Administrative barriers encountered in South Africa by foreign investors
- Authors: Mpofu, Isaac
- Date: 2012-10-29
- Subjects: Foreign investments
- Type: Thesis
- Identifier: uj:10456 , http://hdl.handle.net/10210/7921
- Description: M.Phil. , The role of foreign direct investment, in driving economic growth and development has been a contested one. There have always been views in favour of FDI and against. Foreign investment is attracted by predictable, transparent, non-discriminatory regulations of the host country. Consequently, negative administrative barriers (legal and regulatory requirements for establishing, operating and locating a business) can deter foreign investors. Administrative processes in South Africa are not consistent, efficient and transparent and they generally interfere with the operation of free markets. Theoretically, foreign investors are likely to invest in countries where administrative processes are consistent, efficient, transparent and high levels of certainty. This study‘s aims were to identify administrative barriers encountered in South Africa by foreign investor and to ascertain the levels of consistency, efficiency and transparency of administrative procedures. The study further propose solutions aimed at improving the levels of consistency, transparency and efficiency of administrative processes in order to easy, simplify or mitigate the burden of these processes. The study adopted a positivistic view and descriptive research method was employed. The survey questionnaire was used as the main data-gathering instrument for this study. The study found out that there were high levels of administrative barriers to foreign direct investment in South Africa and the processes were not consistency, efficient and transparent. The main conclusions drawn from this research were that current administrative processes to foreign direct investment are barriers to investment as they add an extra burden and cost to the investor investing in South Africa. This study proposed a multi-pronged administrative simplification strategies aimed at reducing and simplifying administrative processes.
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- Authors: Mpofu, Isaac
- Date: 2012-10-29
- Subjects: Foreign investments
- Type: Thesis
- Identifier: uj:10456 , http://hdl.handle.net/10210/7921
- Description: M.Phil. , The role of foreign direct investment, in driving economic growth and development has been a contested one. There have always been views in favour of FDI and against. Foreign investment is attracted by predictable, transparent, non-discriminatory regulations of the host country. Consequently, negative administrative barriers (legal and regulatory requirements for establishing, operating and locating a business) can deter foreign investors. Administrative processes in South Africa are not consistent, efficient and transparent and they generally interfere with the operation of free markets. Theoretically, foreign investors are likely to invest in countries where administrative processes are consistent, efficient, transparent and high levels of certainty. This study‘s aims were to identify administrative barriers encountered in South Africa by foreign investor and to ascertain the levels of consistency, efficiency and transparency of administrative procedures. The study further propose solutions aimed at improving the levels of consistency, transparency and efficiency of administrative processes in order to easy, simplify or mitigate the burden of these processes. The study adopted a positivistic view and descriptive research method was employed. The survey questionnaire was used as the main data-gathering instrument for this study. The study found out that there were high levels of administrative barriers to foreign direct investment in South Africa and the processes were not consistency, efficient and transparent. The main conclusions drawn from this research were that current administrative processes to foreign direct investment are barriers to investment as they add an extra burden and cost to the investor investing in South Africa. This study proposed a multi-pronged administrative simplification strategies aimed at reducing and simplifying administrative processes.
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Aftercare of inward foreign direct investment: a case study of South Africa
- Authors: Manasoe, Benjamin
- Date: 2011-10-11T08:10:48Z
- Subjects: Foreign investments
- Type: Thesis
- Identifier: uj:7245 , http://hdl.handle.net/10210/3899
- Description: M.Comm. , Attraction of new inward FDI globally, especially in the developing countries, is problematic. Economic development practitioners have recently started to prioritise the retention and growing of existing investments to enhance their economic development agenda. There are few studies that provide any guidance to investment aftercare practitioners faced with this alternative economic development option. The main aim of this study is to obtain a better understanding of and to investigate the relationship between investment aftercare and inward FDI in South Africa. Investment aftercare is defined as post-investment services that an investment promotion agency (IPA) can offer to existing investors (Loewendahl 2001:25). Six research questions were investigated in this study, namely, how do IPAs allocate financial and human resources to investment aftercare function in relation to other investment promotion functions? Do IPAs in South Africa have dedicated and comprehensive investment aftercare strategies and how often are they reviewing these strategies? What factors limit IPAs’ ability to provide effective investment aftercare services? What investment aftercare models are used by IPAs within South Africa? Are IPAs evaluating the impact of their investment aftercare programmes? Which government level is most appropriate to offer investment aftercare services? Both quantitative and qualitative research methodologies are used in this study to address these six research questions and theoretical frameworks are selected to define the scope of the research. A structured questionnaire was used to collate data and 30 face-to-face interviews were conducted with 16 investment aftercare practitioners and 14 investment aftercare executives from IPAs in seven of the nine provinces of South Africa.
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- Authors: Manasoe, Benjamin
- Date: 2011-10-11T08:10:48Z
- Subjects: Foreign investments
- Type: Thesis
- Identifier: uj:7245 , http://hdl.handle.net/10210/3899
- Description: M.Comm. , Attraction of new inward FDI globally, especially in the developing countries, is problematic. Economic development practitioners have recently started to prioritise the retention and growing of existing investments to enhance their economic development agenda. There are few studies that provide any guidance to investment aftercare practitioners faced with this alternative economic development option. The main aim of this study is to obtain a better understanding of and to investigate the relationship between investment aftercare and inward FDI in South Africa. Investment aftercare is defined as post-investment services that an investment promotion agency (IPA) can offer to existing investors (Loewendahl 2001:25). Six research questions were investigated in this study, namely, how do IPAs allocate financial and human resources to investment aftercare function in relation to other investment promotion functions? Do IPAs in South Africa have dedicated and comprehensive investment aftercare strategies and how often are they reviewing these strategies? What factors limit IPAs’ ability to provide effective investment aftercare services? What investment aftercare models are used by IPAs within South Africa? Are IPAs evaluating the impact of their investment aftercare programmes? Which government level is most appropriate to offer investment aftercare services? Both quantitative and qualitative research methodologies are used in this study to address these six research questions and theoretical frameworks are selected to define the scope of the research. A structured questionnaire was used to collate data and 30 face-to-face interviews were conducted with 16 investment aftercare practitioners and 14 investment aftercare executives from IPAs in seven of the nine provinces of South Africa.
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Desperately seeking FDI: the impact of globalisation on the state and its devolved entities
- Authors: Weertman, Warren
- Date: 2009-04-30T09:23:47Z
- Subjects: Globalization , Foreign investments , The state , Economic development , Economic policy (South Africa)
- Type: Mini-Dissertation
- Identifier: uj:8326 , http://hdl.handle.net/10210/2453
- Description: M.A. , Of our age, perhaps the two defining terms have been “the state” and “globalisation”, each of which is constantly changing and adapting as the international community has to deal with an increasing multiplicity of actors in the field of international relations. Witness not only the rise of supra-national state units such as the European Union, but also the increased importance of sub-national state units such as provinces and cities in international relations. At the same time it is possible to distinguish between various types of globalisation such as political and economic globalisation. Each of these types of globalisation influences the state in a variety of ways. For example, political globalisation has led to the rise in importance of supra-national and sub-national state units. As for economic globalisation, this study assesses the influence of one particular feature of economic globalisation namely FDI on the South African state and its sub-national state units, particularly Gauteng and Johannesburg. In order to assess the influence of foreign direct investment on the structure of the South African state, the study provides a theoretical framework of globalisation and the state. This theoretical framework is then built upon by incrementally discussing the structure and economic policies of the central South African state before assessing the structure and economic policies of Gauteng and Johannesburg. Particular attention is paid to the economic responses of the central South African state, Gauteng and Johannesburg to a particular manifestation of economic globalisation, namely foreign direct investment. In this regard the study discusses the precepts of the central state‟s policy known as “Growth, Employment, and Redistribution” as a means of attempting to attract foreign direct investment to South Africa. Within the context of Gauteng and Johannesburg the study assesses how these sub-national state units have adopted local economic development policies as a means to attract foreign direct investment. At the same time it is necessary to consider how these local economic development policies fit into the neo-liberal precepts of central government‟s economic policies. It was noted above that it is possible to distinguish between various types of globalisation such as political and economic globalisation. Each of these types of globalisation influences the state in variety of ways. This study assesses the influence of one particular feature of economic globalisation namely FDI on the South African state and its sub-national state units, particularly Gauteng and Johannesburg. In order to assess the influence of FDI on the South African state, Gauteng and Johannesburg, the study assesses how each of these three spheres of the South African state are attempting to attract FDI through the adoption of economic policies and other policies (such as GEAR and LED programmes). This study will assess the possibility of whether Gauteng and Johannesburg should be given greater autonomy and flexibility to attract FDI. The question which the study thus seeks to answer is: how does FDI (as a feature of globalisation) influence the structure of the South African state and the relationship between the central South African state and its sub-national state units?
- Full Text:
- Authors: Weertman, Warren
- Date: 2009-04-30T09:23:47Z
- Subjects: Globalization , Foreign investments , The state , Economic development , Economic policy (South Africa)
- Type: Mini-Dissertation
- Identifier: uj:8326 , http://hdl.handle.net/10210/2453
- Description: M.A. , Of our age, perhaps the two defining terms have been “the state” and “globalisation”, each of which is constantly changing and adapting as the international community has to deal with an increasing multiplicity of actors in the field of international relations. Witness not only the rise of supra-national state units such as the European Union, but also the increased importance of sub-national state units such as provinces and cities in international relations. At the same time it is possible to distinguish between various types of globalisation such as political and economic globalisation. Each of these types of globalisation influences the state in a variety of ways. For example, political globalisation has led to the rise in importance of supra-national and sub-national state units. As for economic globalisation, this study assesses the influence of one particular feature of economic globalisation namely FDI on the South African state and its sub-national state units, particularly Gauteng and Johannesburg. In order to assess the influence of foreign direct investment on the structure of the South African state, the study provides a theoretical framework of globalisation and the state. This theoretical framework is then built upon by incrementally discussing the structure and economic policies of the central South African state before assessing the structure and economic policies of Gauteng and Johannesburg. Particular attention is paid to the economic responses of the central South African state, Gauteng and Johannesburg to a particular manifestation of economic globalisation, namely foreign direct investment. In this regard the study discusses the precepts of the central state‟s policy known as “Growth, Employment, and Redistribution” as a means of attempting to attract foreign direct investment to South Africa. Within the context of Gauteng and Johannesburg the study assesses how these sub-national state units have adopted local economic development policies as a means to attract foreign direct investment. At the same time it is necessary to consider how these local economic development policies fit into the neo-liberal precepts of central government‟s economic policies. It was noted above that it is possible to distinguish between various types of globalisation such as political and economic globalisation. Each of these types of globalisation influences the state in variety of ways. This study assesses the influence of one particular feature of economic globalisation namely FDI on the South African state and its sub-national state units, particularly Gauteng and Johannesburg. In order to assess the influence of FDI on the South African state, Gauteng and Johannesburg, the study assesses how each of these three spheres of the South African state are attempting to attract FDI through the adoption of economic policies and other policies (such as GEAR and LED programmes). This study will assess the possibility of whether Gauteng and Johannesburg should be given greater autonomy and flexibility to attract FDI. The question which the study thus seeks to answer is: how does FDI (as a feature of globalisation) influence the structure of the South African state and the relationship between the central South African state and its sub-national state units?
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Effectiveness of inward FDI from China into the South African banking sector
- Authors: Appavoo, Dhanesvarin
- Date: 2012-06-04
- Subjects: Banks and banking , Foreign investments , Chinese investments , Foreign direct investments
- Type: Thesis
- Identifier: uj:2378 , http://hdl.handle.net/10210/4833
- Description: M. Comm. , Globalisation in the banking sector is on the rise and South Africa is getting a fair share of the market. There are few studies that provide any guidance to managers faced with this option. The primary objective of this research is to investigate inward FDI from China into the South African banking sector. This objective is based on the ICBC and Standard Bank partnership.
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- Authors: Appavoo, Dhanesvarin
- Date: 2012-06-04
- Subjects: Banks and banking , Foreign investments , Chinese investments , Foreign direct investments
- Type: Thesis
- Identifier: uj:2378 , http://hdl.handle.net/10210/4833
- Description: M. Comm. , Globalisation in the banking sector is on the rise and South Africa is getting a fair share of the market. There are few studies that provide any guidance to managers faced with this option. The primary objective of this research is to investigate inward FDI from China into the South African banking sector. This objective is based on the ICBC and Standard Bank partnership.
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Infrastructure development in Africa : eradicating stumbling blocks to maximizing investment potentials
- Musonda, Innocent, Okoro, Chioma Sylvia, Mwanaumo, Erastus Mishengu
- Authors: Musonda, Innocent , Okoro, Chioma Sylvia , Mwanaumo, Erastus Mishengu
- Date: 2017
- Subjects: Africa , Development , Foreign investments
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/241663 , uj:24909 , Citation: Musonda, I., Okoro, C.S. & Mwanaumo, E.M. 2017. Infrastructure development in Africa : eradicating stumbling blocks to maximizing investment potentials.
- Description: Abstract: Infrastructure encompasses a wide range of inputs, industries and structural elements (including water, roads, sanitation, energy, telecommunication, schools and health services) which facilitate the flow of goods and services and as such, are an indispensable mainstay in many economies. Despite the undeniable function of infrastructure, its development and investment in Africa has been stagnant for decades. The reasons for this disquieting situation have been contemplated and solutions have been advocated or proffered in many studies. However, the problem persists.
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- Authors: Musonda, Innocent , Okoro, Chioma Sylvia , Mwanaumo, Erastus Mishengu
- Date: 2017
- Subjects: Africa , Development , Foreign investments
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/241663 , uj:24909 , Citation: Musonda, I., Okoro, C.S. & Mwanaumo, E.M. 2017. Infrastructure development in Africa : eradicating stumbling blocks to maximizing investment potentials.
- Description: Abstract: Infrastructure encompasses a wide range of inputs, industries and structural elements (including water, roads, sanitation, energy, telecommunication, schools and health services) which facilitate the flow of goods and services and as such, are an indispensable mainstay in many economies. Despite the undeniable function of infrastructure, its development and investment in Africa has been stagnant for decades. The reasons for this disquieting situation have been contemplated and solutions have been advocated or proffered in many studies. However, the problem persists.
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Revisiting three political risk forecast models: an empirical test
- Authors: Nel, Danielle
- Date: 2009-05-19T06:52:53Z
- Subjects: Country risk evaluation , Foreign investments
- Type: Thesis
- Identifier: uj:8390 , http://hdl.handle.net/10210/2555
- Description: M.A. , The discipline of political risk analysis has often been criticised as a ‘soft science’. As the title of this study suggest, the major challenge of this study is set out to provide an empirical analysis of political risk and to prove that political risk can indeed be measured. The aim of this study is to provide an empirical analysis of political risk by testing the reliability of current risk assessment approaches to accurately forecast political risk. There have not been many attempts to test the reliability of political risk assessment models. However, Howell & Chaddick (1994) tested the reliability of three (EIU, PRS and BERI) political risk assessment models to accurately forecast risk projections in the period 1982-1994. This study will revisit the test done by Howell & Chaddick (1994) in order to determine the reliability of three forecast models. In order for forecasts to be reliable, forecasts must be justified and defended by applying practical logic. Practical logic implies that theory be tested against real world experience. Hence, a reliable analysis will require that actual losses be tested against theory. Therefore, in addressing the connection between theory and actual losses, this study will correlate losses incurred in the period 1994- 2004 with theory. Due to the nominal nature of the concept political risk, there has been a lack of consensus in the field on what constitute political risk. This study will provide a conceptual clarification of political risk. A brief discussion of the underlying theoretical background in political risk is required in order to understand the concept of political risk and terms thereof. Hence, this study will establish a theoretical base of political risk analysis. This study argue that low political risk encourage foreign direct investment. The relationship between political risk and foreign direct investment will be analysed in this study. It is hoped that in light of this study’s findings, a case can be putt III forth that multi-national corporations can use political risk analysis to minimise exposure to losses and as an extension of political risk analysis, multi-national corporations can use political risk insurance to hedge against political risks. The outcomes of this study aim to prove that political risk can be empirically tested and measured and that the analysis of political risk is essential to successfully manage political risks.
- Full Text:
- Authors: Nel, Danielle
- Date: 2009-05-19T06:52:53Z
- Subjects: Country risk evaluation , Foreign investments
- Type: Thesis
- Identifier: uj:8390 , http://hdl.handle.net/10210/2555
- Description: M.A. , The discipline of political risk analysis has often been criticised as a ‘soft science’. As the title of this study suggest, the major challenge of this study is set out to provide an empirical analysis of political risk and to prove that political risk can indeed be measured. The aim of this study is to provide an empirical analysis of political risk by testing the reliability of current risk assessment approaches to accurately forecast political risk. There have not been many attempts to test the reliability of political risk assessment models. However, Howell & Chaddick (1994) tested the reliability of three (EIU, PRS and BERI) political risk assessment models to accurately forecast risk projections in the period 1982-1994. This study will revisit the test done by Howell & Chaddick (1994) in order to determine the reliability of three forecast models. In order for forecasts to be reliable, forecasts must be justified and defended by applying practical logic. Practical logic implies that theory be tested against real world experience. Hence, a reliable analysis will require that actual losses be tested against theory. Therefore, in addressing the connection between theory and actual losses, this study will correlate losses incurred in the period 1994- 2004 with theory. Due to the nominal nature of the concept political risk, there has been a lack of consensus in the field on what constitute political risk. This study will provide a conceptual clarification of political risk. A brief discussion of the underlying theoretical background in political risk is required in order to understand the concept of political risk and terms thereof. Hence, this study will establish a theoretical base of political risk analysis. This study argue that low political risk encourage foreign direct investment. The relationship between political risk and foreign direct investment will be analysed in this study. It is hoped that in light of this study’s findings, a case can be putt III forth that multi-national corporations can use political risk analysis to minimise exposure to losses and as an extension of political risk analysis, multi-national corporations can use political risk insurance to hedge against political risks. The outcomes of this study aim to prove that political risk can be empirically tested and measured and that the analysis of political risk is essential to successfully manage political risks.
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The role of foreign direct investment in regional economic integration
- Authors: De Beer, Frans Alwyn
- Date: 2010-11-09T06:18:38Z
- Subjects: Foreign investments , Economic development , Commercial treaties
- Type: Thesis
- Identifier: uj:6951 , http://hdl.handle.net/10210/3460
- Description: M.Comm. , This mini dissertation is a literature review that deals with trade liberalisation in the form of Regional Trade Agreements. It focuses on the importance of FDI for economic growth of developing countries. This study investigates ‘new regionalism’ critically. New regionalism suggests that economic growth may be possible if developing countries form trading blocs, which partner with a larger economy and engage in policy reforms aimed at attracting FDI. The study concludes that a trading bloc may possibly attract FDI and create export and growth opportunities. However, the developing countries should be able to manage all aspects associated with REI. These aspects include the negative effects of trade diversion, the impact of adjustment costs, and the administrative requirements of managing RoO in the landscape of highly proliferated RTAs. In addition, FDI will only result in the required growth if the developing economy is able to absorb and assimilate the new technologies and production methods FDI is expected to bring to its shores. Moreover, the FDI should be targeted so as to develop industries of comparative advantage. In order to absorb these benefits a high level of skilled labour is required as well as support structures to assist with training and development of the labour force. In addition, new rules under the WTO is restrictive in the latitude it allows developing countries to assimilate the production methods and technologies of MNCs. The research concludes that careful planning and policy development is required prior to REI if it is to have a hope of succeeding in its goals.
- Full Text:
- Authors: De Beer, Frans Alwyn
- Date: 2010-11-09T06:18:38Z
- Subjects: Foreign investments , Economic development , Commercial treaties
- Type: Thesis
- Identifier: uj:6951 , http://hdl.handle.net/10210/3460
- Description: M.Comm. , This mini dissertation is a literature review that deals with trade liberalisation in the form of Regional Trade Agreements. It focuses on the importance of FDI for economic growth of developing countries. This study investigates ‘new regionalism’ critically. New regionalism suggests that economic growth may be possible if developing countries form trading blocs, which partner with a larger economy and engage in policy reforms aimed at attracting FDI. The study concludes that a trading bloc may possibly attract FDI and create export and growth opportunities. However, the developing countries should be able to manage all aspects associated with REI. These aspects include the negative effects of trade diversion, the impact of adjustment costs, and the administrative requirements of managing RoO in the landscape of highly proliferated RTAs. In addition, FDI will only result in the required growth if the developing economy is able to absorb and assimilate the new technologies and production methods FDI is expected to bring to its shores. Moreover, the FDI should be targeted so as to develop industries of comparative advantage. In order to absorb these benefits a high level of skilled labour is required as well as support structures to assist with training and development of the labour force. In addition, new rules under the WTO is restrictive in the latitude it allows developing countries to assimilate the production methods and technologies of MNCs. The research concludes that careful planning and policy development is required prior to REI if it is to have a hope of succeeding in its goals.
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