EMS

Public lecture by Prof David Luke: How Africa trades

BELINDA BANTHAM — Tue, 25 Feb 2025 10:20:05 +0000

Public lecture by Prof David Luke: How Africa trades

BELINDA BANTHAM Tue, 02/25/2025 - 12:20

Professor David Luke, a leading expert on African trade policy, recently visited the North-West University (NWU) to deliver a public lecture entitled How Africa Trades on Tuesday 25 February. His talk explored the continent’s evolving trade landscape, challenges, and opportunities, offering insights into economic integration, policy shifts, and Africa’s role in global trade

Prof Luke is professor in practice and strategic director at the Firoz Lalji Institute for Africa and an extraordinary professor at the NWU. The public lecture was hosted by the TRADE Research Focus Area on the Potchefstroom Campus.

His public lecture expanded on the book he edited, How Africa Trades, which examines trade and investment flows and a perspective for analysing trade policy in Africa, trade in the African Continental Free Trade Area (AfCFTA), Africa’s trade arrangements with the United States, the United Kingdom, the European Union and China, and Africa’s role in the World Trade Organisation.

Attention is also given to the impact of the COVID-19 pandemic on African trade, and Prof Luke argues that it is in the world’s interest to give Africa a new trade deal.

However, he notes that this is a difficult time for trade, as while flows remain strong, global trade growth has yet to return to pre-pandemic levels. In addition, ongoing conflicts in Ukraine and the Middle East, inflation, monetary tightening, and rising public debt are creating economic instability.

The return of Donald Trump, the rise of populism, economic nationalism, and transactional trade policies are also reshaping global trade dynamics, and investment strategies, supply chain reshoring, geopolitical tensions, and the transition to a multipolar world are influencing international markets.

Prof Luke focused on how climate change and planetary sustainability concerns are influencing global trade policy.

AICPA & CIMA’s Exclusive Academic Dinner: Accelerating leadership in finance education

BELINDA BANTHAM — Tue, 25 Feb 2025 10:03:02 +0000

AICPA & CIMA’s Exclusive Academic Dinner: Accelerating leadership in finance education

by Bertie Jacobs

BELINDA BANTHAM Tue, 02/25/2025 - 12:03

On 18 February 2025, a distinguished group of academics gathered at the Fireroom, Montecasino, for the exclusive AICPA & CIMA event, Accelerate & Lead: Dinner with Academics. Hosted by Simon Bittlestone, FCMA, CGMA, President of CIMA and Chairman of the Association of International Certified Professional Accountants, the evening provided an invaluable platform for thought-provoking discussions on the evolving landscape of financial education and the role of academic institutions in shaping future financial leaders.

The event was attended by Prof Babs Surujlal (Executive Dean of the Faculty of Economic and Management Sciences), Prof Heleen Janse van Vuuren (Director of the School of Accounting Sciences), Prof Sanlie Middelberg (CIMA Champion in the School of Accounting Sciences), and Prof Jaco Fouché (Programme Leader for Management Accountancy). Their presence underlined the importance of collaboration between the NWU, industry and the CIMA in advancing management accounting education.

Beyond the formal discussions, the dinner fostered a collaborative and engaging atmosphere, allowing academics to exchange ideas, expand their professional networks, and explore potential partnerships. The event reaffirmed CIMA’s commitment to strengthening the links between academic institutions and the global finance profession, ensuring that finance education remains innovative, industry-aligned and future-focused.

NWU’s Management Accountancy programme, one of the first in South Africa to be accredited by CIMA, has also once again achieved outstanding results in the Chartered Institute of Management Accountants (CIMA) Management Case Study exams. In 2024, NWU students achieved an impressive pass rate of 88% – well above the global average of 65%. This follows a consistent track record of excellence with 83% in 2023 (global average 65%), 87% in 2022 (global average 71%) and 85% in 2021 (global average 73%).

The political economy of South Africa’s budget impacts you

BELINDA BANTHAM — Fri, 21 Feb 2025 14:19:18 +0000

The political economy of South Africa’s budget impacts you BELINDA BANTHAM Fri, 02/21/2025 - 16:19

By Michelle Meixieira Groenewald

Welcome to a budget we need to pass under the Government of National Unity. South Africa’s budget speech was scheduled to take place on the 19th of February, and has now been postponed to the 12^th of March. The Public Finance Management Act requires that the annual budget is tabled before the start of the financial year, but in exceptional circumstances, this can happen as soon as possible after the start of the financial year.

This postponement has certainly created exceptional circumstances. The major point of contention was a proposed VAT hike from 15% to 17%. This opposition ranged from certain ministers within the ANC, to the Democratic Alliance, to trade unions and civil society organisations.

There is widespread consensus that this would disproportionately impact the poor and is frequently considered a regressive tax for lower income households as well. Using Treasury’s own VAT data, Daily Maverick estimated that a 2 percentage point increase would see the lowest income decile pay an estimated R213 more annually, which is an enormous amount relative to their total income and expenditure.

Discussions around why Finance Minister Enoch Godongwana attempted to push ahead with such a controversial policy, would require more column inches than this article allows for. Questions also remain around the extent of consultation, with the minister confirming that during a Cabinet meeting on 5 February, it was highlighted that a VAT increase was on the table. He did state that the exact amount was not yet made explicit. DA, IFP and Rise Mzansi insiders claimed that there were only notified of the 2 percentage point increase on the morning of the budget speech.

What is essential is that partners in the GNU cannot simply criticise. There needs to be tangible alternatives presented that are able to raise R58 billion in additional revenue in 2025/2026 alone. These alternatives must be considered in relation to the decisions that were to be announced on 19 February. Reiterating once again, the need for an increase in economic growth (in itself an incredibly difficult process as decades of economic growth research has shown us) and curbing corruption, are longer term plans. There are various alternatives proposals being proposed by organisations that can, and should, be debated.

Key to recognize is that there are many debates around these issues, which require nuanced analysis and thoughtful action, in the increasingly complex political economy of South Africa. South Africans, however, do need to become more actively involved in the budget process. What many may not be aware of, is that as the general public, we can all make submissions for consideration for the budget through the Budget Tips initiative launched back in 1999 already.

What we can hope for is that this postponement will create greater awareness and encourage more South Africans to engage more deeply on policies that affect us all. The rest is up to GNU.

Student a top 10 finalist in Nedbank & Old Mutual Budget Speech Competition

BELINDA BANTHAM — Wed, 19 Feb 2025 09:29:22 +0000

Student a top 10 finalist in Nedbank & Old Mutual Budget Speech Competition

by Angeline Marokoane

BELINDA BANTHAM Wed, 02/19/2025 - 11:29

Sizwe Mazibuko, a second-year BSc Quantitative Risk Management student at the North-West University (NWU), has been named a top 10 finalist in the prestigious 53rd Nedbank & Old Mutual Budget Speech Competition.

This competition serves as a platform for the brightest economic minds in South Africa to engage with critical financial issues, fostering solutions that contribute to the nation’s economic growth.

The competition is open to both undergraduate and postgraduate students pursuing economics-related studies at recognised South African institutions. It challenges participants to explore thought-provoking questions with real-world relevance, pushing them to apply their academic knowledge to pressing economic challenges.

As an undergraduate finalist, Sizwe tackled the question: “Discuss the impact of public debt on government finances in developing economies, focusing on South Africa”.

This topic required participants to analyse the complexities of public debt and its implications for economic stability, fiscal policy, and long-term growth in developing nations, particularly South Africa. Given the country’s ongoing economic challenges, Sizwe’s insights into sustainable debt management and financial policy would have been crucial in shaping discussions at the event.

The finals are taking place from 17 to 20 February 2025, bringing together some of the country’s most promising economic scholars.

Sizwe’s achievement in reaching the final round is a testament to his analytical abilities, dedication, and passion for economic problem-solving. His success highlights the importance of nurturing young economic thinkers who will play a key role in shaping South Africa’s financial future.

As the nation grapples with economic uncertainties, students like Sizwe represent a new generation poised to contribute innovative solutions to national and global economic challenges.

Annual master’s degree research retreat promotes collaborative learning

BELINDA BANTHAM — Mon, 17 Feb 2025 12:58:54 +0000

Annual master’s degree research retreat promotes collaborative learning

by Zenoyise John

BELINDA BANTHAM Mon, 02/17/2025 - 14:58

The School of Industrial Psychology and Human Resource Management (IPS & HRM) at the North-West University (NWU) recently held its highly anticipated annual master’s degree research retreat at Stonehenge River Lodge in Parys.

This two-day affair, organised by Dr Neil Barnard and Prof Marissa Brouwers, successfully brought together students, academic staff and guest speakers to enhance research capabilities and promote collaborative learning. The sponsors of the event included the Optentia and WorkWell research units.

The retreat focused on several key objectives. Primarily, it aimed to foster collaboration within the IPS & HRM across the Potchefstroom and Vanderbijlpark campuses.

“The event provided an environment conducive to focused guidance on student research projects, while also facilitating engagement with supervisors and peers. The overarching goal was to support students in effectively navigating their research journeys, reinforcing an academic culture of collaboration and exploration,” says Prof Brouwers.

The retreat attracted a diverse group of 42 participants, comprising master’s degree students from Industrial Psychology, Human Resource Management and Labour Relations Management, as well as staff and guests. The students actively engaged in discussions about their research challenges and aspirations. Potential supervisors and academic staff in turn provided invaluable feedback, mentorship and insights. In addition, guest speakers shared their expertise on various pertinent topics surrounding research practices and academic writing. The retreat featured a robust lineup of presentations that covered critical themes necessary for research development.

Among the topics discussed were:

· “Your Why and Purpose” by Dr Neil Barnard delved into the motivations behind pursuing research and understanding one's purpose in the field.

· “Personality Preferences and Team Building”, authored by Prof Elrie Oosthuysen, examined how different personality types can influence team dynamics and effectiveness in collaborative research settings.

· In “Overcoming Challenges in Research”, Prof Ian Rothmann discussed common obstacles researchers face and provided strategies for navigating and overcoming these challenges.

· “Choosing the Right Research Topic”, co-authored by Prof Brouwers and Prof Bennie Linde, offered guidance on selecting a research topic that not only interests the researcher, but also contributes meaningfully to the field.

· Dr Barnard also presented “Research Software and Resources”, highlighting essential digital tools and resources that can enhance the research process and improve efficiency.

· Carla du Plessis covered emotion artificial intelligence (EAI). The study focused on gaining the perceptions of industrial psychologists in the existence and use of emotion artificial intelligence.

· “The Significance of Research” by Prof Crizelle Els emphasised the importance of research in advancing knowledge and its potential to drive societal change.

These presentations were complemented by interactive group discussions, allowing students to refine their research ideas before presenting them to a panel at the end of the retreat. The retreat

also included various engaging activities and workshops, including presentations from both students and faculty that emphasised key research methodologies, focus group sessions, brainstorming sessions, one-on-one consultations, student presentations and networking opportunities that encouraged discussions that linked academic theories with industry practices.

Dr Barnard says these activities not only encouraged teamwork, but also nurtured critical thinking, ensuring that students left the retreat with strengthened research proposals and a deeper understanding of their academic pursuits.

"Feedback from the participants indicated a high level of satisfaction with the retreat. Participants appreciated the informative sessions and specifically noted the value of discussions and insights gained from the lectures. We also plan to include the Mahikeng Campus in next year's retreat," says Dr Barnard.

Prof Brouwers thanks the sponsors, academic and support staff, presenters and students for making the retreat a success.

The NWU’s School of Industrial Psychology and Human Resource Management recently held its highly anticipated annual master’s degree research retreat.

PhD candidate and Mrs South Africa semi-finalist inspiring change

BELINDA BANTHAM — Fri, 14 Feb 2025 06:20:37 +0000

PhD candidate and Mrs South Africa semi-finalist inspiring change BELINDA BANTHAM Fri, 02/14/2025 - 08:20

By Gofaone Motsamai

Bontle Manana, a 34-year-old industrial psychologist and PhD candidate at the Mahikeng Campus of the North-West University (NWU), is breaking barriers and inspiring women across South Africa.

Hailing from Phola Village in Mahikeng, she recently achieved the prestigious milestone of being named a Mrs South Africa semi-finalist.

“This is a significant achievement for me,” Bontle shares. “It allows me to interact with influential women and access a platform that can help advance my career counselling mission. It is also a personal goal to show married women that we can be nurturers within our families while having a voice in society and playing an important role in shaping our communities.”

Her passion for guiding others on their career paths stems from her own professional journey. “My desire to help people to find their true calling, especially the youth, drives me,” she explains.

“Many young individuals in rural areas, like my home village, only know of careers such as nursing, teaching or firefighting. While these professions are commendable, there is a wide world of possibilities out there. I firmly believe in pursuing our God-given purpose and going to school to hone what we already possess.”

Her research as a PhD candidate focuses on developing a model to assist talent management practitioners in better understanding employees' diverse career aspirations.

“In essence, I am asking, ‘How do we manage different types of people to get the best out of them?’,” she explains.

Despite her professional ambitions, Bontle remains deeply connected to her roots. “Phola Village is the core of who I am. I was raised not only by my parents, but also by the entire village. That upbringing shaped my confidence and desire to give back."

Balancing her roles as a mother, business owner, academic and semi-finalist requires intentional planning. "There is always time for things we are committed to and love. Understanding the different domains we exist in really helps with this. Integrating work and life is the best approach to balancing everything," she reflects.

Looking forward, Bontle aims to grow her baking business, expand her career counselling practice, and use the Mrs South Africa platform to uplift and empower communities.

Her advice to others is simple but powerful: "Do everything for the right reasons. Is your why clearly defined? And lastly – just do it."

To follow Bontle Manana on social media:

Instagram: Bontlekome

TikTok: Bontlejo

Facebook: Bontlekome

Bontle Manana is breaking barriers and inspiring women across South Africa.

How global financial cycles shape South Africa’s economy

BELINDA BANTHAM — Tue, 11 Feb 2025 06:36:40 +0000

How global financial cycles shape South Africa’s economy BELINDA BANTHAM Tue, 02/11/2025 - 08:36

By Tiyiselani Precious Miyambu

Global financial conditions have a significant effect on the stability of the South African economy, according to a recent study by two researchers from the North-West University (NWU).

In their study on the influence of global financial cycles on South Africa’s financial cycle, Prof Precious Mncayi Makhanya and Khwazi Magubane from the School of Economic Sciences on the NWU’s Vanderbijlpark campus, examined the impact of global capital flows, asset prices and investor risk sentiment.

“A 1% change in the global financial cycle results in a 20% change in South Africa’s financial cycle over time,” says Khwazi. “This indicates that the country’s financial system is more responsive to global financial conditions than to domestic economic variables such as GDP growth, inflation, or interest rates.”

When global financial conditions improve, South Africa experiences a surge in capital inflows, credit availability and rising asset prices, Khwazi adds. “Conversely, during periods of global financial distress, capital outflows and tightening financial conditions affect domestic financial activity.”

Examining the impact of monetary policy

The study also explored how monetary policy influences financial stability. It found that high interest rates and inflation tend to suppress financial activity by reducing credit expansion and investment. “Higher interest rates and inflation reduce financial activity,” Khwazi says.

The researchers note the dual impact of the set of policies that aim to protect and strengthen the financial system and its stability (macroprudential policies). While these policies have sometimes helped stabilise financial conditions, they have also restricted economic growth.

“The South African financial cycle rises following a shock in global financial conditions,” Khwazi adds, explaining that given South Africa’s integration into global financial markets, the researchers emphasise the importance of monitoring international financial trends when formulating domestic policies.

“Adaptive macroprudential measures can help mitigate external shocks. These measures could include adjusting capital requirements for banks, managing currency reserves, and coordinating policies with global financial institutions to prevent irresolution.

Greater engagement needed with global financial networks

The study underscores the role of international financial institutions in managing the risks associated with financial globalisation. The researchers stress the need for South Africa to enhance economic resilience by strengthening its engagement with global financial frameworks.

“With global financial trends applying an influence on South Africa’s economy, policymakers must balance external financial pressures with domestic economic priorities,” Khwazi concludes.

Prof Precious Mncayi Makhanya

Khwazi Magubane

Expert unpacks the hidden costs of rising electricity tariffs

BELINDA BANTHAM — Fri, 07 Feb 2025 10:25:06 +0000

Expert unpacks the hidden costs of rising electricity tariffs BELINDA BANTHAM Fri, 02/07/2025 - 12:25

By: Gofaone Motsamai

The recent approval by the National Energy Regulator of South Africa (NERSA) of a 12,7% electricity tariff increase for the 2025/26 financial year has raised serious concerns about its implications for household budgets, business operations and socio-political stability.

Mpho Lenoke, an economics lecturer at the Mahikeng Campus of the North-West University (NWU), provides expert insights into how this significant rise will impact various aspects of South African life.

According to Mpho, the 12,7% tariff increase approved by NERSA for the 2025/26 financial year will further drain already strained household budgets, especially when viewed against the planned 5,36% increase in 2026 and 6,19% in 2027. These are way above the rate of inflation and will further widen the gap between electricity prices and the cost of living.

He emphasises that for low- and middle-income families, electricity is a non-negotiable and essential expense. Households will now have to reprioritise expenditure on such essentials as food, healthcare and education whenever there is an increase in prices.

Mpho points out that the ramifications extend beyond household budgets. "Businesses will also be affected, since operational costs will rise, contributing to cost-push inflation as businesses pass increased electricity costs on to the consumer. This will contribute to general price increases across various sectors, further straining the economy and affecting households."

He highlights that this situation could result in job losses and reduced economic output, compounding the challenges of an economy where unemployment is above 30%. Continued rises in utility costs without matching wage increases will reduce disposable income and slow down consumer spending, weakening economic growth.

"Although Eskom's Generation Recovery Plan ensured that there were over 10 months of uninterrupted supply of electricity, the fragility of the system was exposed in January 2025 by the sudden Stage 3 loadshedding. Eskom attributed this temporary setback to structural breakdowns that required longer times for repair," notes Mpho.

He also addresses the political and social consequences of the tariff increases. He warns that there is a history of service delivery protests in South Africa, and rising tariffs, combined with intermittent power cuts, could further inflame public frustration, especially among lower-income communities already battling high living costs.

Another concern is the widening inequality in energy access. "While rich households and large companies can invest in solar energy and generators, poor households have nothing to do but bear the high costs, therefore increasing the gap in energy access," he says.

To mitigate these challenges, Mpho suggests several measures that the government could implement. "Strengthening law enforcement to combat electricity theft and vandalism is crucial, as these activities increase costs for Eskom and contribute to higher tariffs for paying consumers."

Encouraging private sector investment in renewable energy through independent power producers (IPPs) is another vital step. "IPPs and increased private sector energy generation will break Eskom's monopoly and make electricity cheaper yet again, as well as increase long-term energy security," he suggests.

In addition, Mpho recommends incentives for alternative energy solutions, such as lowering the costs of solar panels, battery storage systems and energy-efficient appliances through tax incentives. This would increase their adoption by lower- and middle-income households, decreasing the use of Eskom power.

He further emphasises the need for a more predictable tariff path and policies that promote wage growth to help balance rising energy costs with household incomes. "With NERSA having already signed off on tariff increases through to 2027, the government should adopt policies to manage inflation and promote wage growth, ensuring that the rising energy costs are not placed unfairly on the consumers," he explains.

"Improving Eskom’s operational efficiency, reducing its debt and ensuring greater accountability are essential to justify future tariff increases and improve service delivery."

Mpho Lenoke is an economics lecturer at the NWU’s Mahikeng Campus.

Accounting matters: NWU's Management Accountancy students shine again

BELINDA BANTHAM — Fri, 31 Jan 2025 09:01:33 +0000

Accounting matters: NWU's Management Accountancy students shine again BELINDA BANTHAM Fri, 01/31/2025 - 11:01

When people hear the word “accounting”, they often think of numbers, spreadsheets and meticulous financial records. But in a country like South Africa, accounting is far more than just balancing the books – it is a cornerstone of economic growth and stability. At the North-West University (NWU) we are committed to developing well-rounded, skilled professionals who prioritise accountability. And the results speak for themselves.

The NWU’s Management Accountancy students have once again demonstrated outstanding performance in the Chartered Institute of Management Accountants (CIMA) Management Case Study exams. In 2024, NWU students achieved an impressive 88% pass rate – significantly surpassing the global average of 65%. This follows a consistent track record of excellence, with 83% in 2023 (global average 65%), 87% in 2022 (global average 71%), and 85% in 2021 (global average 73%).

“These results not only reflect the dedication and hard work of our students but also highlight the high-quality education and unwavering support they receive at the NWU,” says Prof Jaco Fouché, programme leader of Management Accountancy at the NWU. “Our students’ consistent success solidifies the NWU’s reputation as a leader in management accountancy education. We remain committed to maintaining and elevating this standard of excellence, preparing our graduates for making meaningful contributions to the profession and the broader economy.”

Accounting is more than just a profession, it is a responsibility. At the NWU, we take this responsibility seriously, equipping future financial leaders with the knowledge and ethical foundation needed to drive South Africa forward.

Prof Waldo Krugell: Consequences of Expropriation Bill being exaggerated

BELINDA BANTHAM — Wed, 29 Jan 2025 07:24:59 +0000

Prof Waldo Krugell: Consequences of Expropriation Bill being exaggerated

by Bertie Jacobs

BELINDA BANTHAM Wed, 01/29/2025 - 09:24

On 23 January, President Cyril Ramaphosa signed into law the Expropriation Bill. Simply put, the bill allows the state to expropriate land in the public interest, including without compensation.

The signing of the Bill elicited no little backlash from the public, as well as from certain political parties, while others praised it.

But was all the fanfare warranted? According to Prof Waldo Krugell, the answer is an unequivocal “no”.

“President Ramaphosa’s signing of the Expropriation Bill is not, on the face of it, the crisis that some people make it out to be. It is important to remember that the state has always had the power to expropriate. The process of updating the law began in 2004, and last week's signing of the Bill is not directly related to the debate on expropriation without compensation of 2017 and 2018. The new Bill replaces the original law of 1975 and defines the circumstances under which the state can expropriate land in the public interest. It also defines the process by which the state must engage property owners and compensate them. The law will now be applied and interpreted by the courts,” says Krugell.

He further states that, although the reaction to the signing of the Bill might have been taken out of proportion, a clearer, more focused message would have done wonders to allay market fears.

“The fact that this sometimes sounds like a crisis says something about our politics. People feel the state can expropriate, but not everyone trusts this government to do so fairly. Political analysts say the President signed the law now because he had to send a signal to ANC loyalists that he still supports their agenda of the National Democratic Revolution. I do not know if that faction of the MK Party can still be persuaded, but the signal does nothing for the unity in the Government of National Unity. For the sake of investors and the economy, one would much rather hear a focused message of market-oriented reform. Research shows that policy uncertainty is bad for investment and low levels of investment are bad for economic growth. Faster growth is all that can create the opportunities that can reduce the inequalities of the past.”

Prof Waldo Krugell