Three things South Africa must get right

South Africa is on a new path to prosperity with the formation of the Government of National Unity (GNU), progress on vital reforms in the electricity and logistics sector, and renewed optimism in the financial markets. 

Anglo American CEO Duncan Wanblad shared this positive message about South Africa during his keynote address to the Investing in African Mining Indaba 2025. 

Wanblad explained that mining is foundational to human development, providing the raw materials that improve people’s lives. 

However, mining in South Africa has come under immense pressure over the past three decades, with the attractiveness of the country plummetting. 

South Africa’s reputation as a mining jurisdiction has collapsed from being the most attractive in the world to one of the worst places for mining companies to operate. 

The mining sector has been hamstrung by constantly changing legislation and regulations and the constant threat of nationalisation. 

This has resulted in investment in opening new mines, expanding existing ones, and exploration plummeting, leaving South Africa with 6,152 abandoned mines that have become hotspots for crime. 

Operating a mine in South Africa presents massive challenges, including volatile labour relations, disputes with surrounding communities, and organised crime.

The industry is also hamstrung by regulatory uncertainty, unreasonable delays in processing applications and infrastructure bottlenecks. 

The Fraser Institute, based in Canada, conducts an annual survey on the attractiveness of different countries as mining jurisdictions. These days, South Africa ranks among the ten least attractive mining destinations.

Despite this, Wanblad is very positive about the future of South African mining and outlined his reasons briefly in his keynote. 

Chief among the reasons for his positivity is the formation of the GNU and the success of public-private partnerships such as Business for South Africa (B4SA).  

The collaboration between the government and business has seen a vast improvement in energy supply in the country and steadily reduced wait times at ports. 

“The Network Statement published by Transnet and the establishment of the Public Sector Participation Unit are critical steps towards restoring rail performance,” Wanblad said. 

“Furthermore, the improving capability for commercial crime prosecution and the establishment of the National Water Infrastructure Agency are additional signs that reforms aimed at addressing pressing challenges are now taking hold.”  

However, Wanblad was also quick to admit that not everything is perfect, with much progress needing to be made in the country. 

He said there is still plenty of heavy lifting to do in the country on critical challenges and that South Africa needs to change gears to drive economic growth.

While the country works on these issues, they also exemplify the opportunities South Africa has as the most developed economy on the continent. 

To improve economic outcomes in the future, Wanblad urged lawmakers and business leaders to focus on three fundamentals that need to be addressed. 

The first of these is to grab the critical minerals opportunity with both hands, as it could drive economic growth in South Africa and the broader continent for decades to come. 

As the world decarbonises, economies develop, and populations grow, the demand for critical minerals will only increase. 

Africa is home to some of the largest deposits of these minerals, positioning the continent as a leading enabler.  

But this will only transpire if the deposits can be developed and brought to market, which in turn requires stable regulatory and fiscal environments in which to invest.

“The reality is, we’re leaving billions of dollars in mineral value untapped because of infrastructure constraints, for example,” Wanblad said. 

Africa’s abundance in critical minerals,  positions it to be more than just another supplier in global value chains, and so nations must become comfortable as strategic partners.  

But African governments also need to provide fiscal and regulatory stability, aided by the rule of law, in order to attract investment, Wanblad said. 

The second fundamental that local governments must get right is the creation of partnerships between countries that produce minerals and those that consume them.

In particular, Wanblad said a focus must be made to create strategic partnerships with Saudi Arabia, Japan, and China. 

When these countries invest locally, it represents a vote of confidence in the future and has the potential to create long-term value. 

Wanblad’s third fundamental was policy harmonisation across the continent, which would enable companies to invest in Africa without additional compliance burdens.

Integrated industrial strategies and trade partnerships – such as the African Continental Free Trade Agreement (AfCFTA) or the African Growth and Opportunity Act (AGOA) – are powerful mechanisms to unlock the competitiveness of the continent, Wanblad said. 

These are vital frameworks for enhancing market access, reducing regulatory uncertainty, and driving industrialisation.