Government has committed to reprioritise its spending within the existing fiscal framework towards initiatives that are aimed at driving economic activity. Speaking in Cape Town recently, President Cyril Ramaphosa said steps taken to speed up the finalisation of
the Mining Charter and to provide greater clarity on the Mineral and Petroleum Resources Development Amendment Bill were examples of this intent. “We recognise the critically important role that mining can and must still play in shaping the future of our
country,” said Ramaphosa. “We have further recognised the challenges raised with us by investors around, among other things, administered prices for ports, rail and electricity, as well as infrastructure bottlenecks.” Ramaphosa said addressing these constraints and concerns would be a priority. “The energy, transport and water sectors – all of which are important for the mining industry
– represent the bulk of the infrastructure investment spending plans that the government is planning for the years ahead,” he said. Whilst not giving details about how he planned to address the country’s port prices, considered by many to be amongst the highest in the world, Ramaphosa did say it was on the agenda. In recent months the president has put both Transnet and Eskom under the spotlight.
At Transnet change came hard and fast at the end of 2018 when CEO Siyabonga Gama was axed and shortly thereafter replaced by industry stalwart Tau Morwe, a clear indication of Ramaphosa’s intent to address challenges at the logistics utility. In February, it was Eskom’s turn when Ramaphosa announced that the power utility would be unbundled and separated into three companies. Whilst many in the country have called the moves long overdue, Ramaphosa has started to galvanise his turnaround strategy for South Africa – albeit it not as fast as many would like to see.
CAPTION: Steps have been taken to speed up the finalisation of the Mining Charter. – Cyril Ramaphosa
