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Understanding South Africa’s mining slowdown

Author

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  • Robert Botha

    (BER)

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. Botha, R. (2026). Understanding South Africa’s mining slowdown (ERSA Policy Paper No. 43). Economic Research Southern Africa. https://doi.org/10.71587/0jznvd71

Suggested Citation

  • Robert Botha, 2026. "Understanding South Africa’s mining slowdown," ERSA Working Paper Series 277, Economic Research Southern Africa.
  • Handle: RePEc:rza:ersawp:277
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    File URL: https://ersawps.org/index.php/working-paper-series/article/view/277/181
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    JEL classification:

    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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