Measuring the effect of the National Credit Act on indebtedness in South Africa

South Africa continues to exhibit high levels of debt-to-disposable income along with a high number of impaired credit records. The National Credit Act No. 34 of 2005 (NCA) was established in order to address these high levels. This study expands the limited research by investigating the NCA’s ability to reduce levels of over-indebtedness. The study employed quarterly data (2001-2013) in an OLS regression model in order to establish the determinants of over-indebtedness and assess the impact of the NCA. It was found that the macro-economic variables GDP, prime rate, property prices, consumer consumption expenditure, debt-to-disposable income and the level of unemployment were major contributors to the level of over-indebtedness. The NCA proved to have a positive significant effect on the levels of over-indebtedness, indicating that the NCA had not succeeded in its purpose of reducing the vulnerability of consumers to becoming over-indebted. The results suggest that the affordability assessment of the NCA must be improved in order to conduct a form of credit stress testing on consumers during their application for credit

Towards sustainability of real estate development : an integrative review of smart city planning considerations

Abstract: With the ever-increasing urban sprawl in African cities, more attention should be paid to the provision of real estate infrastructure to cater for the population. Ways to harness Africa’s possibilities and leverage the opportunities available in the fourth industrial revolution, to diminish housing infrastructure backlogs, warrant consideration. The current study therefore aims to identify the factors that influence the sustainability of real estate developments in recent times, with attention to the planning considerations. An integrative review was conducted with literature from databases including Scopus, Google, Google Scholar, Publish or Perish, Academic Search Complete and Emerald. Synthesis was undertaken using thematic content analysis to identify themes on the factors influencing real estate developments and its sustainability. The distillation of literature revealed that institutional and economic factors were considered the most important factors, while developer’s attitude and socio-cultural factors were the least occurring among the sampled literature. By establishing these factors, the current study provides important information for housing and construction stakeholders to be informed and guided in the planning and implementation of real estate development policies in order to provide for and sustain the needs of the current population and future generations given the need for smart cities

An empirical analysis of South African bank profitability

Abstract: The banking sector fulfils a fundamental role within the economy of a country. In South Africa, this sector contributes in excess of 20 percent toward GDP, and is responsible for more than 10 percent of overall employment in the country. This study empirically investigates the most significant determinants of South African bank profitability by examining bank-specific internal and macroeconomic external factors under a panel regression framework. The four largest commercial banks in South Africa as well as South Africa’s largest alternative banking institution were examined between 2006 and 2015. Based on the results obtained, this study concludes that both bank-specific internal as well as macroeconomic external variables are statistically significant determinants of South African bank profitability. The variables of asset quality, capital strength, operational efficiency, economic activity (GDP), annual inflation and the real interest rate were found to be statistically significant. Capital strength, economic activity (GDP), annual inflation and the real interest rate respectively displayed positive relationships to bank profitability, whereas asset quality and operational efficiency displayed inverse relationships to bank profitability

Factors influencing performance and value of alternative investments: a distillation of literature on agricultural and game property

Abstract : Alternative investments including real estate project, and especially non-conventional investments such as agricultural and game lands are fraught with management risks, which if not taken cognizance of, might threaten their value in the long run. The study aimed to identify critical factors, which influence the value and sustainability of such estates and thus should be considered in valuations of such property. A distillation of information from extant studies was undertaken to identify the factors which contribute to the performance and thus value and profitability of agricultural and game estates. Content analysis was used to analyse the findings. The findings indicated that financial outlay and flow, regulations and policies, government incentives, personal zeal, and management efficiency, land prices, currency fluctuations, and climatic elements (rainfall, drought) were important value considerations for agricultural properties. By identifying these factors, more effort can be made to incorporate them in valuations of such properties. In addition, strategies to ensure that the value and benefits thereof, of such “alternative investments” are sustained in the long run, will be informed