The ArcelorMittal /Imperial Crown Trading deal (in all its complexity) is deeply threatening to the future of investment in South Africa.

If I ran a display indicating threat levels to the South African democracy the readings would be higher now than at any time since the successful establishment of majority rule in 1994.

Such a statement is obviously subjective. So here goes:

South Africa's future depends on sustainable economic growth. This is the minimum condition that must be met if we are to roll back the current levels of unemployment, poverty and inequality.

The minimum condition for economic growth to occur is for domestic and international investors to continue to put their money and creativity to work in the country - preferably on an ever expanding scale.

Investors, domestic or international, are always primarily concerned with the safety of their asset and the predictability of returns.

"Political risk", for investors is the risk that the actions or inactions of government could affect their ownership of their asset and what they can expect to earn from that asset.

ARCELORMITTAL SOUTH AFRICA LIMITED

(Incorporated in the Republic of South Africa)

(Registration Number 1989/002164/06)

Share code: ACL

ISIN : ZAE000134961

("ARCELORMITTAL SOUTH AFRICA")

TERMS OF ARCELORMITTAL SOUTH AFRICA BLACK ECONOMIC EMPOWERMENT ("BEE") OWNERSHIP TRANSACTION AND FURTHER CAUTIONARY ANNOUNCEMENT HIGHLIGHTS

According to a report in Die Burger (“Afrikaners can’t play for Bafana,” 22/06/2010) Mr. Floyd Shivambu, ANC Youth League spokesperson, has commented on whether or not our national soccer team, Bafana, should  be subject to demographic representivity. Asked what he had to say to Afrikaners who are unhappy about Bafana “not being representative of the country as a whole,” Shivambu answered: “They are crazy. Totally.” He asked if anyone has ever seen an “Afrikaner who can be picked to play for Bafana”.

Mr. Shivambu has a point: teams should be picked on merit and not on race. Accordingly, it is also completely acceptable if t the great majority of the French soccer team - or the American athletics team - is not demographically representative of their particular countries.

Mr. Shivambu is correct for three reasons. In the first place the argument for demographic representivity is illogical. The answer to the question of who should play for Bafana is not to be found in the demographics of the population of the country, but in Bafana’s requirements as a soccer team. Bafana requires a soccer team that can win matches and one day, perhaps, give South Africa a chance of winning the World Cup.

This principle applies equally to the greater soccer field of South Africa. Elections to public office and appointments to private and public posts should be based on merit and not race. People in the private sector should be free to form associations and partnerships with whomever they like as long as there is no discrimination with regard to appointments and promotions.

South Africa's affirmative action laws do not apply to foreigners working in the country, Labour Minister Membathisi Mdladlana said on Wednesday.

"Provisions are made in the regulations for employers to record and report on foreign nationals separately, however, they are not targeted for affirmative action," Mdladlana said in reply to a Parliamentary question from the Inkatha Freedom Party.

The minister said that the Employment Equity Act sought to eliminate discrimination and implement affirmative action measures to ensure the representation of black people, women and people with disabilities.

"The affirmative action part only applies to designated employers and individuals from the designated groups."

Mdladlana was also asked whether it was permissible for an employer to refuse to fill a post if a qualified white candidate had applied but there were no suitable black candidates.

"Where a South African black candidate is not available for a post, and if all things are equal, the South African white candidate should receive preference," he said.

Originally published by Polity.org.za