We in Telegram
Add news
March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010
November 2010
December 2010
January 2011
February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024 April 2024 May 2024
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
23
24
25
26
27
28
29
30
31
News Every Day |

Integrate mining with development

The Harvard Growth Lab’s 2023 study of the South African economy states the following in its executive summary: “[Since 1994], the national economy has experienced slow, slowing and highly vulnerable growth. Inequality is the highest in the world, and structures of exclusions remain embedded in South African society both within and across racial groups and geographies. 

“Black South Africans continue to face poverty and joblessness at very high rates, and overall wealth, although more racially balanced, remains as concentrated in a narrow few as it was at the end of apartheid.” 

It goes on to list a litany of depressing statistics and serious inhibitors to sustained, labour-absorptive growth. 

The country’s failure to capitalise on the sustained commodity boom(s) since the early 2000s has largely driven the economic failure, though this has not happened in a vacuum. 

Admittedly, Eskom and Transnet failures have had relatively little to do with mining per se. 

Nonetheless: “The weakening of mining began before 2008 — despite global commodity prices remaining strong for several years after — while the fall in utilities and manufacturing occurred over the last 15 years.” 

While this rapid deindustrialisation, which my Good Governance Africa colleagues and I have studied with keen statistical interest, has been driven by deteriorating electricity affordability and reliability (among other things), the decline in mining has also partly driven de-industrialisation — a rapid loss of value addition and employment share in manufacturing. 

Net fixed capital formation in the mining industry has been close to zero for well over a decade. Exploration investment has dried up and mining sector stakeholders are almost unanimous in their expression that the industry is in crisis —essentially on care and maintenance. 

The bigger players desperately hold on to their resources but the dynamism that should animate the sector — exploration and junior activity — is largely lacking. 

This is a tragedy because mining carries the potential to drive industrialisation. But, combined with other factors, manufacturing, which used to be orientated towards serving a growing mining industry, has all but collapsed because of plummeting mining investment. 

It was therefore refreshing to see the Harvard report suggest that there is room for targeted industrial policy to take advantage of global demand areas in which South Africa can build comparative advantage.

“Make the support actions for pioneers in emerging green supply chains and policies to transition the automotive industry towards electric vehicles.” This is exactly right.  

One cannot overstate the importance of the connection between mining and green industrialisation. Mining will become increasingly mechanised and digitalised, which means that it will provide increasingly fewer direct jobs. 

In our context of high, sustained structural unemployment (“unemployment at over 33% is the world’s highest, and youth unemployment exceeds 60%”), this is critical for policymakers to understand. Mining accounts for more than 400 000 direct jobs (with an average dependency ratio of approximately 10:1). 

If the industry grows, this direct employment figure is likely to rise only slightly. 

Potential job growth lies in the manufacturing sector, although the workforce will have to be rapidly skilled up to take advantage thereof. 

If mining remains on life support, unconnected to manufacturing potential, these startling figures are only likely to worsen. 

Another aspect of South Africa’s economic deterioration that the Harvard review highlights is municipal performance. At Good Governance Africa, we concur. 

We recently released our 2024 Governance Performance Index, which ranks government effectiveness at municipal level. Many local municipalities are failing to deliver on their core mandates (utility service delivery such as water, electricity, refuse removal, etc). 

Those that struggle most are those with former homelands within their bounds. The Harvard study shows that “nearly all the rural municipalities in the lower employment group are within former homelands and almost all the rural municipalities that have higher employment are not within the former homelands”. 

Employment in non-former homelands is nearly double that in former homeland areas. It is immediately obvious from the graph in the Harvard study that most mining areas in South Africa overlap with municipalities that contain former homelands within their boundaries. This brings us to an important point. 

Municipalities in remote areas tend to struggle. This would be true whether mining was present or not. Where mining is present, employment levels are slightly higher, on average. However, one would intuitively expect mining presence to improve municipal performance.

This is not happening, in part because municipalities have become dependent on mining companies to become de facto substitute service providers. Mining companies simply cannot afford this. Attaining a social licence to operate is one thing; substituting for government where service delivery is absent is another. 

So, not only does the government have to do more to encourage investment into the mining industry, it also has to connect mining to green industrialisation. 

At the same time, the mining industry itself must engage differently at the local municipal and national policy levels.

By way of example, at an Anglo-American sustainable development goals conference in late 2022, participants unanimously indicated that the Social and Labour Plans prescribed in national mining law were overly formulaic and restrictive. 

Expectations of mining companies were essentially that they would provide services that the local municipality should be providing. This deters investors because it is unsustainable. 

Far more optimal would be to invest in building greater institutional capacity in those municipalities and, at the very least, develop better integrated development plans (IDPs). IDPs are often drawn up by consultants with no skin in the game and monitoring and evaluation of efficacy is absent.

Mining companies need to desist from substituting municipal functions and instead build the human capital in those municipalities that will sustain the area long beyond the life of the mine. Supporting well-crafted, practicable IDPs will go a long way to building labour-absorbing economic dynamism.  

While the Harvard review is sobering, the country has an opportunity to grow out of the current sclerosis: “Employment patterns underscore that it is possible to generate economic opportunity in rural South Africa”. 

Many of the pathways they suggest are sensible. To my mind, connecting mining to green industrialisation, as well as building local municipal performance capacity, will prove instrumental in realising this opportunity. 

Of course, this needs to happen alongside fixing the energy crisis, resolving the logistics bottlenecks, and eliminating crime. 

We have our work cut out for us.  

Dr Ross Harvey is the director of research and programmes at Good Governance Africa.

Москва

Олимпийский чемпион Роман Костомаров поздравил победителей номинации «Экскурсия без границ» программы «Лига Экскурсоводов»

Gunmen open fire and kill 4 people, including 3 foreigners, in Afghanistan's central Bamyan province

Ballroom culture coming to the Long Beach Pride Festival

AML check crypto

Glen Powell’s parents crash Texas movie screening to troll him

Ria.city






Read also

Liverpool handed huge boost in bid to keep Alisson amid Saudi interest

12 of the Best Podcasts of 2024 (So Far)

Love Island sign stunning influencer born with disability after hospital error

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Glen Powell’s parents crash Texas movie screening to troll him

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

Glen Powell’s parents crash Texas movie screening to troll him



Sports today


Новости тенниса
WTA

Шнайдер вышла в финал турнира WTA-125 в Париже, обыграв Грачёву



Спорт в России и мире
Москва

Олимпийский чемпион Роман Костомаров поздравил победителей номинации «Экскурсия без границ» программы «Лига Экскурсоводов»



All sports news today





Sports in Russia today

Москва

Футболисты ФК «Динамо Пушкино» заняли второе место в межрегиональном турнире Laffy Cup 2024


Новости России

Game News

Шапки женские на Wildberries — скидки от 398 руб. (на новые оттенки)


Russian.city


Москва

Модернизация контейнерных площадок продолжается в Реутове


Губернаторы России
Сергей Собянин

Сергей Собянин: Колледжи проведут Дни открытых дверей


Первый этап фестиваля «Русская классика» завершился в Лобне

Что там в IT: ИИ-отрыв Google, ChatGPT почти человек, отечественный BIOS

Шапки женские на Wildberries — скидки от 398 руб. (на новые оттенки)

Массовая драка со стрельбой в Москве попала на видео


Бутман и Агутин выступят на фестивале «Ангара-джаз» в Иркутске

Бен Аффлек переехал из дома, в котором жил с Дженнифер Лопес. Развлечение

Продвижение Музыки. Раскрутка Музыки. Продвижение Песни. Раскрутка Песни.

Мама Тимати ответила на провокационные вопросы о Валентине Ивановой и других девушках своего сына


Касаткина, Андреева и Кудерметова — в тройке лидеров в борьбе за звание лучшей теннисистки

Немец Зверев выбил россиянина Медведева из топ-4 ATP

Потапова проиграла на старте турнира WTA-500 в Страсбурге

Звонарёва проиграла американке Крюгер в квалификации турнира в Страсбурге



В РМАТ ПРОШЕЛ I БИЗНЕС-ФОРУМ ВЫПУСКНИКОВ РМАТ 1999-2023 ГОДА ВЫПУСКА, ПОСВЯЩЕННЫЙ 55-ЛЕТНЕМУ ЮБИЛЕЮ АКАДЕМИИ

Ставки снова растут: «Выберу.ру» подготовил рейтинг лучших краткосрочных вкладов в мае 2024 года

«СВЯТОЙ ЛЕНИН» УЛУЧШАЕТ ЗАКОНЫ, управляет патентами и улучшает командное планирование в целях учёта интереса всего народа.

Модернизация контейнерных площадок продолжается в Реутове


Футболисты ФК «Динамо Пушкино» заняли второе место в межрегиональном турнире Laffy Cup 2024

Создание Сайтов. Создание веб сайта. Создание сайта html. Создание сайтов цена. Создание и продвижение сайтов. Создание сайта с нуля. Создание интернет сайта.

Шапки женские на Wildberries — скидки от 398 руб. (на новые оттенки)

Что там в IT: ИИ-отрыв Google, ChatGPT почти человек, отечественный BIOS


Слет активистов движения «Пост№1» пройдет в Красногорском филиале Музея Победы

В Польше создадут новую комиссию по расследованию "российского влияния"

В Москве женщина оставили двухмесячного младенца у входа в супермаркет и ушла

Ещё одна страна хочет стать полноправным членом БРИКС



Путин в России и мире






Персональные новости Russian.city
Певец

Певец Лоза заявил, что Джикия является настоящим капитаном



News Every Day

Gunmen open fire and kill 4 people, including 3 foreigners, in Afghanistan's central Bamyan province




Friends of Today24

Музыкальные новости

Персональные новости