South Africa "radical" plan to hit mining, oil and gas

Subject

Economic policy shifts in South Africa.

Significance

Mineral Resources Minister Ngoako Ramatlhodi yesterday confirmed that the government is considering proposals that would enable it to set below-market "developmental" prices for certain minerals to boost downstream manufacturing. Together with "radical" plans to accelerate greater ownership by black individuals, it signals the rise of Left-leaning figures in the cabinet.

Impacts

• State plans for an 853 million dollar hydrocarbons port at Saldanha Bay will only bear fruit if global prices, and local policies, improve.
• More frequent power blackouts will undermine industrialisation goals, despite government incentives to assist manufacturing.
• Affirmative action policies using national demographics in provinces with big minority populations will likely spur continued court action.
• Increases in black home buying (49.2% of buys in 2014; 43.0% in 2005) is likely to continue, though more slowly given income stagnation.