A South African lawmaking committee agreed to revise draft laws to give the state has the right an unspecified share in all new oil and gas ventures at an “agreed price” or part of output, in addition to a previous provision handing it a free 20 percent stake the projects.
South African legislators said they plan to adopt changes to mining and oil laws before Parliament adjourns ahead of May 7 elections, overriding industry concern that the measures are ill-considered and will deter investment.
South African Finance Minister Pravin Gordhan aimed to appease investors and voters ahead of May 7 elections as he stuck to spending limits to reduce his budget deficit targets while trimming personal tax.
South Africa’s government said it will relax restrictions on companies doing business in the rest of Africa to encourage trade and investment with a region that’s expected to grow more than 6 percent this year.
South Africa’s government delayed the implementation of a planned carbon tax to 2016, while saying it may impose new levies on mining companies to help fund the treatment of acid water seeping from disused gold mines.
South African Finance Minister Pravin Gordhan may be forced to stick to budget targets in the face of credit downgrade threats and pressure on tax revenue, providing little support to the ruling party to woo voters before May 7 elections.
South Africa’s Parliament may run out of time to process changes to mining and oil laws before adjourning ahead of May 7 elections and have to refer them to the next legislature to adopt, a ruling party lawmaker said.