South Africa has two things in abundance which are necessary but insufficient to achieve reindustrialisation – political statements and mineral endowments.
For reindustrialisation to take off, statements by politicians must be turned into practical, measurable policy steps. Similarly, a conducive regulatory environment is required to attract capital, skill and innovation that could turn extracted raw mineral ores into valuable products.
If you are interested in rhetoric only, pick up any speech by President Cyril Ramaphosa on the economy and you will find undertakings to revitalise industry. The government’s critical minerals strategy published by the Department of Minerals and Petroleum Resources also makes mineral beneficiation a priority, citing South Africa’s skills set, mineral endowment and industrial institutions.
At the highest level, Ramaphosa has done extremely well to convince G20 leaders at the Johannesburg summit to agree to a call in the summit’s declaration for mineral beneficiation to take place where minerals are sourced. It was a massive achievement given the fact that some G20 members developed by importing cheap African mineral ores to feed their manufacturing capabilities, leaving African economies underdeveloped.
Ramaphosa had already made beneficiation a top priority at the ANC’s anniversary rally in Cape Town in 2025. Subsequently, the ANC reiterated the commitment in its national executive committee’s 10-point plan released in October. Under the third point, the plan stated: “We will finalise chrome and manganese export tariffs, implement defensive duties on dumped imports and expand alloys and battery precursor production.”
In his 2026 State of the Nation Address, the president once again committed to economic revitalisation. There is, therefore, plenty of evidence that the heart and the words of the president and his administration are in sync.
But, like raw material, rhetorical commitments and policy intentions need beneficiation, so to speak. When thoroughly processed they would result in cheap and reliable energy, trade and infrastructure policies that support reindustrialisation.
The good thing is that Ramaphosa’s cluster of economic ministers are working with private players in the ferroalloys industries to revive the big part of the country’s industrial capabilities that have been allowed to atrophy over the years and to save the little that is struggling to be competitive due to exponential increases in electricity prices.
If successful, South Africa could once again be a world leader in ferrochrome and ferromanganese production, adding thousands of jobs in the process, while reversing industrial decline. The value derived from beneficiation is immense.
The ferrochrome industry has made it clear that 62 cents/KwH price of electricity would place the industry in a competitive footing relative to Chinese producers that are enjoying market advantages due to cheap coal-fired power in China and cheap ores imported from South Africa. The country also lost competitive advantage in the ferromanganese sector due to unreliable electricity supply accompanied by steep rise in power prices. This industry and others like it also need competitive power prices.
The decline of South Africa’s ferroalloys industry has been tragic because South Africa is the world’s largest producer of chrome and manganese – the bulk of which is now exported to China, and imported back as high-value finished products. According to the Minerals Council Facts & Figures 2025 Pocketbook, manganese production in 2025 was approximately 20.3 million tonnes while chrome chrome was about 23.6 million tonnes.
South Africa holds significant reserves of Manganese (80 percent) and Chrome (70 percent), according to research by the Ferro Alloy Producers Association.
Recent steps taken by Electricity Minister Kgosientsho Ramokgopa to consult with various industry stakeholders involved in mineral beneficiation to find a cheap power solution are likely to yield positive results. He and power utility Eskom have shown commitment to solve the issue. As some motivational speakers say, where there is a will there surely must be a way.
The government has begun to appreciate the interconnectedness and potential impact of resuscitating industrial capacity, and is moving beyond words. It has learned that the negative impact of mothballing furnaces is not restricted only to the smelter companies. It extends to feeder industries such as mining. Eskom itself would, in the long run, be deprived of a reliable customer base if the smelters are allowed to collapse completely.
Smelters are heavy users of baseload power and cannot switch to intermittent renewables. They are, therefore, the long-term partner of Eskom. It is in Eskom’s interest to help them remain competitive during difficult times.
With the closure of smelters, it has become clearer even to the renewable lobby that solar cannot replace baseload power when it comes to heavy manufacturing. If it could, the silence of the lobby over the decline of this critical industrial sector would not have been so obvious.
The 2026 African Mining Indaba added impetus to the urgency for African countries to get their act together – to form partnerships that work to build industries, sustain development and create jobs. At the launch of the Compendium of Africa’s Strategic Minerals published by the African Finance Corporation (AFC), Chief Executive Officer, Samaila Zubairu, highlighted the weaknesses of the continent’s infrastructure and the opportunities it presented.
The mineral-rich continent has several trade corridors that require infrastructure development in the form of rail and ports to facilitate exports as well as intra-African trade. For example, to upgrade the Lobito rail corridor, linking Zambia’s copper fields and Angola’s port, will require huge amounts of steel.
Painfully to a South African listening to his comments, Zubairu stated: “There are steel plants in South Africa, but they are having challenges. We might need to import steel from other continents. It does not make sense when we have high grade iron ore on the continent.”
This clearly shows the urgency of South Africa’s reindustrialisation that should involve bringing back steel manufacturing capabilities. The AFC’s report also points out how South Africa’s deindustrialisation has shaped Southern Africa’s industrial dynamics. As Africa’s largest and most diversified mining and industrial economy, South Africa has historically anchored demand for regional minerals and provided core infrastructure.
But long-term under-investment in power plants and infrastructure has left processing plants closed, including steel, ferrochrome, zinc smelters and refineries. Yet, Transnet has begun to turn the corner. We can hardly afford any derailment.
South Africa’s critical minerals strategy envisages the possibility of South Africa being the processing hub for the rest of the African continent. This will not happen unless South Africa returns to competitiveness. Put differently, unless Minister Ramakgopa’s ideas on power policy turn into concrete and implementable plans.
Industry players are more than ready to collaborate with the government for the benefit of all, especially those looking for decent manufacturing jobs. If ever there was any wavering on the part of government and some industry players, the 2025 fourth quarter employment numbers should serve as a wake-up call and force us to work harder and faster to find a solution. Manufacturing recorded the biggest jobs losses at 3.8 percent (61 000) on quarter-to-quarter basis.
This adds to the 3. 7 percent (62 000) drop in the third quarter and 0.3 percent (5000) in quarter two of 2025, according to Statistics South Africa.
These are not numbers. They are breadwinners who have lost income. It’s a massive loss to the economy because manufacturing jobs pay higher than community service jobs that have spiked. Manufacturing jobs also tell a story about the industrial health – of lack thereof – of the economy.
South Africa has the capacity to reverse this by reindustrialising on the back of Africa’s infrastructure needs as well as global demand for minerals. As we attempt to bounce back, we will do so amid demands by fellow African countries to have their minerals beneficiated at source.
Even if such demands are considered, it will take time for many African countries to build the kind of industrial capacity that South Africa has. In fact, the building of that capacity will, in itself, generate growth on the continent.
While they build up their own capabilities gradually over a period, a swiftly reindustrialised South Africa could boost the continent’s infrastructure needs and support the continent’s build programmes.
Vuslat Bayoglu is the MD of Menar
For reindustrialisation to take off, statements by politicians must be turned into practical, measurable policy steps.
