The Mining Charter (or the lack thereof) has clearly created great uncertainty. Amid this policy vacuum mining companies went on an investment strike, and their employees simply went on strike! The fault lies at the feet of many in the previous administration. They made both errors of commission and omission. Errors of commission are plentiful — just look at the state of our state-owned enterprises (SOEs) — all that money wasted and stolen from our people. But the errors of omission are just as large and just as significant. The previous administration was so focused on malfeasance that it forgot to govern. They were supposed to provide policy certainty, but failed miserably on this count. Nature abhors a vacuum. Financial markets are no different. They abhor the vacuum of knowledge. Financial markets are adept at handling facts, as facts speak for themselves.

Markets can also handle risk, because with risk one has a decent idea of the various possible outcomes and how likely ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.