By The mining sector in South Africa remains the pillar of the country’s economy. This is according to the recent economic report by Stats SA that showed that Real Gross Domestic Product (RGDP) grew by 0.5% in the third quarter.
In recent years, the mining has been experiencing difficulty and was dubbed a sunset industry, especially when considering the transition from fossil fuel to green energy. It was expected for coal mines to experience a decline in demand; on the contrary, coal was amongst the minerals that performed very well in the third quarter.
According to Stats SA, mining output increased by 2,3%, driven predominantly by platinum group metals, with support from manganese ore, coal, chromium ore and copper. There was a decline in iron ore, diamonds, nickel and gold, but this was not enough to cause a significant dent in overall growth.
Nine production industries showed growth in the third quarter and mining recorded the highest growth rate making it the star performer. The sector, having lost more than a billion a day during COVID and due to dysfunctional rail freight, load-shedding and port issues, the industry has made a significant come back.
Eight other industries also performed will in the third quarter, contributing to the 0.5% growth. According to Stats SA, agriculture carried over its positive momentum, recording its fourth consecutive increase. The 1,1% rise in the third quarter was underpinned by stronger production of field crops, horticulture and animal products.
The trade, catering and accommodation industry also registered its fourth consecutive quarter of growth. Positive gains were recorded across the board, with stronger wholesale trade, retail trade, motor trade, accommodation and food and beverages.
General government was also positive, pulled higher by increased employment in national and provincial government and in extra-budgetary institutions.
A rise in air transport, communication and transport support services supported the 0,5% increase in the transport, storage and communication industry.
Construction turned positive after three consecutive quarters of decline, recording a marginal rise of 0,1%. Its positive showing was underscored by growth in non-residential buildings and construction works.
Electricity, gas & water was the only industry that disappointed in the third quarter, shrinking by 2,5%. This was due to lower electricity production and usage. Water consumption was also lacklustre, contributing to the industry’s poor performance.
