Nationalisation remains key investor concern in SA

South Africa’s ruling ANC party remains under close watch of international risk forecast organisations ahead of its national conference in December this year. As all roads lead to Mangaung in December where the 53rd ANC national conference will take place, global risk consultants Control Risks have said policy paralysis as a result of ANC infighting is being closely watched. While it is expected that Zuma will during the course of 2012 increasingly make strong statements to reassure investors that neither the government nor the ANC supports nationalisation, this remains a major investor concern. According to Simiso Velempini, Control Risks associate analyst, Sub-Saharan Africa, nationalisation and its effect on jittery investors remains high on the ANC agenda. “The recent mining indaba saw copies of an ANC report on how the state could increase its involvement in the mining sector leaked. Nationalisation in South Africa especially around the mining sector remains a major concern.” Velempini said while Zuma was struggling to retain control of the mining nationalisation debate, concern had been raised over what was being said and the impact of it internationally.