(Ecofin Agency) - As the most industrialized country in Africa, South Africa has a diverse mining sector crucial to its economy. However, in recent years, the industry has faced challenges related to electricity supply and transportation of mining products.

Mining contributed 444.2 billion rand ($25 billion) to South Africa’s economy in 2023, down 8.1% YoY. The contribution represents 6.3% of SA’s GDP, against 7.3% in 2022, according to a report from the Minerals Council published this month.

OUR METALS AND MINERALS Here’s how Industrial Metals performed in 2023.

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— Minerals Council South Africa (@Mine_RSA) February 13, 2024

The Council attributes the slump to lower production and falling prices for some raw materials in global markets. The drop in production is partly due to ongoing logistical and energy issues in South Africa.

As a result, mineral sales decreased by 10.3% year-on-year, marking the first annual decline since 2015 and the largest drop since 2009. Mineral exports also fell by 11.4% year-on-year to 780.7 billion rand ($43.8 billion) in 2023. 

Minerals sales evolution since 2000

Despite these challenges, the mining sector's contribution to employment increased by 2.1%, reaching 479,228 workers in 2023. However, this growth masks job losses in the gold and manganese sectors.