SA mining is ripe for foreign direct investment

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The recent increase in demand for commodities has led to a concurrent increase in demand in mining, which will undoubtedly lead to a rise in FDI in mining

Foreign direct investment in SA fell by almost half in 2020, in line with the worldwide downturn caused by the global Covid-19 pandemic, according to UN Conference on Trade and Development figures. The country attracted only R2.5bn of new investments in 2020, a sharp 45% drop from the 2019 figure of R4.6bn.

. Worldwide the need for palladium and platinum is high given that these materials are key in controlling vehicle emissions, which are becoming more stringent for China and Europe. The department of mineral resources and energy encourages trickle dividends, so the money received by beneficiaries is not only governed by profit but also ensures there is a regular flow of funds to communities and employees. Equity in transactions is also dealt with as part of broader social and labour plan compliance to ensure community and employee projects benefit from the company, so a more sustainable economy is built within the communities that sit around the mining entity.

 

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