Over the course of the past two decades, South Africa has been in a form of economic drift, at times forgetting its economic roots. The foundations on which this country was built and the industries that shaped it have been neglected, shunned even.
We have always been a country that has prided itself on our mining industry, producing expertise in a sector that was recognised across the world. Yet at a time when global demand for mining skills is fierce, and a basket of commodities is in resurgent demand, the country seems unable to fully grasp this opportunity.
Why is that? Why has the government stopped putting extractive industries at the centre of its economic strategy when there is still so much to be gained?
Is it the green transition and the pressure to shift from coal? Mining somehow has been left by the wayside; the dirty industry we don’t talk about. With rapid technological advancements the push is to get into computing, robotics, AI, financial services. Who wants to be a miner?
And yet, for all this thinking, there is still an enormous dependency on the companies digging materials out the ground – especially for the minerals that will enable the rollout of AI.
Neglected heritage
I grew up in eMalahleni (Witbank) in Mpumalanga, the heartland of South Africa’s historical power production, with coal power plants and mines scattered across the province. My town was home to many of the subsidiary industries that were and remain attached to the mines – such as logistics, equipment and machinery rental, mechanical repairs and various service value chains. All creating jobs, economic growth and opportunity. My story is not unique; Joburg was built around and on top of gold mines.
However, mining in South Africa is increasingly neglected, plagued by policy uncertainty, licensing delays and barriers to exploration. The collapse of our rail freight network and ports restricts opportunities for growth. Meanwhile, the slow issuing of permits and onerous regulatory burdens are inexorably throttling what little growth there is. Mining’s contribution to GDP fell to R439.2bn in 2025, or 5.8% of the economy compared to 6% in 2024. Ten years ago, mining’s contribution stood at 8%; in 1980, it was 20%.
It means South Africa, a resource-rich country, seems to insist on behaving like a resource-poor one. Mining still has the potential to play a massive role in our economic future, particularly in the green energy transition, given the abundance of platinum group metals. Not to mention manganese, chrome and vanadium, which are vital in battery storage and steel production, and of which we have some of the highest reserves in the world. Incredible potential.
And when mining booms so does the country. Last year, the core reason why the South African Revenue Service hit its tax targets was due to a surging gold and platinum price. Mining is one of the few sectors that can deliver both jobs, exports and taxes at scale. It’s unthinkable that this industry – the very foundation of the economy – is not championed every day as one of our key avenues to growth.
A catalyst for growth
While mining is our history and our heritage, it is entirely possible that oil and gas could be our future. Recent offshore oil discoveries along South Africa’s southern coastline point towards the next frontier. Natural gas and oil could catalyse growth, provide baseload power that could further support the mining industry, power datacentres and higher-energy industries, and create value chains that boost employment. Not to mention support the fiscus and the country’s national accounts.
And yet there is no excitement. No enthusiasm for these incredible opportunities. Rather there is hesitancy, an inability to make decisions, and overall policy uncertainty. Capital is not following potential; investors are not looking for opportunities where they think something is going to happen. These are barriers of our own creation.
It’s time for South Africa to reclaim its position as a leader in extractive industries. Review and develop clear and consistent policy that is going to enable more mining and unlock the oil and gas industry. Encourage exploration, endorse it and promote it.
There is absolutely nothing wrong with pursuing a low-carbon future and developing the green economy, but the notion that it should come at the cost of industries that enable such a transition, particularly in a developing country, is absurd. Rules and aspirations that are being placed on South Africa globally, which result in domestic economic sacrifices and costs, must be abandoned.
The current path of low economic growth, policy drift and missed opportunities will continue unless there is an active attempt to point the country towards the economic sectors that will unlock growth.
Mining built this economy once before, and jointly with oil and gas it can do so again.
Jordan Griffiths is the private secretary and adviser to deputy finance minister Ashor Sarupen.
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Top image collage: Rawpixel; Currency.
