INVESTOR CONFIDENCE
PETER LEON: Mining sector needs a strong dose of Ramaphosa’s Eskom treatment
The election of Cyril Ramaphosa as president of the ANC at the party’s December elective conference has clearly helped energise an ailing economy while providing something of what one hopes is not an evanescent fillip to investor confidence. Decisive action by Ramaphosa about Eskom now needs to be replicated in the mining industry; one that annually contributes about 8% (R300bn) to SA’s GDP and more than 20% of the country’s exports. Because of the importance of the mining industry to the wider economy, the ongoing regulatory uncertainty in the industry, particularly about the contested Mining Charter and the Mineral and Petroleum Resources Development Amendment Bill, continues to affect investor sentiment and thus investment capital. The bill, introduced to Parliament in 2013, is in its fourth iteration and appears stuck in a legislative hiatus in the National Council of Provinces. About three years later, many of the constitutional concerns that prompted President Jacob Zuma to re...
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