MINING
Winning with the right
PROCUREMENT LOCALISATION
South Africa’s economy is under intense pressure and the outlook appears to be eroding. Operating amid an economic slump, mining could improve the country’s financial outlook while also helping to achieve its social objectives with a focus on shared value. BY KEARNEY CONSULTING*
S
outh Africa has undertaken a bold programme to entice investors with the promise of building an economy underpinned by inclusive growth, competitiveness and transformation. With vital strategic importance, the government has challenged the mining and mining-related industries to play a central role in helping the country achieve its social and economic objectives.
Because policy and regulatory changes such as the Mining Charter III compel the industry’s players to prioritise the national agenda, forward-thinking mining companies will commit to a transformation with inclusive growth (see figure 1). To preserve the social license to operate by balancing approval from local communities and the management of legislative pressures, South Africa’s mining companies often invest in social
AT Kearney Analysis
Note: Sectors have been ranked based on industries that have high impact and ease of influence scores relative to other sectors. Impact and attractiveness points to the relative contribution by the industry in terms of GDP and the multiplier effect it has within the economy. Ease of influence is based on structural advantage and the ability to have impact quickly.
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