South Africa’s mining sector poised to drive Africa’s economic revival

Mzila Mthenjane, CEO, Minerals Council SA

South Africa’s mining industry stands at a pivotal moment. Despite global economic uncertainty and domestic challenges, the sector remains well-positioned to drive the economic transformation envisioned by President Ramaphosa—one that fosters growth, inclusivity, and job creation.

The industry’s strength lies in its diversity. Gold continues to hold its value, platinum group metals demonstrate resilience, and bulk commodities show promising growth. More importantly, South Africa possesses the mineral wealth essential for the future—resources critical for the just energy transition, digital infrastructure, and defense applications that will shape the next economic era.

However, the sector faces a crucial turning point. The recently gazetted Mineral Resources Development Bill, while introducing some positive changes, falls short of fully supporting economic growth and job creation. Instead of removing barriers, some proposed amendments risk maintaining obstacles that could dampen investment sentiment and hinder the industry’s potential.

This is where the Government of National Unity presents a unique opportunity. A multi-party structure fosters greater political accountability and transparency. While it may lead to a more dynamic and vocal democracy, it also strengthens governance and provides a broader mandate to tackle economic challenges. For the first time in years, there is a real chance for a unified vision and coordinated action.

The numbers speak volumes. In 2023, mining companies spent R271.5 billion on procurement, with R1.8 billion invested in enterprise and supplier development. These figures represent thousands of jobs, supported households, and strengthened communities. Mining is not just about extraction—it plays a vital role in wealth distribution and societal development.

Looking ahead, the industry has identified five strategic priorities:

– Advancing climate response and supporting the just energy transition through responsible mining practices.
– Building a data-driven advocacy culture to ensure policy decisions are backed by clear evidence of mining’s economic and social impact.
– Accelerating investment promotion by leveraging global platforms like the G20 and B20 to position South Africa as a premier destination for responsible mining investment.
– Enhancing infrastructure, particularly in logistics and energy, by collaborating with provincial and local governments on critical projects such as water infrastructure and municipal capacity building.- Driving transformation beyond compliance, ensuring industry growth translates into genuinely inclusive economic opportunities that reflect South Africa’s diversity.

The global landscape presents opportunities. Trade tensions, conflicts in Ukraine and the Middle East, and shifting alliances create space for South Africa to take a leadership role on the continent. Strengthening cross-border collaboration and regional partnerships can unlock mineral and manufacturing potential, positioning the country as a key player in global value chains.

South Africa’s mineral wealth offers unmatched exploration and growth potential. These resources can fuel both domestic infrastructure development and the global transition to a low-carbon future. This combination holds the promise of decades of prosperity—if decisive action is taken.

The solutions are clear and achievable. The government must commit to removing investment barriers by:

– Creating a globally competitive regulatory environment.
– Implementing modern, transparent mining cadastres.
– Streamlining regulatory processes.
– Coordinating departments to establish one-stop shops for mining operations.
– Addressing infrastructure bottlenecks.
– Leading a shared vision for mining’s future.

The mining industry is ready to invest, create jobs, and drive economic growth. It has demonstrated commitment through investments in education, health, enterprise development, and infrastructure. Despite challenging conditions, the sector has remained resilient.

Now, what’s needed is partnership—a collaboration between government and the private sector, driven by bold action and transformative reforms. South Africa’s mining industry is not just prepared for growth—it is ready to lead Africa’s economic renaissance.

The real question is not whether this potential can be unlocked—it’s whether the country will seize the unprecedented opportunity before it.

– Advancing climate response and supporting the just energy transition through responsible mining practices.

– Building a data-driven advocacy culture to ensure policy decisions are backed by clear evidence of mining’s economic and social impact.

– Accelerating investment promotion by leveraging global platforms like the G20 and B20 to position South Africa as a premier destination for responsible mining investment.

– Enhancing infrastructure, particularly in logistics and energy, by collaborating with provincial and local governments on critical projects such as water infrastructure and municipal capacity building.

– Driving transformation beyond compliance, ensuring industry growth translates into genuinely inclusive economic opportunities that reflect South Africa’s diversity.
The global landscape presents opportunities. Trade tensions, conflicts in Ukraine and the Middle East, and shifting alliances create space for South Africa to take a leadership role on the continent. Strengthening cross-border collaboration and regional partnerships can unlock mineral and manufacturing potential, positioning the country as a key player in global value chains.

South Africa’s mineral wealth offers unmatched exploration and growth potential. These resources can fuel both domestic infrastructure development and the global transition to a low-carbon future. This combination holds the promise of decades of prosperity—if decisive action is taken.

The solutions are clear and achievable. The government must commit to removing investment barriers by:

– Creating a globally competitive regulatory environment.
– Implementing modern, transparent mining cadastres.
– Streamlining regulatory processes.- Coordinating departments to establish one-stop shops for mining operations.
– Addressing infrastructure bottlenecks.
– Leading a shared vision for mining’s future.

The mining industry is ready to invest, create jobs, and drive economic growth. It has demonstrated commitment through investments in education, health, enterprise development, and infrastructure. Despite challenging conditions, the sector has remained resilient.

Now, what’s needed is partnership—a collaboration between government and the private sector, driven by bold action and transformative reforms. South Africa’s mining industry is not just prepared for growth—it is ready to lead Africa’s economic renaissance.

The real question is not whether this potential can be unlocked—it’s whether the country will seize the unprecedented opportunity before it.