Browsing by Author "Simatele, Munacinga"

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    Formal and informal finance and its effects on poverty in South Africa
    (University of Fort Hare, 2023-10-30) Mjacu, Lwando; Simatele, Munacinga
    The thesis focuses on formal and informal finance, and its effect on household poverty in South Africa by using primary data and secondary data. It seeks to examine the joint effect of formal and informal finance use on household poverty in South Africa. This study adopts a mixed-methods approach in the form of exploratory sequential approach. This study was done in two stages. Firstly, interviews were conducted in three municipalities from the Eastern Cape Province. During the second stage, the quantitative research was conducted, using Finscope data for all provinces covering 2013 to 2016. To analyse qualitative data the thematic analysis used and multinomial regressions were used to analyse quantitative data. The study discovered that households from the Eastern Cape municipalities use both formal and informal finance for precautionary motives, future consumption motives, and speculative motives, to meet basic needs, to save and invest, to access credit so that they can escape the trap of poverty. In addition, the study findings show that saving in both formal finance institutions and informal finance mechanism is important in spurring poverty reduction in South Africa. The study further found that credit from both formal finance institutions and informal finance mechanism is important but does not spur poverty reduction in South Africa. The study suggests that the financial institution should implement policies and schemes that encourages households to save. These policies and schemes should aim at providing an enabling environment for savings to provide financial services that are readily available and affordable to the public in order to benefit from the desired poverty reduction effect of finance.
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    Private Financing for Infrastructural Development: A Search for Determinants in Public–Private Partnerships in SSA
    (Acta Universitatis Danubius, 2021) Chikaza, Zakaria ; Simatele, Munacinga
    Understanding the determinants of Public-Private Partnerships remains a priority for policy makers in sub-Saharan Africa as leveraging on private sector resources and expertise to deliver public infrastructure projects is gaining appeal. However, due to uncertainty and ambiguity surrounding empirical approaches to private sector investments, public-private partnerships determinants in the region are still poorly understood. The study applies Extreme Bounds Analysis and Logit regressions to identify critical determinants of public-private partnerships using unbalanced panel data covering 40 sub-Saharan African countries from 1995 to 2020. Regression results identify five key variables (Regulatory Quality, Population, Gross Domestic Product, Foreign Direct Investment, and Government Spending) as positive significant determinants of infrastructure investments flows in sub-Saharan Africa. The implications of these results indicate ardent need for sub-Saharan African countries to promote prudent policies around these key drivers to promote private sector investments in the region.