emerging market economies are faced with economic challenges that will require governments to access additional resources in order to invest in their economies. This thesis seeks to answer two research questions: 1) Should governments increase fiscal spending or government debt to finance the investment in the productive capacity of the economy in order to support and drive economic growth? and 2) Will an increase in government debt reduce investment and economic growth? Time series data of emerging market economies were used from the period 1994 – 2017 to answer the research questions. The key findings from the emerging market economies analysis confirm the positive relationship between government debt and economic growth across all the identified countries. The research findings indicate that in the identified emerging market economies, economic growth was high, showing an average growth of 5.0% when debt levels were below the 90% ratio. For debt levels above 90% of GDP, economic growth was significantly low, averaging 0.5%. The study’s findings indicate that the emerging market economies showed an average public sector investment to GDP ratio of 23.6% at debt levels below 90% of GDP. For debt above 90% of GDP, public sector investment to GDP was slightly lower, averaging 15.3%. The key findings with regard to measuring debt sustainability using the debt limit of 68% to 97% to GDP as calculated by Ganiko, Melgarejo and Montoro (2016), is that all the emerging market economies have significant room to increase their debt levels, with South Africa obtaining an average debt ratio of 41% for the study period. The findings from the emerging market economies support the themes in the literature review that government debt can influence economic growth through the total factor productivity channel. This will entail increased government investment in infrastructure development, industrial development, education, health and nutrition. The thesis acknowledges that increases in debt levels will increase interest rates, thus reducing the fiscal space available to government. The increase in interest rates calls for a more effective utilisation of monetary policy instead of fiscal policy via the reduction of interest rates and purchasing of zero interest rate government bonds. To achieve this, this study calls for the increased role of monetary policy to use interest rates to achieve debt sustainability and to support economic growth. The thesis provides the policy direction for both fiscal and monetary policy on how to increase the ‘fiscal space’ available to government to raise additional resources to support economic growth and development. The study’s contribution to knowledge is the call for a change to the orthodox paradigm and narrative that debt is bad for economic growth and to promote the policy direction of using debt and increased spending to get economies to full employment. The policy directive seeks to support the use of government debt to fund structural reforms, to recapitalise State-Owned Entities, to support industrial development as well as to promote infrastructure and human capital development, with the objective to support economic growth. The thesis argues that debt is not harmful if directed towards the productive side of the economy. The paradigm is embedded within the Keynesian approach which is supported by the new growth theory, functional finance and modern monetary theory on fiscal stimulus and how to finance it. The paradigm shift also talks to moving away from conventional monetary policy and recommends that central banks decrease interest rates, monetise government debt, and create sovereign money in order to support government debt sustainability. The paradigm shift also seeks to change the conventional policy direction of central banks of increasing money supply indirectly using the banking sector, to directly increase money supply through fiscal policy in order to support economic growth. This will give central banks the tool to direct and influence spending in the economy to meet the objectives of economic growth and job creation. As argued by various economists, this can be achieved through better policy coordination between monetary and fiscal policy, and improved institutional arrangements which will ensure that the creation of money is directed towards economic growth and job creation
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    The effectiveness of the Gauteng Informal Business Upliftment Strategy on spaza shops operating in the Alexandra Township, South Africa
    (University of the Witwatersrand, Johannesburg, 2023-03) Buthelezi, Jabulani; Motsepe, Dikgang
    The competitiveness and profitability of spaza shops owned by South Africans which operate in townships has been eroded by the settling of large retailers and immigrant owned spaza shops. With this challenge in mind, the Gauteng Department of Economic Development (GDED) developed the Gauteng Informal Business Upliftment Strategy GIBUS). The overarching objective of this policy is to develop informal businesses such that they become more productive, competitive, profitable and are able to create employment (GIBUS, 2015). Spaza shops that operate in the Alexandra Township are faced with unbearable competition due to the large retailers that have settled into both the Pan African and the Alexandra Mall. This challenge as experienced by South African spaza shop owners has also been exacerbated by the infiltration of immigrant owned spaza shops. In this regard, the purpose of this research study is to examine the effectiveness of the GIBUS in improving the competitiveness and profitability of spaza shops owned by South Africans in the Alexandra Township. This research study follows a positivism paradigm. Quantitative research techniques were used for the purpose of data collection and analysis. The research design applied is cross- sectional. A questionnaire was used for the purposes of data collection and non-random purposive sampling was applied as a sampling strategy. The results from this research study indicate that for the majority of the respondents, their revenue did not increase and that they were also not able to create employment opportunities. This is against the backdrop of them having received both non-financial and financial support from the Gauteng Enterprise Propeller. Therefore, the support received did not assist them into being more competitive and profitable. This research study recommends that the both the non-financial and the financial programmes of the GIBUS be amended and be implemented more rigorously. In addition to this, accompanying initiatives to both the financial and non-financial programmes are recommended