Faculty of Commerce, Law and Management (Research Outputs)

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A panoptic view of the South African wealth tax
(AOSIS, 2025-01) Ram, Asheer Jaywant
Background: Wealth taxes are a topic of intense debate, with most countries having either abolished them or considered, but not implemented such measures. The South African government is contemplating the introduction of a wealth tax, purportedly to enhance revenue collection. Aim: This article examines whether the proposed South African wealth tax functions as a government panopticon, offering an alternative explanation for its introduction. It also considers the government’s transparency regarding the potential wealth tax. Setting: This article examined the opinions of tax experts in South Africa. Method: An interpretive approach is adopted. The traits of the wealth tax and the themes of the panopticon are identified and used as the row and column headings in a correspondence table, which serves as the research instrument distributed to tax experts. The tax experts indicate any associations between the themes of the panopticon and the traits of the wealth tax. Forty aggregated responses are subjected to correspondence analysis. Results: The potential wealth tax functions as a panopticon. It identifies and reveals relevant tax information about high-wealth individuals, appearing to coerce their compliance. Conclusion: There is credence to the alternate rationale for introducing a wealth tax in South Africa. Contribution: This is one of the first articles to apply the panopticon, a novel theoretical framework, in a tax context in South Africa. The findings are relevant to the exploration of similar taxes in other jurisdictions and provide a means for the critical evaluation of the motives behind tax policy decisions made by governments.
A Wealth Tax for South Africa
(Southern Centre for Inquality Studies (SCIS), 2018-01) Terreblanche, Sampie
A Wealth Tax for South Africa
(Southern Centre for Inequality Studies (SCIS), 2021-01) Chatterjee, Aroop; Czajka, Léo; Gethin, Amory
This paper considers the feasibility of implementing a progressive wealth tax to collect additional government revenue to both reinforce fiscal sustainability in the wake of the COVID-19 crisis and reduce persistent extreme inequality in South Africa. Drawing on our new companion paper, we first identify the tax base and discuss the design of potential tax schedules. Testing alternative tax schedules, we estimate how much additional revenue could be collected from a progressive tax on the top 1% richest South Africans. Our results show that under conservative assumptions, a wealth tax could raise between 70 and 160 billion Rands—1.5% to 3.5% of the South African GDP.We discuss in turn how sensitive our estimates are to assumptions on (1) mismeasurement of wealth and (2) tax avoidance and evasion, based on the most recent tax policy literature. We examine technical issues related to the enforcement of the tax, and how third-party reporting and pre-filled declarations could be used to optimize measurement of taxable wealth and minimize evasion and avoidance opportunities. Finally, we explain how this new tax could interact with other capital related taxes already in place in South Africa, and discuss the potential impact on growth.
Achieving Equality for Women: The Limits of a Bill of Rights
(Centre for Applied Legal Studies, 1992-06) Albertyn, Cathi
Addressing Constraints to South Africa’s Agriculture Inclusiveness
(Southern Centre for Inequality Studies (SCIS), 2021-09) Sihlobo, Wandile; Qobo, Mzukisi
South Africa’s agriculture remains dualistic, with large scale commercial farmers who are predominately white and small-scale and subsistence farmers that are mainly black. These disparities in fortunes result from the long history of segregation policies and apartheid. The efforts to build an inclusive agricultural sector through the upliftment of black farmers by the new democratic government since 1994 have failed. As such, black farmers in South Africa still constitute between 5 and 10 per cent of the overall commercial production. We explore the constraints to inclusive growth drive in the agricultural and agribusiness sector and offer recommendations for improvement. These include a need for increased efficiency at the local government for ensuring service delivery to farming towns, blended finance instruments for funding farmer development, and the prioritization of private-public-partnership approaches for farmer development and land reform projects. We frame the interventions for the post-COVID-19 dispensation, focusing on the potential role of agriculture in fostering inclusion and supporting rural economies and employment.
Adjudicating affirmative action within a normative framework of substantive equality and the Employment Equity Act – an opportunity missed?
(Juta and Co, 2015) Albertyn, Catherine
The development of a constitutionally informed legal standard to test employment equity plans and affirmative action measures will always be troubled in a country that has seen racial classification serve as the basis for oppression and subordination, and now seeks to use it in achieving a ‘non-racial’ democracy. Contestation over how to secure redress, restitution and substantive equality are inevitable. The Barnard judgment demonstrates a common commitment to restitution and transformation, and, indeed, a common outcome. However, between that commitment and the outcome lie important differences in philosophical and legal approaches to equality, to s 9 of the Constitution and s 6 of the Act (and the relationship between them), to the standard of justification for positive measures and to the need for courts to engage substantively with crucial issues in our democracy. In this case-note, after setting out the case history and judgments in some detail, I explore the contrasting ideas of equality that underpin the different approaches to positive measures and discuss which is best suited to our constitutional project. I then suggest how this normative framework can inform the adjudication of employment equity plans and affirmative action measures under the Employment Equity Act. No single judgment in Barnard achieves this.
The administration of justice
(Juta, 2002) Klaaren, Jonathan; Marcus, Gilbert; Davis, Dennis
The Immorality Amendment Act 2 criminalized prostitution in 1998. It did so by the insertion of s 20(1)(aA) into the principal Act, which it renamed the Sexual Offences Act 23 of 1957.
The administration of justice
(Juta, 2003) Klaaren, Jonathan; Marcus, Gilbert; Davis, Dennis
Overview and analysis of the year's legal developments in the field of administration of justice. Includes references to legislation, cases and journal articles.
Africa’s agency in the competing narratives of external partners in Africa’s digital market A comparison of Japan and China
(University of the Witwatersrand, Johannesburg, 2023-09) Kinnes, Shaun; Rubidge, Laura
According to United Nations reports, Africa’s economic growth potential is among the highest in the world. It is thus unsurprising that many global powers have turned their attention to the continent, often motivated by the opportunity to help Africa ‘leapfrog’ infrastructure challenges through funding the innovative application of information and communication technologies (ICTs). As the global competition for Africa’s economic growth and, more specifically, Africa’s digital sector heats up, understanding Africa’s interests and agency within these negotiations becomes increasingly pertinent. This article explores some of the competing narratives provided by external states that seek a stake in the development of Africa’s profitable digital market. The article employs Lesley Masters’ (2021) digital diplomacy lens defined as ‘a means of navigating the evolving international digital governance regime and negotiating a more even playing field to address the inequalities in the international structure’. The article compares and contrasts the narratives that are framed by two ‘competitors’, namely China and Japan. These two states are expected to become significant players in the development of Africa’s digital market; China has become one of the most important funders in ICT networks in the global South and Japan’s recent pledge of $30 billion in aid to Africa includes the digital technology sector.
Agility in South African Public Service Leadership
(Batalea Publishers) John Ringson; Manamela Matshabaphala
The landscape of human and social services delivery has undergone significant transformation in recent years, driven by governments worldwide striving for improved outcomes amidst growing caseloads and constrained resources. This evolution is characterised by a shift towards integrated service delivery, leveraging innovative case practices and advanced information technology. Governments are adopting diverse strategies to enhance effectiveness and efficiency, including modernising information systems, redefining program boundaries and sector responsibilities, restructuring workforces, and introducing new casework tools and practices. Additionally, there is a push for enhanced commissioning, transparency, and accountability structures, reflecting a holistic approach to service delivery optimisation. Despite these global creative demands compounded with technology and the ever-changing global environment, the third-world public sector leadership is making a lackadaisical turn towards embracing the new leadership imperative of agility in delivering public value in public sector organisations. This qualitative desktop research seeks to unravel the challenges and prospects of leadership and the imperative of agility in the delivery of public value in the public service in South Africa. This article argues that whilst the public sector in South Africa has vehemently advocated and mobilised for strategic innovation in service delivery, the leadership is not proactive in the ever-changing environment. Consequently, this article recommends that the public sector leadership be responsive, flexible, and agile to the ever-changing environment due to global technological forces for effective service delivery in South Africa.
AI–Citizens’ relationship: Analysing Egypt and Mauritius national AI strategies
(University of the Witwatersrand, Johannesburg, 2023-09) Hendawy, Mennatullah; Ansari, Zahra
Recently, in the African context, there has been a great appetite for digitising services, more specifically infrastructure services, and using artificial intelligence (AI). To facilitate the development of AI, governments publish national AI strategies (NAS). In this context, governments across Africa started to issue national AI strategies to keep up with the advancements in AI (see Bareis and Katzenbach, 2022). So far, few African countries have published national AI strategies (Digiwatch, 2020; TRT Afrika, 2023). Mauritius and Egypt are the only African countries with a publicly available national strategy outlining vision and objectives (Onyango, 2022). There is an increased use of artificial intelligence (AI) in infrastructures that support the many functions performed by society. For example, public transportation, (renewable) energy, education and workplaces have all included AI and smart technology in their infrastructure. Building on the need to ensure access to AI infrastructure as it continues to disrupt African cities, this paper uses the understandings from the analytical framework of infrastructure citizenship to analyse Egypt and Mauritius NASs in order to explore the following: How is the relationship between citizens and infrastructure (AI applications) portrayed in each strategy? and How are AI applications framed in both strategies to improve or hinder the relationship between citizens and infrastructure?
Antecedents of attitudes towards the use of environmentally friendly household applicance products in Zimbabwe An extension of the theory of planned behaviour
(Emerald Publishing Limited, 2023) Maziriri, E.T.; Nyagadza, Brighton; Chuchu, Tinashe; Mazuruse, Gideon
Purpose– This study aims to determine the antecedents that influence attitudes towards the use of environmentally friendly household appliance products and consumers’ green purchase intention among consumers in Harare, Zimbabwe. Design/methodology/approach– Data were collected from 329 consumers in Harare, Zimbabwe’s commercial capital who were served fromfive using a structured questionnaire via an online web-based crosssectional survey. Hypothesised relationships were tested throughstructural equation modellingwith the aid of Smart PLS software. Findings– Green product awareness, social influence, perceived benefit and attitude towards green appliances were found to have a significant positive effect on green purchase intention. Research limitations/implications– The study’s findings may not be generalised to other contexts as sample data was only collected in Zimbabwe. Complementary cross-sectional research studies can be done in other parts of the world to enable cross-cultural comparisons and methodological validations.
Appointments to the Public Service in the Post-Apartheid South Africa and the Need for Constitutional Checks and Balances
(Centre for Applied Legal Studies, 1993-11) Kahanovitz, Colin
Assessing South Africa’s Loan Guarantee Scheme to support firms during the Covid-19 Pandemic
(University of the Witwatersrand, 2023) Creamer, Kenneth, Dr; Mahafu, Vuyisiwe
This article presents a timeline and data on South Africa’s Loan Guarantee Scheme (LGS) established in response to the Covid-19 pandemic. It defines the LGS take-up rate as a key measure of the effectiveness of the policy’s design and implementation. It references relevant theoretical literature, on co-ordination theory, incentive structures, information asymmetries and market failures, to provide explanations for the low take-up rate of South Africa’s LGS. It presents comparative data on the take up rates and design features of LGS-type interventions in a number of other countries. Finally, the article draws lessons from South Africa’s LGS experience which would be relevant for planners and policy makers implementing similar such policies in future.
Austerity Without Consolidation: Fiscal policy and spending choices in Budget 2023
(Southern Centre for Inequality Studies (SCIS), 2023-06-01) Sachs, Michael; Amra, Rashaad; Madonko, Thokozile; Willcox, Owen
Fiscal policy can play a crucial role in fostering growth and development by ensuring the sustainable delivery of essential public services. Managed effectively, government’s budget can help us build a common society and overcome the segregation and inequality of the past, without which sustained economic growth seems unlikely. It can also respond to temporary macroeconomic shocks to aggregate demand and livelihoods. South Africa however finds itself in a worsening fiscal impasse. There is continuous austerity, dating back more than a decade, but South Africa appears no closer to achieving fiscal consolidation. This position is steadily eroding the fiscal capabilities necessary for the state to realise the potential that fiscal action offers. Instead, the budget is increasingly becoming a drag on development.
Beyond a Treasury View of the World: Reflections from Theory and History on Heterodox Economic Policy Options for South Africa
(University of the Witwatersrand, Johannesburg, 2018-05) Padayachee, Vishnu
Black Economic Empowerment Transactions in South Africa after 1994
(Southern Centre for Inequality Studies (SCIS), 2021-04) Gqubule, Duma
This paper reviews the implementation of policies to deracialise ownership within the Top 50 JSE listed companies with a focus on mining and finance which accounted for 75% of black ownership within these companies at the end of December 2020. It looks at the context in which the policies were implemented – the performance of the economy and the restructuring of apartheid era conglomerates since 1994 that created opportunities for BEE companies. The paper then evaluates the three waves of BEE transactions over the past 27 years and the failures of the Broad-Based Black Economic Empowerment (B-BBEE) policy framework, which included the BEE Codes of Good Practice and sector charters in mining and finance. The paper discusses the confusing maze of statistics on black ownership and presents its own findings. The paper argues that prospects for further transformation of apartheid ownership structures are not good, with the economy likely to experience a second lost decade in terms of economic development until 2030, and due to policy design failures that have provided weak incentives for companies to enter into replacement BEE transactions.
Black Economic Empowerment: A Review of the Literature
(Southern Centre for Inequality Studies (SCIS), 2021-09) Francis, David; Valodia, Imraan
South Africa has the highest income inequality in the world. A recent report by the World Bank found the Gini coefficient of income to be 0.66, the highest of all 149 countries for which the World Bank has reliable data. In the workplace, this is reflected in vast inequalities in salaries and wages between high and low earners, but importantly between different race and gender groups. Despite a plethora of legislation aimed at addressing inequality in the workplace, women and black workers in South Africa continue to be paid less than men and white employees, even when doing the same work (the pay gap), and are more likely to work in precarious, low-paid jobs (occupational segregation). These factors are driven by differences in the characteristics of workers, and by structural discrimination in the economy. Conceptually, we can decompose structural discrimination into two forms – that which discriminates against people who do the same job, based on race and gender (the pay gap) and that which discriminates indirectly by occupational segregation – black people and women are concentrated in low-paying occupations. In this paper, we review the literature on occupational segregation and the gender and race pay gaps in post-Apartheid South Africa. We examine the various policy interventions that have attempted to address this enduring problem. In particular, we ask whether broad-based black economic empowerment – while not explicitly a labour market intervention – has had any positive impact on reducing labour market inequalities.
Black Economic Empowerment in the Automotive Manufacturing Industry: A Case for Productive Capacity Development Transformation
(Southern Centre for Inequality Studies (SCIS), 2021-09) Mashilo, Alex Mohubetswane; Moothilal, Renai
The automotive manufacturing industry has received little, if any, sustained academic attention on Black Economic Empowerment (BEE) or Broad-Based Black Economic Empowerment (BBBEE). Most of the work is in the form of news capturing the reactions of industry role players, especially the lead firms in the automotive value chains, to BEE or BBBEE regulatory changes, and individual lead firms’ transformation initiatives. This working paper represents a modest attempt at laying the basis for a sustained focus on BBBEE in the automotive manufacturing industry, the mainstay of South Africa’s manufacturing base. We argue for a production development and industrial transformation approach, with the objectives of deepening and widening domestic value addition as part of localisation, and increasing employment with greater attention on expanding, diversifying and growing the lower tiers of the supplier base – the second and third-tiers.
Brazil Colonial Legacy and Growth Patterns
(Southern Centre for Inequality Studies ISCIS), 2023-07-12) Lena, Lavinas; Domingues, José Maurício; Gonçalves, Guilherme Leite; Cordilha, Ana Carolina; Bedê, Francisco; Bressan, Lucas; Constantino, João Paulo; Rubin, Pedro
This paper provides a very concise view of the trajectory of Brazil since it became a republic. It goes through the 20th century and into the 21st century to systematize how the different phases of economic development reproduced and reformatted the inequalities inherited from the country´s colonial-slave period. Its objective is to provide a timeline, framed by the structural transformations in the economy and in the political regime, which has shifted between democratic and authoritarian periods, always with a strong role for the State. In addition to characterizing the industrial accumulation pattern of what was dubbed "developmentalism", and the rupture with this pattern caused by the financialization of the economy, in the midst of the democratization process of the country, starting in the mid-1980s, the paper briefly describes how the social question evolved over time and how the oligarchic power structures remained dominant in the state apparatus and in the political system.