Why invest?

AS THE elections on May 7th draw closer, the ruling African National Congress (ANC) seems increasingly troubled by a challenge on its left flank from the Economic Freedom Fighters (EFF) led by Julius Malema, a former head of the ANC’s Youth League, who wants to nationalise white businesses and farms without compensation. The ANC is sure to win the election. But fear of losing votes to the EFF has had a worrying effect on recent legislation related to business.

Two bills, on how to govern mining and private security, were rushed through parliament before its recess. Neither bill has yet reached the statute book, but in their present form they are sure to chase away foreign investors. If the strike in the country’s platinum mines, now in its third month, has not deterred them, these bills may well do so.