Scramble to calm investors

2012-09-29 18:55

Zuma, minister move quickly to allay international fears.

Mineral Resources Minister Susan Shabangu will visit India in a month’ time as part of her crusade to assure international investors that South Africa is a safe destination for their money.

On Thursday Moody’s Investors Service downgraded South Africa’s credit rating by one notch, citing concerns about the government’s ability to tackle economic problems and a “decline in the government’s institutional strength,”Shabangu however said the mining crisis was not a factor in Moody’s decision, because threat of a downgrade had been looming on the horizon for a while.

As wildcat strikes continue to spread in the mining sector, questions are being asked by the international community about whether the government is still in control.

Shabangu said investors in India were keen to hear what the government was doing about the ongoing mining crisis.

Meanwhile, labour federation Cosatu announced yesterday that it will, together with its affiliate the National Union of Mineworkers, lead the wildcat strikes.

Cosatu is trying to restore its own credibility and that of the NUM after miners in several companies decided to negotiate salary increases without the union.

General secretary Zwelinzima Vavi yesterday told striking Gold Fields KDC West miners the NUM had agreed to join the workers in their fight for better wages.

Vavi said Cosatu and the NUM would lead a march to Gold Fields management in Klerksdorp, and later plan another march to the Chamber of Mines in Johannesburg.

“If they fire you they must know that an injury to one is an injury to all,” Vavi said.

“NUM will stand by you to ensure that if you’e fired you’re reinstated.”

Cosatu will hold a special national executive committee meeting this week to discuss the implementation of last week’s congress resolution which called for an investigation into miners’ working conditions.

President Sdumo Dlamini said there was also a fear that the rejection of NUM by mine workers accusing it of being ineffective may also affect another affiliate, the National Union of Metalworkers of South Africa.

“It’s about ultimately breaking Cosatu. If you want to break Cosatu, you start with the biggest affiliate in a sector that is vulnerable and with illiterate people who are desperate for a decent wage.”

Shabangu, an ANC national executive committee member, said the strikes had nothing to do with the governing party’s leadership race ahead of its December elective conference in Mangaung, Free State.

“What we are seeing are worker demands which are sporadic,” she said, adding that the unprotected strikes could not be sustained for longer periods.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.