3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item The impact of quasi taxes from mining on economic growth in South Africa(2018) Miyambu, MusaSouth Africa‘s economic growth has been declining since 2009. Mining contributes to economic growth in various ways, including foreign earnings and taxes. It contributes to the economy through direct, indirect and quasi taxes. Quasi taxes are near taxes that are imposed on mining projects in the national interests of protecting the environment and the social, cultural and economic needs of local communities. They have implications on tax design, they are often significant and are regulated by various Acts. They include contribution to local communities, foreign exchange control, environmental taxes, performance bonds and government equity in mining projects. Because of their implication on tax design and related aspects, the research was conducted to assess the extent which they contribute to the economic growth of South Africa, to assess how the country can enhance the effectiveness of quasi taxes on economic growth, to assess whether the country has a good mining tax regime, to assess their impact on mining investments decisions and planning. The research involved a literature survey for qualitative and quantitative data from various sources. These were various books, journals and others publications. It used an internet-based method of data collection and hard copies from various institutions, including libraries. Annual reports of three mining companies that are mining in South Africa and are listed on the Johannesburg Stock Exchange, were randomly sampled and assessed, to gain an understanding of the manner in which these taxes contribute to economic growth. The work also used a Discounted Cash Flow model to assess the impacts of quasi taxes on mine planning and mine investments. It further assessed the extent to which quasi taxes can be applied to the determinants of economic growth. The findings are that quasi taxes contributed 0,77 percent (%) in terms of mining exports earnings per unit of GDP created, between the years 2007 to 2016 and R2 billion to community development in the year 2015. It was found that transparency and lack of clarity are some of the impediments to the contribution of quasi taxes to economic growth. A good mining tax regime is required in order to reap maximum benefit from these taxes. The country must also use Community Engagement Plans to manage expectations, to explain the level of benefit from mining, for clarity and transparency between interested and affected parties. Quasi taxes affect mine planning and investment decisions. Quasi taxes must also be used for clustered and sustainable projects in the form of the Public Private Partnership approach, in line with the determinants of economic growth.Item Framework for linking the informal savings sub-sector with the formal stock investment market(2017) Mukwevho, Humbulani SethGlobal markets, especially emerging markets, reveal a presence of generally two types of financial saving and investment system, namely the informal financial system and the formal financial sub-sector. Often, the two systems of financial management are alienated from each other. However, informal savings practices (parts of the informal financial sub-sector) are widespread particularly in developing economies, including those of Sub-Saharan Africa where the popular indigenous financial saving practices are the rotating credit and savings associations, an umbrella concept that incorporates various practices such as door-to-door deposit collections, Christmas grocery and savings clubs, burial societies, Chilimba, Motshelo, Susu, Etoto, Nyangi, round tables, and stokvels, amongst others. The informal financial savings system is criticised for poor asset security, emphasis on social capital, poor financial returns, and high propensity for consumption. Indeed, wealth accumulated in these thrift funds are seldom invested in formal, financial investment market instruments that generate more than average returns, specifically equities (common stocks). The formal common stock investment sector offers numerous benefits, and these include risk management, diversification, capital appreciation, opportunity for dividend receipts, a liquid market, professional stock investment management, and asset security amongst others. Therefore, in contrast to the constraints and investment drawbacks associated with the informal financial savings system, the formal financial stock investment platform offers prudent investors opportunities to reap relatively higher returns, and grow wealth. Notwithstanding the apparent benefits of investing in the formal stock investment system, the majority of members of the informal savings market are estranged from the formal equity investment sub-sector. This study investigated these two, contrasting financial savings and equity investment services platforms, with the objective of constructing a framework for linking the informal savings system with the formal stock investment market. The study used both qualitative (interviews and grounded theory) and quantitative research methods to gather and analyze primary data. The questionnaire was used to collect quantitative data, which was analyzed using various structural equation modelling tools, including descriptive statistics, correlations, and path modelling. This study found that the alienation of the financial savings and stock investment platforms results in the exclusion of informal savings groups from equity investing opportunities. The framework for linking the two systems is anchored on several variables, namely a conscientious adoption of strategy to reach out to the informal savings groups, provision of equity investment education, an introduction of unorthodox marketing strategy. Further, the extension of financial investment products to traditional African savings communities constitutes a credible investment vehicle that improves their saving and financial investment performance. Moreover, a dignified treatment of indigenous savers by the formal financial sector and provision of asset security, positively influence and encourage informal savings groups to invest in the formal stock investment sector. Overall, all these variables converge to form a path that links these hitherto separate financial systems, namely the informal savings market and the formal stock investment system.