Share

Mines grab to decimate SA equity market

Johannesburg - 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 Chamber of Mines, said on Thursday.

Baxter was addressing the SA Chamber of Commerce and Industry's nationalisation discussions.

Nationalisation debates are taking place in SA, with 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 microeconomic constraints such as infrastructure and skills would ensure that the country's growth potential rose closer to 5% from the current 3% 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.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.5%
Rand - Pound
24.00
-0.5%
Rand - Euro
20.53
-0.3%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.5%
Platinum
903.65
+0.8%
Palladium
1,016.75
+1.5%
Gold
2,210.49
+0.7%
Silver
24.61
-0.1%
Brent Crude
86.09
-0.2%
Top 40
68,260
+0.9%
All Share
74,450
+0.7%
Resource 10
57,117
+2.6%
Industrial 25
103,835
+0.6%
Financial 15
16,488
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders