Tau: SA Must Turn Critical Minerals Investment into Industrial Jobs and Beneficiation

Tau made the remarks during a high-level panel discussion at the Investment Forum held alongside the Investing in Africa Mining Indaba in Cape Town on Tuesday.

Trade, Industry and Competition Minister Parks Tau has called for a new investment approach that ensures South Africa’s critical minerals wealth directly supports local industrialisation, beneficiation and long-term economic transformation.

Tau made the remarks during a high-level panel discussion at the Investment Forum held alongside the Investing in Africa Mining Indaba in Cape Town on Tuesday. The session, themed Building Critical Minerals Value Chains in South Africa, brought together Cabinet Ministers, private-sector leaders and international investors.

Linking Foreign Investment to Industrial Development

Tau stressed that South Africa’s priority is no longer simply attracting investment into mineral extraction, but ensuring that such investments translate into meaningful industrial benefits for the country.

“The focus is now on ensuring that investments from other countries are linked to industrialisation in South Africa,” Tau said.

“The objective is to review and negotiate trade partnerships to prevent minerals from being exported without delivering meaningful benefits to the country.”

His comments reflect growing global competition over critical minerals, which are essential inputs for electric vehicles, battery storage, renewable energy systems and advanced manufacturing.

Special Economic Zones as Platforms for Beneficiation

Tau highlighted the role of Special Economic Zones (SEZs) in positioning South Africa as a value-adding hub rather than merely a raw material supplier.

He noted that government efforts are focused on attracting targeted investors who can use SEZs as industrial platforms for mineral processing and manufacturing.

“The dtic is tasked with implementing measures to ensure genuine beneficiation,” Tau said.

“The emphasis is on moving beyond the extraction and export of minerals to adding value through local processing, close to the source, for broader societal benefit.”

Policy Measures to Support Local Value Addition

Tau outlined several interventions designed to support domestic industrial growth, including:

• Repositioning trade agreements with developed economies

• Reviewing global partnerships to prioritise beneficiation

• Providing dynamic fiscal support to local industries

• Strengthening supply-chain development around critical minerals

These measures aim to ensure that mineral wealth contributes to jobs, skills development and industrial expansion inside South Africa.

China Agreement Signals New Trade and Investment Model

Tau cited South Africa’s recent agreement with China as an example of the country’s shift toward trade partnerships that prioritise industrialisation.

He said the agreement includes a pipeline of investment projects aligned with South Africa’s industrial strategy.

Four priority areas have been identified, with industrialisation being central.

“The early harvest programme will be unveiled by 26 March,” Tau announced.

The programme will focus on industries where Chinese investors will industrialise in South Africa, rather than merely export products back to the Chinese market.

Critical Minerals Key to E-Mobility and Digitisation

Tau also underscored the strategic role of critical minerals in driving the global transition toward:

• E-mobility

• Digitisation

• Decarbonisation

• Diversification of industrial supply chains

He linked the dtic’s policy strategy to the transition of South Africa’s automotive sector, which is increasingly shaped by electric vehicles and green manufacturing.

Policy Stability Through the Critical Minerals Strategy

Tau emphasised that policy certainty remains essential for attracting long-term investment.

“Policy stability under the Critical Minerals Strategy and the G20 Framework remains critical to the economy,” he said.

South Africa has adopted a Critical Minerals Strategy and Implementation Plan, positioning the country as a reliable supplier and value-adding hub for minerals essential to the global energy transition and advanced manufacturing.

This is reinforced by the adoption of the G20 Critical Minerals Framework at the G20 Leaders’ Summit.

Broad Investor Participation at Mining Indaba Forum

The Investment Forum drew strong interest from across the global mining and industrial ecosystem, including:

• International mining and exploration companies

• Battery mineral processors

• Electric vehicle manufacturers

• Development finance institutions

• Sovereign wealth funds

• Local mining firms and junior miners

• Engineering, logistics and water management companies

• Provincial investment promotion agencies

• Diplomatic missions

The discussions reflect South Africa’s growing ambition to become a competitive global player in critical minerals value chains — not only as a supplier, but as an industrial powerhouse.