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Cape Town - Standard & Poor’s decision to maintain South Africa’s debt rating at BBB- investment grade gives the country no room for complacency, the Chamber of Mines warned on Friday.
CEO Roger Baxter said the Chamber was “pleased at the outcome”., but also expressed concern.
“We are aware that it gives the country no room for complacency", she said.
"The Chamber will play its part in working with other elements of organised business, with government and with organised labour to do what is necessary to sustain an investment grade rating and hopefully, ultimately, to improve that rating.”
The Chamber of Mines is currently involved in negotiations with the department of mineral resources about the contents of a new draft mining charter where the most contentious issue is the matter of ownership.
The Chamber wants government to acknowledge previous BEE-transactions, also called the once empowered, always empowered principle, while government stated in the draft document that it wanted the mining industry to empower black shareholders perpetually.
S&P made special mention of the mining sector in its report, saying that the rules in South Africa’s extractive industry are even more contentious. The agency also took note of the fact that negotiations on the mining charter are “sensitive”.
The DA’s spokesperson on finance David Maynier said his party also welcomed the ratings decision.
"The good news is South Africa has dodged an economic bullet. However, despite this Standard & Poor’s raised serious concerns about 'structural measures’ which pose a risk to the investment grade credit rating,” Maynier said.
"That Standard & Poor’s did not downgrade us, feels like a miracle given President Jacob Zuma’s protracted 'dirty war' against the Minister of Finance, Pravin Gordhan, and National Treasury," he claimed.
"What we now need is for government to get behind the Minister of Finance, Pravin Gordhan, and implement the structural reforms necessary to boost economic growth, reduce unemployment, and turn around ‘zombie' state-owned enterprises, like South African Airways.”
