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The world’s most authoritative measure of investment attractiveness in mining has once again put South Africa near the bottom of its rankings. The Fraser Institute of Canada measures investor perceptions about mining countries every year. This year’s ranking puts South Africa in the bottom ten of 62 countries surveyed as possible places to make mining investments.
For the last 4 years South Africa has performed very poorly in the Fraser rankings. Investors are reported to have said they’re concerned about poor mining infrastructure, bad regulation and onerous ownership requirements.
For the last ten years the DA has warned about the consequences of BEE and a corrupt, incompetent, and secretive licensing process. Each time ANC ministers, more latterly Gwede Mantashe have dismissed these concerns. Yet all Mantashe’s boasts about improved performance have resulted in failure.
After he was appointed in 2018, Mantashe said it would be a priority to raise South Africa’s place in the Fraser rankings. Instead, the country’s rating has fallen and it continues to languish near the bottom.
Mantashe said 4 years ago that within 3-5 years he would ensure South Africa would attracts 5% of world mining exploration expenditure. The latest figures show South Africa’s share of exploration is now under 1%.
The ANC’s stubborn adherence to a suite of losing policies, from transformation to BEE and localization have ensured the worsening of the prospects for the industry.
South Africa is not short of good examples. Neighbouring Botswana is in the top ten of attractive destinations for mining investment. They are on our borders but their mining policy is light years away from the ANC’s cronyist and statist model.
The ANC’s inability to learn from experience or example will ensure that our mining will remain crippled.
The DA will continue to advocate for mining regulation that would free the industry to live up to its potential to bring prosperity to millions of our people.
Issued by James Lorimer MP - DA Shadow Minister of Mineral Resources