South African Mine Nationalization Talk Threatens Growth, Tshabalala Says

A debate over the nationalization of South African banks and mines may stall economic growth, slashing jobs and compounding poverty, said Sim Tshabalala, chief executive of Standard Bank Group Ltd.’s local unit.

“The campaign to nationalize the banks is billed to cause a great deal of unnecessary damage to South Africa’s growth and job-creation prospects,” Tshabalala wrote in Johannesburg’s Business Day newspaper today. “If the nationalization debate grinds on for many more months, there will be fewer new businesses, fewer new jobs, more poverty and less development for decades to come.”

The ruling African National Congress agreed in September to study nationalization, responding to a call by Julius Malema, leader of the party’s youth arm.

Under Malema, the Youth League has demanded the state take over mines, banks and land to combat youth unemployment, poverty and inequality in Africa’s biggest economy. The country has a 25 percent unemployment rate.

To contact the reporter on this story: Lauren van der Westhuizen in Cape Town at lvanderwesth@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net