In this morning’s episode of the BizNews Briefing, renowned mining expert Bernard Swanepoel provided valuable insights into the current state of South Africa’s mining sector. As the former CEO of Harmony Gold and host of the Joburg Mining Indaba, Swanepoel offered a cautiously optimistic outlook, touching on political, economic, and infrastructural challenges and the role of the mining industry in overcoming them.
Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.
BizNews Reporter
Bernard Swanepoel gave a wave of insight this morning on the new BizNews Briefing live podcast. With a focus on cautious optimism, Swanepoel discussed the importance of responsible mining, political alignment for economic growth, and the role of public-private partnerships in revitalizing critical infrastructure. Here are some of the valuable points discussed in the Briefing:
Political realignment and cautious optimism
Swanepoel began by reflecting on the political landscape in South Africa, emphasizing that while there is some optimism, it is not unfounded exuberance. The country is witnessing a political reset, with citizens expressing dissatisfaction with the government at the polls. This shift could drive political alignment toward economic growth, particularly in sectors like mining, which remains foundational to South Africa’s economy. Swanepoel noted that politicians and the mining industry must collaborate to ensure responsible extraction of the country’s rich mineral resources. He emphasized that bringing political leaders and mining CEOs together is crucial to fostering dialogue that promotes both economic growth and job creation.
Gwede Mantashe and the Mining Industry
A significant portion of the conversation focused on Minister of Mineral Resources Gwede Mantashe, a figure who has had a complicated relationship with the mining sector. Despite past disappointments, Swanepoel acknowledged that Mantashe’s presence at the Joburg Mining Indaba, along with senior representatives from his department, allowed for more meaningful engagement. He stressed that while the mining department plays a key role, economic policy affecting the industry is shaped more broadly by departments like the Department of Trade, Industry, and Competition (DTIC).
Swanepoel highlighted that broader issues such as the country’s cadastral system, competition commission practices, and the lack of incentives for reindustrialization are hindering mining’s full potential. He expressed optimism, however, about the generational shift within some government departments, which could pave the way for more constructive policy changes.
The role of mining in local communities
Swanepoel also addressed the important role that mining plays in revitalizing local economies. He pointed to towns like Lichtenberg, where cement plants and agricultural activities have long coexisted, but where infrastructure has deteriorated due to poor municipal governance. In such towns, he noted, mining companies often step in to fill the void left by ineffective local governments, contributing to essential services like electricity and road maintenance.
Swanepoel further remarked that responsible mining companies are actively involved in their communities, not just in terms of providing jobs, but also in maintaining local infrastructure. He contrasted this with illegal mining activities, which contribute to lawlessness and economic instability. By promoting responsible mining practices, Swanepoel believes that mining companies can act as “active citizens,” helping to rebuild neglected communities across South Africa.
Public-Private partnerships: A path forward
The conversation then shifted to the role of public-private partnerships (PPP) in addressing South Africa’s infrastructure and economic challenges. Swanepoel agreed with Hogg and other commentators that PPPs offer a viable solution in the face of government budget constraints. He noted that successful partnerships in sectors such as tourism and water infrastructure have already contributed significantly to the economy, and he expressed optimism that these models could be expanded further.
Swanepoel also drew parallels between the country’s current situation and the success of the South African national rugby team, the Springboks, under coach Rassie Erasmus. Just as Erasmus was able to unite a diverse team and lead them to victory, Swanepoel believes that South Africa’s political and business leaders can come together to drive economic recovery, provided they focus on common goals.
The next generation of leaders
One of Swanepoel’s key points was the emergence of a new generation of leaders within South Africa’s mining industry. He spoke highly of young leaders who have grown up in a complex, often dysfunctional environment, yet have thrived in their roles. These leaders, according to Swanepoel, are akin to sports stars like Eben Etzebeth and Cheslin Kolbe—world-class talents who are well-prepared to navigate the challenges ahead.
Swanepoel concluded on a hopeful note, expressing confidence in South Africa’s mining future. While acknowledging the cyclical nature of the industry, he emphasized that the combination of world-class mineral resources and the emerging generation of talented leaders positions South Africa well for long-term success.
Listen to the full BizNews Briefing
Read also:
