VARIOUS: South Africa's finance minister Pravin Gordhan says that it is not part of government policy to nationalise South Africa's mines

Record ID: 455887

  • Title: VARIOUS: South Africa's finance minister Pravin Gordhan says that it is not part of government policy to nationalise South Africa's mines
  • Date: 17th September 2010
  • Summary: JOHANNESBURG, SOUTH AFRICA (ORIGINALLY 4:3) (FILE) (REUTERS FILE) VARIOUS OF RECEPTION AREA OF THE JOHANNESBURG STOCKS EXCHANGE VARIOUS OF BROKERS AT THEIR TERMINALS VARIOUS OF STANDARD BANK DEALERS WATCHING MONITORS
  • Embargoed: 2nd October 2010 13:00
  • Keywords:
  • Topics: International Relations,Domestic Politics
  • Reuters ID: LVA15EKT52839R6W8F7UV4B5ZV1C
  • Story Text: Nationalising South Africa's mines is not part of government policy, the country's finance minister told Reuters on Thursday (September 16), saying he does not expect any change of policy on this issue.
    Minister Pravin Gordhan said: "(Mine nationalisation) is not government policy. Of course in a democracy you have a right to express your point of view and these issues will be debated but we don't foresee any government policy change on this issue."
    Gordhan also told Reuters Insider that despite frantic calls by trade unions for measures to curb the country's rand currency, South Africa would carefully study other countries' experience.
    He was speaking ahead of a Sept 20-24 meeting of the ruling African National Congress during which the government will have to face down strident demands by powerful trade unions.
    The ANC has maintained investor-friendly policies in Africa's biggest economy but rising unemployment and chronic poverty is piling pressure on the party to show its policies will work.
    One big headache for the export-reliant country is the rand, which rose 30 percent last year and is up 5 percent so far in 2010 versus the dollar as foreign investors pile into the country's bond markets.
    "We had budgeted for 5.2 per cent increase, the settlement is about 7.5 per cent," said Gordhan. "We will find another 6.5 billion rand, we've made it very clear that it'll mean some programmes will have to be cut. The treasury is in the process of looking at that. And when we make our pronouncement at the end of October we'll indicate where the 6.5 million rand come from."
    South Africa's international reserves rose by less than $1 billion in August to $39.2 billion, suggesting the central bank had not sold currencies aggressively to ease the rand's gains.
    The rand's appreciation is adding to the woes of South Africa whose rigid labour laws are often blamed for unemployment levels of around 25 percent, frequent public sector strikes and economic growth that is stuck in the sub-5 percent area.
    Gordhan said growth rates of 6-7 percent for a sustained period would be needed to make a dent in poverty and unemployment.
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