EDITORIAL: SA’s investor ghost town
Froneman’s warning is explicit: the antibusiness rhetoric is frightening off investors
Sibanye Gold CEO Neal Froneman does not mince his words. With his forthright comments on why Sibanye is steering clear of further investments in SA, we have to wonder whether Froneman is voicing what many other CEOs are thinking. If he is, then SA’s economy is in even more trouble than many might think. "Until this country gets its house in order, I don’t see any company being able to make further investments," Froneman said last week after Sibanye’s shareholders approved the company’s first investment offshore, a $2.2bn cash purchase of the US’s only palladium and platinum producer, Montana-based Stillwater Mining. Sibanye, spun out of Gold Fields in 2013 to house the group’s South African assets, had aspirations to be a national champion, benefiting as others such as Anglo American and BHP Billiton cut their exposure to SA. The company bought some of their assets, such as the unprofitable Rustenburg platinum mine Anglo shed as part of its restructuring. But now, Sibanye’s sharehol...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.