Activity In South Africa Research Articles

Business Confidence and the Economic Activity in South Africa

Business Confidence and the Economic Activity in South Africa

Field-portable X-ray fluorescence analyzer for chemical characterization of carbonate-bearing base metal tailings: case study from Namib Pb-Zn Mine, Namibia

Reprocessing of historic gold tailings is a common activity in South Africa, while base metal tailings offer similar reprocessing potential. The historic base metal tailings of the Namib Pb-Zn mine (Erongo Region, Namibia) still contain valuable resources of Pb and Zn in carbonate-rich matter. Micro-analysis of primary ore minerals identifies some galena as argentiferous and sphalerite as the principal host of Cd. This study demonstrates that knowledge of primary ore mineralogy helps to reveal the hosts of valuable commodities (Ag, Cd) and that field-portable X-ray fluorescence tools allow precise and accurate determinations of major and minor elements like Zn and Cd in such carbonate-rich material. Although there are limitations to directly determine the contents of certain element (i.e., As, Sb, In), linear correlations allow prediction of the likely abundance of these elements. Providing that the inter-mineral and inter-element relations are understood and there is consistency in sampling and analytical methodology, portable X-ray fluorescence analysis is an effective method to evaluate the chemical characteristics of base metal tailings for a range of major and trace elements.

The South African Reserve Bank’s response towards calls to pursue unconventional monetary policy

Learning outcomes On completion of the case study, students will understand the following learning objectives: the characteristics of quantitative easing (QE) and when it may be appropriate to implement QE; how QE differs from a conventional bond purchasing programme; the impact of direct financing of the fiscus by the central bank on its independence; how the macro-economic and political environments affect and influence national economic policy; the difference between traditional and unconventional monetary policies and potential implications for an economy like South Africa. The learnings from this case study can be used in other global economic environments, particularly in emerging markets. This case study provides valuable insights into decision-making, institutional independence, policy coordination, deficit financing, causes and consequences of price inflation, risks relating to monetary instability and the correct application of monetary policy. Case overview/synopsis After the announcement of the COVID-19-related lockdown in March 2020 and the subsequent slow-down of economic activity in South Africa, the South African Reserve Bank (SARB) had to consider appropriate macro-economic tools to ensure both price and financial stability in South Africa. The macro-economic policy tools had to be considered in light of the South African economic context, which included acknowledgement of South Africa’s debt crisis and slow economic growth. The central bank responded by introducing the following measures: reducing interest rates to a record low of 3.5% to give consumers financial relief and to promote spending in the economy; purchasing government bonds in the secondary markets to stabilise financial markets; facilitating the loan guarantee scheme that was aimed at providing financial relief to small- and medium-sized enterprises; relaxing the capital and liquidity adequacy requirements that commercial banks are required to meet; and ensuring availability of liquidity to banks through facilities such as the weekly repo auctions. However, despite introducing these interventions, the SARB faced calls from politicians, analysts and academics to do more. Various commentators argued that the SARB could introduce QE and directly finance government spending by purchasing government bonds. Some commentators argued that the reluctance of the SARB to pursue these suggestions was a result of the close alignment and relationship between the SARB and National Treasury. The dilemma faced by Governor Lesetja Kganyago of the SARB was threefold, namely, whether it was appropriate for the central bank to pursue the initiatives and, if so, whether the bank could pursue them without compromising its independence, and if the introduction of those initiatives would not adversely affect the ability of the central bank to fulfil its mandate of price stability and financial stability. In this regard, the governor and his executive team were required to consider the long-term implications of introducing the initiatives on consumer price inflation, independence of the SARB and the appropriate use of monetary policy tools to fulfil the central bank’s mandate. But the question was: What policies should the governor favour? Complexity academic level This case study is based on various macro-economic theories. Therefore, it would be useful to teach this case study in macro-economic courses in the following programmes: master’s in business administration, bachelor of commerce, bachelor of economic sciences and business science studies, as well as on executive education programmes, which consider macro-economic policy. In general, students who undertake economics, business and general management, finance, legal, commerce and banking studies could learn from this case study. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.

Elevating South Africa’s Entrepreneurial Activity in the Fourth Industrial Revolution Era

The objective of this research is to appraise the level of entrepreneurial activity in South Africa and to identify the challenges to implementation of the fourth industrial revolution (4IR) that obstruct the leveraging of 4IR technologies to boost entrepreneurial activity in the country. A conceptual exploratory literature review approach was applied. This study’s results show that a high unemployment rate, the quality of entrepreneurial support initiatives, physical infrastructure, enterprise funds and increased economic freedom are enablers of entrepreneurial activity in South Africa. High data costs, poor digital technological preparedness, an unreliable energy supply, data protection and cyber security risks, among other factors, were identified as obstacles to 4IR implementation. We, therefore, recommend a 4IR fund, mandatory data price laws, proactive policing, further public–private partnerships, enhancement of whistle-blower protection laws, among others, as solutions to buoy entrepreneurial activity through application of 4IR technologies. These results signal the need to ensure a synchronized effort by all relevant spheres of government to address the 4IR implementation challenges and enhance entrepreneurial activity for South Africa’s economy.

Public spending, credit market conditions and economic activity in South Africa

AbstractThis study investigates the effects of public spending shocks across South Africa's credit market conditions from 1965Q2 to 2022Q1 employing a Threshold Vector Autoregression model. Credit conditions are approximated by credit growth. The empirical findings exhibit that the financial environment matters. More specifically, the output multipliers of 1 or 2 standard deviations of positive or negative shocks to public spending are less than unity but bigger when the credit market is in a tight condition. When we look at the public spending components, the output multipliers are more than unity for the public investment shocks in the tight credit condition but not for public consumption shocks. In terms of the output components, both private consumption and private investment multipliers are found to be small, though larger in the tight credit condition. Finally, while public spending shock causes an increase in private credit volume in tight credit conditions, it leads to a decline in private credit volume in easy credit conditions. These results are examined in terms of their policy recommendations.

Analysis of How Green Growth and Entrepreneurship Affect Sustainable Development: Application of the Quintuple Helix Innovation Model in the African Context

The global energy transformation is moving forward slowly, along with the continent of Africa. Although the momentum developed thus far is encouraging, there is an increasing need for transformative solutions to lessen climate change and its effects on the continent. In this article, we analyze the connection between green growth, entrepreneurship, and their effects on sustainable development in South Africa using the Quintuple Helix Innovation Model (QHIM). Hence, the purpose of the study is to foster the need for entrepreneurship and green growth for sustainable development. The quintuple helix model’s (QHIM) theoretical premise that the natural environment of society and the economy are the two fundamental factors behind innovation and the understanding that a knowledge economy requires sustainable growth are mainly supported by our findings. We accomplish this study by determining which entrepreneurial and green growth dimensions should be prioritized, respectively. Using ordinary least squares (OLS) and generalized linear model (GLM) we examine the association. We measured green growth with two main indicators which are environmental resource productivity and natural capital. Entrepreneurship was measured using entrepreneurial activity and entrepreneurial attitudes. Our findings revealed that more attention needs to be geared towards natural capital and entrepreneurial activity in South Africa. Decision-makers and the government will utilize the study’s findings as a guide for the zealous implementation of stated policies; recommendations are also highlighted in this study.

Estimating the changing burden of disease attributable to low levels of physical activity in South Africa for 2000, 2006 and 2012.

Physical activity is associated with a lower risk of cardiovascular outcomes, certain cancers and diabetes. The previous South African Comparative Risk Assessment (SACRA1) study assessed the attributable burden of low physical activity for 2000, but updated estimates are required, as well as an assessment of trends over time. To estimate the national prevalence of physical activity by age, year and sex and to quantify the burden of disease attributable to low physical activity in South Africa (SA) for 2000, 2006 and 2012. Comparative risk assessment methodology was used. Physical activity was treated as a categorical variable with four categories, i.e. inactive, active, very active and highly active. Prevalence estimates of physical activity levels, representing the three different years, were derived from two national surveys. Physical activity estimates together with the relative risks from the Global Burden of Disease, Injuries, and Risk Factors (GBD) 2016 study were used to calculate population attributable fractions due to inactive, active and very active levels of physical activity relative to highly active levels considered to be the theoretical minimum risk exposure (>8 000 metabolic equivalent of time (MET)-min/wk), in accordance with the GBD 2016 study. These were applied to relevant disease outcomes sourced from the Second National Burden of Disease Study to calculate attributable deaths, years of life lost, years lived with disability and disability adjusted life years (DALYs). Uncertainty analysis was performed using Monte Carlo simulation. The prevalence of physical inactivity (<600 METS) decreased by 16% and 8% between 2000 and 2012 for females and males, respectively. Attributable DALYs due to low physical activity increased between 2000 (n=194 284) and 2006 (n=238 475), but decreased thereafter in 2012 (n=219 851). The attributable death age-standardised rates (ASRs) declined between 2000 and 2012 from 60/100 000 population in 2000 to 54/100 000 population in 2012. Diabetes mellitus type 2 displaced ischaemic heart disease as the largest contributor to attributable deaths, increasing from 31% in 2000 to 42% in 2012. Low physical activity is responsible for a large portion of disease burden in SA. While the decreased attributable death ASR due to low physical activity is encouraging, this burden may be lowered further with an additional reduction in the overall prevalence of physical inactivity, in particular. It is concerning that the attributable burden for diabetes mellitus is growing, which suggests that existing non-communicable disease policies need better implementation, with ongoing surveillance of physical activity, and population- and community-based interventions are required in order to reach set targets.

Estimating the changing burden of disease attributable to low levels of physical activity in South Africa for 2000, 2006 and 2012

Background. Physical activity is associated with a lower risk of cardiovascular outcomes, certain cancers and diabetes. The previous South African Comparative Risk Assessment (SACRA1) study assessed the attributable burden of low physical activity for 2000, but updated estimates are required, as well as an assessment of trends over time.Objective. To estimate the national prevalence of physical activity by age, year and sex and to quantify the burden of disease attributable to low physical activity in South Africa (SA) for 2000, 2006 and 2012.Methods. Comparative risk assessment methodology was used. Physical activity was treated as a categorical variable with four categories, i.e. inactive, active, very active and highly active. Prevalence estimates of physical activity levels, representing the three different years, were derived from two national surveys. Physical activity estimates together with the relative risks from the Global Burden of Disease, Injuries, and Risk Factors (GBD) 2016 study were used to calculate population attributable fractions due to inactive, active and very active levels of physical activity relative to highly active levels considered to be the theoretical minimum risk exposure (&gt;8 000 metabolic equivalent of time (MET)-min/wk), in accordance with the GBD 2016 study. These were applied to relevant disease outcomes sourced from the Second National Burden of Disease Study to calculate attributable deaths, years of life lost, years lived with disability and disability adjusted life years (DALYs). Uncertainty analysis was performed using Monte Carlo simulation.Results. The prevalence of physical inactivity (&lt;600 METS) decreased by 16% and 8% between 2000 and 2012 for females and males, respectively. Attributable DALYs due to low physical activity increased between 2000 (n=194 284) and 2006 (n=238 475), but decreased thereafter in 2012 (n=219 851). The attributable death age-standardised rates (ASRs) declined between 2000 and 2012 from 60/100 000 population in 2000 to 54/100 000 population in 2012. Diabetes mellitus type 2 displaced ischaemic heart disease as the largest contributor to attributable deaths, increasing from 31% in 2000 to 42% in 2012.Conclusions. Low physical activity is responsible for a large portion of disease burden in SA. While the decreased attributable death ASR due to low physical activity is encouraging, this burden may be lowered further with an additional reduction in the overall prevalence of physical inactivity, in particular. It is concerning that the attributable burden for diabetes mellitus is growing, which suggests that existing non-communicable disease policies need better implementation, with ongoing surveillance of physical activity, and population- and community-based interventions are required in order to reach set targets.

Battery Energy Storage for Photovoltaic Application in South Africa: A Review

Despite the significant slowdown of economic activity in South Africa by virtue of the COVID-19 outbreak, load shedding or scheduled power outages remained at a high level. The trend of rising load-shedding hours has persisted throughout most of the year 2022. Operational issues within the South African power utility inflamed the unpredictable nature of generation capacity, resulting in unscheduled outages at several generating units, mostly due to multiple breakdowns. To forestall substantial spikes in energy costs, an increasing number of enterprises and homeowners have started to gradually adopt renewable energy technologies to sustain their operational demand. Therefore, there is an increase in the exploration and investment of battery energy storage systems (BESS) to exploit South Africa’s high solar photovoltaic (PV) energy and help alleviate production losses related to load-shedding-induced downtime. As a result, the current work presents a comprehensive and consequential review conducted on the BESS specifically for solar PV application and in the South African context. The research investigations carried out on BESS for PV application are crucially examined, drawing attention to their capacities, shortcomings, constraints, and prospects for advancement. This investigation probed several areas of interest where the BESS-PV scheme is adopted, viz., choice of battery technology, mitigating miscellaneous power quality problems, optimal power system control, peak load shaving, South African BESS market and status of some Real BESS-PV projects. The techno-economic case scenario has been proposed in the current research and results yield that lithium-ion batteries are more viable than Lead–acid batteries.

Systemic risk and real economic activity: A South African insurance stress index of systemic risk

This study investigates the link between systemic risk in the South African insurance sector real economic activity in South Africa. To this end, we use six systemic risk measures, the Conditional Value at Risk (CoVaR), the Marginal Conditional Value at Risk (ΔCoVaR), the Comovement and Interconnectedness of the South African insurance sector (Eigen), the Dynamic Mixture Copula Marginal Expected Shortfall (DMC-MES), the Average Conditional Volatility (Ave-vol), and the South African Volatility Index (SAVI). We first evaluate the significance of each measure by assessing its ability to forecast future economic downturns in South Africa. We find that only two systemic risk measures possess the ability to predict future economic downturns in South Africa. We then use principal component quantile regression analysis to aggregate these measures into a composite stress index of systemic risk for the South African insurance sector and assess the ability of the proposed index to predict future economic downturns in South Africa. Our results reveal that the proposed index is a good predictor of future economic downturns in South Africa. Thus, our results suggest that regulators and risk managers must develop an analysis of systemic risk in the insurance sector with particular attention to its effects on real economic activity. In addition, our index can potentially be used as an instrument to monitor and mitigate systemic risk in the insurance sector in order to ensure the stability of the financial system and the economy in South Africa.

Intolerance, xenophobia and cross-border supermarket groups’ operations in South Africa

ABSTRACT We examine whether there is a relationship between xenophobic attacks and the stock market value of supermarket groups in South Africa. We perform an event study analysis on significant incidents of violent attacks targeted at shops owned by foreigners in South Africa for the period 2006–2017. Using an event study approach with an augmented market model, we uncover evidence that the stock market perceives these events as bad news instead of good news for supermarkets having operations in South Africa and other parts of Africa, as they realise a decline in abnormal returns of about 2.57 percent. We interpret our findings as economic costs of xenophobic attacks emanating from the Johannesburg Stock Exchange. Our analysis attempts to shed light on the peace-building challenges and the potentially grim implications of xenophobia on economic activity in South Africa.

South African Anti-Fascism and the Nazi Foreign Office: Antisemitism, Anti-communism and the Surveillance of the Third Reich’s International Enemies

ABSTRACT This article offers a new analysis of how the Third Reich’s Foreign Office reported on anti-fascist activities in the Union of South Africa during the 1930s. Based on letters, dispatches and reports written by the German legation and official German representatives in South Africa, the article reveals and discusses how Nazi officials followed and reacted to anti-fascist activity in South Africa. The article demonstrates how the German legation perceived anti-fascist movements and analysed them as a part of a rising global anti-German sentiment, Jewish activism, and ‘international bolshevism’. South African anti-fascism reveals itself also as a direct concern for the official bilateral relations between South Africa and Nazi Germany during the 1930s. Germany was intensely concerned with South African public opinion when it came to protests against German Nazism, international fascism and local fascist groups in South Africa. The article thus offers to expand our understanding of South Africa’s place in the global struggle between anti-fascism and fascism and discusses the ways in which anti-fascism was delegitimised. Furthermore, it shows how German clubs, offices, ships and consulates became important sites of protest and targets of anti-fascist activities and boycotts.

THE FIRE, THE BURGLARY AND THE PRAETORIAN EDICT DE NAUTIS, CAUPONIBUS ET STABULARIIS

The travel and tourism industry is the world’s largest industry. This industry is also seen as one of the priority growth areas for the South African economy. In South Africa travel and tourism activity is expected to grow at a rate of 4.8% per annum in real terms between 2007 and 2016. This will mean an increase in travel and tourism economic activity in South Africa from R198.1 billion in 2006 to R511.5 billion in 2016. Based on these figures it is estimated that the travel and tourism industry will contribute 9.3% of the South African Gross Domestic Product (“GDP”) by 2016. One of the main benefits of the travel and tourism industry is its potential for attracting foreign currency. Already, tourism is the fourth largest foreign exchange earner in South Africa. Furthermore, the travel and tourism industry has major potential for generating employment. It is expected that by 2016 the travel and tourism industry will provide 1.5 million jobs (or one in every 11.6) in South Africa. South Africa’s travel and tourism industry has experienced significant growth in the last decade. This resulted in a substantial number of guest houses and bed-and-breakfast establishments opening their doors in every city, town and in between. This growth is evidenced, for example, in that South Africa is well on its way to reaching its target of attracting 10 million foreign visitors per year with a reported 7.6% increase in foreign visitors in the first five months of 2008 to a total of 3 983 061. With the rise in travel and tourism activity, it can be safely forecasted that there will be a rise in litigation revolving around the respective rights of tourists and tourist service providers. In a nascent travel and tourism law jurisprudence, each case decided in this regard ought to be carefully considered by both legal practitioners and the industry. A matter came before the then Cape High Court during 2002, based on an action whose (continued) existence in South African law had been questioned more than eighty years earlier. The case was Gabriel v Enchanted Bed and Breakfast (2002 2 SA 597 CPD (hereinafter the “Gabriel case”)). Just to confirm that this was not to be an isolated reliance upon an almost obsolete remedy, the Gabriel case was followed in 2005 by Roy v Basson NO (2007 5 SA 84 CPD (hereinafter the “Roy case”)). The legal remedy in question is the Praetorian edict de nautis, cauponibus et stabulariis. (Considering the fairly unique nature of the legal ground under consideration in these two cases it is somewhat surprising to note that the court in the Roy case did not refer to the Gabriel case at all). Both these cases concern the liability of the proprietor of an inn in terms of the Praetorian edict de nautis, cauponibus et stabulariis and are therefore of particular relevance for the South African travel and tourism industry. It is therefore opportune to consider the Praetor’s edict and its application anew.

Effects of Fiscal and Monetary Policy Uncertainty on Economic Activity in South Africa

The paper examines the effect of fiscal and monetary policies on economic activities in South Africa while attempting to identify the role of uncertainty. The paper uses quarterly time series data using the variables of income tax, consumption tax, capital tax, and government expenditure to measure fiscal policy uncertainty while interest and inflation rate variables were used to measure monetary policy uncertainty. Also, real gross domestic product, real consumption, real investment, and employment were used to measure economic activities. The partial least squares structural equation model (PLS-SEM) was used for analysis and result presented for measurement and structural models. Results revealed the existence of policy uncertainty in the South African economy which tends to reduce the level of economic activity as uncertainty increases. This result informs of the need for policy makers to minimally reduce uncertainties for both fiscal and monetary policies for the economy to improve.

The criminalisation of gang activity in South Africa: reassessing the rationale

Criminal gang activity presents a substantial threat to the safety and security of, in particular, the inhabitants of the Cape Flats in Cape Town. The State has intervened legislatively through the form of the Prevention of Organised Crime Act 121 of 1998. This is somewhat of a ‘super-criminalisation’ given that similar common law and statutory measures already existed prior to the promulgation of the Act. What is the rationale for the criminalisation of gang activity in South Africa? Furthermore, if there is sufficient rationale for this super-criminalisation, is there sufficient basis to argue for the additional responsibility of gang leaders, which is currently left uncovered by the Act?

The criminalisation of gang activity in South Africa: reassessing the rationale

Criminal gang activity presents a substantial threat to the safety and security of, in particular, the inhabitants of the Cape Flats in Cape Town. The State has intervened legislatively through the form of the Prevention of Organised Crime Act 121 of 1998. This is somewhat of a ‘super-criminalisation’ given that similar common law and statutory measures already existed prior to the promulgation of the Act. What is the rationale for the criminalisation of gang activity in South Africa? Furthermore, if there is sufficient rationale for this super-criminalisation, is there sufficient basis to argue for the additional responsibility of gang leaders, which is currently left uncovered by the Act?

Financial Stress Index and Economic Activity in South Africa: New Evidence

The importance of a sound and stable financial system and by extension economic stability was brought to the fore by the global financial crisis (GFC). The economic and social costs of the GFC have renewed the commitment of stakeholders in the financial sector including central banks to develop instruments and methodologies that will be useful in monitoring financial stress within the financial system and the real economy. This study contributes to the growing literature by developing a financial stress indicator for the South African financial market. The financial stress indicator (FSI) is a single aggregate indicator that is constructed to reflect the systemic nature of financial instability and also to measure the vulnerability of the financial system to both internal and external shocks. Using the principal component analysis (PCA), the results show that financial stress can be identified by the financial stress indicator. Furthermore, using a recursive Vector Autoregression (VAR) model to estimate the impact of financial stress on output and investment, the result shows that financial stress has a negative impact on economic growth and investment, though not immediately. FSI is very useful for gauging the effectiveness of government measures to mitigate the impact of financial stress. Concerted effort to stimulate investment and domestic production by relevant stakeholders is necessary to mitigate the impact of financial stress. This will go a long way to alleviating the impact of the financial stress on industrial production, employment and the economy at large.

Re-reading the Propaganda and Counter-Propaganda History of South Africa: On the African National Congress’ (ANC) Anti-Apartheid Radio Freedom

ABSTRACT Radio Freedom, the African National Congress’ (ANC’s) “exiled” broadcasting platform, is arguably the oldest politically aligned and anti-apartheid-created broadcasting media institution to be solely dedicated to propaganda that challenged the racially oppressive policies of South Africa. Launched as a counter-response to the void that was left by the banning of anti-apartheid political activity in South Africa, Radio Freedom initially conducted its broadcasting activities in South Africa. It was later forced to broadcast from several African countries that were hosting the then exiled ANC. The focus of this article is on understanding how the ANC’s Department of Information and Publicity (DIP) in general, and Radio Freedom in particular, assisted this political organisation in maintaining a “virtual” presence in South Africa using propaganda and counter-propaganda strategies. Using a qualitative research approach in understanding the strategies and planning of the ANC’s cross border propaganda machinery, the article suggests that the ANC developed an objective of controlling and maintaining its image through political propaganda. Relying on the growing interest in media history scholarship, this article argues and concludes that Radio Freedom is one of the key media institutions that can be used to understand the history of media and its response to apartheid South Africa.

Wealth inequality and entrepreneurial activity in South Africa

The article investigates the relationship between wealth inequality and entrepreneurial activity. It is widely recognised that South Africa's main sustainability issues remain it's extremely high inequality. Within the framework of sustainable development lies sustainable enterprise development where entrepreneurship has been shown to contribute considerably to sustainability through job creation, economic growth and more equal income distribution. The study relies on panel data, namely the South African National Income Dynamics Study to formally test the study hypotheses. Results indicate that increased wealth inequality is not significantly increasing entrepreneurship activity in South Africa. However there is a positive and significant relationship between wealth inequality and entrepreneurship for those at the bottom of the wealth distribution. The study makes an important contribution by highlighting that public policy aimed at increasing entrepreneurship while decreasing inequality may not be entirely consistent, given the complex relationship between wealth inequality and entrepreneurial activity.

Wealth inequality and entrepreneurial activity in South Africa

Wealth inequality and entrepreneurial activity in South Africa