Trade, Industry and Competition (dtic) Minister Parks Tau has emphasised the importance of investments that support industrialisation in South Africa.
The Minister made these remarks during a high-level panel discussion on critical minerals, held alongside fellow Ministers and private-sector representatives at the Investment Forum at the Investing in Africa Mining Indaba in Cape Town on Tuesday.
The session was held under the theme Building Critical Minerals Value Chains in South Africa.
“The focus is now on ensuring that investments from other countries are linked to industrialisation in South Africa. The objective is to review and negotiate trade partnerships to prevent minerals from being exported without delivering meaningful benefits to the country,” Tau said.
He further highlighted the importance of Special Economic Zones in advancing industrialisation, noting that efforts are focused on attracting targeted investors to utilise these zones as platforms for industrial development.
“The dtic is tasked with implementing measures to ensure genuine beneficiation. The emphasis is on moving beyond the extraction and export of minerals to adding value through local processing, close to the source, for broader societal benefit.
“Measures to support value addition include repositioning trade agreements, particularly with developed countries, reviewing how South Africa partners with other nations, and providing dynamic fiscal and supply-chain support to local industries.”
While deliberating on the shift from traditional trade agreements to those that support industrialisation and investment in South Africa, the Minister cited the recent agreement with China as an example of this new approach, which includes a pipeline of investment projects.
He noted that four priority areas have been identified, with industrialisation being one of them.
“The early harvest programme will be unveiled by 26 March, focusing on industries in which Chinese investors will industrialise in South Africa.
“The programme is designed to ensure that Chinese investments contribute to local industrialisation, rather than merely exporting products to the Chinese market,” Tau added.
The importance of critical minerals in advancing e-mobility and digitisation was also highlighted.
He outlined the dtic’s policy strategy linked to the transition of the automotive sector, which emphasises South Africa’s broader objectives of decarbonisation, digitisation and diversification.
The session was hosted by the dtic in partnership with the Departments of Mineral and Petroleum Resources (DMPR), and Water and Sanitation (DWS).
“Policy stability under the Critical Minerals Strategy and the G20 Framework remains critical to the economy.
“South Africa has adopted a Critical Minerals Strategy and Implementation Plan that positions the country as a reliable supplier and value-adding hub for minerals essential to the global energy transition, digitalisation and advanced manufacturing. This is further reinforced by the adoption of the G20 Critical Minerals Framework at the G20 Leaders’ Summit,” the Minister said.
The forum was attended by the international mining and exploration companies, battery mineral processors and electric vehicle manufacturers, development finance institutions, sovereign wealth funds and investors, as well as local mining firms and junior miners, are expected to attend the forum.
In addition, engineering, water management and logistics companies, provincial investment promotion agencies (IPAs), and diplomatic missions are also expected to form part of the discussions. – SAnews.gov.za
