21 Jun.
Both the government and business must show much greater leadership in the mine nationalisation debate.
Business Unity SA urged on Monday, following repeated calls by the African National Congress Youth League (ANCYL), again at its national conference last week, for government to nationalise mines and expropriate land without compensation.
Busa said, however, that it had noted repeated assurances by President Jacob Zuma that nationalisation was neither a policy of the government, nor that of the ruling party.
Busa said constant utterances by the youth league that mine nationalisation was ultimately going to form part of ANC policy created uncertainty.
“It is inconsistent to be trying to create partnerships to implement a New Growth Path aimed at growing the economy at 6% per annum and creating five million new jobs in the midst of growing uncertainty. It is not conducive to the promotion of investor confidence,” the business organisation said.
The tone of the public debate surrounding the issue of nationalisation of land, banks and the mining industry had weakened SA’s ability to attract both local and foreign direct investment, which was required to grow SA’s economy, Busa cautioned.
“This is because the track record of nationalisation globally, irrespective of sector, has been very poor in terms of its ability to sustainably boost employment creation, build globally competitive industries and contribute to internationally competitive economies,” it said.
Source: Business LIVE
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