Anglo welcomes Mboweni's move to facilitate cross-border transactions

Diversified miner Anglo American has welcomed the measures to facilitate cross-border financial transactions, in support of trade and investment, announced by South Africa’s Finance Minister Tito Mboweni during his National Budget Speech on Wednesday.

In a statement on Thursday, Anglo explained that annexures to the Budget Review provided additional detail, including a shift from the current policy of exchange controls to a risk-based capital flow management system that was in line with international best practice.

The new system will provide companies in South Africa, including Anglo, with increased flexibility to manage cash resources to optimal effect.

According to the miner, 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.

“We are encouraged . . . [and] 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,” Anglo CE Mark Cutifani commented.

He reiterated that mining was “a critical driver of economic growth, transformation and development” across South Africa and its communities.

“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,” Cutifani said.

Anglo’s commitment to South Africa stretches back more than 100 years and the miner has emphasised that it will continue to play its 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”.

However, as set out in Annexure E to the Budget Review, Anglo noted that 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 said it would engage with the South African Reserve Bank and the National Treasury in respect of how it will apply to its business in South Africa.

In South Africa, Anglo and its subsidiaries own and operate thermal coal, iron-ore, platinum group metals and diamond mines.