This study develops a strategic framework to enhance South Africa’s trade and investment opportunities in critical mineral (CM) value chains, focusing on the platinum group metals, manganese, and vanadium. CMs are essential for advanced technologies, renewable energy products, and energy storage solutions. We analyse existing trade patterns and market structures to examine how South Africa can secure greater value from its mineral wealth while advancing G20 sustainability objectives, particularly sustainable and inclusive economic growth. Our research evaluates current trade flows and value chain opportunities to identify areas where South Africa can increase its participation in downstream processing and manufacturing, thereby attracting investment in process facilities and creating high-skilled manufacturing jobs. We also assess existing trade agreements, investment frameworks, and regional integration opportunities to develop targeted policy recommendations that balance economic development with environmental sustainability.
The study proposes four interconnected policy interventions: (1) developing a coordinated G20 investment framework to attract foreign direct investment (FDI) in the CM processing infrastructure; (2) creating enabling regulatory frameworks that incentivise investments while aligning with global environmental, social, and governance standards and supporting inclusive growth; (3) leveraging trade and investment agreements and regional integration within Southern Africa and with key trade partners to enhance value chain participation and market access; and (4) implementing strategic partnerships for technology transfer and supply chain development. Our recommendations offer practical mechanisms for expanding trade relationships, attracting FDI in downstream activities, and strengthening regional integration within Southern Africa. These interventions would empower South Africa’s industrial development goals and G20 priorities while ensuring the sustainable development of critical mineral resources.
