By Phenyo Selinda
President Cyril Ramaphosa, during the African Minerals Forum hosted by the Business Council for International Understanding (BCIU) and Prosper Africa on the sidelines of the 79th United Nations General Assembly (UNGA) in New York, emphasized the critical role of South Africa’s minerals sector in driving global economic growth and sustainability. Ramaphosa highlighted that collaboration with key global partners, particularly the United States, could unlock the vast potential of South Africa’s mining, energy, and manufacturing industries.
Addressing the forum, the President underlined South Africa’s ongoing structural reforms aimed at improving its business environment. He mentioned that these reforms, combined with the country’s substantial reserves of critical minerals like platinum group metals, manganese, and chromium, could attract the much-needed investment to foster technological advancements, enhance supply chain efficiencies, and drive economic growth.
The forum came just four months after South Africa’s general elections, which led to the formation of a Government of National Unity, a coalition of ten political parties focused on economic growth and sustainable development. Ramaphosa emphasized that the new government’s inclusive growth policies are designed to reduce greenhouse gas emissions, tackle climate change, and transition the country’s energy sector from coal to renewable sources, all while creating equitable opportunities for affected communities.
Collaboration with the US and Global Partnerships
One of the key areas of the President’s speech was the call for strengthened partnerships between South Africa and US companies, particularly in advanced mining technologies and sustainability practices. He praised the expertise of the US in these areas, which, if leveraged, could significantly boost South Africa’s mining sector. According to Ramaphosa, strengthening these ties would not only enhance supply chain efficiencies but also attract investment that would help South Africa move up the global value chain.
Ramaphosa also emphasized South Africa’s support for the United Nations Secretary-General’s position on Critical Energy Transition Minerals, a vital part of the global shift towards cleaner energy. He acknowledged the significant reserves of critical minerals across Africa, pointing out that 30% of the world’s proven critical mineral reserves are found in Sub-Saharan Africa.
Local Beneficiation and Job Creation
In his remarks, the President stressed the importance of beneficiation and local processing of minerals, stating that African nations must shift away from simply exporting raw materials. Instead, they should focus on adding value through local processing, which could significantly boost GDP and create jobs. Ramaphosa cited estimates suggesting that if Africa invests in mining beneficiation and domestic processing, it could generate USD 24 billion annually and create over 2 million jobs by 2050.
Despite the progress South Africa has made in increasing the beneficiation of its mineral exports, the President admitted that more work remains to be done. He highlighted the strides made by SASOL, South Africa’s flagship petrochemical company, in advancing green hydrogen technologies, which could place South Africa at the forefront of global energy transitions. Moreover, with the automotive industry moving toward Electric Vehicles (EVs) and New Energy Vehicles (NEVs), Ramaphosa stressed the importance of leveraging South Africa’s experience in automotive production to attract investment in green vehicle manufacturing.
Five-Point Policy Framework
Ramaphosa outlined a five-point policy approach to creating a supportive environment for the critical minerals sector:
1. Simplification of regulations to streamline approvals for mineral extraction and processing.
2. Support for research and development in mining technologies to foster innovation and enhance extraction efficiency.
3. Investment in workforce skills and capabilities to meet the demands of a modern mining sector.
4. Prioritization of transport and logistics infrastructure upgrades to improve supply chain efficiency.
5. Incentivization of both domestic and international investment in critical minerals through tax incentives and other mechanisms.The President emphasized that these policies are crucial to South Africa’s competitiveness in the global critical minerals market, which is expected to reach a value of USD 16 trillion over the next 25 years.
Environmental Safeguards and Human Rights
Ramaphosa also addressed the need to ensure that the extraction of critical minerals does not perpetuate exploitative practices reminiscent of colonial-era resource extraction. He called for fair labor practices, the creation of decent work opportunities, and the protection of human rights in the sector. Furthermore, he stressed the importance of environmental safeguards to ensure that mineral extraction is sustainable and equitable for future generations.
In conclusion, Ramaphosa called on US companies and investors to join South Africa on its journey toward sustainable development. He highlighted that by leveraging respective strengths and fostering strategic collaborations, both countries could meet the demands of the global market while driving economic growth and creating opportunities for their citizens.
“By leveraging our respective strengths, pursuing strategic collaborations, and implementing supportive policies, we stand ready to meet the demands of the global market and drive sustainable development,” Ramaphosa said, inviting US companies and institutions to participate in South Africa’s transformation.
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