Mining boom drives African infrastructure growth


LOGISTICS DEVELOPMENT The demand for critical minerals development has increased investment in cross border logistics corridors
MZILA MTHENJANE By boosting logistics and energy capacity, the mining sector unlocks broader industrial growth
The increased interest in mining, to fulfil global minerals demand, has initiated the establishment of crucial logistics corridors as well as achieved a boost in investment in power projects in several African regions, says mining industry employers’ association Minerals Council South Africa CEO Mzila Mthenjane.
He explains that this renewed critical minerals demand and rejuvenation of logistics networks bodes well for Africa’s mining sector as it catalyses the development of shared infrastructure – such as rail, ports and power grids – all of which will benefit each host country’s economy and encourage industrialisation.
“By boosting logistics and energy capacity, the mining sector unlocks broader industrial growth, creates jobs and generates lasting value for local communities well beyond the life of the mines themselves,” adds Mthenjane.
Major infrastructure projects such as the Lobito corridor – a multimodal transport network connecting Angola’s Lobito port to the mineral-rich regions of the Democratic Republic of Congo (DRC) and Zambia’s Copperbelt – will drastically cut transit times and costs for exporting critical minerals, he says.
In addition, the Northern Corridor of East Africa – the busiest multimodal transport route in East and Central Africa, which connects Kenya’s Port of Mombasa to Uganda, Rwanda, Burundi, South Sudan and the eastern province of the DRC corridor – serves as a “critical economic lifeline” as it facilitates regional trade, streamlines transit procedures and provides landlocked countries with vital access to global markets, highlights Mthenjane.
Closer to South Africa, the Nacala Corridor – an Indian Ocean seaboard logistics system linking Mozambique to Malawi, Zambia and the DRC’s inland markets through rail, road and port infrastructure anchored on the deepwater Port of Nacala in Mozambique – provides a reliable, cost-effective trade route for landlocked Southern African nations.
Mthenjane notes that while transport and energy security are vital, simply having minerals in the ground is not enough.
The mining sector must actively leverage these resources to drive infrastructure development, economic growth, social prosperity, and the broader energy and technology transition.
“While other countries have shown that investing in mining and minerals can boost economic growth and help develop industries, it has been noted that some leaders lack the willingness and honesty to prioritise the needs of African people,” asserts Mthenjane.
Africa has the knowledge, technology, capital and skilled people needed to find new mines and build the necessary infrastructure to mine those mineral deposits; however, without strong leadership and clear policies to attract and protect investments, Mthenjane says the minerals will remain untapped.
Home Grown Advantages
Mthenjane notes that in South Africa – which has relatively well-developed infrastructure – rail and electricity policy reforms are inviting significant capital investment to refurbish and expand this logistics and power capacity.
While South Africa remains one of the continent’s most developed mining jurisdictions, he says the country faces challenges around energy, logistics and its regulatory environment.
South Africa has introduced reforms aimed at improving rail and port performance, encouraging greater private-sector participation, thereby contributing significantly to the positive shift in investment sentiment, says Mthenjane.
“Investor confidence is returning, albeit slowly, as reforms and policy certainty deliver results and demonstrate a stickiness which means these reforms are becoming permanent features in the energy and logistics landscapes,” he points out.
However, Mthenjane says further reforms are required in several other areas, such as water infrastructure – which demands the most immediate attention – and also transmission and the distribution of electricity.
Simultaneously, policy reforms related to mining must be expedited to fast-track investment into exploration and new mine development, which typically have extended timelines to reach full production, he says.
As for competitiveness, Mthenjane points out that South Africa is well endowed with mineral diversity, compared to its African peers.
“South Africa is host to the largest resources and reserves of platinum group metals, manganese, chrome and vanadium and has well-regarded operating mines in many other commodities,” he highlights.
To compete effectively for capital, Mthenjane says South Africa must find new and extensive resources and, where it contends with midtier mineral resource bases of other African nations, make it “super-efficient” to operate within the country to improve competitiveness.
“In both instances, policy certainty – administratively, with minimal interpretation and no frequent changes – globally competitive mining laws and coherence within government is critical and urgent,” he says.
Of equal importance to rejuvenating South Africa’s mining sector is the urgently-required roll-out of a transparent mining cadastre so as to efficiently manage mineral rights, concludes Mthenjane.
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