Orientation: South Africa is experiencing growth in its graduate labour force, but graduateunemployment is rising with the overall unemployment rate. Graduate unemployment isproblematic, because it wastes scarce human capital, which is detrimental to the economy inthe long run.Research purpose: This study explores the perceived causes of graduate unemployment fromthe perspective of the South African banking sector.Motivation for the study: Researchers have conducted various studies on graduateunemployment in South Africa and across the globe, but few studies have beenconducted on the causes of graduate unemployment. There appear to be some gaps in theliterature; therefore, other problems and solutions to graduate unemployment have to beexploredResearch approach, design and method: The researchers followed a survey design. Questionnaires and face-to-face interviews were used as research instruments to identify theperceived causes of graduate unemployment in the banking sector of South Africa. Researchparticipants were unemployed graduates, recently employed graduates and graduaterecruitment managers in the banking sector.Main findings: The study shows that several factors are perceived to be the causes of graduateunemployment in the South African banking sector. These include: skills, institution attendedby graduate and differences in expectations from employers and graduates.Practical/managerial application: The findings have implications for educational institutionsand companies that are encouraged to consider possible solutions to resolving the causes ofgraduate unemployment.Contribution/value-add: This study is one of the first papers to investigate the causes ofgraduate unemployment in the South African banking sector. It provides a rich platform forfurther studies and replication in other sectors, especially within the African context.

This article applied regressions and panel data analysis to determine how micro-economic spillovers enhance the competitiveness of firms and industries. What made this study unique was that it considered the interactions between various spillover factors working simultaneously and their effect on competitiveness and also investigated possible harmful effects of spillovers. Data from the Manufacturing Firm Survey of the World Bank was used, which covered the first decade of the third millennium, including world economic crises. The investigation on sales used cross-sectional regressions, following a survey conducted on sales and competitiveness. The general findings were that FDI and technological expenses offered little spillover advantages to firms, but that spillovers from research and development do enhance competitiveness. Managerial expertise and education of the workforce restrict spillovers and enhance competitiveness, while a larger and less educated workforce increases leakages of information and spillovers, suppressing competitiveness. The results further revealed that exports and spending on communication, machinery and equipment, a trained work force and innovation all enhanced sales, but the numbers of new firms and the number of privately owned businesses suppress competitiveness. Concerning the negative effects of spillovers, corruption, crime, theft and disorder increase spillovers and curb competitiveness. More spending on security decreases these negative spillovers, as does support from well-known suppliers. A larger workforce causes more negative spillovers, as do the number of new and temporary workers, more competitors and new suppliers. The findings of this study will be of special value to managers and project planners.

The Journal of Economic and Financial Sciences promotes research in auditing, corporate finance, corporate governance, economics, econometrics, financial accounting, financial management, financial planning, investment management, management accounting and taxation in the emerging market field.

Most South African municipalities experience significant financial problems. This study investigates the financial conditions of municipalities in the province of KwaZulu-Natal (KZN). It was found that the most important factors which influence their financial position are unobservable municipally unique factors. The ratio of people of non-working age to the total population is also significant in influencing the financial position of municipalities. This article designed a unique financial conditions measurement framework to evaluate the financial status of local governments. Two independent instruments were developed, first to measure the financial quality of a municipality, and secondly, to identify and examine a number of socio-economic factors possibly affecting the financial condition of these municipalities. The study developed a composite financial condition index (CFCI) and a financial conditions management index (FCMI), and then tested the framework on 51 municipalities in the KZN province from 2009 to 2015. The study used a panel data approach with two financial condition indices as indicators. The findings suggest that, in the absence of individual effects, most of the selected socio-economic variables are relevant in terms of explaining some of the variations in municipal financial conditions. Cross-section fixed-effects do, however, significantly improve the overall performance of the model, suggesting that it is rather the unobservable municipally unique factors affecting municipal financial conditions.Â

Orientation: The key obstacle hindering optimal profitability levels and competitiveness in firms in South Africa is the application of labour legislation policies and tools aimed at narrowing the income gap between different racial groups and resolving inequality amongst a diverse workforce.Research purpose: This article determined whether the implementation of a Black Economic Empowerment (BEE) policy by companies has a positive effect on their growth in terms of profits and competitiveness.Motivation for the study: This study determined whether the implementation of BEE could be profitable for companies.Research design, approach and method: A quantitative study was undertaken in order to find empirical evidence supporting the relation between high BEE Scores, profitability and competitiveness. The empirical investigation utilised regression analysis, correlations and other methods, based on data between January 2009 and December 2011. The BEE Scorecard was used to obtain BEE scores of the top 50 BEE companies. Thereafter, the top 50 companies’ financial information was gathered from the Johannesburg Securities Exchange.Main findings: The implementation of BEE within companies has a positive effect on profitability, turnover and investment. Numerous factors have, however, been hindering,while other factors enhanced the success of BEE.Practical/managerial implications: The findings encourage mangers to engage in BEE as it may facilitate higher profits and indicates where labour legislation could be improved.Contribution/value-add: Value was added through new research determining the effects of BEE and labour legislation on profitability and competitiveness of firms on a micro-level.

Orientation: African countries offer many investment opportunities and also urgently need global investment finance. Along the value chains of the agro-industrial sector there are many global challenges for African countries to attract foreign direct investment. This article investigates the investment flows in agro-industries and products to and from South Africa.Research purpose: This study evaluates the nature and dimensions of the agro-industrial sector that receive investment inflows in South Africa, as well as investigating South African investment patterns into Africa.Motivation for the study: Of particular interest is the relationship between foreign direct investment (FDI) flows, their integration into global value chains and sustainable investment options.Research design, approach and method: Qualitative data and visual techniques using available data for the period 2003–2014 disambiguate the linkages in FDI patterns with regard to regions, industries and specific companies. Flows between regions and the specific companies are identified and studied.Main findings: The results indicate that the United States, the United Kingdom and the Netherlands are the largest investors in South Africa, with a strong focus on agricultural input production and subsequent agro-processing industries. South African investment into Africa follows a similar, albeit narrower and more focused, pattern. The study concludes that foreign multinational enterprises are actively involved in global value chain expansion and South African firms are following suit.Practical/managerial implications: The lack of FDI in actual agricultural crop production in Africa offers future investment opportunities.Contribution/value-add: This study creates a better understanding of how FDI in agriculture is linked to the development of regional value chains in the Southern African region. The methodology applies a novel approach to an important field of study, of which little knowledge exists, and may contribute to the creation of wealth in the countries of the region and the welfare of its population.