South Africa is positioning itself at the heart of Africa’s green revolution, leveraging its rich mineral resources to lead global and regional value chains while driving its own energy transition, writes Dianna Games.
The nation’s vast reserves of critical minerals, essential to renewable energy technologies, underpin its ambitions. South Africa dominates global production of platinum-group metals (PGMs), with a 70% share of platinum and 40% of palladium, key materials for catalytic converters, hydrogen fuel cells, and electronics. It holds 70% of the world’s chrome reserves and leads in manganese production with nearly 40% of global supply. Additional minerals like vanadium, nickel, and newly discovered lithium and coltan boost its resource wealth.
Despite the sector’s past struggles, recent growth shows promise. In 2024, Stats SA reported a 0.3% rise in mining output, with manganese surging 16% and chromium jumping 25%. To unlock more value, South Africa and other African nations are intensifying beneficiation strategies to move beyond raw material exports.
President Cyril Ramaphosa highlighted that value-addition could lift Africa’s GDP by 12% by 2050 and generate millions of jobs. The continent is home to over half the world’s cobalt reserves, nearly 48% of manganese, and significant shares of other key minerals. However, achieving dominance in the critical minerals value chain requires strategic investment, better infrastructure, and technological innovation to rival China’s lead.
South Africa’s growing green hydrogen industry is a cornerstone of its Just Energy Transition Plan. Guided by its Hydrogen Society Roadmap, the country aims to leverage its vast PGM resources to become a global green hydrogen powerhouse. Over $45 billion in green hydrogen projects have already been initiated, with 20% reaching bankable feasibility. Hydrogen Valley, a hub for green hydrogen production, is central to this vision.
By integrating renewable energy ambitions with local manufacturing, including electric vehicles and battery production, South Africa is challenging old trade patterns and building a sustainable future powered by its mineral wealth. A cohesive policy framework and public-private collaboration will be pivotal as the nation reshapes its mining legacy into a driver of modern economic transformation.
