OpenUCT :: Browsing by Author "Alhassan, Abdul Latif"

Browsing by Author "Alhassan, Abdul Latif"

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Open Access
‘A beggar has no choice' A Mixed Approach Exploring Blended Finance for Africa's Infrastructure
(2020) Wildschutt-Prins, Alvino; Alhassan, Abdul Latif
The United Nations estimated that to achieve the Sustainable Development Goals globally, they require approximately USD6 trillion per annum, totalling between USD90 to a USD100 trillion of investments needed over the 15 years. African countries are struggling to finance their infrastructure development needs and require innovative solutions to finance their infrastructure gaps. The African Development Bank noted that Africa's infrastructure needs can be estimated between USD130 and USD170 billion per annum with an estimated financing gap of USD68 billion to USD108 billion. Blended finance received international attention during the Third International Conference on Finance for Development in 2015 when it was mentioned in the adopted resolution report dubbed the Addis Ababa Action Agenda (here forth the Addis Agenda). The overall objective of this study is to explore the private sector participation investing in economic infrastructure in Africa and the public sector's understanding of blended finance. The research also focuses on the role of multi-and bilateral development banks in mobilising the private sector and the government support required to attract private sector participation investing in infrastructure projects For this study, the Convergent Parallel Design mixed research method is employed where both the quantitative and qualitative data are collected concurrently or in the same phase. The World Bank PPI database is used as the primary quantitative data source, while nine qualitative indepth interviews were conducted. The results from the multiple linear regression model indicate that projects with multi-lateral development bank' support are characterised by lower private sector participation in infrastructure investments in Africa. Furthermore, countries receiving concessional support from the International Development Association (IDA) are receiving lower private sector participation in their projects. In-depth interviews with public sector officials indicated that most of the officials had an overall understanding of blended finance in line with current market definitions. Officials, however, were not convinced with the use of concessional funding and loans in the blended finance structure due to the conditions precedents which came with it but felt like they had no choice but to accept these conditions due to the needs of the countries and the project involved. Informed by the findings of the study, the study recommends that blended finance should be localised for the African context and makes key policy recommendations linked to the OECD principles for blended finance.
Open Access
A critical analysis of the use of blended finance for public infrastructure development in South Africa: The IIPSA Case Study
(2021) Kopeledi, Mosa; Alhassan, Abdul Latif
Public-Private Partnerships (PPPs) are a commonly used procurement strategy, adopted to advance the achievement of national developmental goals. The transactions match the efficiency of the private sector, with the large market potential of the public sector, to establish mutually beneficial partnerships and address increasingly growing public infrastructure development demand. Blended finance, as a subject on alternative financing for public infrastructure finance, has gained popularity in developing counties with poor balance sheets and deteriorating sovereign credit ratings, as an option to raise capital to address infrastructure backlogs and developmental challenges by creating commercially viable public infrastructure markets for sustainable development. However, the results on blended finance transactions and initiatives have not realised the benefits purported for the adoption of blended finance in developing countries. This study sought to critically explore the perceptions of stakeholders on the outcomes of blended finance in the Infrastructure Initiative Programme for Southern Africa (IIPSA) programme. A qualitative research method approach is utilised to explore the factors that advanced or hindered the achievement of the objectives of IIPSA, and based on their experience, further identifies CSF for the adoption of blended finance in South Africa. The thematic analysis utilized in the study, reveals that participants do not believe that the objectives of IIPSA were met due to a Mis- alignment in expectations between the European Union and the SA stakeholders. Governance, State Capacity, DFI mandate restriction, Ambiguous communication of programme objectives, Misalignment in Expectations, Resistance to change, Performance measure, Regulatory restrictions, and an Unstable political environment constitute the nine main themes to emerge from the analysis of factors that hindered the achievement of IIPSA objectives. The CSF are organized around six main themes of Context, Institutional Capacity & Coordination, Alternatives to blended finance, Transparency, Motives, and Environment. The study recommendations are categorized at the Country level, where environmental factors are fundamentally at play, the Institutional Capacity level, where the competency factors of the implementing institutions are highlighted, and at the Project level, where the study relates these to motivation factors of the stakeholders.
Open Access
A review of the National Payment Systems ecosystems in South Africa, Kenya and Nigeria
(2025) Davids, Saarah; Alhassan, Abdul Latif
Remittances are a critical financial connection between migrant workers and their families back home. They contribute to Sustainable Development Goals (SDGs) like reducing inequality and ending poverty, while aligning with the objectives of South Africa's National Development Plan, which seeks to foster economic growth, financial inclusion, and regional integration. This dissertation examines the cost elasticity of remittance flows between South Africa and 11 sub-Saharan African countries from 2011 to 2023, focusing on how changes in remittance costs influence the volume of remittances sent. Panel regression analysis reveals a significant negative relationship between remittance costs in South Africa and remittance outflows to 11 SSA countries, particularly for smaller transfer amounts. Specifically, a moderate statistically significant negative correlation between the remittance cost of sending USD $200 and the personal remittance received. This indicates that an increase in remittance costs results in a decrease in the remittance volumes, supporting cost elasticity and the Law of Demand. The variability of remitting $500 is less than remitting $200, indicating that it is cheaper for migrants to remit at larger amounts due to lower transaction costs. However, remittance behaviour suggests inelastic demand: while costs increases, the remittance inflows decrease however not drastically. Regression analysis results show that an increase in the transaction costs results in a steady decline in volumes, while descriptive statistics suggest variations across the different South Africa-SSA corridors. Additionally, results indicate a statistically negative relationship between remittance inflows and GDP of the home country, indicating both influence remittance behaviour. This means that with a higher income in the home country, there is less reliance on remittances. Higher GDP per Capita in both sending and receiving countries is associated with higher remittance costs, suggesting income-related pricing trends. The study highlights how lower remittance costs can contribute to financial inclusion, economic growth, and poverty reduction and empower household savings, and is consistent with National Payment System's Vision 2025 of the South African Reserve Bank and policies such as the Conduct of Financial Institutions (COFI) Act. The findings underscore the need for targeted policy interventions aimed at fostering competition, innovation and cost effectiveness to reduce remittance costs and improve financial access, to promote equitable economic participation and supporting broader development objectives in the region.
Open Access
A study on how franchisees finance their owner's contribution when buying a franchise
(2020) Ngqola-Sebone, Lumka; Zolfaghari, Badri; Alhassan, Abdul Latif
The South African economy has been lagging its forecasted economic growth statistics in recent years, particularly following the worldwide economic recession of 2008. The year-on-year economic growth of South Africa is forecasted to continue to be lower than other developing countries. SMMEs are a significant contributor to a countries GDP and most franchises are classified as SMMEs. Entrepreneurs in the SMME space often use franchises to not only penetrate the market but to grow existing ventures. In its annual report for the year 2016, the Franchise Association of South Africa (FASA) states that the franchise industry contributed an estimated 11.6% to South Africa's GDP. When applying for finance at most institutions, prospective franchisees are required to also contribute to the total funding required; this is known as owner's contribution. This study explores what challenges franchisees experience in trying to raise owners' contribution and how the y overcame these challenges. It further explores what prospective franchisees can learn from the experiences of the participants. Through research conducted predominantly through an online survey and interviews to a limited extent, this study found that the franchise model has many advantages, but also has disadvantages. One of the main disadvantages remains the accessibility of finance, particularly that most financiers and franchisors require substantial owners' contribution. Many participants faced challenges when having to raise owner's contribution They most used personal savings and donations or borrowings from friends and family. The negative impacts that were identified were mainly personal stress and anxiety, strained personal relationships and delays in personal and/or business plans. In conclusion, in attempting to address these challenges highlighted by participants, recommendations are made to all stakeholders on how to overcome some of the challenges identified.
Open Access
Accelerating regional trade integration in Africa through regional value chains: A SADC perspective
(2020) Nare, Boitumelo; Alhassan, Abdul Latif
Regional integration has been a key ambition, vision and standing agenda of the African continent for the past two decades. The recent signing of the Africa Continental Free Trade Agreement (AfCFTA) (signed by 54 of the 55 members of the African Union as of July 2019) brings to the fore the urgent need to accelerate the implementation of what has been thus far an elongated period of planning and discussion. One of the key mandates of the AfCFTA is to ensure acceleration of intra-African trade and boost Africa's trading position in the global market by strengthening Africa's common voice and policy space in global trade negotiations (African Union, 2018). Intra-regional trade can be considered as a quick avenue for the continent and its respective Regional Economic Communities (RECs) such as the Southern African Development Community (SADC), to implement this agenda by leveraging collective resources and opportunities such as increased focus on the establishment of regional value chains (RVCs). Currently, the SADC region has been at the forefront of driving regional trade integration (RTI) in the continent; however, intra-regional trade is still only but a fraction of the RECs total global trade, averaging 5-7% of total trade in 2015-2017. Because of the myriad of challenges in the region – including but not limited to the low rate of RTI, poor infrastructure, poor institutions, unstable political environments, and slow economic growth – RECs, let alone the continent as a whole, cannot take part in and capitalise on the opportunities from complex trade networks through global and regional value chains. Moreover, when African countries do participate in global value chains, they find themselves at the lower end of the value chain where it is harder to reap the benefits due to the unequal distributional effects of such trade activities. This study therefore examined the key factors that drive RTI, and sought to ascertain the relationship between regional value chains and regional trade integration. Lastly, the study aimed to uncover the contribution to economic growth of such trade activities. Thirteen SADC countries are observed over the period 2000-2017 using panel data analysis and various key estimation techniques to ensure robustness of the models used. The study finds that there are definitely key factors that drive regional trade integration in the REC that require increased focus from policy makers and trade activity participants as they have the potential to change the trajectory of the region and the continent's trade landscape. The study also indisputably finds a two-way relationship between RTI and RVCs, suggesting that if key aspects of these activities are addressed, this would lead to a mutual increase in iv these factors as they are highly complementary activities. Lastly, the study confirms the positive impact that RTI and RVCs would have on economic growth attributed to an increase in the level of productive economic trade activity thereby contributing to the gross domestic product (GDP) of countries as individuals and as a collective. The study therefore concludes that there should be more focus from policy makers and all key trade activity stakeholders on driving regional trade integration and participation in regional value chains as the benefits could prove highly rewarding to the SADC RECs and the continent as a whole. Such increased focus will ensure that the region is fully capitalising on the unique strengths of the African continent and driving collective growth and development.
Open Access
Access to finance barriers affecting women owned SMMEs in the renewable energy sector: a case of South Africa
(2025) Mahwai, Matseba; Alhassan, Abdul Latif
The renewable energy industry has been acknowledged as one of the fastest-growing industries globally. Consequently, the industry presents various opportunities, not only for economic growth but for gender mainstreaming as well. This industry may serve as a means to address the shortcomings of the fossil fuel sectors and promote female representation. However, the industry is male-dominated, highlighting the importance of ensuring inclusive participation in the renewable energy sector to avoid replicating the structural inequalities and exclusionary practices historically observed in the fossil fuel industry. As such, it has become necessary for research to be undertaken to investigate financial barriers that are encountered by women- owned small, medium and micro enterprises (SMMEs) when venturing in the renewable energy industry. The study employed a qualitative approach, allowing participants to express and describe their lived experiences and opinions in terms of financial access barriers. The data was collected through online interviews from 12 women-owned SMMEs operating within the renewable energy sector across various provinces in South Africa. The thematic analysis of the interview data identified the following financial barriers faced by these SMMEs in venturing into the renewable energy sector: bureaucratic hurdles; early-stage risk aversion; lack of industry-tailored capital, high expected returns; lack of experience; lack of collateral; poor personal credit history; and perceptual barriers. Although some of the challenges faced by women-led SMMEs in the renewable energy sector are similar to challenges faced by SMMEs in other sectors, the uniqueness of this sector presents additional distinct barriers. Notably, traditional business evaluation methods are often applied, without tailoring these methods to align with the distinct characteristics of the industry. The findings from this study underscore the importance of reforms, particularly amongst the finance providers, to review their business evaluation method and ensure that they align with the distinctive nature of this critical industry. A review of women-targeted initiatives should be performed to ensure that the eligibility considers the financial barriers women face rather than reinforcing them. In addition, South Africa can learn from countries like India, who have implemented a centralised online portal that serves as a resource for accessing diverse financing schemes for renewable energy projects. A centralised online platform exclusively dedicated to facilitating access to finance for renewable energy projects can be created where entrepreneurs, particularly females, can access information on available support, webinars, and workshops.
Open Access
An alternative private sector investment approach to achieve independence and resilience in KwaZulu Natal
(2020) Bainbridge, Bronwen; Alhassan, Abdul Latif
Local and foreign aid and investment has been ploughed into Africa for many years with an intended purpose of eradicating poverty. Despite significant capital inputs, certain parts of Africa continue to suffer from symptoms of poverty evidenced by inequality, hunger and social decay. This study evaluated an alternative approach to investing in poverty eradication, examine the quality of life and economic impacts of family units in Kwazulu Natal, South Africa. The study employed the exploratory sequential mixed methods research approach on a sample of seven cases across four sectors. The results of the qualitative analysis identify the Inputs, Activities, Outputs, Outcomes, Measurement and Impact. The results of the quantitative analysis show that in every family unit, their poverty status reduced over the 12- month measurement period. Further analysis on specific aspects of the family's poverty status are discussed, including consumer spending and debt ratios. The findings The findings show significantly positive over the investment period. Income increased, savings increased, monthly spending power increased, and monthly debt obligations decreased. Recommended studies fo further findings are required to determine long-term impact as the investment period for the cases studies was only 12 months. Further study is also required on the internal motivation of each human involved that propels them to escape poverty at different rates using the resources available within their ecosystem. Further research on cases that use differing investment approaches is recommended in order to compare results under each research objective.
Open Access
An Econometric Analysis of the Relationship Between the Namibian Government Debt and Economic Growth
(2019) Shipila, Ndeshihafela Melao; Alhassan, Abdul Latif
The association between government debt and economic growth is complex. Namibia is not excluded from this spectacle as concerns are mounting about the fast-increasing state debt and its implication on economic growth in the long run. By the end of 2016, government debt constituted 40.6 percent of Gross Domestic Product (GDP). Domestic and external debt constituted 25.3 and 15.3 percent of GDP respectively. Total interest paid on state debt stood at about 1 percent of GDP. Various financial debates stress that the debt incurred to enhance economic growth via investment should also consider interest payment costs. Counterarguments emphasise that if governments borrow to stimulate growth via increased economic earnings, then state debt growth might not pose a problem to the economy. This study examined the relationship between economic growth and government debt components for Namibia over the sample period 2000-2016. The study employed a time series econometric model method to examine the nature of the relationship that exists between government debt indicators and economic growth. The augmented Dickey-Fuller (ADF) was employed in testing the unit root characteristics of the series and to determine the order of integration. The autoregressive distributed lag (ARDL) cointegration framework was also employed to determine whether there is a long run and short-run relationship between the variables. Finally, the Granger Causality Test was conducted to test causation between the variables. To investigate these issues, quarterly time series data for the period 2000-2016 was used. The results of cointegration analysis supports the existence of a positive long run cointegration relationship between government debt indicators and economic growth to indicate that debt drives economic growth in Namibia. The study found no causality effect between general debt, foreign debt, domestic debt and GDP. The main policy recommendation from this study is that, in order to avoid the country from plunging into a debt crisis, the Namibian government should consider determining an optimal debt-to-GDP ratio to serve as an indicator beyond which an increase in debt will be deemed unsustainable. The government should further ensure that the debt Fund is used for production and infrastructure development instead of consumption spending to stimulate the productive capacity of the economy.
Open Access
An empirical analysis of competition and efficiency in the medical scheme market in South Africa
(2025) Dzinotyiwei, Chido; Alhassan, Abdul Latif
In South Africa, pre-funded healthcare products are dominated by medical schemes and this market segment is regulated by the Council for Medical Schemes (CMS) which abides by the Medical Schemes Act (MSA) (FinMark Trust, 2016). The aim of this study is to empirically evaluate the relationship between efficiency and competition in the medical scheme industry in South Africa from 2011 to 2021. In the medical scheme market, there are two types of medical schemes available: open medical schemes and closed or restricted medical schemes. Open medical schemes are available to anybody who chooses to enrol, while restricted medical schemes are only accessible to members of specific groups or entities, such as individual businesses, industries, or unions (Council for Medical Schemes [CMS], 2021). This study conducts an empirical evaluation of efficiency and competition in South African medical schemes from 2011 to 2021, specifically differentiating between open and restricted schemes. The research utilises an ordinary least squares regression model on panel data to find that closed medical schemes have greater efficiency at 98% than open medical schemes at 96.7%. Based on the Random Effects model output, the regression finds that there is a significant impact of competition (negative) and size of memberships (positive) in explaining some variation in the medical scheme industry, however the variables tested explained 40% of the variation in the regression. The findings reveal a complex situation in the market, marked by strong effectiveness, moderate market dominance, varied financial strategies and stable membership levels among closed medical schemes.
Open Access
An exploratory study of financial access along the renewable energy sector value chain: the case of SMMEs in South Africa
(2025) Mali, Nwabisa; Alhassan, Abdul Latif
This research explored the financial challenges encountered by small and medium-sized enterprises (SMMEs) in South Africa's renewable energy sector, with a specific focus on access to finance. The study aimed to provide practical recommendations to assist SMMEs in overcoming financial barriers and promoting sustainable growth within the sector. This research sought to address the gap in existing research on financial accessibility for renewable energy SMMEs and highlight strategies that could empower these businesses to thrive in a developing market. A qualitative research approach was adopted, aligning with an interpretivist philosophy to explore participants' experiences and insights. The research strategy involved a case study design, which allowed for a comprehensive and detailed examination of financial access challenges specific to the South African renewable energy sector. Data collection was conducted through face-to-face, semi-structured interviews. The target population consisted of SMME managers and business owners involved in renewable energy sub-sectors, including solar, wind, and biomass energy. The sample comprised 15 participants, selected through purposive sampling to ensure representation across different types of renewable energy enterprises. The sample size was determined based on theoretical saturation, a point at which no new themes or insights emerged from the data, ensuring comprehensiveness of the findings. Thematic analysis of the data identified five main themes: financial stability and revenue streams, financial management practices, market demand, operational costs and market conditions. The findings highlighted that financial stability was closely tied to project scale, with larger-scale projects providing more consistent revenue streams, while SMMEs in niche sectors often faced revenue variability. Financial management practices were essential for sustaining operations, particularly in managing costs and planning for fluctuating revenues. Additionally, market demand fluctuations, high operational costs, and broader economic conditions posed significant financial challenges. The study identified various barriers to financial access, such as stringent lending criteria and high collateral requirements, and evaluated alternative financing options, including venture capital, crowdfunding and government support. Recommendations were provided for policymakers and industry stakeholders to improve financial accessibility, including through policy modifications and development of targeted support programs. Overall, this research contributes to an understanding of the financial dynamics of renewable energy SMMEs in South Africa and offers actionable insights into strategies to foster resilience and sustainable growth within the renewable energy sector.
Open Access
An Industry Level Analysis of Demand for Insurance in South Africa
(2018) Motsepe, Molatelo; Alhassan, Abdul Latif
The shaky political landscape in South Africa, resulting from high rate of corruption and political instability, is affecting economic growth. Among businesses, the use of insurance contracts has been advanced as one of the most effective risk management strategies to deal with the business risk. Insurance is designed to hedge against unforeseen and unplanned risks that may be attributable to manmade or natural disasters. One of the major reasons for purchasing insurance is to avert risk, whilst most firms in the manufacturing industry are driven by regulations to purchase insurance. The goal of this study was to analyse industry level demand for insurance as well as determine factors contributing to the demand for insurance by corporate firms in South Africa for the period between 2013 and 2014. This study used a multivariate approach to analyse data, to derive a clear picture of what transpires in the purchase of insurance and arrive at intelligent decisions. Multiple regression analysis was used to ascertain the factors contributing to the purchase of insurance as well as to identify dominant patterns in the data revealed by other empirical studies to understand the area under investigation. The study established six variables/factors that played an important role in the purchase of insurance. These were: firm size, operational leverage, industry type, underinvestment, turnover and depreciation and amortisation. The major players that positively influenced the demand for insurance were firm size and industry type followed by turnover, depreciation and amortisation respectively. It was also established that most firms in South Africa are regulated, therefore it was mandatory for firms to buy insurance to hedge against any risk. The policy and research implications of the findings are discussed.
Open Access
Analysing the Relationship between Banking Development and Economic Growth: Time Series Evidence from Namibia
(2020) Diergaardt, Colin; Alhassan, Abdul Latif; Mutize, Misheck
The main objective of this study is to examine the relationship between banking development and economic growth in Namibia. Namibia has eight licenced commercial banks, four of which have been operational prior to the country's independence; Bank Windhoek Limited, First National Bank Namibia Limited, Nedbank Namibia Limited and Standard Bank Namibia Limited (BON, 2018). The other four licenced commercial banks began operating post independence. The banking development indicators employed by this study were broad money to nominal GDP (M2), private sector credit to nominal GDP (PSC), and lending interest rates (INTR). The data used in this study is annual data, covering the period 1991 to 2018, engaging the VAR/VECM framework in order to determine the presence of a long-run and short-run association. In addition, this study engaged the Granger causality methodology in order to determine the casual association between banking development and economic growth. The error correction term equation suggested a long-run relationship between the variables in the VECM, while the results indicated that there are no short run associations amongst the variables. Further, the results of the Granger causality test indicated a bidirectional causality between LNRGDP and LNPSC. In addition, the causality test showed that lags of LNINTR Granger causes LNPSC, which is consistent with the neoclassical theory of interest rate, which pronounces that interest rates are determined by the demand and the supply of loanable funds. Moreover, lags of LNINTR and lags of LNM2 granger causes LNRGDP, which suggest that banking development causes economic growth. The study recommended that the Namibian banks should reform credit policies and decrease the cost of debt in an attempt to avail more credit to the private sector in order to sustain and stimulate economic growth.
Open Access
An analysis of the profitability and sustainability of savings and credit co-operatives in Botswana
(2018) Nthaga, Laone Gosego; Alhassan, Abdul Latif
Since the 2008 financial crisis, global attention has been drawn to co-operatives, owing to their resilience and ability to flourish during tough economic conditions. The potential of co-operatives as a catalyst for sustainable development is of particular interest to a country like Botswana, where the economy is heavily reliant on a single commodity trade and there is potential for greater participation of the citizens in economic and social development of the country. The growing participation of co-operatives, particularly savings and credit co-operatives (SACCOs), has proved to be a channel for increasing access to finance for the traditionally unbanked, a reduction in poverty levels, and continued socioeconomic development across the African continent. In Botswana, however, only 26% of co-operatives are profitable, while 30% operate at a loss or break even. This necessitates an empirical investigation into the performance (profitability and sustainability) of SACCOs in Botswana. Literature presents various views regarding the determinants of profitability of SACCOs; these include the selection of a skilled management committee, the clear articulation of and compliance with a credit policy, the presence of a savings culture in the area of operation, sound corporate governance, credit default rates, membership numbers and members' level of financial literacy. This study ascertains the key determinants of the profitability and sustainability of SACCOs in Botswana and the extent to which these factors influence the SACCOs' operational self-sufficiency (OSS). The population included 39 SACCOs from eight regions across the country. The independent variables chosen were return on assets, deposit mobilisation, current ratio, capital structure, and membership size. Panel data analysis for financial data collected over 10 years (2005 to 2015) for all registered SACCOs was used. The study revealed that return on assets and capital structure were significantly and positively related to OSS, which was generally consistent with literature. Size and liquidity were found to be statistically insignificant determinants of OSS. A finding unique to this study, and contrary to literature, was the negative relationship observed between deposit mobilisation and OSS. Informed by the findings of the study, the main recommendations are that members of SACCOs as well as regulators should ensure that management provides a clear investment strategy that shows consideration for revenue diversification. The Ministry of Investment, Trade and Industry should also channel resources into implementing supporting policies and legislature for SACCOs, such as the Co-operative Transformation Strategy, to enable these entities to thrive.
Open Access
Audit Outcomes and Financial Health of Municipalities in South Africa
(2023) Shozi, Rejoyce; Alhassan, Abdul Latif
The regressing financial health, unfavourable annual audit outcomes, severed reputation for service delivery failures and resultant protests of South Africa's municipalities have raised a public furore. Several multi-stakeholder interventions purporting to address the financial mismanagement, audit regression and service delivery backlogs have been initiated by both the provincial and national governments. The intended impact and goal of these support interventions are yet to be realised. The objectives of this study were to examine the root causes that have cumulatively culminated in the deterioration of the financial health of the municipalities and investigate the relationship between financial conditions and audit outcomes not only in dysfunctional municipalities but also by studying the effect on all 257 municipalities in South Africa using data sourced from the 2016–2017, 2017–2018, 2018–2019 and 2019–2020 annual financial statements and reports from the Auditor-General of South Africa. In the first stage, descriptive statistics employed the median values of the variables: cash solvency, budget solvency, long-term solvency, service-level solvency and the financial condition index. The ordinary least squares estimation technique was employed to examine the relationship between financial health and audit outcomes using cross-sectional data from 257 municipalities sourced from the 2018–2019 financial year. The findings from the regression analysis indicated that no relationship exists between financial performance and the audit outcomes of financially distressed municipalities. The recommendations include eliminating political deployees assigned for administrative and technical appointments to allow for a clear separation between political representatives and competent, skilled and professional officials executing their roles and responsibilities objectively in a municipality. Further studies can improve existing literature by extensively examining the relationship between regressing financial performance, audit outcomes in dysfunctional and distressed municipalities and the role played by the political and administrative leadership.
Open Access
Barriers Access to Housing Finance by the Low-Income Groups: National Housing Finance Corporation (NHFC) in South Africa
(2019) Limba, Edwin Mandlakayise; Alhassan, Abdul Latif
South Africa (SA) has been experiencing a serious challenge in terms of addressing housing problems and one of the factors is access to finance, mainly by the lower income earners. Government programmes like Financial Linked Individual Subsidy Programme (FLISP) that work through the National Housing Finance Corporation (NHFC) to provide affordable subsidy finance for housing to households who earn in the range of R3 501 and R15 000 do not make a significant impact necessary to improve access to affordable housing finance. The NHFC has approved and disbursed few and low amounts for FLISP hence questions have been raised as to the challenges that low-income earners experience when accessing affordable housing finance through the NHFC and its role in creating human settlements that is sustainable. The objective is therefore to undertake a descriptive and exploratory study of the FLISP program to enhance understanding of the effectiveness of NHFC in provision of affordable housing financing accessibility by the low-income groups in Johannesburg. The sample of participants was drawn from the beneficiaries of loans and NHFC officials using observations, questionnaires and semi structured individual interviews. The mixed research method is adopted using both the primary and secondary to collect data from NHFC and is analysed by means of descriptive statistics such as percentages, tables and frequencies. Data analysis showed that accessibility for housing finance remains an obstacle faced by the low-income households. Convergent mixed method is adopted in the study to understand why the NHFC has been not effective in addressing housing finance for low-income groups. The study found that the major challenges that low-income earners encounter in accessing affordable housing finance range from the deposit amount required, interest rates and affordability in repayments of loans. It is recommended that there should be an enhancement in the housing policy to focus on the low-income groups, also, alternative mechanism such as provision of serviced land and partnerships between government and commercial banks may improve the current conditions.
Open Access
Barriers and drivers of using transaction accounts in driving electronic payments: A consumer perspective in Southern Africa
(2019) Dube, Sithembinkosi; Alhassan, Abdul Latif
This study aims to explore barriers and drivers of transactional accounts usage for electronic payments in South Africa and Zimbabwe through quantitative demand side research. This study targeted 200 respondents based on the convenience sampling technique, for a period of 2 years (2016-2017) after which a multiple regression model to examine the barriers and drivers of transaction accounts usage for electronic payments. The study found that customers’ perception towards transaction accounts usage which reflects electronic payment services is high in South Africa and Zimbabwe. The regression results indicate that three factors in costs, accessibility, and ease of use are significantly associated with consumers’ perception towards transaction accounts usage. Remarkably, security and income levels are not significantly associated with consumers’ perception towards transaction accounts usage although the correlation-coefficient results show otherwise. As a result, the researcher recommends that Southern African banks and online transaction facility providers should constantly be enhancing their transactional account services in view of the promising growth rate. It is vital that the services provided must meet customers’ expectations. The electronic payments systems must demonstrate convenience and effectiveness in real world to tape huge market share from cash. The providers of transactional account systems are required to retain an innovative and competitive environment in order to create new enhanced products and services to lower transactional costs for customers and companies. Furthermore, the results of this study serve as a guide to inform the service providers so that suitable approaches can be established to increase the usage of transaction accounts for electronic payments. As services are enhanced, the features must be communicated to improve end users’ awareness.
Open Access
Budget deficit and economic growth in Namibia
(2019) Sakaria, Hilaria Ndilokelwa; Alhassan, Abdul Latif
The study provides an assessment of the relationship between budget deficit and economic growth in Namibia, using time series quarterly secondary data covering the period, 1990 to 2015. The study employed the Auto Regressive Distributed Lag (ARDL) Bounds Test and estimated the coefficients of the variables from the Error Correction Model in examining the relationship between budget deficit and economic growth. According to the cointegration test, the result has shown that past budget deficit and past Population growth has a negative and effect and that current Trade balance has a positive effect on economic growth in the short run. The overall findings indicate that budget deficit negatively affects economic growth. This is in conformity with the Neo-Classical Theory, which holds that fiscal deficit leads to low GDP. The study therefore recommends that government expenditure be invested in developmental infrastructure that will give positive results in the future.
Open Access
Business Development Services (BDS) and SMME Development in South Africa
(2020) Zilwa, Portia; Alhassan, Abdul Latif; Makoni, Patricia
Small businesses are regarded as economic growth engines with the potential to address the unemployment crisis in South Africa. The government has limited capacity to employ the majority of the unskilled and semi-skilled who are unemployed. Agencies and private organisations offering business development services (BDS) are required to assist small, medium and micro enterprises (SMMEs) help government to address unemployment. Small and medium enterprises (SMEs) are recognised for the crucial role they play in activating and supporting economic growth. While much attention and hope has been placed on SMEs to provide the much-needed jobs, they are faced with enormous challenges and continue to fail. These challenges make it impractical for SMEs to realise their full potential and deliver to the government's and society's expectations. It is documented that SMEs face unique problems, which negatively affect their prospects and as a result, weaken their capacity to contribute to sustainable economic growth. Government and other private sector stakeholders have availed various types of business support in South Africa both as financial and non-financial support to assist SMEs overcome these problems. There has also been an emergence of business development service providers (BDSPs) that seek to extend support to SMEs, to ensure their sustainability, improve production techniques, market access and increase competitiveness but this has not yielded the desired results. Business development services refer to services that improve the performance of the enterprise, its access to markets, and its ability to compete. This study sought to explore the nature of BDS offered to SMMEs with a view to help them remain sustainable. Further, the study explored the challenges faced by BDSP. The study used an inductive qualitative research approach and employed semi-structured interviews to collect data. The population of the study consisted of SME business development service providers in South Africa, with an eventual study sample size comprised of ten providers. The findings indicate that there is a range of services offered to SMEs, with training and technical assistance and market access being the focus areas. While providers offer these services to SMEs, they themselves experience various challenges such as internal challenges which include funding and resources; expertise and skills levels of providers; and design of services. In addition, there are external challenges such as payment inability of SMMEs; low market awareness; commitment to and from SMMEs; perceived value of BDS; finding the right clients; and the business operating environment, which hinder their service provision. iii The study concludes by providing recommendations on approaches that BDS providers can adopt to offer solutions to some of the identified challenges. These approaches include: developing sector-specific approaches in delivering business development service; attracting enterprise and supplier development funds as a possible strategy to solve the lack of resources in this sector; alignment of the Broad-Based Black Economic legislative framework to business development services strategies; introduction of professional standards and guidelines in the business development services sector and implementation of an impact assessment matrix.
Open Access
Catalytic effects of IMF agreements on foreign direct investment (FDI) inflows in sub-Saharan Africa
(2017) Mathebula, Percy; Alhassan, Abdul Latif
It is customary to postulate that International Monetary Fund (IMF) agreements or arrangements in Sub-Saharan Africa (SSA) will facilitate foreign capital investments or FDI inflows from multinational corporations and or foreign investors. Through empirical observations, and using a two-stage modelling technique, this research tested and examined this hypothesis. It empirically showed that SSA countries that had IMF interventions for the period 1980 to 2015 attracted FDI inflows into their economies. The study rebutted the claim that countries with previous IMF interventions were likely to appeal to multinational corporations (MNCs) or foreign investors and thereby cause the inflow of FDI into Sub-Saharan Africa.
Open Access
Causal relationship between financial capital financial flows and economic growth in South Africa
(2025) Dyushu, Mphumleli; Alhassan, Abdul Latif
The study's main objective was to test the causal relationship between financial capital flows and economic growth in South Africa. Developing countries rely significantly on foreign capital inflows to supplement domestic savings for investment and growth. Foreign investment is essential to emerging nations' economic growth because it augments domestic savings for expansion and investment. Using a global financial capital pool has significant potential benefits for many developing nations. Due to low growth levels in emerging markets, efforts have been made to identify the factors that hinder growth. Capital flow movements has been one of those factors. There has been sharp reversal of portfolio flows, triggering concerns about financial stability and consequently, economic growth. South Africa's economy is heavily influenced by external financial flows, including foreign direct investment and portfolio investments. Policymakers need empirical evidence to formulate effective strategies that attract sustainable capital inflows while promoting economic growth and development. The study used secondary quantitative data from the World Bank, StatsSA and the South African Reserve Bank. Time series data that spanned from 1990 to 2023 was used for estimation. The study employed stationarity tests, cointegration analysis and the ARDL technique. The empirical results show that the relationship between Capital flows and GDP is negative. The relationship is marginal though and this suggests that capital flows, to a lesser extent, negatively affects GDP. The empirical results also reveals that the relationship between Terms of Trade and GDP in positive. The study recommended that there is need for government to come up with measures that can make capital flows contribute positively to growth. One measure would be to prolong the duration with which capital flows stay in S.A. in periods of economic uncertainty, capital tend to flow out of South African and this hurts growth.

Browsing by Author "Alhassan, Abdul Latif"

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