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Mining in South Africa coming to a slow halt

In 1980, mining vied with manufacturing as the largest contributor to gross domestic product, with each at about 21%. Today, mines account for 7% of the economy. In 1987, the sector employed 763 000 people; that’s down more than 40% to 447 000 now. The government, retailers and banks are now the country’s biggest employers.

 

By pushing populist policies like the Mining charter only hinders growth by forcing the hand of an investor to another country.

 

As the unemployment numbers are sitting at a staggering six million people unemployed and looking for work, taking the jobless rate to about 28%, a 15-year high. This excludes 2.5 million discouraged job seekers.

Yet the ANC have a communist stubborn iron fist approach to land, mines and the economy which only makes us as a Nation Weaker against the open playing field of the world.

 

We at the Institute of Race Relations have consistently argued that if mining in South Africa is to live up to the country’s resource potential, an investment-friendly enabling environment is necessary. We have stressed that this requires not only more predictability but, critically, less governmental meddling in pursuit of ‘social’ ends which compromise business practice. If achieved, such an environment has the potential to unleash investment on a scale needed for true transformation of the sector. 

 

We are at a crisis and fingers can be pointed in many directions but as a country we need to be focusing on attracting investment and job employment.

If we want our country to grow, we need step back from policies that frighten off investors and focus on the huge opportunity to Design and Manufacture products using local raw materials mined in South Africa.

 

 

 

https://www.moneyweb.co.za/news/south-africa/gold-street-is-where-sas-mining-history-goes-to-die/

https://www.iol.co.za/news/opinion/mantashes-draft-mining-charter-a-recipe-for-disaster-15555047

 

 

Regards,

Andy D’Arcy Mossop

Marketing Manager/Design Engineer

0828554903

www.insumbi.com

 

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