South Africa has relied on mining as a source of revenue to fulfil and implement most of its social obligations and run development programmes in schools, communities and government at large. In turn the mining sector has heavily relied on governments ability to supply power constantly at afford rates. However there has been a disconnect in the past couple of years between the supply of energy and mining running without being affected by the constant power disruptions (load shedding). Even though the mining sector contributes about 8.2% to the GDP of the country, it could do more however that is highly reliant on a secure and consistent energy supply.
According to the DMRE, the country's new exploration strategy, investing in research that can help South Africa exploit more commodities and efforts to create an energy security programme for the mining sector, could push the industry's contribution to GDP to at least 12%. An increase in contribution to the GDP is highly unlikely at the current moment as the mining sector is still heavily reliant on energy supply from the unreliable and old Eskom power stations which need constant maintenance. For the mining industry to benefit from the security of energy supply a just transition has been suggested and recommended by many commentators from the current status quo to the new dawn. A just transition is based on the idea of a fair and inclusive energy transition that leaves no one behind and considers the communities that will bear the worst impact from decarbonisation. The mining sector already employs semi-skilled and skilled labour, with a transition that is not managed appropriately it could lead to thousands of job losses in an industry that is already reeling from the effects of slow economic growth as a result of the energy crisis being experienced by the country.
Understanding the importance and impact that the mining industry has on South Africa’s business development initiatives is going to be key in unlocking value in the small, medium and micro enterprises (SMMEs) sector. It is common knowledge that South Africa’s economy is dependent on a fully functional, well equipped and resourced SMMEs sector.
Small, Medium and Micro-sized Enterprises (SMMEs) have been identified as productive drivers of inclusive economic growth and development in South Africa and around the world. The small business sector in South Africa is a critical part of the national economy with the government’s National Development Plan 2030 (NDP 2030) looking to SMMEs to be major sources of employment and drivers of growth in the economy; they are considered as important drivers for reducing unemployment, especially since the formal sector continues to shed jobs. According to data from the World Bank, SMMEs represent about 90% of businesses and more than 50% of employment globally. In emerging economies, like South Africa, it showed that formal SMMEs contribute up to 40% of national income