In mid-July South African President Cyril Ramaphosa activated a law that will startle foreign investors as it, that amongst other points of contention, makes it harder for them to fight against expropriation in a sneaky back channel move.
The legislation in question is The Protection of Investment Act, 2015.
The controversial Act saw foreign governments and companies taking issue with it before it was signed into law as it will reduce their protection in South Africa.
Originally published in the Mining Review Africa newsletter 2018/07/24
This essentially means that foreign investors are subject to the same rules on land expropriation as South Africans.
The Act was initially quietly signed into law by the previous president, President Jacob Zuma, in late 2015.
However, the legislation only came into effect through the publication of the President Ramaphosa’s commencement notice on July 13 – the sneaky part is that he had signed the notice a month before.
I wonder what impact the implementation of ANC policies will have on South Africa’s mining industry.