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ANC Youth League president Julius Malema.
South Africa's equity market would collapse if the country pursued nationalisation as a policy given the significant weight mining stocks have on the JSE, Roger Baxter, chief economist at the South African Chamber of Mines, suggested on Thursday.
Baxter was addressing the SA Chamber of Commerce and Industry's nationalisation discussions.
Nationalisation debates are being lead by the African National Congress Youth League and its leader Julius Malema. The business community strongly against the adoption of the policy.
“We as a society need to be aware of the risks. Even with the current debate, the opportunity cost to South Africa is huge,” Baxter said.
Other consequences of nationalisation would include a collapse of credit ratings, in turn reducing SA's ability to borrow in international markets, Baxter cautioned.
Baxter said SA needed to focus on the “right debate” about redistribution and unemployment.
“We need to focus on the right medicine. Nationalisation is not the answer,” Baxter said.
Addressing SA's micro economic constraints such as infrastructure and skills would ensure that the country's growth potential rose closer to five percent from the current three percent level.
“Let's make it easier to register a business in South Africa. Let's create an environment where business can really thrive,” Baxter said. - I-Net Bridge
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Brian, wrote
for DirtySamurai - the youth in general don't want to work. Nationalisation? Check what happened to Aurora.
Tonto, wrote
“We need to focus on the right medicine. Nationalisation is not the answer,” Baxter said. Please tell us what the right medicine is, Roger. Do you really know
DirtySamurai, wrote
The right medicine is the relaxation of labour laws so that the 50% of our young adults that are left to sit at home or worse run around pillaging can actually get work and experience and skills. But that doesn't work for Cosatu bosses so the whole country must rather burn.
Dave, wrote
The mining charter already provides an agreed way for mining ownership to be shared by the formerly disadvantaged, and this has already been a huge cost. There has been no new money for mining in the last 5 years. Anything more than the mining charter re distribution, and all will be lost for everyone!
Dave, wrote
The mining charter already provides an agreed way for mining ownership to be shared by the formerly disadvantaged, and this has already been a huge cost. There has been no new money for mining in the last 5 years. Anything more than the mining charter re distribution, and all will be lost for everyone!
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