Understanding South Africa’s mining slowdown

Robert Botha ()
Additional contact information
Robert Botha: BER
Authors registered in the RePEc Author Service: Dambala Gelo

No 277, ERSA Working Paper Series from Economic Research Southern Africa

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

Keywords: Mining sector; South Africa; Growth diagnostics; binding constraints; Mineral Policy; Exploration; Junior mining; Economic development; South African economy (search for similar items in EconPapers)
JEL-codes: L71 L72 O42 Q38 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2026-02
References: Add references at CitEc
Citations:

Published in ERSA Working Paper Series, February 2026, pages 54

Downloads: (external link)
https://ersawps.org/index.php/working-paper-series/article/view/277/181 First version, 2026 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rza:ersawp:277

Access Statistics for this paper

More papers in ERSA Working Paper Series from Economic Research Southern Africa
Bibliographic data for series maintained by Maggi Sigg ().