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South Africa's mining sector 'gearing for growth' as reforms yield results
Amid electricity and logistical constraints, as well as an increase in crime and corruption, the mining sector contributed only 6.3% to South Africa’s GDP in 2023, down from 7.3% in 2022, Minerals Council South Africa CEO Mzila Mthenjane noted in a presentation at the Africa Down Under conference, in Perth, Australia, on September 4.
Amid electricity and logistical constraints, as well as an increase in crime and corruption, the mining sector contributed only 6.3% to
He said the Minerals Council was working with the South African government on the ambition of increasing economic growth to between 3% and 5% and enabling the creation of about 2.5-million jobs, thereby helping to arrest the current unemployment rate and increase investor confidence.
Mthenjane noted that partnerships between business and government had thus been focused on the areas of energy, logistics, as well as crime and corruption. He explained that the mining sector had been active in developing and driving the structural reforms in each of these areas.
He pointed out the mining sector was among the largest investors in renewable energy in South Africa, with the sector accounting for about 75% of the 22 GW of renewable-energy capacity having been installed in the country in recent years. Investment in renewables has helped to ease the pressure on State-owned Eskom, which has been able to suspend loadshedding for the time being.
Mthenjane also noted that the mining sector had contributed to key water infrastructure investment in prospective mining destinations, such as the
The mining sector was also contributing to reforms in the logistics sector, helping to ease constraints faced as a result of State-owned Transnet’s challenges in providing rail and port services.
“From a Transnet perspective, I'd like to believe that we are hitting the bottom in terms of the performance of rail and port,” he said.
Following the May national elections, the new Government of National Unity has turned its focus to driving economic growth and creating employment.
Mthenjane said the South African mining industry was “gearing for growth,” adding that it was important for the country to increase its exploration efforts.
He stressed, however, that it was also important for the economy that the industry benefited not only from the extraction of minerals, but also the beneficiation and value-addition of those minerals.
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