Faculty of Commerce, Law and Management (ETDs)

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The Impact of Employee Shareholding Option Plans on Company Performance in South Africa
(University of the Witwatersrand, Johannesburg, 2009-07) Motswenyane, Papillon; Ncube, Mthuli
Employee Share Option Plans (ESOPs) are widely applied in the South African context to disseminate wealth to Historically Disadvantaged South Africans (HDSAs). This opinion is affirmed by an increased application of the concept on a number of Broad Based Black Economic Empowerment (BBBEE) transaction deals concluded recently. The research explored the impact of these schemes on company performance and also investigated the resultant economic impact on participating employees. Data was collected from JSE-listed companies that have implemented these schemes over an eight year period between the years 2000 and 2008. Tobin's Q ratios were constructed using data from various sources with annual reports as the primary source of data. An event analysis was undertaken by measuring Tobin's Q of the said companies before and after the implementation of the respective schemes. A secondary process collated data from a survey of employees participating in the schemes to measure their increased productivity and also to ascertain financial employee spin-offs from the schemes. The research found inconclusive evidence that ESOPs impact positively on company performance. However evidence of a strong correlation between potential productivity increases and the schemes was confirmed . Also, a relationship between an employee's level and term of participation to financial reward was established. This research will assist companies in structuring their ESOPs in relation to individual employee contribution to enhance company performance and will also provide guidance on ESOPs financial impact on employees.
The Development of Social Capital in the Judiciary through mentorship
(2011-04-06) Engelbrecht, Naomi Annette
This study analyses the concept of mentoring as used in the South African Judiciary. Mentoring has been adopted by the South African judiciary in order to enhance the potential of acting Regional Magistrates to address their often repeated grievances regarding capacity building. The research attempts a quick evaluation of the process so far.
Success Drivers for Independent Feature Filmmaking in South Africa
(University of the Witwatersrand, Johannesburg, 2011-06) Heatlie, Damon; Marcelle, Gillian
This qualitative research addresses the central research question ‐ why is the South African feature film industry uncompetitive, and what are the key drivers for producing profitable films in the South African context? The central conceptual framework used is value chain analysis. The study limits its scope to focusing specifically on the development and distribution stages of the independent feature film value chain. The study commences by investigating the historic poor performance of South African films, which typically were not able to recoup costs and move into profitability. The study interrogates the critical role of the independent film producer as a ‘creative entrepreneur’ and looks at examples of successful film industry development in other emerging economies. The research then examines what international research indicates as success factors at the development stage, followed by an exploration of the rapidly changing digital landscape of film distribution and its associated opportunities. The empirical research component comprises of the analysis of semi-‐structured expert interviews with 12 industry stakeholders – producers, distributors and funder‐investors involved in feature filmmaking in South Africa. The data analysis involved thematic encoding, a reduction of 10 open–ended questions to four key thematic domains that presented in the findings: ‘understanding the market’, ‘finding a business model’, ‘government support’ and ‘embracing distribution challenges’. Conclusions drawn from the findings were that producers have historically misunderstood audience needs and market volumes for their films, that profitability is achievable if one targets local markets modestly, that government support is critical but deficient in the South African environment, and that South African films need committed local distributors and exhibitors even before serious investment in Internet based distribution mechanisms. This study adds empirical data to an under researched field and contributes to understanding the nature of creative industries and their dynamics.
Caught in a gap? An examination and human rights assessment of immigration detention laws and practices in South Africa
(2013-03-19) Tay, Roanna
Abstract: This study examines the laws and practices relating to immigration detention in South Africa. It provides an in-depth examination of the legislation, with reference to known state practices and cases where migrants have been subjected to prolonged and repeated periods of immigration detention. The study highlights gaps in South African law that contribute to certain categories of migrants being especially vulnerable to immigration detention. Four categories are identified: (1) asylum seekers; (2) persons with difficulty obtaining travel documents; (3) stateless person; and (4) persons subject to other prohibitions against refoulement. The study offers recommendations for legislative reforms to fill the gaps in the law that contribute to these migrants’ vulnerability to immigration detention
Human Resources Development at Tumela Mine
(University of the Witwatersrand, Johannesburg, 2014-01-21) Mphahlele, Matuku
In the context of the South African mining and mineral sector this study explores the human resource development measures to transform mentoring programmes at Tumela Mine. Despite the legislative stipulations that seek to promote equitable access to participation in the creation, development and sharing of the South African economy and natural resources through the establishment of a workplace environment conducive for learning to take place, little is known on how Tumela Mine implements mentoring programmes to foster effective human resource development. The study explored and analysed participants’ perceptions regarding the implementation of the Tumela Mine Mentoring Programme. The research was conducted through the use of a case study approach, and primary data was collected from respondents, and secondary data was gathered from relevant policies, minutes of meetings and company annual reports. The research questioned the successful aspects in the Human Resource Development unit, challenges and management’s responses to impediments to the implementation of mentoring programmes at Tumela Mine. The findings indicate that two key issues to improve implementation of mentoring programmes at the Tumela Mine are a transformational style of management and strategic repositioning of the mentoring programmes. The research argues that although company corporate strategic policy formulation and planning seek to promote equal participation of all employees in mentoring relationships, programme interventions at an operational level make it difficult to promote mentoring programmes. The key recommendation is that in order to implement effective mentoring programmes the company should review the corporate business strategy focused on strategic repositioning of mentoring programmes and inspire visionary leadership to implement a transformational style of management.
Human Resources Development at Tumela Mine
(University of the Witwatersrand, Johannesburg, 2014-01-21) Mphahlele, Matuku
In the context of the South African mining and mineral sector this study explores the human resource development measures to transform mentoring programmes at Tumela Mine. Despite the legislative stipulations that seek to promote equitable access to participation in the creation, development and sharing of the South African economy and natural resources through the establishment of a workplace environment conducive for learning to take place, little is known on how Tumela Mine implements mentoring programmes to foster effective human resource development. The study explored and analysed participants’ perceptions regarding the implementation of the Tumela Mine Mentoring Programme. The research was conducted through the use of a case study approach, and primary data was collected from respondents, and secondary data was gathered from relevant policies, minutes of meetings and company annual reports. The research questioned the successful aspects in the Human Resource Development unit, challenges and management’s responses to impediments to the implementation of mentoring programmes at Tumela Mine. The findings indicate that two key issues to improve implementation of mentoring programmes at the Tumela Mine are a transformational style of management and strategic repositioning of the mentoring programmes. The research argues that although company corporate strategic policy formulation and planning seek to promote equal participation of all employees in mentoring relationships, programme interventions at an operational level make it difficult to promote mentoring programmes. The key recommendation is that in order to implement effective mentoring programmes the company should review the corporate business strategy focused on strategic repositioning of mentoring programmes and inspire visionary leadership to implement a transformational style of management.
The effect of employee share ownership on company performance in South African mining
(University of the Witwatersrand, Johannesburg, 2014-08) Khan, Shameegh
This study investigates the effects of Employee Share Ownership Plans (ESOP’s) on company profitability in the South African mining industry for companies listed on the Johannesburg Stock Exchange (JSE). The South African mining industry has been in the global spotlight since the Marikana miners’ strike of 2012 and the subsequent killing of 34 people on 16 August 2012. ESOP’s can be used to stabilize the sector by alleviating some of the tension that is present between workers, shareholders, management and government. This research uses the same measurement as Spiess and Affleck-Graves (1995), who measure share price performance as a cumulative average of returns (CAAR) over a five year period. Regression analysis is used to test for correlations and descriptive statistics is used to explain findings (Spiess & Affleck-Graves, 1995). The difference between companies that do not have ESOP’s in place is negative for (CAAR) compared to those who have an ESOP in place. This is consistent with the theory and findings of studies such as Robinson and Zhang (2005). It has been applied to the South African context within the JSE listed mining sector. The theory that ESOP’s will improve profitability of a company listed on the JSE within South African mining has been found to be statistically significant. ESOP’s can help improve cumulative profits and help transform the industry through share ownership of workers which will help decrease the gap between CEO’s remunerations and the lowest paid workers.
Leadership and resilience at the Islamic University of Gaza, 1978-2012
(2016) EL-Namrouti, Said Ahmed
Leadership in Higher Education Institutions (HEIs) in turbulent times has been undertheorised. A qualitative case study based on document analysis of 70 documents, 39 interviews and 2 focus groups was the vehicle for examining the role of the leadership at the Islamic University of Gaza (IUG). IUG has operated under complex conditions of occupation and ongoing turbulence from its inception in 1978 to the present. This study examines the period 1978-2012. In this time the university grew from 25 men studying Sharia in a tent to 20,000 students (63.7% female) studying across 11 faculties and 112 different specialisations. The study documents and labels four phases of development of the university. The patterns of leadership uncovered in the study include transformational, transactional, heroic, post-heroic and on some specific occasions authoritarian styles, with transformational being the most important. The way in which the leadership resolved short term crises, as well as their long-term and big-picture focus, shaped the development of the university. Resilience theory was applied alongside leadership theory to analyse the responses of IUG leadership. Resilience was taken beyond surviving to capitalising on disruption. Twenty three markers of resilience were found which worked independently and interactively to support resilient responses to the challenges IUG faced. These factors were initially developed from the literature, and new factors were added based on this research. The relationship between leadership styles and the promotion of resilience was examined. The thesis describes a mutual shaping and supporting role between university and society in Gaza, and discusses some of the paradoxes of help and harm coming from players and belief systems external to the university. The paradox of faith which can provide a cohesive, binding set of beliefs to support staff and students, as well as being the source of conflict and harm, is also discussed. A definition of a university as an educational community functioning beyond place, buildings, external recognition, or physical destruction was developed.
The principles governing 'place of effective management' and 'permanent establishments' and their application to the digit al economy: a South African perspective
(2016) Boel, Katherine
The purpose of this research report is to consider the application of existing 'place of effective management' (POEM) and 'permanent establishment' (PE) principles to a company operating in a digital economy in order to determine its appropriateness and limitations. This paper is broadly divided into four parts. The first part of the paper provides a brief background to the above taidng principles and the digital economy. The second part considers, in detail, the guidance and factors that are currently available on how the POEM and the creation of a PE for a company may be determined both internationally and from a South African tax perspective, including the role of the residency tie-breaker article and the PE article in most double taxation agreements (DTA's) with South Africa. The third part of the paper considers how these guidelines and factors may apply to the digital economy and the practical challenges which arise. Finally, the paper seeks to identify possible alternatives to overcome the pitfalls in the POEM and PE interpretations and to highlight aspects which require further consideration.
Employee-owned companies: A potential solution to minimising industrial action in South Africa
(University of the Witwatersrand, Johannesburg, 2016-03) Sebesho, Bonga; Horne, Renee
The purpose of this research was to assess the employee-owned company model as a potential solution to minimise industrial action in South Africa. Employee ownership, positioned as a key pillar of broad-based black economic empowerment (BBBEE) (Mosai & Reynolds, 2003), is linked to increased employee participation and ultimately to improved industrial relations as a result of increased engagement between employers and employees. Research was undertaken through a study of the multiple methods in which employee ownership is implemented across various industries in South Africa taking into account the reasons for the implementation of employee ownership. This research attempted to cover a wide spectrum of employee ownership models ranging from once-off employee share ownership schemes (ESOPs) to closed employee ownership schemes. Qualitative data was collected through in-depth interviews, utilising the Delphi technique, with a sample of 11 respondents who have been involved in the implementation of employee ownership schemes. The data was content-analysed and the findings suggested that employee ownership has the ability to engender increased participation. The findings of the study suggest that the successful implementation of employee ownership in South Africa has been severely impacted by historical issues relating to financial preparedness from employees and the deep entrenchment of the shareholder value as well as the compliance burden from a business perspective. The study concludes that employee ownership can play a role in engendering meaningful economic participation and consequently reduce the incidence of industrial action. However, in order to achieve its desired objective the government will need to put in place effective incentives as well as powerful disincentives to encourage implementation of long term ownership schemes. This study may provide guidance to South African companies, government and other stakeholders seeking to find broad-based and inclusive models in order to increase employee representation and participation in corporate decision making. The research findings may assist these organisations to find new ways to create a more inclusive economic environment through leveraging the benefits of employee ownership to decrease the incidence of industrial action and ultimately improve output.
Application of South African VAT on e-commerce transactions
(2017) Xaba, Nduduzo Justified
The present study sought to investigate self-selection among internal and international migrants in Gauteng by making use of the Gauteng City Region Quality of Life Survey data. The present study also sought to disentangle the effects of observed and unobserved characteristics in the self-selection of migrants by conducting Oaxaca-Blinder decomposition on overall employment and self-employment outcome variables. Preliminary descriptive statistics indicated that international migrants experienced markedly higher levels of employment than both locals and internal migrants driven by higher rates of informal and self-employment. System GMM analysis of pseudo panel data confirmed these results and showed that international migrants had a higher probability of employment and self-employment. Oaxaca Blinder decomposition indicated that unobserved characteristics explained the greatest share of the differences in the rates employment and self-employment of locals, internal migrants and international migrants. These results provide evidence for the positive selection of international migrants to Gauteng on unobservable characteristics relevant to the region’s labour market. Key Words Self-Selection; Migration; Self-Employment; Employment
International stock market linkages: the case of Zimbabwe and South Africa
(University of the Witwatersrand, Johannesburg, 2017) Manungo, Rusununguko Conwell; Kodongo, Odongo
The aim of this paper is twofold. First, it aims to investigate whether or not there are both short run and long run bilateral linkages between the Zimbabwe Stock Exchange (ZSE) and the Johannesburg Stock Exchange (JSE) markets. Secondly, it aims to find out whether or not the extent of linkages between the two markets has been changing over time. The results of the study can be stated simply: - correlation coefficients calculated for the two sub-periods 1980(1)–1990(12) (apartheid in South Africa and independence in Zimbabwe, but still some controls on the economy) and 1991(1)–1999(12) (death of apartheid in South Africa and financial liberalization in Zimbabwe) show that they were not constant overtime. The extent of the linkage has been increasing overtime. Bivariate co-integration tests indicate that there is a common trend linking the Zimbabwe Stock Exchange and the Johannesburg Stock Exchange stock price indices in the period 1991–1999, but none was found for the period 1980-1990. The results suggest that the interrelations between the two markets have increased overtime. They are in line with macroeconomic trends that have taken place since 1991, which were sufficient to strengthen the linkages between the markets, including capital market liberalization, securitization of national markets and a significant increase in cross - listing of stocks of multinational and national companies.This paper thus provides new empirical evidence on international stock market linkages between the Zimbabwe Stock Exchange and the Johannesburg Stock Exchange
Reconstruction and recovery process of the 2007/2008 post-election violence victims in Kenya
(2017) Kinyeki, Julius M.
This research addresses three questions: how Internally Displaced Persons (IDPs) following the post-election violence of 2007/2008 in Kenya are recreating their community resilience capacities; how the Kenyan government and non-state interventions are influencing the victims’ livelihood strategies towards their reconstruction and recovery process and how social support and social capital has accelerated their reconstruction and recovery process. It proposes a post-conflict reconstruction and recovery approach based on the research findings. The research adopted Qualitative research methodology and primary data were collected from the month of January, 2015 continuously and concurrently with data analysis. The key findings were that ownership of land is perceived and identified as a milestone in the process of post-conflict reconstruction and recovery, an avenue for community resilience. The main means of livelihood for IDPs are casual labour and other menial jobs. The Kenyan government has made an effort towards resettlement of IDPs although this is ad hoc and ineffective due to lack of experience and a specific framework for any major resettlement. NGOs abandoned the reconstruction and recovery projects as soon as the humanitarian crisis ended. But the United Nations Development Programme (UNDP) had reconstruction and recovery projects which ended in 2011. In displacement, IDPs lost their original support system, but developed new emergent norms to support each other. Integration of IDPs is a better option in the reconstruction and recovery process compared to the government farm resettlement approach. The key recommendations are that government should evaluate the economic loss of every integrated IDP and those resettled in government procured farms should be provided with legal ownership documents. There should be an urgent re-profiling of IDPs in camps and use of UN Guiding Principles on IDPs to re-integrate them into society. The findings of this research bring to light new knowledge on the theory of social capital: victims of displacement develop new emergent norms, values and culture to support each other, which eventually creates a new society/community. Key Words: Post-conflict reconstruction and recovery; integrated IDPs; government resettled IDPs; camp-based IDPs; social capital: social support; livelihood strategies.
The determinants of economic diversification from a Sub-Saharan African perspective
(2017) Masilo, Stanley
Sub-Saharan Africa (SSA) is poor even though it has vast natural resources, is a paradox which various scholars have studied from different points of view. Furthermore, this region has a tendency to be highly reliant on narrow natural resource export baskets which are susceptible to external shocks and mineral depletion. Thus, economic diversification is a development path that can propel SSA economies to develop broad export baskets that are not highly dependent on natural resources, in order to mitigate systemic risk that stems from volatile commodity prices and achieve long-term sustainability. The research objectives of this study are twofold. Firstly, it determines the extent of economic diversification of selected SSA economies. Secondly, this study investigates the main determinants of economic diversification. The hypothesis of this study is based on the premise that there is a statistically significant relationship between economic diversification and government quality. Government quality is an important determinant of economic diversification due to its influence on macroeconomic fundamentals, infrastructure development, public goods and services. Furthermore, government formulates national development plans which can create a conducive environment for economic diversification to take place. The main policy recommendations towards achieving economic diversification from a SSA perspective, are encapsulated by the following aspects: structural reform and Group Economics
Impact of oil price shocks on stock returns: evidence from selected Southeast Asian economies
(2017) Siddiqui, Ammar Ahmed
This paper investigates the impact of oil price shocks on stock market returns in selected Southeast Asian countries. We selected five countries, those are Indonesia, Singapore, Malaysia Thailand and Philippine. We employ autoregressive distributed lag model (ARDL) and VECM model in the analysis. We model both positive oil price shock and negative oil price shock. We find that the real Brent price is positively correlated with all the stock markets in the selected countries. The results of ARDL model indicate that positive oil price shock exhibits a negative impact on the stock market returns while lag one negative oil price shock exhibits a positive impact on the stock market returns in the short run. However, only Indonesia and Singapore exhibit a significant response to positive and negative oil shocks in the ARDL model. The cointegration analysis indicates a long run causal relationship from oil price to stock market returns for Malaysia and Singapore. This result is confirmed by the error correction model with significant and negative but low speed of adjustment.
A Multi-dimensional framework for adopting Physical Address System in a developing country
(2017) Ditsela, Jeofrey
This thesis is about the adoption of an Information System (IS) at a country level. Information Systems literature addresses adoption of IS at an individual level, organisational level or national/country level. Each level of analysis has its own complexities. However, literature acknowledging these varied complexities has not been forth coming. That is, literature has more studies done at either individual or organisational, and hardly at national or country level. This thesis argues that the adoption of an information system (also referred to as an innovation) at country level is a multi-dimensional and multi-level phenomenon. Existing literature and previous studies have hardily addressed fully, this complexities and multi-dimensionalism, although it has been noted that countries experience and internalise the innovation adoption, as a social process, differently. The study was on a developing country adopting a Physical Address System (PAS), herein seen as an IS innovation. In this thesis, PAS is seen as a social system comprising of artefacts (digital and visual representations), physical world, residents and organisations as stakeholders. The goal of the study was to conceptualise a multi-dimensional framework for adopting a Physical Address System, in the context of a developing country. Since the thesis argument is that the adoption of IS at a country level is even more complex, varied theories were employed as lenses to tackle the various aspect of the study. These lenses are the Diffusion of Innovation, the Stakeholder Theory, Upper Echelon Theory and the Contextualist Approach. Following the interpretivist philosophy, a case study was employed as a research strategy, using Botswana as a developing country case. The research design included semi-structured interviews with stakeholders, observations, policy documents. The data was analysed, discussed, synthesised and interpreted using thematic framework analysis method. Informed by the empirical evidence and the existing literature, this thesis conceptualises that the adoption of the Physical Address System ought to be done sensitive to the developing country as a multi-dimensional social system. This multi-dimensional social system includes the roles of stakeholders, determinants of innovation and context. The contribution of the thesis is in four folds; theoretical, methodological, practical, and contextual. Theoretically, the thesis conceptualised a multi-dimensional framework for the adoption of the Physical Address System in a developing country. Methodologically, the thesis contributed by following an interpretive philosophy and a case study as appropriate for understanding the complexities of adopting an information system, employing a case. Practically, the thesis, through the framework, may inform practitioners with ways to adopt a physical address system. Contextually, the thesis gives insight into the uniqueness of a developing country adopting an information system. Keywords: Developing Country, Adoption, Physical Address System, Stakeholder Theory, Upper Echelon Theory, Diffusion of Innovation, Context
The arm’s length pricing for intra-group services – transfer pricing
(2017) Lee, Yi Ying
The purpose of this research report is to identify any improvements that can be made to the South African transfer pricing legislation for intra-group services. South Africa’s transfer pricing legislation for intra-group services will be compared to Aligning Transfer Pricing Outcomes with Value Creation, Action 8-10, 2015 Final Reports, OECD/G20 Base Erosion and Profit Shifting Project (‘BEPS Action Plan’) released by the Organisation for Economic Co-operation and Development (‘OECD’). The Action 10 of the BEPS Action Plan introduces a simplified transfer pricing approach for low value-adding intra-group services. The simplified approach aims to reduce base erosion payments through excessive management fees and head office expenses (OECD, 2015:141). According to Verlinden and Katz (2015:1): ‘… the simplified approach lowers the burden on multinational enterprise groups to demonstrate the beneficial nature of the low value-adding activities for other MNE group members; and allows for an elective approach for reducing the administration involved in the pricing of low value-adding services. The OECD is achieving an appropriate balance between theoretical sophistication and practical application that is commensurate with the tax at stake in the countries paying and receiving the charges … .’ This approach will benefit tax authorities with limited resources in performing transfer pricing audits enabling them to verify the arm’s length nature within the intra-group services charge (Watson, 2015:8). Key words: Anti-avoidance, BEPS Action Plan, Transfer Pricing, Arm’s Length Method, Arm’s Length Price, Intra-Group Services, Low Value-Adding Intra-Group Services, Comparable Uncontrolled Price Method, Resale Price Method, Cost Plus Method, Transactional Net Margin Method, OECD Guidelines, OECD.
A critical analysis into the Organisation for Economic Co-operation and Development ‘Standard for Automatic Exchange of Financial Account Information in Tax Matters’
(2017) Mohanlal, Dhanesh
The impact of the Organisation for Economic Co-operation and Development’s Standard on Automatic Exchange of Financial Account Information in Tax Matters has a significant impact on Financial Institutions globally. This paper aims to critically evaluate the current South African legislation and the obligations it places on financial institutions. The research also highlights the challenges faced by a financial institutions in interpreting and implementing the often complex requirements of the regulations with a particular focus on the following areas namely customer on-boarding and enhanced due diligence procedures, monitoring of accounts, remediation of the existing customer base, system development, and reporting to the South African Revenue Service. The research also looks into the readiness of developing countries in implementing the Automatic Exchange of Information. The research concludes with a discussion into the appropriateness of South Africa’s decision to agree to be one of the early adopters of this legislation despite the challenges identified above. Key Words: OECD, Standard on Automatic Exchange of Financial Account Information for Tax purposes, Common Reporting Standard, Financial Institutions.
An Experimental test of the endowment effect
(2017) Cohen, Justin Simon
In this study, I use a computer game based lab experiment to investigate the existence of the Endowment Effect. Previous empirical evidence has been criticised for failing to adequately account for the effects of transactions costs and other frictions. The structure of the game used in this study allows me to control for these effects, and the results provide evidence in support of the existence of an Endowment Effect. The effect is found to be stronger when transactions costs are present.
Assessing alternative monetary policy frameworks and instruments in selected African economies
(2017) Chiumia, Austin Belewa
This thesis contains three core chapters that assess the performance of alternative monetary policy frameworks and instruments in stabilizing 10 selected African economies. Literature and practice show that Advanced Economies (AEs) and Emerging Market Economies (EMEs) are mostly adopting the ination targeting (IT) framework. This framework relies on active use of the interest rate as a policy instrument for macroeconomic stabilisation. Di⁄erent from AEs and EMEs, the majority of African countries are characterized by low nancial market development, frequent supply shocks and volatile terms of trade. These features impede the e¢ ciency of the IT framework and the interest rate instrument. Supply shocks imply that ination is not only demand driven. Volatile terms of trade translate into excessive exchange rate uctuations. Due to these factors, policy practice in Africa remains largely divergent from the global trend. Authorities still rely on monetary aggregate targeting (MAT) with de facto managed exchange rates. However, the MAT framework is also failing to stabilize economies. This follows instability of the key factors, such as the money demand, upon which the framework is anchored. Furthermore, controlling exchange rate movements is a challenge due to weak balance of payments positions. It is not surprising, therefore, that the majority of African economies still remain in the grip of macroeconomic instability. Ination and GDP targets are rarely met and they also remain volatile. The perverse macroeconomic features and the perceived failure of the MAT regime have necessitated the search for alternative monetary frameworks and instruments. In this study, we join the search by specically focussing on three questions. First, given the macroeconomic landscape in Africa, what is the relative performance of the interest rate vis--vis the monetary aggregate as instru ments for macroeconomic stabilization? Secondly, how do these instruments perform when apart from ination and output stabilization, monetary policy also engages in smoothing exchange rate uctuations? Thirdly, what is the relative performance of ination targeting vis--vis nominal GDP targeting as alternative monetary policy regimes for macroeconomic stabilization in African economies? Although the success of monetary policy largely relies on appropriate conguration of monetary policy frameworks and instruments, answers to these questions remain controversial and scanty for African economies. In order to address these questions, we formulate a New Keynesian Dynamic Stochastic General Equilibrium (DSGE) model. In this model, money is non-separable from consumption in the utility function. We estimate the model using the Maximum Likelihood method with quarterly data mostly from 1990 to 2014. The data is obtained from the International Financial Statistics (IFS). The thesis has ve chapters. Chapter 1 is the general background to the research problem. Chapters 2, 3 and 4 are distinct but related core chapters addressing three specic research questions. Chapter 5 is the conclusion. In Chapter 2, we compare the performance of the monetary aggregate and the interest rate as alternative instruments for stabilizing ination and output in 10 selected countries. Results show that the monetary aggregate is superior in stabilizing 5 economies. In the other 5 countries, it is the interest rate instrument which performs better. In the former group of countries, the monetary aggregate plays a relatively large role in macroeconomic dynamics while in the latter the interest rate is more signicant. These results partly reect di⁄erences in nancial market development between the two groups of countries. Overall, we nd a weak role of the interest rate compared to the monetary aggregate in driving aggregate demand dynamics. The exchange rate is also found to be a key driver of macroeconomic dynamics. Our re v sults suggest three things: First, authorities in Africa need to be cautious of a blanket adoption of the interest rate as a sole monetary policy instrument. Second, authorities will nd it di¢ cult to stabilize economies using the interest rate based frameworks. Third, exchange rate stability is key to macroeconomic stability in Africa. In Chapter 3, we extend the authoritiesobjective function. In addition to minimizing ination and output volatility, authorities also use the interest rate or money supply rules to smooth exchange rate uctuations. The results show that macroeconomic performance is enhanced when authorities smooth exchange rate uctuations in 4 of the 10 countries. The gains from exchange rate smoothing mostly arise from a reduction in ination and exchange rate volatility but not fromoutput. In the other 6 countries, exchange rate smoothing worsens macroeconomic performance. These results reect the fact that the exchange rate exerts a relatively large inuence in macroeconomic dynamics in the rst group of countries compared to the latter. Exchange rate smoothing therefore minimizes the pass-through of the exchange uctuations to ination and output leading to better performance. Overall, the ndings suggest that exchange rate smoothing is harmful in Africa. Where exchange rate smoothing delivers gains, appropriate thresholdsofsmoothingneedtobeobservedtoavoidpolicyinducedmacroeconomic instability. Authorities should also smooth temporal rather that structural shifts in the exchange rate level. In Chapter 4, we compare the performance of ination targeting (IT) vis-vis nominal GDP targeting (NGDPT) as alternative monetary policy frameworks for macroeconomic stabilization. We examine the strict and exible versions of these policy regimes. We also include a hybrid regime which combines elements of IT and NGDPT. Results show that the hybrid regime performs better in 5 countries. In the other 4 countries, it is the strict ination targeting that performs better. In 1 country, exible ination tar vi geting is optimal. The results also reveal that demand shocks dominate but are closely trailed by supply and exchange rate shocks in explaining macroeconomic uctuations. The multiplicity of signicant shocks is key in explaining the dominance of the hybrid regime. The hybrid regime successfully handles shocks that can neither be optimally handled by the IT regime nor the NGDPT regime alone. These results have several implications. First, demand management alone is insu¢ cient to stabilize African economies. Second, identifying dominant shocks is critical for choosing robust monetary policy regimes. Third, the multiplicity of signicant shocks implies that choosing monetary policy frameworks and hence macroeconomic management process is more complex for African policy makers. Overall, the results have several policy implications which are outlined in Chapter 5. First, they suggest a cautious approach towards generalized adoption of the interest rate over the monetary aggregate as a monetary policy instrument in African economies. This contradicts the current wave of monetary policy changes sweeping across African countries. Secondly, the signicanceoftheexchangeraterenderscredencetoexchangeratesmoothing in Africa. The ndings, however, suggest that exchange rate smoothing can either enhance or worsen macroeconomic performance. Where it enhances macroeconomic performance, authorities must carefully consider the thresholds of smoothing to avoid creating macroeconomic instability. Authorities need not ght structural shifts in exchange rates levels through smoothing. This would help to preserve the shock absorbing role of the exchange rate. Finally, the prevalence of demand, supply as well as exchange rate shocks makes the hybrid monetary policy regime which combines elements of IT regime as well as NGDPT regime to perform relatively better in stabilizing the majority of the economies. Given the multiplicity of shocks, authorities inAfricaneedtocomplementdemandmanagementwithpoliciesthataddress supply side and exchange rate bottlenecks to ensure sustainable macroeco vii nomic stability. Overall, the ndings suggest that there is scope to improve monetary policy performance in Africa by adopting suitable frameworks and instruments. The results also highlight the problem of tackling monetary policy issues with a "one size ts all" approach.