8 - Africa’s Economic Transformation and Global Value Chains: An Analysis of the Platinum Value Chain in South Africa
Corresponding Author(s) : Asanda Fotoyi
Africa Development,
Vol. 45 No. 1 (2020): Africa Development
Abstract
This article is concerned with the transformation of the African continent beyond the supply of raw materials towards the expansion of productive capabilities in ways that meet the needs of the African people. The article assesses the platinum value chain in South Africa to examine how the sector has impacted on economic transformation in the country. The analysis shows that South Africa is the biggest supplier of platinum globally but continues to miss economic opportunities presented by its platinum endowment. This is due to very weak forward or upstream linkages between the platinum sector and the related manufacturing sectors. Additionally, even though the platinum sector captures a notable share of both production and employment in the mining industry, when it comes to wealth redistribution, gender and race relations, the sector is lagging. Arguably, a country’s mineral resources ought to bring about economic transformation required to meet the needs of its people, by leveraging sector specific legislations. This requires deliberate determination to ensure that such a form of resource mobilisation transitions into economic self-sufficiency for the African continent, by also leveraging regional value chains and the African Continental Free Trade Agreement (AfCFTA).
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- African National Congress (ANC), 2017, ‘Economic Transformation Discussion Document’, available at https://www.sahistory.org.aq/archive/2017-anc-nationalpoaicy-conference-economictransformation-discussion-document-2017, accessed 9 May 2020.
- Conradie, A., 2016, ‘Mining of platinum report’, Who Owns Whom, African Business Information, available on subscription at www.whoownswhom.co.za.
- Department of Mineral Resources, n.d., database in electronic format requested from the Department of Mineral Resources.
- Fotoyi, A., 2016. ‘Illicit financial flows in the mining sector in South Africa: implications for industrialisation’, available at http://www.tips.org.za/research-archive/annual-forum-papers/2016/item/download/1454_42b0234971d55718a0acd3b7f90dd786, accessed 20 September 2017.
- Gumede, V., 2015, Political Economy of Post-apartheid South Africa, Dakar: CODESRIA.
- Jourdan, P., 2013, ‘Mineral value chains (MVCs) resource-based industrialisation?’, Minister’s IPAP Update Briefing, Department of Trade and Industry, South Africa.
- Kaplinsky, R. and Morris, M., 2002, A Handbook for Value Chain Research, Institute of Development Studies, University of Sussex.
- Marley, B., 1980, ‘Redemption Song’, available on the album ‘Uprising’, Island/ Tuff Gong Record Label.
- McCormick, D. and Schmitz, H., 2001, Manual for Value Chain Research on Homeworkers in the Garment Industry, Institute of Development Studies, University of Sussex, available at https://www.ids.ac.uk/publications/manual-for-value-chain-research-on-homeworkers-in-the garment-industry/, accessed 20 September 2017.
- Nkrumah, K., 1961, I Speak of Freedom: A Statement of African Ideology, London: William Heinemann.
- Quantec EasyData, 2019, Employment Database, downloaded from www.quanis1. easydata.co.za.
- Rodney, W., 1973, How Europe Underdeveloped Africa, Washington, DC: Howard University Press.
- Statistics South Africa, 2019a, Gross Domestic Product figures, Excel spreadsheet downloaded from www.statssa.gov.za.
- Statistics South Africa, 2019b, Mining Sales figures, Excel spreadsheet downloaded from www.statssa.gov.za.
- Stockhammer, E., 2010, ‘Financialization and the global economy’, Political Economy Research Institution Working Paper Series, No. 240, University of Massachusetts Amherst.
- World Platinum Investment Council, 2019, Platinum Quarterly, Excel spreadshe et downloaded from www.platinuminvestment.com.
References
African National Congress (ANC), 2017, ‘Economic Transformation Discussion Document’, available at https://www.sahistory.org.aq/archive/2017-anc-nationalpoaicy-conference-economictransformation-discussion-document-2017, accessed 9 May 2020.
Conradie, A., 2016, ‘Mining of platinum report’, Who Owns Whom, African Business Information, available on subscription at www.whoownswhom.co.za.
Department of Mineral Resources, n.d., database in electronic format requested from the Department of Mineral Resources.
Fotoyi, A., 2016. ‘Illicit financial flows in the mining sector in South Africa: implications for industrialisation’, available at http://www.tips.org.za/research-archive/annual-forum-papers/2016/item/download/1454_42b0234971d55718a0acd3b7f90dd786, accessed 20 September 2017.
Gumede, V., 2015, Political Economy of Post-apartheid South Africa, Dakar: CODESRIA.
Jourdan, P., 2013, ‘Mineral value chains (MVCs) resource-based industrialisation?’, Minister’s IPAP Update Briefing, Department of Trade and Industry, South Africa.
Kaplinsky, R. and Morris, M., 2002, A Handbook for Value Chain Research, Institute of Development Studies, University of Sussex.
Marley, B., 1980, ‘Redemption Song’, available on the album ‘Uprising’, Island/ Tuff Gong Record Label.
McCormick, D. and Schmitz, H., 2001, Manual for Value Chain Research on Homeworkers in the Garment Industry, Institute of Development Studies, University of Sussex, available at https://www.ids.ac.uk/publications/manual-for-value-chain-research-on-homeworkers-in-the garment-industry/, accessed 20 September 2017.
Nkrumah, K., 1961, I Speak of Freedom: A Statement of African Ideology, London: William Heinemann.
Quantec EasyData, 2019, Employment Database, downloaded from www.quanis1. easydata.co.za.
Rodney, W., 1973, How Europe Underdeveloped Africa, Washington, DC: Howard University Press.
Statistics South Africa, 2019a, Gross Domestic Product figures, Excel spreadsheet downloaded from www.statssa.gov.za.
Statistics South Africa, 2019b, Mining Sales figures, Excel spreadsheet downloaded from www.statssa.gov.za.
Stockhammer, E., 2010, ‘Financialization and the global economy’, Political Economy Research Institution Working Paper Series, No. 240, University of Massachusetts Amherst.
World Platinum Investment Council, 2019, Platinum Quarterly, Excel spreadshe et downloaded from www.platinuminvestment.com.