By: Lonwabo Mtyeku | Photo Credit: Standard Bank
SEEN HERE: Abe Andries, the Head of Mining at Business and Commercial Banking at Standard Bank South Africa
06 February 2026 | South Africa
South Africa’s mining sector has long stood as a pillar of the national economy, underpinning industrial development, export performance and employment. The industry contributes an estimated 6–7% to gross domestic product, generates more than half of the country’s merchandise export earnings and supports over 450,000 direct jobs, with a far larger employment footprint across associated value chains.
As global demand accelerates for critical minerals such as platinum group metals (PGMs), manganese, chromium, gold and iron ore, South Africa’s position as a leading mining jurisdiction on the African continent is once again under the spotlight. The country remains the world’s largest producer of PGMs and among the leading global producers of manganese and chromite, reinforcing its strategic relevance in global supply chains.
Yet the next phase of mining-led growth will not be defined by extraction volumes alone.
Increasingly, the sector’s true growth engine lies beyond the pit — within the network of value chain operators and small-scale miners that support, service and extend mining activity, and within the provincial economies where mining operations are embedded.
The invisible backbone of mining
Despite their centrality to daily operations, value chain operators and artisanal and small-scale miners often remain marginal in mainstream mining narratives. These businesses operate at the intersection of opportunity and constraint, facing persistent challenges including limited access to appropriately structured finance, working capital pressures, exposure to commodity price volatility, infrastructure bottlenecks, energy constraints and rising regulatory and compliance demands.
This is not a uniquely South African challenge. The World Bank estimates that artisanal and small-scale mining employs more than 45 million people globally, underscoring the scale of livelihoods linked to mining-related small enterprise activity across Africa and other emerging markets.
In South Africa, the opportunity lies not merely in supporting these operators as a social intervention, but in formally integrating and financing them as a core competitiveness strategy for the mining sector itself.
SEEN HERE: Deerosh Maharaj, Head of Energy, Infrastructure and Mining at Business and Commercial Banking at Standard Bank South Africa
Building resilience through ecosystems
According to Deerosh Maharaj, Head of Energy, Infrastructure and Mining at Business and Commercial Banking within Standard Bank South Africa, the sustainability of mining growth depends on the strength of the ecosystems that support it.
“Mining is capital-intensive and cyclical by nature, but its real resilience comes from the breadth and depth of the value chains that support it,” Maharaj says. “When operators across energy, logistics, engineering and services are financially resilient, mining operations become more efficient, more competitive and more sustainable over the long term.”
South Africa’s mineral endowment also forms part of a broader African context. The African Development Bank estimates that the continent holds approximately 37% of global manganese reserves, with the largest deposits located in South Africa, alongside significant reserves of other minerals critical to industrialisation and the global energy transition.
However, the conversion of mineral wealth into sustained economic value depends on the strength of domestic and regional value chain ecosystems. From contract mining, plant hire and equipment refurbishment to logistics, processing support, engineering services, environmental rehabilitation and professional advisory services, small-scale miners and contractors form the operational backbone of mining activity.
Without resilient value chain operators, production efficiency declines, localisation efforts falter and economic value becomes increasingly concentrated, limiting the sector’s broader developmental impact. In this context, critical minerals are only truly “critical” if the value chains that support them are resilient and inclusive.
Competitiveness beyond the majors
For Abe Andries, Head of Mining at Business and Commercial Banking within Standard Bank South Africa, the competitiveness of the mining sector increasingly hinges on the health of these operators and on sustained industry engagement.
“Small-scale mining and value chain operators are often described as peripheral, yet they are fundamental to how mines operate day to day,” Andries notes. “Platforms such as Mining Indaba allow for engagement beyond large producers, keeping the focus on the operators that underpin cost efficiency, operational continuity and compliance across mining value chains.”
While mining’s contribution is often measured through national indicators such as exports and fiscal revenue, its most tangible economic impact is felt at provincial and regional level. In South Africa, mining activity is concentrated in provinces including North West, Limpopo, Northern Cape and Gauteng, where local economies rely heavily on mining-linked value chains for employment, procurement and services.
This provincial dynamic mirrors broader African realities. Across the continent, development finance institutions consistently emphasise the need to move away from enclave-style extraction towards locally anchored mining supply chains that stimulate regional economies and industrial development.
Where new growth will come from
Many of the challenges facing South Africa’s mining sector also point to where new value-chain-led growth opportunities can be unlocked. Energy supply constraints are accelerating demand for embedded generation, maintenance and reliability services. Logistics bottlenecks are creating opportunities for transport, stockpile management and materials-handling operators. Increasing regulatory and environmental requirements are driving demand for specialist safety, rehabilitation and compliance services.
At a continental level, both the African Development Bank and the United Nations Economic Commission for Africa identify beneficiation, value addition and regional supply chain development as the most effective pathways for converting Africa’s mineral wealth into inclusive economic growth.
As South Africa strengthens its position in the global mining landscape, the focus must therefore extend beyond extraction. A resilient mining sector depends on resilient small-scale miners and value chain operators — businesses that are well financed, formally integrated and supported with deep sector insight.
Unlocking mining’s next growth phase will not come from digging deeper alone, but from building stronger ecosystems that allow the entire value chain to thrive.
