8 - Africa’s Economic Transformation and Global Value Chains: An Analysis of the Platinum Value Chain in South Africa

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). Asanda Fotoyi, PhD candidate and lecturer, Department of Economics, Nelson Mandela University, South Africa. Email: afotoyi@gmail.com