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Orientation: Although all African governments recognise the importance of stimulating greater intra-regional trade, the process of turning policy into action has proved to be difficult. Research purpose: Several studies have examined the broad effects of free trade areas in Africa and how the removal of tariffs and other trade barriers impacts member countries. However, no studies appear to have been conducted on the effects of a targeted reduction in trade divisions based on untapped export potential. Motivation for the study: Many divisions stifle trade on the African continent, from limited market access and poor infrastructure to unwieldy regulatory frameworks and a lack of information on trade opportunities that hinder greater intra-regional trade. Research approach/design and method: This study sets out to address the research gap by translating the potential trade values of the identified untapped intra-regional trade opportunities between African countries into (Global Trade Analysis Project) GTAP model shocks. This involved determining what the increase in trade efficiency (or reduction in trade divisions) must be, in addition to the removal of all tariffs, to deliver the estimated potential increase in trade for the identified trade opportunities. Main findings: The study found that in addition to the removal of tariffs, targeted increases in trade efficiency phased in over time produce much higher economic gains than a once-off trade efficiency shock. Practical/managerial implications: The welfare gains of many of the smaller African economies are higher under this phased approach, and it is not mostly the bigger, more industrialised economies that benefit most. Contribution/value-add: The results cast new light on the potential of African countries to leverage untapped trade opportunities to increase intra-regional trade among small and large economies alike.

Background: Public universities in South Africa play an extremely important role in preparing students for productive and fulfilling careers. Universities also, directly and indirectly, benefit the economy through high levels of operational and capital expenditure and by providing employment to both academic and administrative staff. Aim: The aim of this article is to quantify the economic benefits of one of South Africa’s largest universities, and to determine what strategic view the university should take to maximise the benefit for the economy. Setting: The Potchefstroom campus of the North-West University in South Africa is used for the analysis. Methods: The primary method to determine is a social accounting matrix of the North West province, while data collected through a staff and student survey are used to refine and apply the analysis for the university campus. Results: The economic benefits of a university are much more significant than might initially be assumed. Among the findings is that North-West University should absorb relatively higher numbers of contact, rather than distance learning, students if it is to make a sustainable contribution to the provincial economy. Conclusion: Student spending has a direct and significant impact on the economy and helps to promote national income and employment creation within the province. The results of the study provide valuable insights for cities and provinces that have established new public universities.

Upon South Africa’s transition to democracy in 1994, there were great hopes for an economic revival in the country, underpinned by supportive economic policies that prioritised job creation and the elimination of longstanding poverty and inequality. Until now, the efficacy of economic policy in bringing about these much-coveted outcomes – particularly improvements on the employment front – has received little attention. This paper ventures into relatively uncharted territory by analysing how political dynamics and accompanying economic policy frameworks have impacted the structure and momentum of employment growth in South Africa over the past two decades. This is achieved by examining the changes in employment and, more specifically, the changes in the cost-neutral change in the capital-to-labour (K/L) ratio from 1995 to 2013. For the purpose of the analysis, a dynamic CGE model of the South African economy is used, with the focus being primarily on changes in the capital and labour markets during the period in question across a range of sectors. Among the results are that there was an increase in capital relative to labour (K/L) during the period, despite there being an increase in the rental price of capital relative to wages (PK/PL). The results suggest that at any given ratio of real wages relative to the rental price of capital, industries would choose a K/L ratio 8.1% higher in 2013 than in 1995. The study offers new insights into what is hampering employment in South Africa, which has been eroding the economy’s productive base and prompting serious questions about the country’s growth prospects. Clearly, South Africa needs a well-informed and responsive economic policy framework if it is to escape the potentially explosive unemployment crisis in which it has long been mired.

The purpose of this paper is to provide an overview and comparison of three related methods for modelling the short-run economic impact of events, namely the partial Input-Output (I-O), Social Accounting Matrix (SAM) and Computable General Equilibrium (CGE) models. An analysis of strengths and limitations of these different methods suggests that it may be considerations such as the underlying assumptions specific to each model, data collection, expected output, research objectives, and costs involved that determine the choice of modelling framework. Data from surveys conducted at the Aardklop National Arts Festival during 2010 were used in the comparative analyses, which were executed by means of two regional (i.e. provincial-level) models and one small-region (i.e. place-specific) model constructed for the small town.

This study evaluated the economic impact of hunting on the regional economy of South Africa’s Limpopo Province. Data on biltong hunting was derived from a national survey conducted in 2009 and data on trophy hunting from the Professional Hunting Association of South Africa (PHASA). Using the input-output (social accounting matrix) and multiplier analyses, we found that the direct economic impact of hunting in the regional economy of the Limpopo Province, as a result of increased expenditure, exceeded R669 million (US$83.6 million). This direct impact resulted in a total economic impact in the order of R1.2 billion (US$150 million) and consequently in a multiplier effect of 1.76. With regard to employment, we estimated that some 8 382 jobs, in addition to those of the employees directly involved, may be dependent upon hunting in the province, which supports the notion that this is a viable and important sector of the tourism industry.

The core of South Africa tourism industry is based on wildlife tourism. Private game reserves and game farms which forms part of wildlife tourism constitute most of the wildlife products in South Africa. On these private reserves and game farms, hunting is one of the major income generators for product owners. The aim of this study is to analyse the economic impact of hunting on the regional economies of three of South Africa’s most important hunting provinces. The study used economic multipliers, input-output analysis, and related modelling processes through input-output (supply-use) tables and social accounting matrices (SAM). The results differed significantly for the three provinces, with Limpopo receiving the biggest impact (R2.6 billion) and the Free State having the highest multiplier (2.08). The geographical location of the game farms, the number of farms per province and the species available all influenced the magnitude of the economic impact of hunters over and above the traditional determinants of economic impact analysis. The implication of the research is that it will help product owners in the development of game farms or hunting products, contribute to policy formulation, especially for government decisions on what products to offer where, and how to create more jobs.

This article will determine the socio-economic impact of South Africa’s largest urban national park, and the one that attracts the most visitors. Because national parks have more functions than mere conservation, the following questions arise: “What economic and social impacts are created by such parks?” and “How do communities benefit from allocating land for conservation?” Little research on this topic has been conducted in Southern Africa, and this research therefore contributes to our knowledge. Two surveys were conducted. One focused on the communities surrounding the park and the other on visitors to the park. A Social Accounting Matrix (SAM) determined the economic value. Results showed that, although the park attracts the most visitors, it does not generate the greatest income when compared to other national parks. Results concerning the community survey revealed that the surrounding communities have very positive perceptions, although they believe the impacts to be more economic than social. Problem areas were also identified.

This article focuses on an economic assessment of the target obtained in South Africa regarding the Klein Karoo National Arts Festival (KKNK) applying both SAM and CGE models. Since both models have advantages and disadvantages, tourism economists are confronted with the predicament of determining which model is most suitable for application to any specific event. The findings reveal that when different models are applied to the same dataset from an event, the reported economic impact results differ significantly. Results indicate that considerations such as the data collection or compilation, expected output, research objectives and costs involved will determine the choice of a specific modelling framework. Data from a visitor survey conducted at the KKNK during 2010 were used in the analyses. This finding serves as a warning to assessors that economic impact results can be misleading and, therefore, the application thereof should be handled with the utmost care as the results can readily be misinterpreted by stakeholders.

Purpose: The purpose of this article is to estimate the economic impact of biltong hunting in South Africa. Problem investigated: Higginbottom (2004), indicate there are no reliable global estimates of the economic impact of wildlife tourism, but one thing is certain, it generates considerable sums of money. This same accounts for South Africa's game industry, especially biltong hunting, where there is little to no information regarding the economic impact. Therefore the question to be investigated was what is the economic impact of biltong hunting in the South African economy. Research methodology: A non-probability method was used and a convenience sample was drawn from all the members (N = 17066) of the South African Hunters and Game Conservation Association (SAHGCA). A pilot study of 87 questionnaires was conducted in August and September 2004 in the North West Province at the Hartbees branch of SAHGCA. For the national survey, the questionnaires were mailed together with the members' monthly magazine (named SA Hunters/Jagters) during July 2005. A total of 1 024 (n) questionnaires were received back. Data was captured in Microsoft™ Excel™ and a Computable General Equilibrium (CGE) modelling approach was thereafter used to determine the economic impact of biltong hunting in the South African economy. Findings/implications: The contribution to real GDP is estimated to be in excess of R6 billion, with thousands of jobs being created by the increase in activities/services. In addition, the related improvements to the infrastructure of the country, especially the transport sector, will benefit productivity in the longer term and so lead to further increases in GDP. Originality: A significant contribution that this article has made is that this is the first time that the economic impact of biltong hunting in South Africa has been determined. It is also the first time that CGE modelling has been completed with regard to research in this sector in South Africa. Conclusion: This supports the opinion that biltong hunting is a viable and important sector of the tourism industry. The results clearly show that more should be done to expand hunting in South Africa as hunting affects, not only the economy, but also the price (and therefore the value) of game.