College of Law and Management Studies

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A model for a state-owned shipping company in South Africa: lessons from other BRICS countries.
(2025) Mokone , Christopher Kennedy.; Nzama , Mbuso Emmanuel.
A variety of South African goods are exported around the world on foreign vessels. A cursory analysis indicates, inter alia, R 12,8 trillion in global export value was transported between 2012 and 2022 on foreign vessels. This is because South Africa doesn’t run a merchant fleet or has a state-owned shipping company(Franck, 2016). However, the government has published a Bill signalling its intention to establish a state-owned shipping company. Neither the South African Shipping Company Bill, nor government’s maritime policies explain their proposed model for a state-owned shipping company. The study was conducted through a qualitative research methodology and premised on documents collected through the internet and company websites. This study therefore proposes a model suitable for a South African state-owned shipping company; drawing from the members of BRICS, (Brazil, India, China and South Africa). South Africa is the only member of BRICS, without a state-owned shipping company. The study found state-owned shipping companies in BRICS countries were established in the 1940s during the Second World War. At that time South Africa had a state-owned shipping company, Safmarine, which however, was sold privately half a century later. The study found BRICS countries do not have a homogenous model that can be followed by South Africa to establish a similar institution. Each country’s model is unique to their country. Therefore, this study concludes there is no specific model from other BRICS countries that can be followed by South Africa. However, there are lessons which can be drawn from state-owned shipping companies in BRICS. There are further lessons to draw from South Africa itself, on how it established and operated Safmarine for 50 years. These lessons relate to the establishment, operational management, ownership, funding and capitalization models, as well as growth strategies. The study concludes how South Africa can develop its own model of a state-owned shipping company drawing lessons from other BRICS countries.
Evaluating the financial health of the listed food retail companies in the SADC region.
(2024) Nzuza , Zwelihle Wiseman.; Obagbuwa , Oloyede.; Rajaram , Rajendra.
This study investigates the financial health of listed food retail companies in the Southern African Development Community (SADC) region, focusing on the impact of macroeconomic, industry-specific, and microeconomic factors. A knowledge gap exists regarding the influence of macroeconomic factors such as gross domestic product, consumer price index, interest rates, and exchange rates; industry-specific factors like firm size, age, competitiveness, human capital, marketing strategy, governance, and social responsibility; and microeconomic aspects like quick ratio, return on assets, current ratio, leverage, total asset turnover ratio, and stock turnover. The study aims to evaluate these factors and propose a conceptual framework for financial health. The data were sourced from the McGregor BFA Library online database. Four holding companies collectively owned 4 590 outlets across the region. However, due to annual reports being conducted at the holding company level, the study obtained 116 observations, representing four firms over a span of 29 years from 1994 to 2022. Statistical methods employed include descriptive analysis and econometric techniques such as Fixed and Random Effects, Panel-Corrected Standard Errors (PCSEs), and Fixed Generalized Least Squares (FGLS). The study's findings, grounded in its hypotheses, indicated that macroeconomic variables, including exchange rates and gross domestic product, are strongly positively correlated with financial health. Among internal factors, quick ratio and return on assets positively influence financial health, whereas leverage and current ratio negatively affect it. For industry-specific factors, company age positively correlates with financial health, while governance shows a negative relationship. The study recommends a new conceptual framework emphasizing the integration of macroeconomic, internal, and industry-specific factors into financial health evaluations. It contributes originality by uniquely addressing financial health determinants in SADC and leveraging advanced econometric techniques to explore these relationships. Furthermore, it establishes that theories such as open systems theory, financial analysis, value-chain theory, and agency theory are instrumental in understanding and improving financial health in the region. This research serves as a strategic tool for retail companies, offering insights for developing financial health policies aligned with regional economic growth objectives and the SADC strategic development plan.
Legal harmonisation of non-tariff barriers of regional economic communities as a catalyst to the realisation of the African continental free trade area=Ukuvunyelaniswa okusemthethweni kwezithiyo ezingakhokhisi emiphakathini yezomnotho yesifunda njengento egqugquzela ukufezekiswa kwendawo yohwebo olukhululekile lwezwekazi lase-Afrikha.
(2023) Achancho Etagha Epse Abia, Elisabeth.; Mnyongani, Freddy Duncan.; Stevens, Clydenia Edwina.
Abstract Legal harmonisation is an integral aspect of regional integration and the desire to promote regional and sub-regional economic integration in Africa is exemplified by the establishment of the African Continental Free Trade Area (AfCFTA) in 2018. The 2012 decision of the AU to create the CFTA by 2017 was reiterated in Aspiration two of Agenda 2063. The legal harmonisation of non-tariff barriers has been a vital instrument in the achievement of EU economic integration and the Organisation for the Harmonisation of Business Laws in Africa (OHADA). The study seeks to critically examine the theoretical and conceptual underpinnings of regional integration and legal harmonisation of non-tariff barriers by the AU and RECs. It also analyses the current political, economic, and legal reinforcements to regionalism in Africa and practices needed to advance intra-regional trade within the framework of Agenda 2063. This was done by evaluating the key legal frameworks of the AU (the Abuja Treaty, the Constitutive Act of AU, 2007 Protocol on relations between AU and RECs and Agenda 2063) with the aim of identifying best practices, gaps and impediments pertinent to strengthening Agenda 2063 CFTA. At the end of the study, the abilities of three selected RECs (SADC, COMESA and EAC) were assessed to drive home the AfCFTA. This was done by identifying flaws in existing treaties of RECs, while advancing a model of legal harmonisation of NTBs between them. It was found out that the AU and RECs have not vigorously considered the significance of legal harmonisation in their integration agendas. This resulted in the lack of unambiguous and concrete provisions for the legal harmonisation of NTBs in their guiding policies. Where some attempts are evident, such as in the EAC, they have been implemented unsatisfactorily with lack of a compliance mechanism. This study contended that if legal barriers to free trade are not eliminated, even if all other barriers were to be removed, the effective realisation of the AfCFTA would still be hindered. Hence, this study recommends the principles of direct applicability and direct effects of regional laws to addressing the legal harmonisation challenge underscored. Iqoqa Ukuvumelanisa okusemthethweni kwezithiyo ezingakhokhiswa intela kuyisici esibalulekile sokudidiyelwa kwesifunda kanye nesifiso sokugqugquzela ukuhlanganiswa komnotho wesifunda kanye nesifunda esincane e-Afrikha sibonakala ngokusungulwa kweNdawo Yezwekazi Lase-Afrikha Yokuhweba Ngokukhululekile (i-AfCFTA) ngowezi-2018. Isinqumo sowezi-2012 se-AU sokwakha i-CFTA ngowezi-2017 saphindwa Esifisweni Sesibili soHlelo- 2063. I-CFTA iphinde ibe wuhlelo olubalulekile oHlelweni-2063 futhi impumelelo yayo ibalulekile. Ucwaningo luhlose ukuhlola ngokujulile izisekelo zethiyori nezomqondo zokuhlanganiswa kwesifunda kanye nokuvunyelaniswa kwezomthetho kwezithiyo ezingakhokhisi yi-AU kanye nama-REC. Iphinde ihlaziye ukuqiniswa kwamanje kwezepolitiki, ezomnotho, kanye nezomthetho kuzwelonke e-Afrikha kanye nezinqubo ezidingekayo ukuze kuthuthukiswe ukuhwebelana kwangaphakathi kwesifunda ngaphakathi kohlaka loHlelo-2063. Lokhu kwenziwa ngokuhlola izinhlaka zomthetho ezibalulekile ze-AU (iSivumelwano sase-Abuja, UMthetho-sisekelo we-AU, 2007 Protocol on relationship between AU and RECs and Agenda 2063) ngenhloso yokuhlonza izindlela ezingcono kakhulu, amagebe kanye nezithiyo ezihambisana nokuqinisa uHlelo-2063 CFTA. Ekupheleni kocwaningo, amakhono ama-REC amathathu akhethiwe (i-SADC, i-COMESA kanye ne-EAC) ahlolwa ukuze aqhubekisele phambili i-AfCFTA. Lokhu kwenziwa ngokuhlonza amaphutha ezivumelwaneni ezikhona zama-RECs, ngenkathi kuthuthukiswa imodeli yokuvumelana okusemthethweni kwama-NTB phakathi kwawo. Kwatholakala ukuthi osopolitiki base-Afrikha abazange bayicabange indlela eqinile yokuhlanganisa umnotho wesifunda, nakuba indlela enjalo yaphakanyiswa abasunguli besifunda sase-Afrikha. I-AU kanye nama-REC awazange acabangele ngamandla ukubaluleka kokuvumelana kwezomthetho ezinhlelweni zawo zokuhlanganisa. Lokhu kuholele ekuntulekeni kwezinhlinzeko ezicacile nezibambekayo zokuvumelana ngokusemthethweni kwama-NTB kuzinqubomgomo eziqondisayo. Lolu cwaningo lwagomela ngokuthi uma izithiyo ezingokomthetho zokuhwebelana ngokukhululeka zingaqedwa, ngisho noma zonke ezinye izithiyo zizosuswa, ukufezeka ngempumelelo kwe-AfCFTA kusazothikamezwa. Ngaphakathi kwalokhu kwangemuva, lolu cwaningo luncoma izimiso zokusebenziseka okuqondile kanye nemiphumela eqondile yemithetho yesifunda ukuze kubhekwane nenselele yokuvumelana kwezomthetho egcizelelwe.
The impact of oil price fluctuations on the South African exchange rate.
(2025) Moabelo , Noko Kgaogelo.; Nyati , Malibongwe Cyprian.
This study investigates the nature of the relationship and the effects of changes in oil prices on South Africa's exchange rate. It fills an essential gap in comprehending how oil price shocks influence emerging market economic dynamics. South Africa is heavily dependent on imported oil, with 90% of the country’s oil and petroleum needs coming from imported sources, and the exchange rate is overly sensitive to fluctuations in oil prices. Through the use of a Bayesian Vector Auto Regressive (BVAR) model, this study examines the connections in the period from 2000-2022 between oil prices, the South African Rand (ZAR), and key macroeconomic indicators, like the Consumer Price Index (CPI), interest rates, and Gross Domestic Product (GDP). The study finds that the initial oil price shock to exchange rates is weakly positive in the short run, reflecting a 1% increase in oil prices, leading to a 0.08% exchange rate appreciation. This response is, however, very short-lived, as after the initial shock, results reflect a negative relationship in the long run. The study also finds an asymmetrical relationship between oil prices and exchange rates. These effects become more pronounced when global uncertainty is at its peak. This study aligns with studies such as those by Korley and Giouvris (2022), which highlight how shifts in oil prices affect exchange rates through trade balance and inflation pressures. By incorporating the concept of asymmetry into the study, this research yields information on how vulnerable the Rand is to sudden increases in oil prices, providing essential data for policymakers. The findings have implications for shaping policies in South Africa. Exchange rate stability strategies could involve diversifying energy sources and introducing risk hedging methods while striving for stability through flexible monetary and fiscal policies. This research also adds to the ongoing conversation about the susceptibility of emerging market currencies to external pressures, serving as a reference point for examining comparable economies. This research enriches the existing body of knowledge by addressing methodological gaps and providing a contemporary analysis of South Africa's exchange rate dynamics in a post-crisis global economy.

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