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Articles · Vol. 45 No. 1 (2020): Africa Development

Africa’s Economic Transformation and Global Value Chains: An Analysis of the Platinum Value Chain in South Africa

Vol. 45 · 2020 No. 1 Africa Development AD

Abstract

This article is concerned with the transformation of the African continent beyond the supply of raw materials towards the expansion of productive capabilities in ways that meet the needs of the African people. The article assesses the platinum value chain in South Africa to examine how the sector has impacted on economic transformation in the country. The analysis shows that South Africa is the biggest supplier of platinum globally but continues to miss economic opportunities presented by its platinum endowment. This is due to very weak forward or upstream linkages between the platinum sector and the related manufacturing sectors. Additionally, even though the platinum sector captures a notable share of both production and employment in the mining industry, when it comes to wealth redistribution, gender and race relations, the sector is lagging. Arguably, a country’s mineral resources ought to bring about economic transformation required to meet the needs of its people, by leveraging sector specific legislations. This requires deliberate determination to ensure that such a form of resource mobilisation transitions into economic self-sufficiency for the African continent, by also leveraging regional value chains and the African Continental Free Trade Agreement (AfCFTA).

Africa’s Economic Transformation and Global Value Chains: An Analysis of the Platinum Value Chain in South Africa

Cet article traite de la transformation du continent africain, au-delà de l’approvisionnement en matières premières, vers l’expansion des capacités de production de manière à répondre aux besoins des populations africaines. Le document évalue la chaîne de valeur du platine en Afrique du Sud et examine comment le secteur impacte la transformation économique du pays. Cela est dû à de très faibles liens en amont ou en aval entre le secteur du platine et les secteurs manufacturiers connexes. De plus, même si le secteur du platine capte une part notable à la fois de la production et de l’emploi dans l’industrie minière, en ce qui concerne la redistribution de la richesse, le genre et les relations raciales, il est à la traîne. On peut soutenir que les ressources minérales d’un pays, tirant parti de législations sectorielles spécifiques, devraient entraîner la transformation économique nécessaire pour répondre aux besoins de sa population. Cela exige une détermination délibérée de garantir qu’une telle forme de mobilisation se transforme en autosuffisance économique pour le continent africain en tirant également parti des chaînes de valeur régionales et de l'Accord de libre-échange continental africain (ZLECAf ).

Asanda Fotoyi, PhD candidate and lecturer, Department of Economics, Nelson Mandela University, South Africa. Email: afotoyi@gmail.com

Keywords

Economic Transformation Global Value Chains platinum African Continental Free Trade Agreement (AfCFTA) South Africa

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Author Biography

  • Asanda Fotoyi

    PhD candidate and lecturer, Department of Economics, Nelson Mandela University, South Africa. Email: afotoyi@gmail.com

References

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