Address by President Cyril Ramaphosa during the Business Council for International Understanding (BCIU) and Prosper Africa African Minerals Forum, 23 September 2024
Coordinator of Prosper Africa, Ms British Robinson,
President of the Business Council for International Understanding, Mr Peter Tichansky,
South African Ministers,
Representatives of industry,
Distinguished Guests,
Ladies and Gentlemen,
Good morning and thank you for this opportunity.
I wish to thank the BCIU and Prosper Africa for hosting this Critical Minerals Roundtable.
Four months ago, South Africa held national general elections, which ushered in a Government of National Unity.
Ten political parties have come together to coalesce around a common agenda for economic growth and sustainable development.
Through a combination of driving key structural reforms and leveraging the strengths of key economic sectors such as mining, energy, and manufacturing we aim to improve the business operating environment and attract investment.
South Africa is committed to contributing is fair share to reducing greenhouse gas emissions and adapting to and mitigating the impacts of climate change.
We are advancing a Just Energy Transition Plan that will guide our shift from coal to renewable energy sources while ensuring equitable economic opportunities and social inclusion for affected communities.
South Africa’s and Africa’s critical minerals sector has a crucial role to play in this regard, and we recognise the importance of collaboration with other countries to develop the potential of our critical minerals sector.
The US in particular has established expertise in advanced mining technologies, automation and sustainability practices.
We want to strengthen our ties with US companies and institutions to foster technological advancements, enhance supply chain efficiencies and attract investment into our mining sector.
South Africa strongly endorses the United Nations Secretary-General’s position paper on Critical Energy Transition Minerals, where he highlights the importance of beneficiation, benefit sharing, local value addition and economic diversification.
It would not be an understatement to say that the minerals that lie beneath the soil of Africa are powering the green energy revolution.
Thirty percent of the world’s proven critical mineral reserves are found in Sub-Saharan Africa.
South Africa has substantial reserves of platinum group metals, manganese, vanadium as well as chromium.
These resources are fundamental to the development of cutting-edge technologies that drive progress in various sectors.
What will be critical is to ensure that this progress does not leave Africa behind.
The extraction of critical minerals must not perpetuate colonial-era patterns of exploitation of the continent’s rich resources.
As it stands, most African countries export critical minerals primarily in their raw form.
By focusing on basic extraction and not on beneficiation and value-added processing of minerals, Africa is both missing out and losing out.
By some estimates, extraction of select minerals could boost the region’s GDP by 12 per cent or more by 2050.
However, this is a fraction of the benefits that could be reaped from processing and beneficiation.
By some estimates African countries could generate USD 24 billion a year in GDP and create 2.3 million jobs from investing in mining beneficiation and domestic processing.
We are making progress. By way of example, SASOL, our flagship petrochemicals company, is also a leader in green hydrogen technologies, including R&D.
As the global automotive industry moves towards Electric Vehicles and New Energy Vehicles, we are leveraging our rich experience with automotive production to get some of the world’s leading automotive manufactures with a footprint in South Africa to produce more their green vehicles in our country.
Although South Africa’s ratio of beneficiated to primary products exported continues to improve, we clearly need to do more.
According to the International Monetary Fund, the global market for critical minerals is expected to total approximately USD 16 trillion over the next 25 years.
Africa is perfectly positioned to leverage this demand for its benefit.
As a country South Africa is committed to creating a supportive policy framework for the critical minerals sector.
Our policy approach has five key elements.
Firstly, to simplify and streamline regulations and regulatory approvals for critical minerals extraction and processing.
Secondly, to implement measures to support research and development in mining technologies. By fostering innovation, we aim to enhance extraction efficiency, reduce costs, and drive technological advancements in the sector.
Thirdly, investing in programmes to build the skills and capabilities of our workforce. This includes training and development initiatives to ensure that South Africa has a skilled labour force capable of meeting the demands of a modern mining sector.
Fourthly, prioritising investments in transport and logistics to improve the efficiency of mineral supply chains. This includes upgrading ports, railways, and roads to support the seamless movement of minerals from mines to global markets.
Fifth, incentivising domestic and international investment in the critical minerals sector. This includes tax incentives, grants, and other support mechanisms to encourage investment in exploration, production, and technological development.
South Africa also has a beneficiation strategy that seeks to translate the benefits of our country’s mineral endowments into a national competitive advantage.
As the UN Secretary-General’s paper has noted, Critical Energy Transition Minerals can transform economies, create green jobs and foster sustainable local, regional and global development.
For this unique opportunity to meet its promise and fully realise its potential, it will be key that both mineral-producing countries and the countries that are the end destination of these minerals strive for inclusivity.
The extraction and processing of critical minerals must create decent work opportunities for communities.
Every effort must be made on the part of governments and mining companies to ensure that practices rife on the continent like child and forced labour, and human rights abuses of mine workers, are eradicated.
Local beneficiation must be prioritised and supported, enabling economies to diversity and industrialise.
Environmental safeguards, ecosystems protection and sustainable extraction and processing practices must be sacrosanct.
The extraction of these resources from the locations where they are mined is finite. As the UN Secretary-General’s paper notes, there must be a focus not on short-term prosperity but on building lasting inter-generational equity.
Critical minerals are more than just commodities. They are integral to resolving some of the world’s most pressing challenges, be they climate change, energy insecurity or food insecurity.
They power the technologies that can help us bring about a world that is more equitable and that leaves no one behind.
By leveraging our respective strengths, pursuing strategic collaborations, and implementing supportive policies, we stand ready to meet the demands of the global market and drive sustainable development.
I call on US companies and investors to join us on our journey, and I look forward to our engagement today.
I thank you.
Issued by: The Presidency
Pretoria