Mining and Development: Lessons Learnt from South Africa and Beyond

This policy briefing by the South African Institute of International Affairs (SAIIA) examines the relationship between mineral resource dependence and development in Africa, using South Africa as a primary case study. It argues that the 'resource curse' is not deterministic and that the quality of development depends on the strength and nature of a country's institutions, which mediate political incentives and determine whether mineral wealth leads to inclusive growth or adverse governance outcomes.

• Sub-Saharan Africa exhibits a high dependence on mining for economic growth, with average ore and metal exports accounting for 18.9% of total merchandise exports, yet this has not consistently translated into high human development, which averages 54.6.
• The 'resource curse' is not an inevitable outcome of resource abundance; rather, development outcomes are shaped by institutions that uphold the rule of law, protect property rights, and limit executive power, which allow countries to diversify their economies.
• Many African mining codes and transparency initiatives, such as the Extractive Industries Transparency Initiative (EITI), are undermined by a lack of fundamental institutional change, resulting in secret contract negotiations, corruption, and patronage.
• South Africa's mining sector has underperformed compared to global competitors, with the industry contracting by 1% per year during the 2001–2008 commodity boom while its top 20 competitors grew by 5% per year.
• Legislative clarity and policy stability are essential for private investment in South Africa; the Mineral and Petroleum Resources Development Act 28 of 2002 and the 2013 Amendment Bill have been criticized for excessive ministerial discretion and unclear rights allocation processes.
• South Africa's Labour Relations Act 66 of 1995 is described as undemocratic because it does not require balloting before strike action, which grants union leadership excessive power over members.
• To resolve destructive industrial relations in the mining sector, the author recommends implementing employee share ownership schemes and profit-sharing arrangements to align the incentives of unions and companies.

APA

Harvey, R. (2014). Mining and Development: Lessons Learnt from South Africa and Beyond. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2014/04/Policy-Briefing-86.pdf

Chicago

Harvey, Ross. Mining and Development: Lessons Learnt from South Africa and Beyond. South African Institute of International Affairs, 2014. https://saiia.org.za/wp-content/uploads/2014/04/Policy-Briefing-86.pdf.

Wikipedia

{{cite report |last1=Harvey |first1=Ross |title=Mining and Development: Lessons Learnt from South Africa and Beyond |publisher=South African Institute of International Affairs |date=April 2014 |url=https://saiia.org.za/wp-content/uploads/2014/04/Policy-Briefing-86.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{harvey2014mining, author = {Harvey, Ross}, title = {{Mining and Development: Lessons Learnt from South Africa and Beyond}}, institution = {South African Institute of International Affairs}, year = {2014}, month = apr, url = {https://saiia.org.za/wp-content/uploads/2014/04/Policy-Briefing-86.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }