Ore and More

http://m.24.com/content/FullArticle.aspx?aid=ARTICLE_2314193&cat=Finance&sh=Finance

Africa is the land of plenty of stuff but a severe shortage of infrastructure. There is, of course, a golden benefit to some people from a lack of power, and that is reduced production and higher prices. The downside is when people want to put in a new plant, they are going to head for anywhere but South Africa if they cannot get reliable power there.

Solutions have to be found to this key problem, or else this is the start of a breakdown of growth from the only really strong driver that South Africa has: resources. On one hand, you have stupid, short-sighted “use it or lose it laws.” On the other hand, you cannot use it as you cannot get power from power plants, so you cannot expand.

Pick what you want, but if you want growth, invest in supporting it, not tearing it down with bad mineral policy coupled with bad infrastructure.