Browsing by Author "Meyiwa, Ayanda."

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An analysis of bank competition and financial stability: evidence from the South African banking sector.
(2021) Vilakazi, Mzamo Perceviere.; Muzindutsi, Paul-Francois.; Meyiwa, Ayanda.
There is a crucial role that the banking in terms of play and serve as central to the economy. Thus, competition is vital to the banking industry. However, while competition is perceived to be vital to the banking industry, it is claimed to have both positive and negative implications on the financial stability of banks. This study investigated the link between bank competition and financial stability in South Africa. The study utilized panel regression to examine the associations between different measures of bank competition and financial stability for the major five banks over the sample period spinning from 2009 to 2019. This study employed three different models namely, the Boone indicator, Lerner index, and fluctuating H-statistics to test for bank competition theories. The study further investigated the level of competition in the South African banking sector by unpacking the concept of concentration in the South African banking sector, using Concentration Ratios (CR) and Herfindahl-Hirschman Index (HHI). The study used the Z-score and profitability as dependent variables to proxy for financial stability in the banking sector. The economic activity and the bank size were used as the control variables in the competition and stability models to account for any uncounted variables. The findings indicated that less competition in the banking market causes banks to engage in risky activities, face regulatory intervention, or, worse, fail, consistent with the competition stability hypothesis. Furthermore, more competition and access to related financial services can be applauded to produce a competing environment in the South African banking services industry. Overall, this study concluded by supporting that more competition enhances financial stability.
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.
Exploring the implementation of the new customs act on the road congestion from the port of Durban.
(2021) Khuzwayo, Maxwell Nhlanhla.; Meyiwa, Ayanda.; Gumede, Sanele Aubrey.
Customs clearance of goods and subsequent conveyances for import, export or transit is a key compliance that aligns various governmental bodies and industry stakeholders involved in international cross-border trade. In the Republic of South Africa, this function falls under the control of the South African Revenue Services (SARS). Up to this point, the clearing of goods in the ports by the Customs department of the South African Revenue Services (SARS) in South Africa has been conducted in line with the regulations of the Customs and Excise Act of 1964. A major restructuring of this legislation has been done on this Act which will ultimately be known as the Excise Act and two new Acts have been promulgated. These are the Customs Control Act 31 of 2014 and the Customs Duty Act 30 of 2014. The Acts are largely aimed at addressing the needs of trade facilitation. In 2014 the Customs Control Act 31 and the Customs Duty Act 30 were signed into law. The relevant rules on these Acts were circulated for public comment and are available on the website of SARS. It follows then, that all the clearing of goods imported, will be conducted in compliance with the new Customs Control Act. The compliances under this Act are representative of measures which are different and in contrast to those of the Customs and Excise Act 91 of 1964. The aim of this paper is to explore the implementation of the Customs Control Act 31 of 2014 and to ascertain its potential impact on the congestion of the roads by trucks carrying containers from the Durban Container Terminal and the flow of containerised traffic to various destinations in the hinterland. This Act is designed to comply with the provisions of the World Customs Organisation (WCO) and the Revised Kyoto Convention (RKC)which sets out guidelines regarding effective customs administration in the modern times of international trade. These include simplified formalities and procedures of border control, standardised documents, risk management, risk analysis and management interventions and audit-based controls. The objective of this convention is aligned to the SAFE framework of standards designed to promote and facilitate legitimate trade and provide security of the international supply chain across all modes of transport. The researcher adopted a qualitative research approach to answer the research questions. Document analysis was deemed appropriate due to the nature of the study. The two pieces of legislation were compared based on their provisions regarding customs clearance of containerised cargo in the country. The results from the study show that most significant change between the two Acts is the changes in the place for performing customs clearing formalities. The study also found that additional containers will be transported on the already congested roads in the Port of Durban precincts as a result of the termination of the cargo manifest at the seaport. The role of the country’s inland ports in easing congestion in the port will also be diminished as they are not designated as places of entry in the country for customs clearance purposes under the Customs Clearance Act 31 of 2014.
The impact of digitalisation of clearing and forwarding processes on the workforce.
(2023) Jin, Emmanuel Nyouweke.; Gumede, Sanele.; Meyiwa, Ayanda.
Globalisation has brought about many changes. There has been substantial innovation in the value creation approach to the supply chain and the application of digital enabling technologies. This has been necessary to meet the ever-increasing demand for goods in the global markets. At the centre of this approach are the activities of customs clearing and forwarding. Trade liberalisation and the standardisation of global customs procedures mean that customs clearing and forwarding agents must deal with greater volumes of goods within a short timeframe. This has necessitated the digitalisation of these processes to perform these tasks quicker and with more accuracy and, often requiring little or no human intervention in some instances. Literature in developed economies indicates a negative impact of this on the workforce in terms of job losses. However, the situation may be felt more in a country like South Africa which is already facing the triple threat of inequality, record-high unemployment, and poverty. This study investigates the impacts of the digitalisation of customs clearing and forwarding processes on workforce and productivity. The research adopted a qualitative approach, using snowball non-probability and purposive sampling techniques. Interviews were conducted with ten selected individuals who each had over 20 years of industry experience in clearing and forwarding. Their experience provided insight which spanned the timeframe under consideration. Data collected through interviews and secondary sources were analysed using open, axial, and selective coding techniques. The analysis was divided into three main themes, namely i) customs clearing and forwarding processes pre-digitalisation (2000-2005); ii) Early digitalisation (2005- 2010); and iii) digitalisation 2010 to present, and its impact on workforce and productivity. Findings showed a negative impact on the workforce in the pre-digitalisation period, with race and gender bias. In the early digitalisation phase, findings showed a negative impact on the workforce, with older workforces reluctant to adapt and going on early retirement or being retrenched. The low productivity in the early inception phase is primarily due to adaptation challenges. In the final phase, digitalisation has positively impacted the workforce and productivity. Companies have embraced technology and can clear more goods within a shorter time, giving them exposure to more international markets, and better growth. They have employed more staff who are young and more technologically inclined. The research informs training policies for those affected by digitalisation, helps training providers align with industry changes, and enables companies to hire adaptable employees for growth and global expansion. A recommendation would be to still tap into the experience of less technically skilled personnel and pair them with young digitally minded youth to bridge the divide in skills transfer.
The impact of insufficient port investment on congestion in the Port of Durban.
(2022) Mhlongo, Siphesihle Bongeka.; Meyiwa, Ayanda.
Port research is continuously evolving. One of the most relevant topics related to the performance of ports is port congestion. With Durban being the trade hub for ports in Southern Africa, the congestion experienced at the Durban Port poses a serious challenge to the effective integration of international trade with sub-Saharan economies. One of the problems evident from underinvestment made to the port, is congestion. Problems that stem from congestion consist of prolonged berth occupancy and utilization, as well as long ship turnaround time and anchorage waiting time. This study attempts to analyze port congestion in relation to investment activities. The Market Demand Strategy (MDS) will aid in identifying the investments made to the port of Durban. The MDS shows the amount of investment required in South African Ports, and it was expected to aid in expanding rail, ports, and pipeline infrastructure ahead of demand. This study further shows that, of all the amounts earmarked for investment in ports, a considerably lower actual CAPEX was invested, which causes the problem of port congestion to remain largely unresolved. Using data obtained from the Ports Regulator of South Africa and Transnet, the study employed content analysis and documentary analysis. A qualitative research approach, underpinned by two research tools, being document and content analysis to collect the secondary data, the study analysed investment expenditure from 2012/2013-2019/2020 in relation to port congestion. Literature has also revealed that there is a decrease in the actual investment made into the ports in South Africa which is cause for concern for port users. The study offers insight into port congestion, its causes, its impact and what can be done to combat it. The study makes recommendations on the rollout of investment for the betterment of the Port of Durban, whether it should be expanded, whether better systems should be put in place or can even establish whether current investment allocation is optimal.
The potential impact of maritime autonomous surface ships on seafarer employment.
(2021) Nkuna, Euclid.; Meyiwa, Ayanda.; Dlamini, Langa Hewitt.
In search of ways to run their ships more efficiently and safer, Shipowners are looking at limiting human involvement by employing maritime autonomous surface ships (MASS). The MASS levels of autonomy, which will result in varying degrees of human involvement reduction, are still being defined by various bodies. To assist all parties involved in this journey of MASS development and introduction, some classification societies are creating regulatory and guiding documents or instruments. Meanwhile, policymakers globally have their eye on the Blue Economy as a source of solutions to many problems, chief amongst which is employment. Also known as the Oceans Economy, Blue Economy will result in higher demand for transport of goods and persons to, from, and through the sea. Seafarer job increases are therefore among policymakers’ targets. This dissertation seeks to investigate the potential impact that the successful introduction of MASS will have on seafarer employment. It does this by analysing five classification instruments to see if there is convergence in their approaches toward MASS introduction. The five instruments are dissected for in-depth exploration before being transformed into a standardized format for comparison against each other. This standardized format maps the involvement of humans, a ship’s systems, or a combination of both for some six selected functions – themes – that define a vessel’s autonomy. The format also maps the physical locations of human beings for each degree of autonomy per document covered analyzed. The findings predict strong convergence in the MASS adoption approaches, which certifies that the world is aligned in its thinking. From this convergence, it is inferred that collaborative approaches, whether direct or indirect, will result which in turn will improve the chances of successful MASS introduction. The reduction in seafarer employment, which will result based on the convergence established will however be non-linear: It will start at a slower pace as with lower autonomy saturation in the market. As time advances, more MASS and ships with higher autonomy degrees will be built increasing autonomy saturation in the market. At some point, lower seafarer employment will emerge, exacerbated by the decline of today’s conventional ships which will be demolished as they reach the ends of their useful lives. Each demolition will result in job losses. When the market is saturated with autonomy – meaning that almost all ships are fully autonomous – mariner employment will be minimal and Remote Control Centre (RCC) based. As much as 95% of the peak of mariner employment (yet to be reached) will be lost when this MASS full saturation is reached. The timeline will depend strongly on the speed of technological advances. Policymakers are advised to take caution with the employment prospects of mariners. Shipowners and builders are advised to collaborate on a global scale to speed up and synchronize MASS development. Training and educational institutions are advised to gear up for teaching skills required for MASS. Maritime legislators are advised to keep a close eye on legislation development aimed at accommodating MASS. Finally, Further research on timelines for MASS implementation is recommended. This will clarify the rate at which employment will evolve in the sector.
The relationship between government revenue and government expenditure in South Africa: a cointegration and causality approach.
(2021) Mdluli, Mlondi Mveli.; Meyiwa, Ayanda.
The government plays an important role in stabilising the economy, by implementing adequate economic policies such as fiscal policy, which consists of government revenue and government expenditure. A budget deficit arises when government expenditure exceeds government revenue. It is important to understand the direction of causality between government revenue and government expenditure, as this will assist when suggesting the remedial approach that should be followed by budgetary authorities in order to effectively deal with the budget deficit. The main objective of this study was to determine the relationship between government revenue and government expenditure in South Africa. The study employed annual time series data from 1982 to 2019, taken from the South African Reserve Bank website and the Economic Research Federal Reserve Bank of St. Louis. The Johansen cointegration test was used to test for cointegration and the Granger causality test was used to test for causality. The empirical results found that the variables are cointegrated. Therefore, a long-run relationship exists between the variables. The results of the Granger causality test found that there is no causality between government revenue and government expenditure. Therefore, policy makers or budgetary authorities should make its revenue and expenditure decisions separately. The dissertation also went an extra step by analysing the disaggregated expenditure and revenue patterns. The reason that this was done is because the researcher wanted to examine the effects that the different types of expenditure and revenue have on South Africa’s fiscal position. Further policy recommendations were made based on the trends of the data that were observed from the disaggregated expenditure and revenue patterns.