433369666-The-Case-for-Investing-in-South-Africa

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66 | A HIGHLY DEVELOPED AND DIVERSIFIED MINING SECTOR SA GDP, 2018 8.1% SA GDP, 2018 SA GDP, 2018 8.1% Sub-sectoral contributions to mining sector's GDP, 2018 91.9% 91.9% 1 1 Other sectors Mining contribution to GDP Other sectors Mining contribution to GDP Source (chart): IDC analysis, compiled using Quantec data Contribution to the economy Structure Extensive sectoral linkages The mining sector (including primary gold, coal and other mining activity) contributed 8.1% to South Africa’s GDP and accounted for 35.5% of the country’s total merchandise export earnings in 2018. Platinum exports dominate the mineral export basket, followed by coal and gold. The sector employs 454 000 people. The mining sector is highly developed and hosts a number of mining conglomerates that account for the bulk of mining production. Emerging miners dominate exploration activity. Mining has extensive backward and lateral linkages with the manufacturing and services sectors through the purchase of inputs and services, as well as forward linkages to manufacturing through the supply of raw materials into various metal fabrication industries. GROWTH AND EXPORT PERFORMANCE OF THE MINING SUB-SECTORS GROWTH PERFORMANCE OF SOUTH AFRICA’S MAJOR MINING SUB-SECTORS EXPORT TRENDS OF SA’S MAJOR MINING SUB-SECTORS ZAR billion at 2010 basic prices ZAR billion at 2010 basic prices 300 250 200 150 100 50 0 Mining sub-sectors: Real GDP trends Platinum group metals Coal Iron ore Gold Manganese ore Chrome Copper Other metallic minerals Other mining and quarrying ZAR billion at ZAR 2010 billion basic at prices 2010 basic prices 200 180 160 140 120 100 80 60 40 20 0 Coal mining exports Gold and uranium ore mining exports Other mining exports 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: IDC analysis, compiled using data from Statistics South Africa and the South African Revenue Service
| 67 GROWTH AND EXPORT PERFORMANCE OF THE MINING SUB-SECTORS Major mining export categories ZAR million % of total SA merchandise exports Gold mining: Gold, unwrought, semimanufactured, 71 681 5.8% etc. Iron ore mining: Iron ores and 56 354 4.5% concentrates, roasted iron pyrites PGM mining: Platinum, unwrought, semi-manufactured 103 933 8.3% Metals, clad with platinum, semimanufactured 1 0.0% Total PGM mining 103 934 8.3% Coal mining: Coal, briquettes, ovoids etc, made from 82 047 6.6% coal Peat (including peat litter) 5 0.0% Lignite, except jet 0 0.0% Total coal mining 82 051 6.5% Total major mining segments (excl. other mining) 314 020 25.2% Other mining export categories ZAR million % of total SA merchandise exports Manganese ores, iron ores >20% 46 490 3.7% Manganese Diamonds, not mounted or set 28 434 2.3% Chromium ores and concentrates 24 780 2.0% Titanium ores and concentrates 7 812 0.6% Niobium tantalum vanadium zirconium 6 453 0.5% ores, etc Precious metal ores and concentrates 4 236 0.3% Copper ores and concentrates 2 765 0.2% Others 7 918 0.6% Total other mining 128 889 10.3% Overall mining exports 442 909 35.5% COMPARATIVE ADVANTAGES OF SOUTH AFRICA’S MINING SECTOR Basis for comparative advantage Significant and diverse mineral reserves portfolio supports the sector’s long-term growth outlook. Very high level of technical and production expertise. Strong backward and forward linkages with other sectors of the economy. Competitive cost-curve position in several key commodities. Global leader in deep-level mining mineral recovery and technology. Stable environment supports the sector’s investment outlook. Select investment trends • Capital investment in South Africa’s mining sector is concentrated in brownfield project development. • Several private equity and hedge funds have been attracted to the country’s mining assets since the commodity price slump of 2016. • New investment projects are heavily weighted towards PGMs mining. • Declining mineral reserves and rates of production from the central coal basin have led to increased large-scale capital investments for new coal mine development in South Africa’s Waterberg region. • South Africa has been a key target for Indian FDI in the development and operation of coal assets. New Mining Charter gazetted in September 2018. Current Mineral and Petroleum Resources Development Act remains applicable, with the amendment Bill having been withdrawn so as to provide greater certainty for the mining sector.
Page 1 and 2:
THE CASE FOR INVESTING IN SOUTH AFR
Page 3 and 4:
CONTENTS 1. WHY INVEST IN SOUTH AFR
Page 5 and 6:
10 REASONS WHY YOU SHOULD INVEST IN
Page 7:
| 3 WORLD-RENOWNED FOR INDUSTRIAL I
Page 11 and 12:
| 7 SOUTH AFRICA AT A GLANCE • So
Page 13 and 14:
| 9 SOUTH AFRICA AT A GLANCE: INFRA
Page 15 and 16:
| 11 SOUTH AFRICA AT A GLANCE: SOCI
Page 19: 3. ECONOMIC OVERVIEW
Page 22 and 23: 18 | - Manufacturing output increas
Page 24 and 25: 20 | FISCAL POLICY GEARED TOWARDS F
Page 26 and 27: 22 | GLOBAL ECONOMIC DEVELOPMENTS
Page 28 and 29: 24 | RELATIVE PERFORMANCE OF SELECT
Page 31: 4. POLICY FRAMEWORK
Page 34 and 35: 30 | MICROECONOMIC POLICY INTERVENT
Page 36 and 37: 32 | INDUSTRIAL POLICY SUPPORT Attr
Page 38 and 39: 34 | TRADE POLICY: MAIN BENEFITS OF
Page 41: 5. ENABLING ENVIRONMENT
Page 44 and 45: 40 | EASE OF DOING BUSINESS: SOUTH
Page 46 and 47: 42 | ATTRACTIVE INCENTIVES TO SUPPO
Page 49: 6. OPPORTUNITIES FOR INVESTORS
Page 52 and 53: 48 | SECTORAL STRENGTHS OF SOUTH AF
Page 54 and 55: 50 | EXPORT-ORIENTED SECTORAL OPPOR
Page 56 and 57: 52 | SOUTH AFRICA AS A KEY REGIONAL
Page 59: 6.1 AGRICULTURE AND AGRO-PROCESSING
Page 62 and 63: 58 | SA GDP, 2018 WELL-ESTABLISHED,
Page 64 and 65: 60 | AGRICULTURE AND AGRO-PROCESSIN
Page 67: 6.2 MINING AND MINERALS BENEFICIATI
Page 72 and 73: 68 | BASE METALS AND METALS FABRICA
Page 74 and 75: 70 | INVESTMENT OPPORTUNITIES IN MI
Page 76 and 77: 72 |
Page 78 and 79: 74 |
Page 80 and 81: 76 | MANUFACTURING SECTOR’S EXPOR
Page 82 and 83: 78 | AUTOMOTIVE INDUSTRY: EXPORT-OR
Page 84 and 85: 80 | AUTOMOTIVE VALUE CHAIN: INVEST
Page 86 and 87: 82 | ELECTRICAL MACHINERY AND EQUIP
Page 88 and 89: 84 | CHEMICALS AND CHEMICAL PRODUCT
Page 90 and 91: 86 | CLOTHING, TEXTILES, FOOTWEAR A
Page 92 and 93: 88 | ADVANCED MANUFACTURING • The
Page 94 and 95: 90 | ADVANCED MANUFACTURING: OPPORT
Page 96 and 97: 92 |
Page 98 and 99: 94 |
Page 100 and 101: 96 | Contribution to the economy St
Page 102 and 103: 98 | BUSINESS PROCESS OUTSOURCING (
Page 104 and 105: 100 | FINANCE AND INSURANCE • The
Page 106: 102 | OCEANS ECONOMY • Several fa
Page 111 and 112: | 107 AN EXTENSIVE INFRASTRUCTURE D
Page 113 and 114: | 109 INFRASTRUCTURE DEVELOPMENT PL
Page 115: GREEN INFRASTRUCTURE INVESTMENT OPP
Page 119 and 120: SOUTH AFRICA: BUILDING PARTNERSHIPS
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433369666-The-Case-for-Investing-in-South-Africa

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