Speaker, South Africa should, in the interests of its mining sector, remove excessive ministerial discretion from its mining laws. Owing to South Africa's laws, the country is internationally perceived as an uncertain investment destination.
The international Fraser Institute's research survey has ranked South Africa 49th out of 79 mining jurisdictions on its policy potential index, down from position 27 in 2002. The only African countries that ranked lower than South Africa were the Democratic Republic of Congo, DRC, in 63rd place and Zimbabwe in 65th place.
From an African perspective, Botswana and Ghana have removed all ministerial discretion in that if licence requirements are met the licence is awarded without the application of further discretion. In Nigeria the mining industry has access to a mining cadastre to ensure a more open and transparent process.
As stated by a member of the International Bar Association at a recent mining indaba held in Madrid, the opportunity lost to South Africa was huge, causing countries less important from a mining perspective to develop their mining sector at a faster rate than South Africa.
While current mining legislations concerned have opened up South Africa's mining sector and promoted Black Economic Empowerment, BEE, the wide administrative discretion as well as uncertainty in a related framework discouraged investment, which resulted in BEE opportunities being lost. Black economic empowerment has benefited only a small group of elite, displaying aspects of crony capitalism.
We need to address urgently the legal requirements giving rise to this perception. I thank you. [Applause.]