Anglo American welcomes the announcement made by South Africa’s Minister of Finance, Tito Mboweni, in the Budget Speech on 26 February 2020, in which he announced a number of measures to facilitate cross-border financial transactions, in support of trade and investment.  The annexures to the Budget Review provide additional detail, including a shift from the current policy of exchange controls to a risk-based capital flow management system that is in line with international best practice.

The new system will provide companies in South Africa, including Anglo American, with increased flexibility to manage cash resources to optimal effect. The adoption of a risk-based capital flow management system supports South Africa’s economic growth and investment goals and is a further positive step towards building South Africa’s attractiveness as a globally competitive investment destination.

Anglo American Chief Executive, Mark Cutifani, commented: “We are encouraged by the announcement from South Africa’s Minister of Finance of this new system for capital flows. We believe in the clear benefits of the government continuing to implement effective policy measures that are supportive of attracting investment to spur the economy for the benefit of all South Africans.

“Mining is a critical driver of economic growth, transformation and development across many communities in South Africa and for the country as a whole. We see considerable opportunity for South Africa to compete more effectively for global investment in its precious natural resources which can then help deliver a more prosperous South Africa. Anglo American’s commitment to South Africa stretches back more than 100 years and we will continue to play our role in making South African mining safer, smarter and globally competitive – as both a leading global mining company and one of the largest investors in the country.”

Anglo American notes that, as set out in Annexure E to the Budget Review, certain exchange control conditions previously applicable to it will be aligned to the current foreign direct investment criteria. In terms of the new system for capital flows that will align South Africa’s approach with international best practice, Anglo American will engage with the South African Reserve Bank and National Treasury in respect of how it will apply to its business in South Africa.

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