Browsing by Author "Matsebula, Velenkosini"

Now showing 1 - 5 of 5
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    Assessing the financial inclusion of micro-, small, and medium enterprises(MSMEs) in South Africa: 2010 and 2020 FinScope MSME data
    (University of the Western Cape, 2024) Anthony, Calynn Kristen; Matsebula, Velenkosini
    The financial inclusion of micro-, small, and medium enterprises (MSMEs) as major stakeholders in the economy remains meagre. MSMEs are the strongest economic activity drivers worldwide, yet many researchers have studied the effect of financial inclusion on MSMEs as it has become a global priority. International and local studies have agreed that removing certain financial system constraints can improve the financial inclusion status of MSMEs. Yet, local studies focused on this concept for South African MSMEs are scarce. The objective of this study is to assess the financial inclusion of micro-, small, and medium enterprises (MSMEs) in South Africa. This study offers the first of its kind to use FinScope MSME 2010 and 2020 surveys to assess the financial inclusion of MSMEs in South Africa and uses the Multiple Correspondence Analysis (MCA) to derive a financial inclusion index to assess the financial inclusion status of MSMEs. This study aims to fill the gap in the literature by using recent data and a different methodology to measure the financial inclusion of MSMEs in South Africa. The relationship between the computed MSME financial inclusion index and various explanatory variables is tested using the Ordinary Least Squares regression model. Thereafter, the likelihood of being financially excluded is measured by running probit regressions.
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    Investigating financial inclusion in rural households: A South African case
    (University of Western Cape, 2021) Mtyapi, Sisonke; Matsebula, Velenkosini
    People residing in rural areas generally struggle with many socio-economic problems, such as transport, health access, employment opportunities, poverty, inequality, access to essential services and facilities (e.g., piped water, electricity) as well as access to financial services. The global community has over the years came up with progressive measures directed at economic development and improvement of living standards, with one of them being financial inclusion (FI). FI is seen as one of the strategies to eradicate poverty, reduce unemployment and inequality as well as enhancing an inclusive economic growth. This study investigated financial inclusion in rural households of South Africa, using the Finscope data (2011 and 2016), with the aim of examining the extent of financial inclusion in rural households.
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    Investigating the relationship between financial inclusion and poverty in South Africa
    (University of the Western Cape, 2020) Mahalika, Ratema David; Matsebula, Velenkosini
    The literature on financial inclusion and poverty connections has received considerable attention recently. There exist a scarcity of local studies examining the relationship between financial inclusion (FI) and poverty. Precisely, there is a lack of local studies who previously used FinScope data to investigate the mentioned relationship in South Africa. This study is motivated to fill the gap. To achieve the aims, the study will source data from FinScope (a secondary data) for the periods of 2011 and 2016. The Foster-Greer-Thorbecke indices were used to measure the level of poverty, while the lower-bound poverty (LBPL) line was used to differentiate the poor from the non-poor. Principal Component Analysis (PCA) was also applied to derive the financial inclusion index (FII). Probit regressions were run to measure the likelihood of being poor and being financially excluded. Ordinary Least Squares were run to identify the nature of the relationship between the dependent and the independent variables. Lastly, bivariate regression was also run to test the relationship between poverty and financial exclusion. The empirical findings indicated that the South African financial system is inclusive. Unemployment and financial language restricted financial service access. The frequently used financial services were borrowing and funeral cover. Black African female with low education residing in rural areas and unemployed were poorer. The rich elderly white man from the urban areas of the Western Cape and Gauteng who are highly educated, were more likely to be financially included. The regression analysis showed that the female was more likely to be financially included yet poor. It is also found that Gauteng residents were less likely to be poor. Also, individuals from a bigger household were less likely to be excluded. The other results showed that individuals with higher real per capita income enjoyed much lower probability of being financially excluded, and they are mainly white individuals living in urban areas.
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    Investigating the relationship between financial inclusion and poverty in South Africa
    (Routledge, 2021) Ratema, Mahalika; Matsebula, Velenkosini; Yu, Derek
    The literature on financial inclusion (FI) and poverty connections has received considerable attention, but there exists a scarcity of South African studies examining the relationship between FI and poverty. This study fills this research gap by analysing the 2011 and 2016 FinScope data. Principal Components Analysis was applied to consider indicators from four FI dimensions (access, usage, quality and welfare) to derive a financial inclusion index (FII), before the relative approach was used to distinguish the financially included and excluded individuals separately. The empirical findings indicated that lowly educated Africans residing in the rural areas of Eastern Cape, Free State and Limpopo provinces were associated with a greater likelihood of being financially excluded, whereas individuals coming from the lower FII quintiles suffered greater money-metric poverty likelihood. Lastly, the proportion of people who were both money-metric poor and financially excluded declined from 19.5% to 15.4% between 2011 and 2016.
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    Investigating the relationship between financial inclusion and poverty in South Africa
    (University of Western Cape, 2020) Mahalika, Ratema David; Matsebula, Velenkosini; Yu, Derek
    The literature on financial inclusion and poverty connections has received considerable attention recently. There exist a scarcity of local studies examining the relationship between financial inclusion (FI) and poverty. Precisely, there is a lack of local studies who previously used FinScope data to investigate the mentioned relationship in South Africa. This study is motivated to fill the gap. To achieve the aims, the study will source data from FinScope (a secondary data) for the periods of 2011 and 2016. The Foster-Greer-Thorbecke indices were used to measure the level of poverty, while the lower-bound poverty (LBPL) line was used to differentiate the poor from the non-poor. Principal Component Analysis (PCA) was also applied to derive the financial inclusion index (FII). Probit regressions were run to measure the likelihood of being poor and being financially excluded. Ordinary Least Squares were run to identify the nature of the relationship between the dependent and the independent variables. Lastly, bivariate regression was also run to test the relationship between poverty and financial exclusion.