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Godongwana says South Africa's legal framework hinders investment

Published

Finance Minister Enoch Godongwana said the Constitution, long legal fights and regulatory problems hold back investment, and he named energy exploration as a lagging area. He spoke at a Rand Merchant Bank breakfast after the Medium-Term Budget Policy Statement.

Godongwana said Treasury is working to fix policy and regulatory problems, including in mining. The Minerals Council South Africa and the Department of Mineral and Petroleum Resources are in ongoing talks with Treasury on mining regulation.

Asked how other African countries unlock private investment, he said: "I am sure Rwanda does not have the same Constitution as us." He also said environmental groups can take projects to court until developers give up.

Godongwana said companies that found gas in Namibia first tried in South Africa and failed several times for this reason. He said private sector investment is a policy issue, not a fiscal one.

The Department of Electricity and Energy announced a six month delay to private investment in building transmission infrastructure. The launch of the SA Wholesale Electricity Market faces an initial delay of one year.

Key facts

Who
Enoch Godongwana (Finance Minister); Rand Merchant Bank (hosted the breakfast); Operation Vulindlela (government's flagship reform programme); Minerals Council South Africa (in ongoing conversations with Treasury on mining regulation)
What
Speaking at a Rand Merchant Bank breakfast after the Medium-Term Budget Policy Statement, Godongwana said the Constitution, prolonged legal battles and regulatory issues hinder investment, citing energy exploration as a lagging area. He said Treasury is working to fix policy and regulatory issues, including in mining.
When
22 October 2026
Where
South Africa, Rwanda, Namibia
Status
Reported

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