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Understanding South Africa’s mining slowdown

Year: 2026

Type: article

Abstract: South Africa’s mining sector presents a significant economic paradox: despite possessing a mineral endowment of global significance—particularly in platinum group metals (PGMs), manganese, and chromium—the industry has experienced a profound structural decline since the 1970s. This paper investigates the binding constraints that have prevented the sector from capitalising on global commodity booms and the green energy transition. Applying the Growth Diagnostics framework developed by Hausmann, Rodrik, and Velasco (2005), the study argues that the sector's decline is primarily endogenous, driven by human-made constraints rather than geological exhaustion.

Source: ERSA Working Paper Series

DOI: 10.71587/0jznvd71

Author: Botha, Robert

Institution: Office of Biological and Environmental Research

Language: English

Topic: Natural Resources and Economic Development

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W7127928726

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