Comment by André Coetzee, Managing Director of The Chartered Institute of Purchasing & Supply:
The latest Fraser Institute’s Annual Survey of mining companies represents responses from 802 exploration, development, and other mining related companies around the world with a collective spend of USD 6.3 billion last year. The poll measures attractiveness of 93 mining jurisdictions and includes criteria such as regulatory uncertainty, legal systems, taxation, political stability and for the first time included a question on corruption.
South Africa’s rankings rose to 54th out of 93 in the 2011-2012 polls, compared to 67th out of 79 the year before. South Africa was ranked 69th on corruption with one third of the respondents indicating it was a strong deterrent to investing in South Africa. From a developing nations perspective Chile and Botswana are perceived to have the lowest levels of corruption, less corrupt than four Canadian provinces and two US States. According to the poll Zimbabwe is considered by respondents as one of the 10 most corrupt jurisdictions.
André Coetzee, Managing Director CIPS Southern Africa said “I am delighted to find the added question on corruption as this is a further indication of the importance of sound procurement and supply chain practices” He added that “Governments that are serious about improving their rankings through the up skilling of procurement and supply practitioners and improved supply chain policies and procedures will most certainly be favoured as investment destinations of choice.”