South Africa's Performance on the Resource Governance Index
South Africa received a "partial" score of 56, ranking 21st out of 58 countries. A "failing" score on the Reporting Practices component contrasted with "satisfactory" performance on the Safeguards & Quality Controls and Enabling Environment components.
(out of 58)
(out of 100)
|20||Institutional & Legal Setting||69|
|10||Safeguards & Quality Controls||75|
Institutional & Legal Setting (Rank: 20th/58, Score: 69/100) learn more
South Africa's "partial" score of 69 reflects the lack of a fully open and competitive licensing process despite a comprehensive legal framework.
The minister of minerals and energy grants mining rights on a first-come, first-served basis. Legislation details how to apply for mineral rights and requires environmental and social impact assessments. The law also sets the royalty rates companies must pay. South Africa adopted a Promotion of Access to Information Act in 2000.
The Finance Ministry's South Africa Revenue Service collects all tax revenues and royalties from mining companies and deposits them in the national treasury.
Reporting Practices (Rank: 47th/58, Score: 31/100) learn more
Poor contract transparency and incomplete government data led to a "failing" score of 31.
The government does not publish mining contracts or environmental impact assessments, and the Mineral Resources Department regularly ignores requests for information, violating the provisions of the Promotion of Access to Information Act.
The Finance Ministry publishes audited annual reports on production volumes, royalties, special taxes, and license fees. The Mineral Resources Department regulates the sector and publishes production volumes, the values of resource exports, dividends, and the names of some companies operating in the country. The South African Reserve Bank publishes quarterly reports on production volumes, gold prices, and exports.
Safeguards & Quality Controls (Rank: 10th/58, Score: 75/100) learn more
South Africa received a "satisfactory" score of 75, the product of relatively robust anti-corruption policies and significant audit requirements.
Mining legislation includes specific provisions that severely curtail ministerial discretion in granting licenses and allow licensing decisions to be appealed. Parliament does not have an oversight role regarding mining contracts or licenses. However, government officials with regulatory responsibilities must disclose their financial interests in any extractive project. A national audit office reviews state accounts and reports regularly to parliament. A committee of legislators reviews audit reports, but resource revenues are not specifically addressed.
Enabling Environment (Rank: 7th/58, Score: 72/100) learn more
South Africa performed extremely well on global rankings of budget transparency, but scored lower on measurements of the rule of law, resulting in a "satisfactory" score of 72.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||169.6||279.8||408.2|
|GDP per capita, PPP (constant 2005 international $)||7,641||8,597||9,678|
|Extractive exports (% total exports)||21||33||46|
|Source: World Bank.|