Comparative Analysis of Mining FDI - Ghana & South Africa

The growth of the mining industry in a country depends upon a combination of favorable factors such as high commodity prices which leads to positive mining investment climate, growth in export volumes, sensible macro policies, debt relief, sustained aid and Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) inflows. FDI continues to be fraught with risks and uncertainties and attracting FDI into diversified and higher value-added sectors such as mining remains an ongoing challenge for the African economies such as Ghana and South Africa. But the Governments of these emerging countries always bring about changes in the mining codes to improve the investment climate and attract greater FDI. At the same time, despite the changes that transition economies make in their policies on FDIs, these policies still contain obstacles such as unstable tax systems and lack of transparency. This article provides a comparative analysis of mining investment of foreign mining companies in Ghana and South Africa.   Author: Glen Mishal J K