Fitch Ratings agency is of the view that South Africa’s third Mining Charter which seek to give more power to the previously disadvantaged group “Blacks majority” will discourage investments into the Southern African ailing economy.
Mineral Resources Minister Mosebenzi Zwane announced and published South Africa’s revised Mining Charter (2017 Mining Charter) on Thursday.
The Charter requires at-least 50% black representation on Board Level, 25% of which must be black females; at an executive/top management level.
The requirements are at board level a minimum of 50% black representation, 25% of which must be black females; at an executive/top management level, a minimum of 50% black representation, 25% of which must be female black representation, and at senior management level, a minimum of 60% representation, 30% of which must be female black representation.
The requirement at middle management level is a minimum of 75% black representation, 38% of which must be female black representation and at junior management level, a minimum of 88% black representation, 44% of which must be female black representation.
Fitch said in a statement that although the Black Economic Empowerment programme – meant to include more blacks in the economy to redress their exclusion during apartheid – was a longstanding feature of South African economic policy, the new charter was the result of a more radical approach.
The mining sector accounts for about 7 percent of South Africa’s economic output.
Revised Mining Charter Document: