Local content requirements in the South African extractives sector: Do South Africa's local content requirements for the mineral and mining sector promote foreign direct investment?

dc.contributor.advisorMostert, Hanri
dc.contributor.advisorCramer, Richard Henry
dc.contributor.authorWheeler, Keanan Shane
dc.date.accessioned2022-06-30T14:17:07Z
dc.date.available2022-06-30T14:17:07Z
dc.date.issued2022
dc.date.updated2022-06-30T13:46:45Z
dc.description.abstractThe South African Government has an interest in ensuring that South Africa derives benefit from the exploitation of its natural resources. In the South African mineral and mining industry, this interest extends to the proceeds acquired from participation therein. Participation in the mineral and mining industry, however, is high risk, capital intensive and often has long lead times from exploration to production. Due to these factors, exploiting South Africa's mineral resources with recourse to purely domestic financing, expertise and/or equipment is challenging, if not impossible. Therefore, the industry requires capital, investment, and input from foreign sources, namely by way of Foreign Direct Investment (FDI). To ensure that foreign participation in its mineral and mining industry allows for domestic benefit, and that said benefit is enhanced in accordance with its policy objectives, the South African Government has formulated and imposed Local Content Requirements (LCRs) for the industry. This dissertation analyses the question of whether the LCRs formulated and imposed in the South African mineral and mining industry promote the attraction of FDI. The argument made is that the overarching factor influencing the decision to invest in the South African mineral and mining industry is certainty. Pursuant thereto, this dissertation argues that, as presently formulated and implemented, the LCRs applicable to the South African mineral and mining industry do not ensure certainty and, accordingly, do not promote the attraction of FDI. In the light of this conclusion, this dissertation offers two recommendations to the South African Government to enhance certainty in respect of the LCRs applicable to the South African mineral and mining industry for the purpose of promoting the attraction of FDI.
dc.identifier.apacitationWheeler, K. S. (2022). <i>Local content requirements in the South African extractives sector: Do South Africa's local content requirements for the mineral and mining sector promote foreign direct investment?</i>. (). ,Faculty of Law ,Department of Private Law. Retrieved from http://hdl.handle.net/11427/36589en_ZA
dc.identifier.chicagocitationWheeler, Keanan Shane. <i>"Local content requirements in the South African extractives sector: Do South Africa's local content requirements for the mineral and mining sector promote foreign direct investment?."</i> ., ,Faculty of Law ,Department of Private Law, 2022. http://hdl.handle.net/11427/36589en_ZA
dc.identifier.citationWheeler, K.S. 2022. Local content requirements in the South African extractives sector: Do South Africa's local content requirements for the mineral and mining sector promote foreign direct investment?. . ,Faculty of Law ,Department of Private Law. http://hdl.handle.net/11427/36589en_ZA
dc.identifier.ris TY - Master Thesis AU - Wheeler, Keanan Shane AB - The South African Government has an interest in ensuring that South Africa derives benefit from the exploitation of its natural resources. In the South African mineral and mining industry, this interest extends to the proceeds acquired from participation therein. Participation in the mineral and mining industry, however, is high risk, capital intensive and often has long lead times from exploration to production. Due to these factors, exploiting South Africa's mineral resources with recourse to purely domestic financing, expertise and/or equipment is challenging, if not impossible. Therefore, the industry requires capital, investment, and input from foreign sources, namely by way of Foreign Direct Investment (FDI). To ensure that foreign participation in its mineral and mining industry allows for domestic benefit, and that said benefit is enhanced in accordance with its policy objectives, the South African Government has formulated and imposed Local Content Requirements (LCRs) for the industry. This dissertation analyses the question of whether the LCRs formulated and imposed in the South African mineral and mining industry promote the attraction of FDI. The argument made is that the overarching factor influencing the decision to invest in the South African mineral and mining industry is certainty. Pursuant thereto, this dissertation argues that, as presently formulated and implemented, the LCRs applicable to the South African mineral and mining industry do not ensure certainty and, accordingly, do not promote the attraction of FDI. In the light of this conclusion, this dissertation offers two recommendations to the South African Government to enhance certainty in respect of the LCRs applicable to the South African mineral and mining industry for the purpose of promoting the attraction of FDI. DA - 2022 DB - OpenUCT DP - University of Cape Town KW - private law LK - https://open.uct.ac.za PY - 2022 T1 - Local content requirements in the South African extractives sector: Do South Africa's local content requirements for the mineral and mining sector promote foreign direct investment? TI - Local content requirements in the South African extractives sector: Do South Africa's local content requirements for the mineral and mining sector promote foreign direct investment? UR - http://hdl.handle.net/11427/36589 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/36589
dc.identifier.vancouvercitationWheeler KS. Local content requirements in the South African extractives sector: Do South Africa's local content requirements for the mineral and mining sector promote foreign direct investment?. []. ,Faculty of Law ,Department of Private Law, 2022 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/36589en_ZA
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Private Law
dc.publisher.facultyFaculty of Law
dc.subjectprivate law
dc.titleLocal content requirements in the South African extractives sector: Do South Africa's local content requirements for the mineral and mining sector promote foreign direct investment?
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelLLM
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