Mining investors are abandoning South Africa for other African countries like Rwanda, Botswana and Ghana.
From our gatherings, mining investors who attended the Jo’burb Indaba mining conference expressed that they are finding the aforementioned African nations more attractive, conducive and attractive for business more than South Africa.
The investors pointed out that the increasing harsh regulations in South Africa forced them to take their business opportunities elsewhere.
Speaking, Peter Leon of Herbert Smith Freehills remarked that Ghana became a favourite destination for mining investors after it instituted an independent minerals committee to eradicate corruption in its mining sector.
Also, Leon divulged that most investors would pick Botswana over South Africa because of its decent regulatory environment.
“Their focus was on removing administrative discretion as far as possible from the law. That’s the one thing that Botswana did. So there is no discretion in the granting of licenses,” he said.
“The second thing is that if a license is compliant you basically get it in six weeks compared to South Africa where it takes a section 11 consent,” added Leon.
He buttressed that it’s discouraging licensing issues in South Africa take a long time to fix because it must first go to the minister for consent.
Meanwhile, South Africa’s Trade and Industry Minister, Rob Davies has welcomed Caterpillar’s R1.3 billion commitment to source components and other services in South Africa.
Caterpillar is a popular manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. BuzzSouthAfrica learnt that the commitment is for a period of 10 years.
Confirming this, Minister Davies said: “…I want to commend Caterpillar for embarking on this journey with us as partners to stimulate and grow the South African economy. I look forward to seeing these commitments being executed,” he added.