The African National Congress has been thinking about the nationalization of mines in South Africa for some time now, and it does not make the investors happy. While the South African ruling party has said that 26% of the mining industry ownership needs to be transferred to African owners by 2014, the investors fear that they may ask for more.
The investment in the mining sector has already slowed down and the mining activity and production may soon follow. The government is well aware of the possible losses that the mining industry would take and is not just looking at the feasibility of nationalization but also for models to implement it right.
Susan Shabangu, the South African Mining Minister said that individuals within components of the congress alliance have expressed their own views on nationalisation, with some even telling anyone who cares — or deigns to listen — that it is not a question of whether, but rather a question of when nationalisation will happen.
Public Enterprises Minister Malusi Gigaba criticized the unnecessary debate over the issue of nationalization of mining. He added that the debate was deterring foreign investment. The Mining Minister Susan Shabangu also said that the need of the hour was to resolve the economic trouble of the country and to remove unemployment and poverty from the country rather than having a time consuming debate.