The whole debate about nationalisation is one of futility, in my mind, but with negative consequences only. I think it is futile, because I do not believe any government, with a country like Zimbabwe next door, and the experience and wisdom of what has happened around the world, is going to consider nationalisation. The negative consequences of course are the very fact that they are mentioning that they are prepared to consider this, and consider the policy which seems to be an effort to appease Julius Malema.

At the end of the day however, it simply creates uncertainty for external investors and means that overseas investors, when faced with a choice between South Africa and another country, will go to the country which is not considering nationalisation or any other extreme government intervention into the economic system. Nationalisation does not work, state entities without any competition don’t work, and nationalisation of assets such as mines, or any businesses, simply leads to disaster. What does however have to change is land reform, which is taking place far too slowly in South Africa and while nationalisation is not the answer, the parties do need to start speaking to each other a lot quicker than the 17 years of very little progress so far.