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The Global Economic and Political Implications of the South African 2014 General Elections

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Introduction
The year 2014 is an important year for South Africa. The first elections after the death of South African ex-president Nelson Mandela will take place and after twenty years of democracy, the world will be watching us again. The world holds much interest in the economy and politics of South Africa as was discussed in Appendix A and Appendix B and it is safe to assume that the world is a stakeholder in the politics and economy of South Africa.
The purpose of this essay is to explore the world’s stake in South Africa, its nature and what implications the 2014 elections has on it. I will be exploring the South African mining industry by looking at the current platinum strikes and its implications on foreign investors. I will be …show more content…

Department of Trade and Industry, 2013). This means that whatever changes are made or issues arise in the South African government regarding mining and farming for example, will be in the interest of the Chinese government. An example of such interest by Chinese investors can be seen in the current platinum strikes. South African exports mainly minerals, particularly platinum and gold and is very vulnerable to changes regarding demand and prices in the international commodity markets (South African Reserve Bank, 2014). South Africa has lost billions in the mining industry due to strikes which is causing favourable conditions for Chinese investors to acquire assets at cheaper prices (www.bloomberg.com, 2014). The strikes are estimated to run into the election period causing China and the rest of the world with a stake in South African mining to pay close attention. According to the South Africa metals report, the immediate threat to the metals industry in South Africa is the disruption of raw material supplies due to strikes in the mining industry (www.businessmonitor.com, 2014).
In a speech given by President Jacob Zuma in February 2014, the president stated that the country has intervened in the mining sector because of its importance as a key job driver (Zuma, 2014). The president also stated that mining is South Africa’s biggest earner of foreign exchange (Zuma, 2014).

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