Browsing by Author "Ocran, Matthew"

Now showing 1 - 8 of 8
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    Assessing the economic viability of biofuel production in South Africa
    (University of the Western cape, 2016) Jacobs, Denver; Ocran, Matthew
    Against the backdrop of rising fuel prices and increasing transport fuel demand, biofuel production, driven by the potential to contribute to energy security, climate change mitigation and rural development has experience rapid growth in recent years. Apart from a few private initiatives, South Africa has no commercialized biofuel industry to date. The concerns are that economic, environmental and socio economic issues can be a hindrance to the success of the industry. In response to these concerns this research intends to ascertain whether biofuel production could offer a viable economic alternative to fossil fuels in South Africa. For decision makers it is hard to find reliable reference material and solid guidance. Uncertainty over the potential risks and benefits has left potential investors unsure whether biofuel production could be a viable investment opportunity. The aim of this study was to determine if the benefits derived from biofuel production are significant enough to justify the substantial investment required. The findings reveal that in the absence of clear government strategies and the availability of low cost feedstocks the production of biofuel cannot be viewed as viable. The results show that bioethanol from grain sorghum and sugarcane are not economically viable since the results turn out to be negative in terms of both net present values (NPV) and internal rate of return (IRR) calculations, thus rendering a viable payback (PBP) period as unattainable. Similarly, the NPV and IRR for biodiesel from soya beans and sunflower is negative and the PBP also unattainable. Sensitivity analyses indicate that these crops (except for sunflowers) could only become viable if there were to be a substantial reduction in feedstock prices. All other changes in parameters would not render any of the production plant viable.
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    Assessing the impact of social grants in alleviating poverty in South Africa
    (University of the Western Cape, 2018) Mtshali, Nothando Thabisile; Ocran, Matthew
    Amongst many challenges, South Africa is still struggling to address the problem of high levels of poverty in the country more than two decades after the apartheid regime has ended. The government has however remained resolute in its effort to alleviate poverty especially through the provision of social grants. The expansion of the social assistance scheme after the apartheid regime has played an important role in extending benefits to a wider population of South Africans particularly the poor and the vulnerable groups. The effects of social grants on poverty have been proven to be effective. This has been widely tested empirically using the monetary approach as a measurement of poverty. However, few academic works have studied this effect on multidimensional poverty. Moreover, existing studies have focused predominantly on single poverty dimensions. As a result, this study investigates whether social grants reduce multidimensional poverty in South Africa. This study uses the Multidimensional Poverty Index (MPI) as a poverty measurement, which encompasses three dimensions of poverty. This dissertation found poverty to have declined over the years but it is still prevalent amongst households headed by blacks and females residing in the Eastern Cape, KwaZulu-Natal and Limpopo provinces with large household. The relationship between social grants and multidimensional poverty is tested empirically through a logistic regression using the National Income Dynamics Study (NIDS) data for Wave 4, year 2014/15 to be specific. The empirical findings reveal that a R1 increase in income from social grants results in a 1% decrease in the odds of a household being multidimensional poor. As much as social grants reduce multidimensional poverty, they have been found to be statistically insignificant and thus less effective in the reduction of multidimensional poverty.
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    Economic analysis of the Shear Separation Floatation (SSF) technology for winery wastewater treatment
    (University of the Western Cape, 2024) Mgudlwa, Tshawekazi Sinako; Ocran, Matthew
    Difficulties in the treatment of industrial wastewater have become serious challenges in the water and sanitation sectors. The wine industry is among the industries that are seriously affected by the difficulties of effluent treatment to comply with environmental standards. One of the effective methods to control the winery effluent is to install a customised wastewater treatment plant or upgrade an existing plant for better results. Economic analysis is necessary to evaluate the viability of installing the plant as the method for the treatment of wastewater. This dissertation is centered on an economic analysis of a wastewater treatment plant proposed as a solution to improve the wastewater treatment challenges at Winery X by means of a case study. The case study is based on a Shear Separation Flotation (SSF) pilot plant installed at Winery X. The key arguments in study are built on the conventional Cost-benefits analysis (CBA) as the main method of enquiry. The analysis includes Option 1- keeping the existing system and make no change, Option 2-upgrading the existing system with a flotation device which will recover the treated wastewater quality, and Option 3- upgrading the existing system with a flotation device and a Reverse Osmosis unit. Option 3 is expected to recover the treated wastewater quality and reduce the reliance on freshwater intake by at least 50%. Applying all the input variables, the primary economic analysis was conducted.
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    Economic analysis of water recovery from flue gas: A South African case study
    (University of the Western Cape, 2020) Hansen, Shadeon Doawon; Ocran, Matthew; Bladergroen, Bernard
    In order to comply with the Air Quality Act 2010, Eskom will have to install flue gas desulphurisation (FGD) plants for both new and old power stations. Wet-flue gas desulphurisation (wet-FGD) is adopted world-wide as an effective flue gas treatment technology and therefore will be adopted by Eskom. During the process of desulphurisation, the flue gas is stripped of SO2 but gains a substantial amount of water. Sustaining this process requires a continuous supply of fresh water, a scarce resource in many places where power stations are built. This research investigates the economic feasibility of technologies capable of recovering water from flue gas. The following technologies were considered to capture water vapour from flue gas taking Eskom’s Medupi Power Station as a case study; condensing heat exchanger technology, desiccant drying systems and membrane technology using membrane modules developed by other students in this project. The water vapour selective membrane technology turned out to be superior.
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    The effect of real exchange rate misalignment on exports in South Africa
    (University of the Western Cape, 2020) Pasi, Tapiwa; Ocran, Matthew
    The purpose of this study was to evaluate econometrically the effects of real exchange rate misalignment on South African exports between the period 1994 and 2015 using quarterly time-series data. Cointegration tests were done using the Johansen and Juselius approach. The study examined the effects of real exchange rate misalignment of the rand on South Africa’s exports, namely manufactured goods exports, automotive and chemical exports, mining exports, machinery and transport equipment exports and agricultural exports, on both an aggregate and a sectoral level. The long run impact of real exchange rate misalignment on total exports was found to be negative and significant, implying that real exchange rate misalignment negatively affects exports. In the short run, misalignment of the currency was found to enhance export growth and is not sustainable in the long run. On the sectoral level, the study found that in the long run exports are influenced by real exchange rate misalignment with varying sensitivity. Manufactured goods exports, automotive and chemical exports and machinery and transport equipment exports are all negatively affected by real exchange rate misalignment. On the contrary, mining exports and agricultural exports are positively affected by real exchange rate misalignment. Therefore, if an export-led growth path is envisaged for the South African economy, it is important for monetary and fiscal policy to be conducted in such a manner that ensures stability in the real exchange rate at an appropriate level. This will ultimately aid export competitiveness for South Africa. Based on the findings of this study, the researcher recommends that misalignment of the currency should be avoided at all costs.
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    The effects of real exchange rate misalignment on exports in South Africa.
    (University of Western Cape, 2020) Pasi, Tapiwa; Ocran, Matthew
    The purpose of this study was to evaluate econometrically the effects of real exchange rate misalignment on South African exports between the period 1994 and 2015 using quarterly time-series data. Cointegration tests were done using the Johansen and Juselius approach. The study examined the effects of real exchange rate misalignment of the rand on South Africa’s exports, namely manufactured goods exports, automotive and chemical exports, mining exports, machinery and transport equipment exports and agricultural exports, on both an aggregate and a sectoral level.
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    Financial development, health care system financing and health outcomes: Evidence from sub-Saharan Africa
    (University of the Western Cape, 2018) Chireshe, Jaison; Ocran, Matthew
    This thesis purposes to examine the impact of financial development on health outcomes, health care expenditure and financial protection in health in 46 selected sub-Saharan African (SSA) countries from 1995 to 2014. It also estimates the impact of health care expenditure on health outcomes. The thesis is premised on the hypothesis that health care expenditure is a critical transmission mechanism through which financial development leads to better health outcomes. The health care expenditure channel is conspicuously absent in the literature on financial development and health outcomes; hence the need for this study to fill the gap in the literature. The thesis explores the effects of both depth and access dimensions of financial development on health outcomes, expenditure and financial protection. Throughout the study, financial access is measured by the number of automated teller machines (ATMs) and commercial bank branches per 100 000 people, while financial depth is measured by the proportion of broad money and bank credit to the private sector, to Gross Domestic Product (GDP). The study uses fixed and random effects and the Two-Stage Least Squares estimation approaches. The Generalised Method of Moments (GMM) is also used to estimate the impact of health care expenditure and health outcomes given the absence of valid instrumental variables. The results of the regression analyses show that financial development leads to increased health care expenditure and health outcomes. The analysis also shows that health care expenditure leads to better health outcomes. Additionally, the study indicates that financial development leads to financial protection in health care by reducing out-of-pocket health care expenditure. Well-developed financial systems provide financial protection from the risk of catastrophic health care expenditure and impoverishment resulting from illness. The study shows that health care systems financed through prepaid mechanisms reduce neonatal, infant and under-five mortality rates and increase life expectancy, while those relying on out-of-pocket expenditure have adverse effects on health outcomes.
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    The impact of microfinance on household livelihoods : evidence from rural Eritrea
    (University of the Western Cape, 2016) Habte, Amine Teclay; Visser, Kobus; Ocran, Matthew
    Eritrea, a relatively young African nation, is one of the least developed countries in the world. Its economy is predominantly dependent on subsistence agriculture and the level and magnitude of poverty is more severe in rural areas. The formal financial sector is underdeveloped, state-owned, far from being competitive, and limited in terms of depth and breadth as measured by the relevant financial sector development indicators. To address the limitations of the formal banking sector and to help fill the financing gap, and improve the general livelihood of those at the lower income group, the Government of Eritrea introduced a Saving and Microcredit Programme (SMCP) in 1996 for which no scientific study measuring its impact has been done at the household level. The study was conducted in rural areas to find out whether the SMCP as a microfinance institution has improved the livelihood of its clients. The specific objectives of the study were to describe the characteristic feature of rural livelihoods in terms of the resources owned, the strategies pursued and outcomes achieved, identify and examine the determinants of household participation in the SMCP and finally assess the impact of participation in SMCP on household livelihoods. The study employed a quasi-experimental cross-sectional survey design involving structured and semi-structured questionnaire administered to 500 respondents of whom 200 represented the treated group and 300 the controlled group. Logit regression was employed to identify the factors that determine household participation in the SMCP. In regard to this, age of the client household, household size, marital status, level of education of the client household, the size of first round loan, entrepreneurial experience, type of loan product offered by the institution, ownership of livestock and microenterprise, the perception of the client on involuntary deposits, the occurrence of a negative events (shock) to the household and village access to electricity were found to have statistically significant effect on the household‟s probability to participate in the SMCP. Furthermore, the marginal effects were also computed to evaluate the contribution of each of these factors to the likelihood of participating in the SMCP. A propensity score matching model was applied to assess the impact of the programme on the livelihood of its clients. The findings reveal that participation in the SMCP has a significantly higher average treatment effect on the treated (ATT) households. Profits generated from off-farm and small microenterprises, the values of household and livestock assets, food and non-food consumption expenditures and nutrition quality, were found to be on average higher for the treated households than for the controlled households. Therefore, it could be argued that the provision of micro financial resources has significant positive effects on household livelihood outcomes. The study has important social and economic policy implication regarding the role of finance in rural development.