Page 52 - Vol 33 Issue 34 2021

How to get SA’s foreign direct investment in mining right
mining Opinion

How to get SA’s foreign

direct investment in

mining right

By Wessel Badenhorst

oreign direct investment in South Africa fell by almost half in 2020, in line with the world-wide downturn caused
Fby the global COVID-19 pandemic, reports the United Nations Conference on Trade and Development (UNCTAD).
The country attracted only R2.5 billion of new investments in 2020, a sharp 45% drop from the 2019 figure of R4.6
billion. However, with many of the COVID-19 sanctions on doing business being lifted since mid to late last year, FDI
is seeing signs of recovery. With its good business climate, strong focus on production and financial services, and
a tourism and retail sector showing great potential, South Africa remains attractive to investors.

Mining investment investment during 2018 by 25.5%. The recent Ownership of the mining
quarrying was the second largest sector to secure
A particularly strong area for investment in South increase in demand for commodities has led entity and equity in FDI
which will undoubtedly lead to a rise in foreign transactions
Africa is the mining sector, which is a major part of to a concurrent increase in demand in mining,
the economy, being the world’s largest producer
of chrome and platinum, and the second largest direct investment (FDI) in mining. Worldwide the When speaking broadly about foreign direct
producer of palladium and zirconium. Our need for palladium and platinum is high, given investment in mining, ministerial approval of
country also exports significant amounts of that these materials are key in controlling vehicle the change of control in those businesses is
coal, diamonds, and iron ore. In 2020 The South emissions, which are becoming more stringent needed. This we usually refer to as Section 11
African Reserve Bank reported that mining and for China and Europe. approvals, which takes an average of 9 to 12

52 | AFRICAN POWER Mining & Oil Review Vol33 Issue 34 2021