Electronic Theses and Dissertations (Masters)

Permanent URI for this collectionhttps://hdl.handle.net/10539/37936

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Start date: 2020End date: 2024

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Now showing 1 - 10 of 115
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    The effects of renewable energy integration on profitability & employment- a case of South African mines
    (University of the Witwatersrand, Johannesburg, 2024) Sikoe, Oratile; Kutela, Dambala
    The mining industry has been seen as one of the most energy-intensive industries in the world. That is also responsible for being a source of critical raw materials for other sectors in a country, such as manufacturing, construction, transportation, and energy sectors. In the past years we have observed an increase in mining companies adopting renewable energy in order to introduce cleaner energy sources into their mining operations. However, the economic effects of renewable energy source adoption are understudied in South Africa. This research is set out to examine and understand the effects of renewable energy integration into the mining industry on profitability and employment, with the use of the Autoregressive Distributed Lag Stationarity (ARDL) model. Our results revealed that there is a positive long-run relationship between renewable energy integration, employment, and mining profitability in the South African mining industry, including in the short-run. More specifically, the results show that the adoption of renewable energy sources bolsters both profitability and employment in the mining industry of South Africa such that a unit integration of renewable energy will most likely result in a respective percent increase in employment and mining profitability. Our research is the first of its kind in providing this evidence compared to related literature which is not industry specific. Overall, our findings underscore the importance of the transition by industries to renewable energy to simultaneously promote economic growth and ameliorate environmental quality in the context of developing countries where extractive industries pervade.
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    Taxing the Coronation Group: Comparing South Africa, UK, USA and Ireland's CFC Rules for Targeted Income and Foreign Business Establishment Exemptions
    (University of the Witwatersrand, Johannesburg, 2024) Njamela, Sandise; Ndlovu, Jane
    The taxation of controlled foreign companies (CFCs) is a critical international issue affecting multinational corporations, governments, and their revenue authorities. CFCs are pivotal in the context of base erosion and profit shifting (BEPS) and efforts to combat tax evasion. Misinterpretation of CFC rules can have profound financial implications for corporations, as illustrated by the Commissioner for the South African Revenue Service (CSARS) v Coronation Investment Management SA (Pty) Ltd (CIMSA). In this case, the CSARS imposed an additional tax of R761 million, representing 45% of CIMSA’s profit before tax (R1 689 million) for the accounting period ending 30 September 2023. The dispute centred on the interpretation of section 9D of the Income Tax Act No. 58 of 1962 (Republic of South Africa, 1962), particularly the foreign business exemption. This research report compares the legislative and judicial approaches to CFCs, focusing on targeted income and the foreign business establishment (FBE) exemption in the Republic of South Africa (RSA). It contrasts these approaches with those of the United Kingdom (UK), United States of America (USA), and Ireland to determine if South Africa's CFC rules align with international best practices or fall short owing to interpretative complexities. The findings aim to assist the National Treasury and multinational corporations to better understand and refine section 9D of the Act. Given that the UK and Ireland use residence-based tax systems similar to South Africa, and the USA employs a citizen-based system taxing its citizens on worldwide income, this report uniquely emphasizes the USA's distinct CFC rules established in 1962. These rules serve as a benchmark in the comparative analysis. As these countries are key trading partners for South Africa, they provide relevant points of comparison. The analysis found that while section 9D requirements are largely consistent with international norms, certain shortfalls were noted. Taxing CFCs on worldwide income was deemed unfair to multinational companies. The UK's source-based approach was found to be fairer, as it only targets CFC income derived from UK resources. South Africa's FBE exemption is complex, whereas the UK's FBE requirements are recommended for their measurability, specificity, and fairness. Additionally, South Africa's 5% exclusion threshold for CFC definition and 10% income inclusion threshold were found to be low compared to international standards.
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    Relationship between starting up unregistered and firm performance in Sub-Saharan Africa: Does duration matter?
    (University of the Witwatersrand, Johannesburg, 2024) Matsitse, Kgalalelo; Oyenubi, Adeola
    This paper investigates whether start-up firms that remain unregistered for longer outperform their peers in the long run. It hypothesises that the benefit of staying unregistered is non-linear in time and depends on institutional context. This paper considers the relationship between years spent unregistered and employment productivity growth in the informal sectors of Nigeria, Kenya and South Africa, highlighting the significant role of institutional contexts in shaping entrepreneurial decisions and firm performance (Williams, Martinez-Perez, & Kedir, 2017; Assenova & Sorenson, 2017; Autio & Fu, 2015; Galdino, Molina- Sieiro, Lamont, & Holmes Jr, 2023). World Bank Enterprise Survey data was analysed using linear multivariate regression analysis, which enabled examination of the relationship between years spent unregistered and firm employee productivity growth, determining its statistical significance while controlling for other independent variables. The findings underscore the heterogeneity of this relationship across developing countries. This suggests that policymakers must consider distinct institutional environments to foster economic growth and achieve Sustainable Development Goal 8; which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all (United Nations, 2023).
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    Examining the Effects of Oil Price Shocks on Unemployment in South Africa and Nigeria
    (University of the Witwatersrand, Johannesburg, 2024) Nomarola, Nolundi Felicity
    This study investigates the impact of oil price shocks on unemployment dynamics in South Africa and Nigeria, two major economies in Africa with significant oil sectors. The relationship between oil price fluctuations and unemployment is analysed using time- series data spanning from 1976 to 2021, employing the Autoregressive-distributed lag (ARDL) and the Nonlinear ARDL models. The ARDL model in South Africa shows a significant long-term increase in unemployment due to increased oil prices, while in Nigeria, it indicates a negative relationship. In the short run, in South Africa oil price shocks have an insignificant effect, while in Nigeria, they have a significant negative impact. The NARDL model also reveals asymmetrical effects. The NARDL model revealed asymmetrical long-run and short-run effects. In South Africa, the magnitude of the impact of increasing oil prices on unemployment is larger than of falling oil prices in both the short-run and long-run, while for Nigeria, falling prices have a larger magnitude.
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    Adaptive Market Efficiency: Evidence from the South African Stock Market
    (University of the Witwatersrand, Johannesburg, 2024) Masangu, Ishmael Fanelo; Seetharam, Y.
    This study examines the adaptive market hypothesis in the Johannesburg Stock Exchange market by test- ing for stock return predictability using daily data from January 1996 to December 2023 across six differ- ent indices. The study applies three linear and three nonlinear tests to check if the Johannesburg Stock Exchange market is efficient, moving towards efficiency, switching to efficiency/inefficiency, adaptive and inefficient. The overall findings of this study provides compelling evidence that stock returns within the Johannesburg Stock Exchange market across the six indices are inefficient, as indicated by significant evidence of inefficiency, non-randomness, the presence of serial correlation and nonlinear effects in the six tests performed. These results challenge the notion of the weak-form of market efficiency and suggest that past prices of stock returns are related to future prices, indicating the presence of predictability and exploitable opportunities within the JSE market.
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    A study measuring the connectedness of African and advanced financial markets using spillover indices
    (University of the Witwatersrand, Johannesburg, 2024) Mabitsi, Kelebogile
    Investors are always searching to diversify their portfolios and manage risks. South Africa, Kenya, Egypt and Nigeria are African frontier and emerging market economies that are potentially attractive to such investors. This study examines whether African equity markets are suitable for investment diversification amongst themselves and advanced market investors from countries such as the United States and the United Kingdom. The paper uses Diebold and Yilmaz (2012) spillover indices to make this determination, by measuring the connectedness of the returns and volatilities, for the period 2008 to 2022 using both weekly and daily data. The daily and weekly results show that advanced and African markets have low interdependence, except for South Africa, that shows stronger connectedness with advanced markets. South African policymakers can consider developing policies that are responsive to advanced market shocks. Additionally, African policymakers can consider developing policies that promote a Pan-African market that has consistent regulatory, listing and trading requirements to promote African economic growth. The diversification opportunities that are present may have limited efficacy due to the composition of African stock markets. The volatility spillover plots display more sensitivity to market dynamics than the returns, as significant cycles and bursts are identifiable.
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    Inflation Hedging Across Asset Classes: A Non-Linear Perspective from the South African Context
    (University of the Witwatersrand, Johannesburg, 2024) Tseeke, Rethabile; Mbululu, Douglas
    Navigating the intricacies of financial markets, investors grapple with the enduring challenge of preserving portfolio value amidst the complexities of inflation. This study delves into the dynamic interplay between inflation and returns across diverse asset classes, focusing on the distinctive nuances within South Africa. Against the backdrop of global disruptions such as the Covid-19 pandemic and geopolitical tensions, the research examines the inflation-hedging potential within traditional and alternative investments, including the emergent domain of cryptocurrencies. Situated within the framework of the "Inflation targeting" strategy embraced by the South African Reserve Bank, the study employs the NARDL model, which rigorously tests the short and long-run relationships between the asset returns and inflation. The research imparts nuanced insights into the complex environment of inflation hedging in the South African market.
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    A Systematised Review of Policy Responses to Supplier-Induced Demand
    (University of the Witwatersrand, Johannesburg, 2024) Mnguni, Lungelo; Booysen, Frikkie
    Health systems around the world contend with cost containment. As a result, policymakers pay attention to how the use of health services drives health expenditure. The rate of use of health services can increase due to additional demand generated by healthcare providers. Currently, however, research on policy interventions used to address demand created by providers is limited. This paper therefore contributes to the literature by conducting a systematised review of common themes found in the literature on additional demand generated by healthcare providers, known as supplier-induced demand, and the associated policy interventions. Building on 33 papers identified in a 2019 scoping review by Mohammadshahi et al., a systematic search added 86 papers from PubMed and 134 from Scopus. After screening and applying inclusion and exclusion criteria, 11 articles were reviewed. This review identified four key themes in the research on supplier-induced demand: Competition, incentives, and responses to health reform, and responses to reimbursement changes. In addition, the study finds the focus areas of policy responses to supplier-induced demand to be the following: Provider payment methods, capacity management, stricter regulation and monitoring of adherence to clinical guidelines, increased reviews by insurers, and health promotion to patients. To allocate resources efficiently and equitably, health system leaders should strengthen the monitoring and evaluation of unintended consequences which stem from expanding access to health services.
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    COVID-19 health related news and sectoral stock returns sensitivity in South Africa
    (University of the Witwatersrand, Johannesburg, 2024) Zulu, Sbongiseni Samkelo Falakhe; Alovokpinhou, Sedjro
    The purpose of this study is to analyse the relevance of health news related to Covid-19 on South African sectorial stock returns. This is inspired by the global Covid-19 pandemic in predicting sectorial stock returns. This study examines the estimation of dynamic panel data using a dynamic common correlated effects estimator. It employs two pairwise forecast measures, specifically the Campbell & Thompson (2008) and Clark & West (2007) tests, to address the nested predictive models. Thus, this study begins by analysing the impact of health news relating to Covid-19 when control variables are not considered. This is following by when control variables are incorporated into the model. Lastly, the forecasting power of Models 3 and 4 is evaluated by comparing the two models with historical average or constant returns model (CR), for both with and without control variables. The findings of this study reveals that the model incorporating health news indexes outperforms the constant returns model. This proves that health news is a valuable indicator for predicting stock returns, particularly in the wake of the pandemic, underscoring the importance of monitoring health-related information for investment decisions. This study further finds that considering the "asymmetry" effect and incorporating adjustments for macroeconomic factors enhances the predictive accuracy of the health news-driven model. The outcomes remain consistently strong across both the periods of in-sample and out-of-sample forecasts, demonstrating resilience to outliers and variations. These results have practical significance for a range of stakeholders, encompassing academics, practitioners like rational investors, portfolio managers and policymakers. The practical implications extend to aspects such as managing portfolio risk, realizing diversification advantages and exploring opportunities for the creation of innovative investment instruments within financial markets.
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    Climate Change in South Africa: Is there a disproportionate effect on poorer municipalities?
    (University of the Witwatersrand, Johannesburg, 2024) Motselebane, Itheheleng Imelda; Kutela, Dambala
    Climate change represents a profound and escalating challenge, disproportionately burdening the world's most vulnerable populations. The complex relationship between poverty and climate change is increasingly recognized, however, much of the existing research has concentrated on national or global scales, often overlooking the detailed, specific effects on smaller, more localized areas, such as individual municipalities within a country. This study seeks to bridge this gap by focusing on the municipal level in South Africa, a country marked by stark socio-economic inequalities and pronounced climate vulnerabilities. Utilizing a panel dataset from 234 municipalities, based on the 2011 municipal boundaries, this research employs a fixed-effects model to examine how climate shocks influence poverty dynamics across different socio-economic contexts. The findings reveal a significant divergence in the impact of climate shocks, with the poorest municipalities experiencing a markedly higher increase in poverty rates compared to their wealthier counterparts. This heightened vulnerability underscores the limited adaptive capacity of these communities, exacerbated by their dependence on climate-sensitive sectors and a lack of diversified economic opportunities. The findings underscore the importance of spatially differentiated climate adaptation strategies that are not only responsive to the immediate needs of the most vulnerable but also address the underlying structural inequalities that perpetuate their susceptibility to climate-induced economic shocks. Moreover, this research contributes to the broader discourse on climate justice, offering critical insights into the mechanisms through which climate change amplifies existing socio-economic disparities. The implications extend globally, providing a foundation for policy interventions that prioritize the protection and empowerment of the most disadvantaged communities in the face of an increasingly volatile climate.