Understanding South Africa’s mining slowdown

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.

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Publication Details

Journal
ERSA Working Paper Series
Published
2026-02-06
DOI
https://doi.org/10.71587/0jznvd71
Primary Topic
Natural Resources and Economic Development
Type
article
Field-Weighted Citation Impact
0.00
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article

Understanding South Africa’s mining slowdown

Robert Botha
ERSA Working Paper Series
Natural Resources and Economic Development
article

Understanding South Africa’s mining slowdown

Robert Botha
article en

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.

ERSA Working Paper Series
Office of Biological and Environmental Research (US), Berry (United States) (US)
Openalex Percentile: Top 70%
Natural Resources and Economic Development
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