Wits Business School (ETDs)

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    Investigating alternative social funding instruments for SMMEs in South Africa
    (University of the Witwatersrand, Johannesburg, 2020) Xaba, Prudence; Sibanda, Tonderai
    Small Medium and Micro Enterprises (SMMEs) are key drivers of economy, innovation, job creation and the biggest contributor of the GDP. In 2015 there were 2 251 821 SMMEs, with only 667 433 in the formal sector and registered, the rest operating in the informal sector. South Africa today is faced high rates of poverty, unemployment and poor education levels. The current legislative framework has been unable to transform the skewed discrimination in the economic sector. Several government strategies and interventions have not yielded any positive results. The study explored the conversion of stokvels into an alternative social funding instrument for SMMEs. Stokvel is a centralised collective savings scheme, where monthly periodic contribution are paid. Stokvels are referred to as Rotating Savings and Credit Association (ROCSAs), with a membership of between 5-30 members. The study employed qualitative multi method approach, using focus groups observations, individual interviews and document analysis to collect data. Semi structured questionnaires were used for the five stokvels focus groups and three individual interviews with government executives. Data analysis was conducted using the three theories; phenomenology, ethnography and interactionism. The findings show that stokvel members are willing to convert into formal investment instruments, to manage risks and having access to better control management systems. They also stated that they would like to maintain their independence, unique identity and control of their savings. It also found that stokvels need financial training in order to make informed decisions on the available platforms. It was also found that all this is impossible without government’s intervention in transforming the sector and introduce flexible legislation accommodating stokvels. It is also stated that retail banks could hinder the introduction of progressive and flexible legislation regulatory framework as they recognise that stokvels could be disruptors in the financial sector.
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    The relationship between digitalisation data and GDP
    (University of the Witswatersrand, Johannesburg, 2023) Sikazwe, Bright C.; Sithibe, Tebogo
    This academic paper examines the relationship between digitalisation and Gross Domestic Product (GDP) in Sub-Saharan Africa (SSA). The study aimed to address the limited understanding of the impact of digitalisation on the economic growth and development of SSA countries. Existing literature, as explored in the background, underscores the positive impact of digitalisation on economic growth, particularly emphasizing the role of Information Communications Technology (ICT) (Solomon & Klyton, 2020; Paul, 2021). However, a noticeable gap persists, as there is limited empirical research investigating the specific relationship between digitalisation and GDP in the context of SSA. By employing a quantitative research methodology, the study investigates the relationships between Internet usage, mobile phone usage, manufacturing value add, and GDP. The analysis utilises time series data from 1998 to 2020, obtained from the World Bank database, covering 10 countries, and resulting in 220 time series data points. It employed several statistical techniques such as time series regression, ARIMA, VAR, and exponential smoothing. It also used correlation andtrend analysis, Pooled OLS, and cluster analysis to try and further understand the relationship. The results show that in Sub-Saharan African (SSA) countries, there are slight positive connections between Internet usage, mobile phone usage, and GDP. Yet, it's important to note that the study recognizes limitations related to available data and time constraints, as highlighted in the literature (Tong & Wohlmuth, 2019). This emphasizes the necessity for more research to confirm and reproduce these findings. Moreover, a robust positive link is found between manufacturing value addition and GDP. Interestingly, when manufacturing value addition is considered as a control factor, the link between digitalisation and GDP becomes less strong. This implies that a portion of the positive impact of digitalisation on GDP is linked to the increased value addition in manufacturing. The study contributes to existing literature by providing insights into the relationships between digitalisation and GDP in SSA while controlling for Manufacturing value Add. It emphasizes the importance of considering country- specific factors and contextual nuances in future research. Policymakers are recommended to focus on promoting investment in the manufacturing sector, increasing access to mobile phones and the internet, fostering innovation and entrepreneurship, investing in digital infrastructure, providing digital skills training, and fostering public-private partnerships to promote sustainable economicdevelopment in SSA. Further research is needed to validate these findings, explore the mechanisms through which Internet and mobile phone usage impact GDP, and understand the role of manufacturing value Add in driving economic growth. This deeper understanding will enable policymakers to make informed decisions to foster digitalisation, enhance mobile phone usage, and promote manufacturing value add for sustainable economic development in SSA and other developing African nation