A look at how South Africa can regain its mining status
In this instalment of the 2019 Absa Insights Series, Absa’s Shirley Webber, Head: Natural Resources and Energy, Absa CIB, chats to Tawanda Madondo, Senior Coverage Banker: Natural Resources, Absa CIB, about why Australian mining houses view Africa as an important element in their portfolios.
- Australian mining portfolios include African commodities such as iron ore, mineral sands and the newer commodities, graphite and lithium, even though banks aren’t necessarily comfortable with these commodities.
- Australia is positive about South Africa, but political stability, rules, regulations, and taxes have an impact on the country’s overall rating.
- Unfortunately, the International Monetary Fund (IMF) is not positive with regards to South Africa, and this has a ripple effect on Moody’s and S&P’s ratings.
- Government therefore has a responsibility to create the best investment atmosphere for foreign and local investors.