{"id":95993,"date":"2026-02-17T07:50:07","date_gmt":"2026-02-17T07:50:07","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector"},"modified":"2026-02-17T08:14:09","modified_gmt":"2026-02-17T08:14:09","slug":"government-actions-to-save-south-africas-key-sector","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector","title":{"rendered":"Government Actions to Save South Africa’s Key Sector"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>South Africa\u2019s mining sector is arguably one of the country\u2019s most important economic drivers, but it has stagnated and declined over the past few decades.<\/p>\n

Luckily, the sector\u2019s stagnation can largely be attributed to policy, regulatory and bureaucratic obstacles, rather than geological exhaustion.<\/p>\n

This means that lifting these constraints could go a long way in unlocking the mining sector\u2019s potential and lead to far faster economic growth for South Africa.<\/p>\n

This is according to the Bureau for Economic Research\u2019s (BER) Robert Botha, who explained that, for over a century, the mining sector has served as the driver of South Africa\u2019s economy.<\/p>\n

Historically, this sector, founded on South Africa\u2019s impressive mineral endowment, has fuelled the country\u2019s industrialisation, urbanisation and capital accumulation.<\/p>\n

\u201cOnce the primary engine of the economy, the sector\u2019s economic contribution has stagnated, allowing the notion to take hold that South African mining is a sunset sector,\u201d Botha said in a recent research note.<\/p>\n

\u201cHowever, we argue that by lifting these binding constraints, it can be a sunrise sector.\u201d<\/p>\n

The stagnation of its mining sector has seen South Africa miss out on successive commodity price booms, with the sector now roughly 12% smaller than it was in 1994.<\/p>\n

However, Botha argued that the sector remains a cornerstone of the national economy, still contributing billions to South Africa\u2019s GDP every year.<\/p>\n

Aside from its economic contribution, he explained that the mining sector also functions as a vital economic engine through significant multiplier effects.<\/p>\n

\u201cThe Minerals Council estimates an employment multiplier of ten, meaning every direct mining job supports ten additional opportunities in other sectors,\u201d Botha explained.<\/p>\n

\u201cThis foundational role underscores the industry\u2019s importance in sustaining domestic investment and broader industrial activity.\u201d<\/p>\n

In addition, mining is the primary anchor for the country\u2019s external trade balance, accounting for more than 50% of all merchandise export earnings.<\/p>\n

\u201cThis trade surplus provides a critical cushion for the current account, helping to offset structural deficits caused by the importation of machinery and refined fuels,\u201d he said.<\/p>\n

However, despite its great economic contributions, the local mining sector is not close to having reached its full potential.<\/p>\n

Botha pointed out that South Africa possesses one of the world\u2019s most significant mineral endowments, with a theoretical value of between $2.5 trillion and $4.7 trillion.<\/p>\n

Despite this, the country has missed out on multiple commodity price booms due to binding constraints on the local mining sector.<\/p>\n

Luckily, Botha believes the solution to the mining sector\u2019s woes lies largely in policy changes that are well within the country\u2019s power to address.<\/p>\n

How to save the mining sector<\/b><\/p>\n

In his research note, Botha made several recommendations to arrest the decline of South Africa\u2019s mining sector and unlock its full potential.<\/p>\n

One such recommendation is reducing policy uncertainty, with Botha saying that the sector is currently entangled in a cycle of regulatory uncertainty and friction that has severely compromised its global competitiveness.<\/p>\n

He explained that South Africa\u2019s current mining legislative framework and disputes have created a high-friction environment.<\/p>\n

Botha said this friction is starkly illustrated by the Fraser Institute\u2019s Policy Perception Index (PPI), which showed that South Africa fell to 70th place out of 82 jurisdictions by 2024.<\/p>\n

\u201cIn contrast, regional peers like Botswana have ascended to the 20th position globally, demonstrating that the African operating environment is not a barrier to success,\u201d he said.<\/p>\n

\u201cRather, specific domestic policy choices and the moving of Black Economic Empowerment goalposts have served as the primary deterrents to long-term investment.\u201d<\/p>\n

\u201cTo unlock the sector\u2019s potential, the diagnostic suggests that the state must move away from adversarial legislating and toward a differentiated regulatory approach.\u201d<\/p>\n

\u201cWithout addressing the disconnect between policy formulation and industry reality, South Africa\u2019s vast mineral wealth will remain sterilised by the very framework intended to promote its development.\u201d<\/p>\n

The decline in South Africa\u2019s PPI score can be seen in the graph below, courtesy of the BER.<\/p>\n

For More News And Analysis About South-Africa<\/span> Follow Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. South Africa\u2019s mining sector is arguably one of the country\u2019s most important economic drivers, but it has stagnated and declined over the past few decades. Luckily, the sector\u2019s stagnation can largely be attributed to policy, regulatory and bureaucratic obstacles, rather than geological exhaustion. This means that lifting these constraints could go a […]<\/p>\n","protected":false},"author":84,"featured_media":95992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[275],"class_list":["post-95993","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-south-africa-2"],"yoast_head":"\nGovernment Actions to Save South Africa's Key Sector - South Africa<\/title>\n<meta name=\"description\" content=\"South Africa\u2019s mining sector is arguably one of the country\u2019s most important economic drivers, but it has stagnated and ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Government Actions to Save South Africa's Key Sector\" \/>\n<meta property=\"og:description\" content=\"South Africa\u2019s mining sector is arguably one of the country\u2019s most important economic drivers, but it has stagnated and ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-17T07:50:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-17T08:14:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771303397.312121.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"713\" \/>\n\t<meta property=\"og:image:height\" content=\"419\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Government Actions to Save South Africa’s Key Sector\",\"datePublished\":\"2026-02-17T07:50:07+00:00\",\"dateModified\":\"2026-02-17T08:14:09+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector\"},\"wordCount\":677,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2026\/02\/sm_1771303397.312121.jpg\",\"keywords\":[\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/government-actions-to-save-south-africas-key-sector\",\"name\":\"Government Actions to Save South Africa's Key Sector - 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