Browsing by Author "Chasomeris, Mihalis Georgiou."

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Agriculture and local economic development : a case study of the uMshwathi Local Municipality.
(2013) Ariatti, Claudia Ada.; Chasomeris, Mihalis Georgiou.
Local economic development (LED) is a process encompassing the mobilisation of resources for competitive advantage by locally-owned or managed courses of action, identified through participation and social dialogue, in a strategically defined territory. Local economic development based on sound economic and business principles can contribute to economic growth, job creation and poverty alleviation. Government policy has accorded prominence to agriculture. LED in South Africa is mandated to local municipalities and a challenge is to identify LED strategies that combine a pro-growth (market-led), with a pro-poor (market-critical) dimension. The present study reviews the literature on local economic development and analyses mainly secondary data in the case study on the Local Municipality of uMshwathi (District Municipality of uMgungundlovu, KwaZulu-Natal). Theories are applied and tested in the case study and the research objectives focus on the development, implementation and growth of all-inclusive job creation LED strategies in uMshwathi, using local resources and skills, able to generate partnerships and respond to changing circumstances. uMshwathi residents suffer from unemployment, poor functional literacy and poverty. The potential role of agriculture in the acceleration of local economic development in uMshwathi is confirmed. A grand strategy and functional strategies are proposed. Agricultural land is of a high potential and smallholder and organic farming are practicable. Findings show the presence of locational development-inducing factors. LED suffers from the Municipality‘s lack of capacity and there is uncertainty between social and economic policy objectives. There is no provincial strategy in place to use the Dube TradePort Corporation as a platform for targeted economic development of the agricultural sector. The Ingonyama Trust and associated land issues need to be urgently addressed. Horizontal and vertical cooperation and coordination between stakeholders is essential. Professional LED practitioners should be employed in all LED Units. The establishment of an Agricultural Forum in uMshwathi, and an LED Agency in the uMgungundlovu District, is recommended. Networks must be established with Agricultural Unions and significant stakeholders. The implementation of a strategy for agriculture development with a focus on exporting through the Dube TradePort Corporation is deemed necessary.
An analyses of fresh produce market trends in KwaZulu-Natal to enhance decision making.
(2018) Mazibuko, Sylvia Zodwa.; Chasomeris, Mihalis Georgiou.
A lack of access to market information remains one of the key contributors to higher costs of transacting that are faced by small-scale farmers in South Africa. Access and participation in formal agricultural markets remains low amongst this group of farmers, despite government’s investment in marketing infrastructure through establishment and refurbishment of national fresh produce markets in various regions of the country. There are two national fresh produce markets located in the KwaZulu-Natal province, these are the Pietermaritzburg fresh produce market and the Durban fresh produce market. The aim of this study was to analyze trends in KwaZulu-Natal Fresh Produce Markets (KZN FPMs) over the period of five years from 2012 to 2016. From these trends the study will calculate and present simple price elasticity of supply for both fruits and vegetables traded in these markets. This research will also propose ways in which the quarterly fresh produce market bulletins that are produced and published by the KwaZulu-Natal Department of Agriculture and Rural Development (KZN DARD) can be improved in both content and ways of distribution of information. This research used a quantitative approach for data analysis, utilizing descriptive statistics on fresh produce market volumes and price records that are obtainable from the KZN Department of Agriculture and Rural Development on a monthly basis. Descriptive statistics provided trends for the markets’ data and the annual price elasticity of supply for the top five traded fruits and vegetables for both markets was calculated for the five year period 2012 to 2016. The results show that vegetables in both markets are largely price inelastic except for tomatoes which were price elastic with respect to supply. Majority of the top five traded fruits in both markets also show price inelasticity of supply except for apples and pears in the Durban market and organs and peaches in the Pietermaritzburg market which were estimated to be price elastic. The recommendation from the study is that the KZN Department of Agriculture and Rural Development can enhance its market information services by including the calculated price elasticities of supply in their quarterly fresh produce market information bulletins. It is further recommended that the department of agriculture considers other means of market information distribution such as using information and communication technology tools like cellular phones and visual media.
An analysis of annual integrated reports to determine the corporate objective of companies focused on the apparel retail sector in South Africa.
(2017) Ramautar, Neeraj.; Chasomeris, Mihalis Georgiou.
The purpose of this study is to analyse the annual reports of companies in the apparel retail sector to determine their corporate objective and examine profitability. The corporate objective is determined using content analysis. The study focuses on three dominant economic models namely; the shareholder value model, the stakeholder model and the entity maximization and sustainability models. The study then examines the profitability of the companies using profitability ratios. There are three distinct stages to this study. The first stage of the study begins by examining existing literature on the shareholder value model, the stakeholder model and the entity maximization and sustainability model with the purpose of being able to identify themes and major identifiers of each model. The next stage of the study then attempts to best fit the established models using content analysis of the company’s annual integrated reports. The study uses reports over a five year timespan (2012-2016). Over these five years both financial and non-financial aspects of the annual integrated reports were studied. The companies selected include Truworths Int. Ltd, Mr Price Group Ltd, The Foschini Group Ltd and Holdsport Ltd. All the selected companies are listed on the JSE and therefore are required to conform to the strict reporting requirements determined by the stock exchange. Finally the study uses the financial statements to examine the profitability of the companies selected using various profitability ratios. The study then concludes by determining which model performs best based on the financial ratios examined in the final stage of analysis. The content analysis revealed that the dominant model in the apparel retail sector was the entity maximisation and sustainability model. However, the companies in the apparel retail sector all followed different variants of the model, Truworths focussed on the employee, Holdsport on shareholders with a differentiation strategy, Mr Price on shareholders with a low cost strategy and Foschini on the customer. The profitability ratio analyses revealed that Truworths performed the best followed in second place by Mr Price. In third position was Holdsport and Foschini was in fourth position. Therefore it was concluded that, over the period from 2012 to 2016, the Truworths entity maximisation and sustainability model with a focus on employees performed the best.
An analysis of financial statements to determine the primary purpose of JSE listed companies in the food and drug retail sector.
(2015) Gregory, Vanessa Margaret.; Chasomeris, Mihalis Georgiou.
The overall purpose of the study is to analyse financial statements to determine the primary purpose of JSE listed companies in the food and drug retail sector. There were three parts to the analyses. First, the study examines the literature on the three models, namely: neoclassical, conscious capitalism and entity maximization and sustainability in order to identify themes or major identifiers of each model. Second, it analyses the financial statements (over five years from 2010 to 2014) of JSE listed companies in the food and drug retail sector, in particular the non-financial information. The entire population was analysed as there were only four in the population, namely SPAR, Pick n Pay, Shoprite and Clicks. Annual integrated reports and sustainability reports (where separately published) were analysed using content analyses. Keywords and themes were used to link the attributes of the company to the attributes identified in the literature to determine the model the company used. Finally, ratio analyses are used to compare and contrast the results of these companies to observe which company produced the most profitable result over the five year period and to ascertain if a particular model is observed as being associated with a higher profitability than another. The content analyses showed that the dominant model was the entity maximisation and sustainability model, however, each company appears to have chosen to focus on a different stakeholder, SPAR on employees, Pick n Pay on customers (with a differentiation strategy), Shoprite on customers (with a low cost strategy) and Clicks on shareholders. The ratio analyses showed that Clicks performed the best and Pick n Pay the worst over the period from 2010 to 2014. Shoprite and SPAR alternated mostly between second and third position, however by looking at the ranking of each ratio, it appears that Shoprite was showing greater profitability than SPAR. Therefore it was concluded that, over the period from 2010 to 2014, an entity maximisation and sustainability model with a focus on shareholders was observed as being associated with higher profitability.
An analysis of perspectives on inflation targeting in South Africa.
(2009) Ndaba, Vukani Patrick.; Chasomeris, Mihalis Georgiou.
This study analyses various perspectives on inflation targeting as a monetary policy framework in South Africa. The study uses semi-structured interviews with participants who represent the perspectives of trade unions, SARB, and academics amongst others. All the interviews were recorded on audio tape to ensure accuracy and effective data collection. The interviews of all participants were analyzed to establish degrees of similarities and differences amongst them. The study also looks at the relationship between inflation and interest rates. The use of interest rates as a tool to curb inflation is also discussed, as is the effect of the exchange rate on inflation. The Philips Curve Theory and the Fisher Hypothesis provide empirical evidence to support inflation targeting. Moreover, the perspective raised by the ANC Alliance partners were that an inflation band of 3% - 6% is too narrow, too low and hampers economic growth. Then Analysis suggests a significant policy shift away from inflation targeting after the 2009 elections, as a result of dissatisfaction from the Alliance partners of the ruling party. The main objective of this study is to solicit perspectives on inflation targeting from various political parties, trade unions, businesses, the SARB and academics, as well as investigate case studies from other countries. An underlying task of this study is to predict what South Africans should expect from a Zuma Government with regard to monetary policy.
An approach for developing an optimal rates policy : a case study of KwaDukuza municipality.
(2019) De Wet, Dianne Beatrice.; Chasomeris, Mihalis Georgiou.
Levying a rate on property is incumbent upon Municipalities who have a Constitutional responsibility for providing services to and creating opportunities within their communities. There is a statutory obligation upon a municipality to develop and annually review a rates policy, which will inform its annual budget. Not all municipalities have the human resources to develop such budgets and policies and rely on consultants to assist. The study was based on a rates modelling tool that could assist where these resources were limited, as private consultants would not have to be appointed to assist in the drafting of a municipality’s budget and policies. Three research objectives were developed to guide the study in identifying the most appropriated category of properties to be included in a valuation roll, to develop appropriate criteria for rebates and exemptions, based on categories of owners and determining the most appropriate rate randage to be applied to the various categories of property in the calculation of rates. The study was located in KwaDukuza Municipality with the rates policies of eThekwini, Umdoni and Ray Nkonyeni Municipalities being applied to KwaDukuza Municipalities valuation roll. A descriptive quantitative approach was utilised in this study. The model results for each policy were analysed and compared in order to reach a conclusion. It became apparent that a “one size fits all” approach to a rates policy cannot be used as each municipality has differing demographics, economies and industry which influences the approach to take with a rates policy. However, there are certain categories of property that can enhance revenue without negatively impacting on the affordability and commerce within a municipal region. There is a balance required between optimal income to encourage development within a region and the relief that should be made available to vulnerable members of the community.
Articulating South Africa’s port doctrine for a democratic developmental state.
(2019) Meyiwa, Ayanda.; Chasomeris, Mihalis Georgiou.
South Africa lacks a concise paradigm for port governance. This results in a number of challenges including lack of cost-based pricing for port services, retrogressive cross-subsidization, inequitable cost allocation to user groups, siphoning profits from ports to other loss-making divisions of the transport conglomerate; Transnet’s anticompetitive practices; the port authority’s disregard for the legislative demand to corporatize and poor port performance relative to the premium tariffs charged which compromises South African ports’ global competitiveness. These challenges cannot be satisfactorily addressed without interrogating the socio-political context within which pricing decisions, tariff structuring and port investment is done and questioning the philosophy informing these – the port doctrine. With South Africa professing to be a democratic developmental state, there is no divorcing her political dynamics from government’s strategic intervention in the ports sector. The socio-political demands and economic and trade objectives framing the entire macroeconomic strategy have, therefore, to filter down into the ports sector. This is a PhD by publication with four objectives, addressed through four papers. The study’s overall objective is to ex-ante articulate a South African port doctrine that translates her developmental state policies into a doctrine that addresses pricing methodology, tariff structure and port governance challenges. This study makes prescriptions that account for both historical context from which port governance emerged and the political convictions of the present and economic aspirations of the future, all within the paradigm of a democratic developmental state. Content analysis and document analysis through NVivo 11 Pro® are used to analyze data from secondary sources. It assesses comments from various port stakeholders concerning the Revenue Required tariff methodology, tariff structure and the evolutionary changes made to these through the consultative regulatory process facilitated by the Ports Regulator of South Africa. This study articulates South Africa’s own port doctrine. The doctrine aligns macroeconomic strategic intents with port policies and provides a framework for constructing port policy henceforth, gleaning lessons from some East-Asian states. The proposed doctrine presents a different approach to tariff methodology, tariff structure and port investment. Lastly, it proposes a port devolution strategy to achieve increased local private enterprise participation in ports.
Assessing measures to improve South Africa's port doctrine : pricing and governance reform.
(2015) Meyiwa, Ayanda.; Chasomeris, Mihalis Georgiou.
South Africa’s ports sector does not have a clearly defined port doctrine and has some elements resembling the Anglo-Saxon doctrine, other elements the Continental doctrine and others still the Asian port doctrine. This leads to South Africa battling with conflicting objectives for its ports and it has, for decades, run a complementary system of ports where costs incurred were not reflected by the prices charged for different services and the revenues and costs allocated to various commodity types have remained largely unjustified. All of this is against the backdrop of intra-port, inter-port and multimodal cross subsidization which found justification in developmental objectives of the country during its tenure but has lately been viewed as unjustifiable with regard to the prevailing macroeconomic objectives and policies; giving rise to many dissatisfactions submitted by various port stakeholders regarding Transnet and TNPA’s practices that have not been adequately addressed. This study assesses measures to improve South Africa’s port doctrine, governance and pricing reforms. Content analysis was used to assess 18 various stakeholders’ submissions regarding the 2013-2014 TNPA tariff increase application, 15 stakeholders’ submissions regarding the multi-year tariff application for the tariff years 2013/14-2014/15 and 16 further submissions regarding the 2014-2015 tariff increase application were analysed. The Required Revenue (RR) methodology was recalculated using the recommendations from stakeholder submissions. Recommendations regarding the tariff methodology, tariff structure and port governance for the improvement of South Africa’s port doctrine were made. After recalculating the RR model it was found that an MRP of 4.9, inclusion of a debt beta and a gearing of 36% may contribute to reasonable tariff increase at 3.96% for 2014-2015. Also the allocation of more costs to shipping lines and less to cargo owners is achievable without compromising the profitability of TNPA. Regarding port governance, the Asian port doctrine aligns well with the country’s developmental objectives which means adherence to it would be beneficial and it should be granted until all South Africa’s ports reach a level where they can stand as good competitors in the global environment with regard to pricing and tariff structure. TNPA is in need of reform according to Section 27 of the National Ports Act which puts forward that TNPA should be corporatized. Corporatization is recommended as the next step after the Asian port doctrine phase has run its course and fulfilled government’s developmental objectives with respect to ports.
Assessing stakeholders' perspectives on maritime port pricing in South Africa.
(2012) Gumede, Sanele Aubrey.; Chasomeris, Mihalis Georgiou.
The South African government has recognised the importance of promoting efficient and effective transport as well as the strategic role of maritime ports in the logistics chain. This study critically assesses stakeholders’ perspectives on maritime port pricing in South Africa. More specifically, the study analyses the annual Transnet National Ports Authority (TNPA) tariff application, the stakeholders’ submissions, as well as the Ports Regulator’s record of decisions for 2010/11, 2011/12 and 2012/13 tariff years. The study uses content analysis to analyse the three TNPA tariff applications, 48 stakeholders’ comments/submissions and three Ports Regulator’s records of decisions. The study gathers data on port pricing from 1999 to 2012 and uses descriptive statistics to analyse the trends in port pricing. The stakeholders’ perspectives are contrasted and compared with the three port doctrines identified in the literature, namely, the Anglo-Saxon, the European and the Asian doctrine. The findings show that South Africa’s complementary system of ports and uniform pricing policy is distinct. The content analysis found the following issues: ports stakeholders criticise TNPA for abusing its monopoly power; hindering global competitiveness; not taking cognisance of the state of the country’s economy; charging price increases which are higher than inflation; creating an environment which does not support job creation; being inconsistent and non-compliant with the national policies; not applying cost-based pricing principles; not having a justifiable pricing methodology; low productivity and inefficiency; inconsistent and unreasonable pricing of products; poor service delivery and poor port security. TNPA currently cannot achieve its stated objectives. South Africa has elements of all three contesting port doctrines. The clash in port doctrines is a source of misunderstanding and contention. The ports are financed and managed using a mix of elements from the European and Asian doctrines, whereas the pricing methodology appears to be following the Anglo-Saxon doctrine. The Ports Regulator of South Africa has the potential to deal with the stakeholders concerns, however, this authority needs to be strengthened. South Africa needs to develop a port doctrine that will be consistent with the country’s vision and policies.
China's exchange rate regime : 1994 to 2008.
(2009) Liu, Jian Xia.; Chasomeris, Mihalis Georgiou.
The value of the RMB, China's currency has become a contentious issue. China's RMB exchange rate regime has moved from a fixed exchange rate before July 2005, to a managed floating change rate regime. There has been external pressure on China to agree to the RMB's appreciation to the US dollar. There is a common view that the RMB is considerably undervalued at this moment, with some quarrelling that this is an issue of global concern. This study has two objectives. First, to review and critically comment on China's exchange rate regime over the period 1994 to 2008. Second, to review and critically comment on whether the RMB was undervalued over the period 1994 to 2008. This study shows that the evidence is mixed. The popular Big Mac Index shows that the RMB was significantly undervalued from 1994 to 2008. In contrast, this study reviewed research that provides evidence for alternative perspectives on the valuation of RMB.
A comparative study on the use of country’s import CIF/FOB ratios to measure international transport costs.
(2015) Anieto, Anthony Francis Tochukwu.; Chasomeris, Mihalis Georgiou.
This study examines the use of a country’s import cif/fob ratios (import ad valorem shipping costs) as a measure for international transport costs. The study seeks to source, compile, calculate and compare the country cif/fob ratios for South Africa, the United States of America, Germany, Venezuela, and Australia from the year 1980 to 2012. The study seeks to establish whether there is a relationship between a country’s import cif/fob ratio and a country’s composition of imports, as measured by the standard international trade classification (SITC) data. Empirical evidence is provided that the cif/fob ratios, are frequently misused, incorrectly recorded and miscalculated. They are therefore not reliable and they misrepresent the actual direct shipping and international transport costs of countries. The import cif/fob ratios of each country studied were correlated with each country’s composition of imports. The results for the United States of America, Germany and Australia show that when a country’s trade data are correct and reliable, a country’s imports composition of trade has a substantial and statistically significant effect on the level and variation of that country’s imports cif/fob ratios. Hence, the ratio cannot be relied on or be used as a measure of a country’s direct shipping costs (ad valorem shipping costs) without the context of the country’s imports composition. Furthermore, the results for South Africa and Venezuela show that import cif/fob ratios are inaccurate and unreliable indicators of shipping costs and should not be used as a direct measure of international transport costs.
A content analysis of financial statements to determine the primary purpose of JSE listed companies in the mobile telecommunications sector.
(2019) Naicker, Yash.; Chasomeris, Mihalis Georgiou.
This study analyses the listed companies in the mobile telecommunications sector of the JSE, with the intention of determining their primary purpose. The study explores the literature of the three economic models, namely the neoclassical theory, Conscious Capitalism and the entity maximisation and sustainability models. This is vital as the major identifiers and themes of each model need to be compared and contrasted with each other in order to determine the differences between the models. The next stage is to match the economic models with the companies in the study using a content analysis of each company’s annual integrated reports. The annual integrated reports, the annual financial statements and the sustainability reports (where separately disclosed) were analysed over a five-year period from 2013 to 2017. The companies in the study are Blue Label Telecoms, The Huge Group, MTN and Vodacom. The selected companies are listed on the JSE in the mobile telecommunications sector and have to adhere to the strict reporting requirements of the JSE. The study then uses financial ratio analysis to determine the profitability of each company in the review. The study then concludes which company, using the economic model, performed the best over the five-year period. The content analysis determines the dominant model in the mobile telecommunications sector which happens to be the entity maximisation and sustainability model. Each company, though, has a different focus from the other. Blue focuses on shareholders and customers, the Huge Group on shareholders, MTN on its employees and Vodacom focused on its customers. The ratio analysis reveals that Vodacom had performed the best followed by MTN while Blue and Huge were tied for third place. Therefore, it can be concluded that the Vodacom entity maximisation and sustainability model with a focus on customers that Vodacom follows performs the best over the 2013 to 2017 period.
A cost-effectiveness analysis of stormwater management systems: Isipingo prospection.
(2019) Khuzwayo, Nqobile Thobeka Nkalipho.; Chasomeris, Mihalis Georgiou.
Flood mitigation measures have become a contentious challenge due to the lack of infrastructure to prevent them after the 10 October 2017 flash floods, which impacted the Isipingo and Umlazi area the hardest within the eThekwini Municipality. The storm which caused the damage were measured as a 1 in 100 year recurrence interval storm or greater, however eThekwini Municipality only caters for 1 in 3 year storms and 1 in 10 year storms at critical points. A capital injection would thus be required to cater for a 1 in 100 year recurrence interval storm amidst a precarious economic climate. The purpose of this study is to determine a cost effectiveness analysis of conventional stormwater management systems, Sustainable Urban Drainage Systems (SUDS) and an attenuation facilities based stormwater management system as alternative configurations for the Isipingo Prospection area. A cost effectiveness analysis will be deduced by means of a multi-criteria decision matrix which enables a holistic incorporation of environmental and social effectiveness of the stormwater management systems proposed instead of costs in isolation. In addition, this approach allows for sustainability and an objective inclusion of preservation of biodiversity, social wellness and comparison of alternatives without compromising the functionality of the stormwater management system. The results show that Sustainable Urban Drainage Systems is the most cost-effective due to the utility of green infrastructure as opposed to a high reliance on grey infrastructure, with a final weighted score of 4.12 and Bill of Quantities (BOQ) estimate of R2 119 047.50, which is highly influenced by the excellent performance in the costeffectiveness criteria. In addition, green infrastructure is able to incorporate environmental and social effectiveness and lower the costs required for mitigating a 1 in 100 year recurrence interval storm in the catchment studied. Conventional stormwater management systems received a final score of 2.22, which reflects the low cost and environmental effectiveness performance of 2.2 and 2 respectively. The BOQ estimate amounted to R5 188 921.33. Attenuation facilities based configuration was the least cost effective with a final score of 1.8, due mainly to the cost required for the underground concrete attenuation facility at a BOQ estimate value of R16 007 209.38. The utility of a multi-criteria decision matrix as a means of conducting a cost effectiveness analysis comes highly recommended by this study as an objective decision making tool for project managers. The alignment of existing strategies and policies requires the filtration to project managers to include green infrastructure to enable integration and sustainability.
A critical analysis of the international terms of shipment in dry-bulk exports from the Port of Richards Bay.
(2003) Lushnikov, Andrey.; Chasomeris, Mihalis Georgiou.
Approximately 98 % of South African exports are conveyed by sea. The volume of South Africa's sea trade represents approximately 3,5 percent of world seaborne trade in tonnage terms, a performance that placed the country on the map of international maritime nations. The major portion of South Africa's dry-bulk exports is shipped from the port of Richards Bay. Richards Bay is the seventh largest world port in terms of cargo volumes, and handles in excess of 80 million tons per annum. This represents approximately 57 % of all South African seaborne trade by volume. The greater portion of South African seaborne trade, especially on the export side consists of shipments of primary (raw) products or beneficiated primary products, and accounts for approximately 140 million tons of all cargoes. The export of primary products or commodities is a vital part of the South African economy and generates a substantial amount of the country's foreign exchange. This dissertation concludes that shipment on FOB terms continues to command the lion's share of all export consignments handled in the port. In fact from the more than 78 million tons of cargo covered in the survey, more than 64 million is shipped on FOB terms, which constitute in cargo volumes approximately 82% of all exported commodities from the Port of Richards Bay. The high incidence of shipments on FOB terms leaves the final arrangement of shipping in the hands of foreign buyers. This represents a substantial loss of revenue in invisible earnings for the country's service account of the balance of payments.
Esports: the consumers’ awareness levels of esports in South Africa.
(2020) Womack, Caleb Luis.; Chasomeris, Mihalis Georgiou.
Esports is a growing industry that has many misconceptions that create a lack of awareness and a negative perception of esports in South Africa. The study aims to examine the consumers’ awareness, knowledge, attitudes and perceptions of esport activities in South Africa and how these factors affect the esports businesses ability to attract the esport consumer. The target sample size of the population was 384 consumers. This study used a quantitative approach to gather data through a selfadministered online questionnaire that was developed using google forms, this enabled the responses to be recorded anonymously. Two hundred and one respondents responded to the questionnaire. The misconception of consumers not knowing about esports, was proven wrong due to consumers gaining knowledge mainly through online gaming communities. The awareness of esports amongst consumers were high, however the associations and organisations were not as well known. It was evident that 99.5% were aware of esports and 93.5% would classify esports as a sport. It is important for consumers to be aware of other associations as these associations help to ensure the level of esports is at a professional level and will enable them to identify which organizations are credible. The respondents’ attitudes attitude towards esports was positive and that they were not affected by external social factors towards the sport. The study revealed that advertising in the esports market is not as effective as it should be as consumers felt they were not as impactful as mainstream techniques. The study recommends the creation of awareness about esports to the greater populace via more traditional media to penetrate and correct the various social norms.
Evaluating the rate of return pricing methodology for ports in South Africa: a scenario analysis.
(2023) Mbele, Mondli Eugene.; Chasomeris, Mihalis Georgiou.
Port pricing plays a strategic role in the management of ports and port operations, and it is an important aspect that informs long-term port infrastructure investment plans and broader policy objectives. The South African government regards the maritime industry as a catalyst for economic growth and acknowledges the need to promote an efficient and effective transport system. However, port costs in South Africa are high by global standards and this has a negative impact on the country’s economic growth and port competitiveness. While port costs in South Africa have improved over the years, they remain elevated. Specifically, container cargo dues and the total port costs to users in container ports are above the global sample average by 166% and 146% respectively. Consequently, the Ports Regulator of South Africa aims to implement a tariff strategy that will decrease container cargo dues to 36% below the benchmarked average. The study mainly adopted a quantitative scenario methodology but has some elements of qualitative scenario methodology. This study will recalculate the National Ports Authority’s required revenue tariff application for 2023/24 using adjusted input components (i.e., the Regulatory Asset Base, Asset beta, Tax Rate, and Excessive Tariff Increase Margin Credit) informed by an evidence-based preliminary empirical and theoretical literature analysis. This will establish a sound theoretical foundation for each scenario and relies upon in-depth analysis. The recalculated required revenue tariff application for 2023/24 demonstrates that port tariffs could be reduced significantly. That is, scenarios 1 and 2 show that tariffs could increase at a slower rate which is below the upper inflation target band of 6%. Furthermore, scenario 3 shows that port tariffs could decrease by 10,4%, while scenario 4 shows that port tariffs could decrease to 2,4%. The study shows that there is scope to reduce South Africa’s port tariffs by improving the accuracy of the components of the revenue required model, thereby fostering South Africa’s trade competitiveness, and stimulating economic development in South Africa.
An evaluation of the impact of the Durban International Convention Centre on the economy.
(2018) Govender, Marlene.; Chasomeris, Mihalis Georgiou.
Business tourism is key to encouraging, cultivating and constructing enabling environments for job creation and skills development ecosystem. The Durban International Convention Centre (Durban ICC) was built as a stimulus in August 1997 to enhance these key enablers. The aim of this study revolved around two research objectives: first to compile from annual reports the data on the economic effect of the Durban ICC from 2006/7 to 2016/17, and second, to analyse the economic impact of the Durban ICC on the national and local economy over the 11- year period. A comprehensive literature review was conducted using various sources. The study provided a context for the Durban ICC within the business tourism landscape as well as insight into stakeholders involved and economic assessment methods used for economic assessment evaluations. From the literature review, approaches and indicators were identified to measure economic performance. The financial data compiled from the annual reports used the quantitative techniques and economic indicators like contribution to South Africa's GDP, KwaZulu-Natal's GGP, indirect household income, net foreign exchange earnings, tax revenue generated, total delegate and visitor days and jobs created (direct and indirect). The data was analysed using descriptive statistics and trend analysis to ascertain the impact on the economy and potential opportunities emerging. The results from this review indicate that whilst the Durban ICC has made a significant impact on the economy of KwaZulu-Natal (KZN) and South Africa, there is further opportunity for robust strategic planning and stakeholder collaboration to leverage opportunity. The existing instability, insecurity, intricacy and uncertainty of the international MICE environment requires that the Durban ICC concentrate on innovation with an entrepreneurial approach to acquiring different techniques with varying mind-sets in place regarding prices, behaviours and skillsets to enterprise outcomes, aggressive benefit and long-standing sustainability. Improvement stratagems should be co-created with the public and private sectors to realise maintainable all-encompassing economic advancement and growth for South Africans. These must be devised on grounded multi-sectoral facilitating strategies drawing on evidence-based strategies from prosperous nations to directly affect the business tourism ecosystem and benefit local communities, societies and economies.
Examining causes for cost overruns in projects at Transnet Port Terminals.
(2019) Mavuso, Sifiso Sibusiso.; Chasomeris, Mihalis Georgiou.
Cost overruns in projects is a problem worldwide. Many State Owned Enterprises fail to complete projects within the allocated time and budget. Cost overruns have severe consequences for organisations, tax payers and the economy. Transnet Port Terminals is no exception to this problem. It incurs millions of rand annually on project cost overruns. The aim of this study is to quantify the project cost overruns for TPT, incurred during the 2015/16 to 2018/19 financial years (FY) and to examine the causes of the cost overruns. Secondary data from the TPT Projects Repository and project reports like business cases, minutes, and resolutions are analysed using thematic analysis and descriptive statistics. Fifteen interviews conducted with Project Managers, Business Case Writers, Planners, Engineers and Financial Managers provide practitioner insights on the causes of cost overruns. The results reveal that in the period under review, TPT had 22 projects with cost overruns, amounting to: R732 million (2015/16 FY); R32 million (2016/17 FY); R1,2 billion (2017/18 FY) and R83 million (2018/19 FY). The 22 projects exceeded their original budgets by a range between 10% and 200%. The study reveals that the prominent causes of project cost overruns at TPT are: (1) a lack of project management skills, especially cost engineers and quantity surveyors; (2) inadequate engineering studies; (3) project approval and procurement delays; (4) poor maintenance regime; (5) poor scope definition; and (6) overregulation of the supply chain process. The main recommendations of the study are: (1) TPT should capacitate the projects department with relevant essential skills which include amongst others, cost engineers and quantity surveyors to assist with bills of quantities and budget estimation. (2) Complex projects should be supported by adequate engineering studies to ensure that the scope of work is complete and robust. (3) TPT should develop a strong relationship with National Treasury in order to find ways to deal with overregulation and inflexibility in the supply chain process. (4) TPT’s maintenance department should adopt the Asset Management Life Cycle in order to ensure that assets are professionally and adequately mantained throughout their useful lives.
Examining container handling equipment to reduce port congestion at Durban Container Terminal.
(2022) Naicker, Rowen.; Chasomeris, Mihalis Georgiou.
Port congestion has become a major problem around the Durban Container Terminal (DCT) precinct and investors and key stakeholders have raised concerns and expressed their frustration over the poor productivity and capacity limitations. The aim of this study was to examine container handling equipment that should reduce port congestion at the DCT. The objectives are: 1) to examine the productivity of the DCT in comparison to other ports nationally and internationally; 2) to examine the performance of current container handling equipment used at the DCT and 3) to examine and compare the costs and productivity of using a Rubber Tyre Gantry (RTG) system versus Straddle Carrier (SC) system at the DCT. This desktop study collected and analysed secondary data on container handling productivity and costs of the container handling equipment used at the DCT. Cost effective analysis was applied to the available equipment data and associated costs were retrieved and studied. A compound interest formulae and inflation calculator were used to convert all costs to their 2021 approximate values. The performance results between 2015 to 2020 showed that the DCT was performing poorly. The DCT, Pier 1 and Pier 2 use RTG and SC respectively. RTGs performed exceptionally well compared to SCs. Examining the advantages and disadvantages of the RTG and SC showed that the RTG was the preferred option. Although RTGs were more expensive to purchase and operate, the SCs were costlier to maintain. Analysis of the equipment used by leading container ports shows that top ports have adopted the RTG system and that 2018 and 2019, more RTGs were purchased than Rail Mounted Gantrys (RMGs) and SCs combined by major ports globally. The results indicate the most viable option would be for the DCT to adopt a RTG system of operation due to its high efficiency levels and cost effectiveness.
Examining factors affecting lapse rates in the South African short term insurance industry.
(2019) Veerasamy, Ugeshnee.; Chasomeris, Mihalis Georgiou.
The Insurance industry is one of the main contributors to the South African economy. The threats resulting from insurance lapse within the South African short term insurance industry are of great economic importance as lapse negatively influences the role player’s financial state. The aim of this research is to examine factors affecting lapse rates in the South African short term insurance industry. A quantitative research methodology was applied for this investigation. The policy data obtained spans from 2012 to 2018. The policyholder and policy characteristics that were examined in this study are age, gender, province, policy start date, policy end date, policy duration, policy premium, sum insured, product type, bank, LSM (living standards measure) Level, cluster group, salary band, government employee status and registered deed status. While the macroeconomic variables examined where inflation rates, interest rates and GDP growth rate. Data gathered was analysed using descriptive and inferential statistics. The key questions that this research sought to answer included the following: (1) What policyholder features determine short term insurance lapse? (2) What macroeconomic variables influence short term insurance lapse? (3) How do short-term insurers manage lapse? Product type, gender, cluster group, policy duration and sum insured where found to have statistically significant influence on lapse rates. While the macroeconomic variables examined in this study were found to exhibit a weak significant correlation with short term insurance lapse rates. Recommended strategies to mitigate lapse rate included approaches to retain customers and strategies that could be applied during the development phase of short term insurance policies.