Nationalizing Of Mines

 
Introduction
The nationalizing of mines has been the on-going debate in South Africa, Mainly between the mineral minister Susan Shabangu and the ANC. The debate on the nationalization of mines has been the blame for foreign investors losing hope and faith in South Africa’s mining industry. According to the task team, the nationalizing of South Africa’s mines would be disastrous and that the increasing of taxes should be seen as an alternative option.
Why South African Mines should be nationalised
Former Youth League President Julius Malema and his   supporters said that, Black majority In South Africa receives very little to nothing in South Africa’s minerals. Firstly, looking at what is nationalizing. Nationalizing is the process of taking an industry or asset into government ownership by a national government or state. According to Sapa from the mail and Guardian “BEE” is not capable of resolving the property questions, the ownership questions, the power questions in the South African Economy and Society.
What are the implications off nationalising the mines?
South Africa is the richest country in terms of producing platinum, chrome and manganese. Nationalizing the mines would just lead to investors loosing hope in the industry as it would not bring back a profit for them, and this is not good for South Africa’s revenue.
The nationalization of mines has not worked in any other country in the world and will not work in South Africa said The Chamber Of Mines. According to Jabu Maphalala , the nationalizing of mines has a potentially damaging impact on the economy.
Investment flows into South Africa would be diminished inhibiting economic growth, reducing employment opportunities and increasing the poverty rate in South Africa.
The Importance of Foreign Investments
South Africa’s business structure is generally well developed , and could be seen as a leading example of what other African countries should be like. Although South Africa’s business...