Understanding factors for investment into South African diaspora bonds: an extended theory of planned behaviour
type: CreativeWork
description: South Africa's power infrastructure faces a multi-faceted crisis linked to electricity supply, ageing infrastructure and a concentration of coal-based production, as well as shortfalls in financing infrastructure development. Diaspora bonds offer a promising alternative financing mechanism for infrastructure development in emerging markets like South Africa. This study explores investor demand for South African diaspora bonds, employing thematic analysis within an extended Theory of Planned Behaviour framework. The research entailed semi-structured interviews with 11 individuals from the South African diaspora based in the USA, UK, and Australia. The results of the thematic analysis reveal that attitudinal, social, ability and environmental perceptions towards investing into South African diaspora bonds are largely shaped by conditionalities pertaining to risk and benefit realisation. Further economic, institutional and regulatory reform is needed to attract investors towards South African diaspora bonds. The main attitudinal motives are underpinned by (i) patriotism with varying conditionalities, (ii) risk perception, (iii) corruption, governance and institutions, (iv) return expectations and (v) informational advantages. The participants were more inclined to invest for patriotic reasons on condition that personal welfare benefits are realised if a return to South Africa is planned, and/ or investment exposure was limited relative to the perceived risk. The participants perceived a heightened risk, in terms of credit default risk, due to corruption and inadequacies in the rollout of infrastructure projects, as well as currency risk, especially when not planning to return to South Africa. However, a positive risk perception relating to asset class diversification and the ability to offset rand-denominated liabilities in South Africa was observed. From a governance, institutions and corruption standpoint, the participants were concerned about government service deli…
abstract: South Africa's power infrastructure faces a multi-faceted crisis linked to electricity supply, ageing infrastructure and a concentration of coal-based production, as well as shortfalls in financing infrastructure development. Diaspora bonds offer a promising alternative financing mechanism for infrastructure development in emerging markets like South Africa. This study explores investor demand for South African diaspora bonds, employing thematic analysis within an extended Theory of Planned Behaviour framework. The research entailed semi-structured interviews with 11 individuals from the South African diaspora based in the USA, UK, and Australia. The results of the thematic analysis reveal that attitudinal, social, ability and environmental perceptions towards investing into South African diaspora bonds are largely shaped by conditionalities pertaining to risk and benefit realisation. Further economic, institutional and regulatory reform is needed to attract investors towards South African diaspora bonds. The main attitudinal motives are underpinned by (i) patriotism with varying conditionalities, (ii) risk perception, (iii) corruption, governance and institutions, (iv) return expectations and (v) informational advantages. The participants were more inclined to invest for patriotic reasons on condition that personal welfare benefits are realised if a return to South Africa is planned, and/ or investment exposure was limited relative to the perceived risk. The participants perceived a heightened risk, in terms of credit default risk, due to corruption and inadequacies in the rollout of infrastructure projects, as well as currency risk, especially when not planning to return to South Africa. However, a positive risk perception relating to asset class diversification and the ability to offset rand-denominated liabilities in South Africa was observed. From a governance, institutions and corruption standpoint, the participants were concerned about government service deli…
author: Kader, Faatimah
keywords: South African diaspora bonds, extended theory, planned behaviour, South African, USA, UK, Australia.
date published: 2024
date modified: 2026-07-22T22:23:29Z
provider: University of Cape Town
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Graduate School of Business (GSB)

PropertyValue
property ID: Handle
value: http://hdl.handle.net/11427/41001