https://www.miningweekly.com

Good mining policy can bring growth and transformation to a South African economy in need of positive new direction

19th January 2018

By: Martin Creamer

Creamer Media Editor

     

Font size: - +

South African mining could experience the same recovery under way in most other mining jurisdictions relatively quickly because its lagging relates overwhelmingly to injurious policy and not to the absence of inherent physical potential.

If South Africa’s political leadership delivers competitive, stable and predictable policies, sizable increases in investment will follow, which will boost employment, lift export earnings, increase gross domestic product and provide the scope for previously disadvantaged South Africans to be deployed across the broadest of career fronts.

South Africa could quickly put itself into a sweet spot that would allow it to take full advantage of the wide range of economic opportunity that mining spawns, from engineering and manufacture to banking and advisory.

Those who stand in the way of such progress are depriving every South African of greater employment, better education and improved socioeconomics.

A recent Chamber of Mines of South Africa survey pinpointed growth inhibitors as the absence of a nurturing environment and the damage being done by poisonous politics.

The uncertain political outlook, coupled with unprecedented low levels of investor confidence, is stunting South African mining and the many related businesses that it supports.

At the same time, South Africa’s sovereign investment downgrades have raised the long-term cost of capital, which has elevated return-on-investment hurdles and curbed the ability of viable projects to proceed. The outcome has been the needless foregoing of economic and transformational opportunity.

The chamber calculates that gross fixed investment in mining has been stagnant since 2009 and net investment has declined by 57% since 2008.

Despite commodity prices improving by 11% on average since 2006, output has been stagnant and employment numbers in mining have dropped by 70 000 over the last five years.

The overwhelming contribution to all this angst is self-inflicted, which cries out for correction.

Such correction is possible at low cost in that an already budgeted legislature and executive can be put to use to give the industry a positive new direction.

Fortunately, South Africa begins the new year with Deputy President Cyril Ramaphosa at the helm of the African National Congress, which one hopes will influence matters positively.

However, at the time of going to press, the opportunity to set State electricity utility Eskom on that new positive path had been spurned, putting the spotlight on the reluctance of our national executive to do what is right for the people of South Africa.

Any obstacles that are put in the way of achieving what is best for the people should not be tolerated.

South Africans must demand that the country is placed on an economic growth path that matches its significant potential.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Showroom

SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 
Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.115 0.147s - 88pq - 2rq
Subscribe Now