Mining and Minerals in South Africa

2021 ◽  
pp. 260-282
Author(s):  
Neva Seidman Makgetla

Although the mining value chain only accounted for around 13% of the GDP and 6% of employment in 2020, it remained a central link between the South African economy and international markets. As a result, it had an outsized impact on the production structure, income distribution, infrastructure and legal frameworks. After the transition to democracy in 1994, the value chain underwent significant changes, notably a shift away from coal into platinum, iron ore, coal and ferroalloys, and significant divestment by international mining companies. Still, deep-seated developmental challenges persisted, including limited mining-based industrialisation, the exercise of monopoly power within value chains, and deeply inequitable and oppressive payscales and work organisation. These structural weaknesses emerged clearly in the 2010s, as the end of the global metals prices boom (2002 to 2011) brought plummeting revenues, revealing a range of economic, workplace, and policy conflicts across the value chain.

2021 ◽  
Vol 5 ◽  
Author(s):  
Soledad Cuevas Garcia-Dorado ◽  
Kevin Queenan ◽  
Bhavani Shankar ◽  
Barbara Häsler ◽  
Tafadzwanashe Mabhaudhi ◽  
...  

Livestock value chains globally are increasingly dualistic, with integrated market-leaders co-existing with comparatively disadvantaged small producers who, nevertheless, support rural livelihoods and food access, and can also contribute to more resilient supply chains. The South African broiler value chain provides a highly illustrative case study. The purpose of this study is to identify potential leverage points for policy intervention to support small and emerging producers in the South African broiler value chain, and to discuss the strengths and limitations of system dynamics approaches to promote inclusive food value chains. This study develops a causal loop diagram (CLD) based on semi-structured stakeholder interviews and policy documents. The main challenges, key variables and causal relationships between them are systematically identified. Variables are coded, generalised and graphically represented, and entry points for intervention and their links to existing policies are mapped. The challenges faced by smallholders in the context of our study can be characterised, using a CLD, as a set of interlinked and reinforcing dynamics which perpetuate existing disadvantages and reinforce duality in the value chain. Key policy entry points have been identified that could be targeted by a coordinated policy package, including: Direct support for infrastructure investment and input access through grants, subsidies or other policies; credit and liquidity provision for day-to-day expenses; creation of aggregation mechanisms for both inputs and outputs; regulations or initiatives that directly target the relationship of farmers with the commercial segment to improve access to day-old-chicks and, finally, training in business and technical skills. Although most of these interventions have been addressed at some point, implementation has been fragmented, failing to fully consider their complementary nature, thus undermining effectiveness. Existing approaches to consensus building and stakeholder participation in system dynamics research can present challenges when it comes to engaging with complex policy processes and issues of conflict of interest that are relevant in the context of smallholder promotion and equitable food systems, but there are promising avenues for addressing. Despite some methodological challenges, we find that there is considerable scope for system dynamics approaches to inform policy for smallholder promotion, even in contexts characterised by complex policy processes.


Author(s):  
Hena M

Modern marketing techniques and restructured markets for agriculture products has made the small holder producers to fight against a number of consequences which they are actually not practiced or trained. As an alternative, new innovative practice like value chain approach has been identified in improving their ability to combat the restructured market conditions. This paper reviews the theoretical justifications and different viewpoints of value chains approach which can benefit the small holder producers in agriculture sector. A review on evidences from agricultural value chain experiences exposed the necessity of a tool or a business model like value chain approach to integrate the small holder producers to viable markets and to capitalize the immense opportunities in the markets, particularly for least developed and developing countries. The literature revealed that small holder producer can access international markets by establishing value chain networks and by building relationships in chain networks.


2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Henri Bezuidenhout ◽  
Sonja Grater ◽  
Ewert P.J. Kleynhans

Orientation: African countries offer many investment opportunities and also urgently need global investment finance. Along the value chains of the agro-industrial sector there are many global challenges for African countries to attract foreign direct investment. This article investigates the investment flows in agro-industries and products to and from South Africa.Research purpose: This study evaluates the nature and dimensions of the agro-industrial sector that receive investment inflows in South Africa, as well as investigating South African investment patterns into Africa.Motivation for the study: Of particular interest is the relationship between foreign direct investment (FDI) flows, their integration into global value chains and sustainable investment options.Research design, approach and method: Qualitative data and visual techniques using available data for the period 2003–2014 disambiguate the linkages in FDI patterns with regard to regions, industries and specific companies. Flows between regions and the specific companies are identified and studied.Main findings: The results indicate that the United States, the United Kingdom and the Netherlands are the largest investors in South Africa, with a strong focus on agricultural input production and subsequent agro-processing industries. South African investment into Africa follows a similar, albeit narrower and more focused, pattern. The study concludes that foreign multinational enterprises are actively involved in global value chain expansion and South African firms are following suit.Practical/managerial implications: The lack of FDI in actual agricultural crop production in Africa offers future investment opportunities.Contribution/value-add: This study creates a better understanding of how FDI in agriculture is linked to the development of regional value chains in the Southern African region. The methodology applies a novel approach to an important field of study, of which little knowledge exists, and may contribute to the creation of wealth in the countries of the region and the welfare of its population.


Author(s):  
Ibrahim Prazeres ◽  
Maria Raquel Lucas ◽  
Ana Marta-Costa

Cocoa is one of the main goods in the world agricultural trade markets, occupying the third position in exports. The paper introduces the cocoa value chain worldwide, its asymmetries, and the supply and value chain specific to the São Tomé and Principe (STP) organic cocoa. It aims to understand this value chain’s internal and external tensions and analyse its potential to be inserted in the international markets. The study uses panel data analysis from the FAOSTAT database. The tensions mentioned are due to the asymmetries of international markets and those regarding the production of organic cocoa in STP. At the level of STP and, despite measures to support organic production as a valuable alternative to the country’s development strategy, imbalances in the value chain persist that compromise the livelihoods of small producers responsible for most of production exported and the sustainability of the ecosystem.


2021 ◽  
pp. 395-418
Author(s):  
Reena das Nair

Despite the changing face of global trade towards greater ‘south-south’ trade, the development of regional value chains (RVCs) and the record of intra-regional trade and integration in Southern Africa has been poor. This chapter unpacks the nuances that affect participation, investment, and upgrading in RVCs in Southern Africa, drawing lessons from selected agro-processing and food retail value chains. The lack of a clear regional development vision is evident in how these value chains have developed in practice, with limited value-addition outside South Africa, even where there is potential for it. Regional integration in Southern Africa has been fairly weak against stated targets, and the development of RVCs can push forward the regional integration agenda. This requires tailored and coordinated investments across public and private sectors, and targeted policy interventions at a value chain level, with an appreciation of political economy dynamics and the role that South African firms with market power play in shaping value-chain outcomes in the region.


2010 ◽  
Vol 21 (4) ◽  
pp. 15-25 ◽  
Author(s):  
Alan Brent ◽  
Rovani Sigamoney ◽  
Harro Von Blottnitz ◽  
Sibbele Hietkamp

The South African government ratified a new biofuels industrial strategy at the end of 2007. The feasibility study that forms the basis of the strategy highlights the potential environmental implications of such a strategy. However, at present there is no structured approach to evaluate the environmental profile of the scenarios within the strategy. This paper introduces life cycle inventories whereby the environmental profiles of biofuel value chains may be evaluated meaningfully. The scope of the paper focuses on the seed extraction biodiesel production scenarios of the strategy. The inventory analysis shows that the inputs and outputs of the farming unit process are sensitive to the type of crop and region of produce. Water usage is a highly variable parameter, which emphasises the importance of rainfall and irrigation to the overall burden of the biodiesel system on water resources. Crop yields may differ by a factor of two, which is a significant difference in terms of land and non-renewable energy resources requirements. The oil and meal/cake content of the seed proves to be the most important parameter that influences the initial unit processes of the value chains; almost all the inputs and outputs of the farming unit processes, for all the crops, range in the order of a factor of two due to this parameter. The uncertainties associated with the logistic system in the value chain also have major implications. Further, should there be no market offset for the meal/cake co-products, the waste treatment requirements would be highly uncertain. Very little uncertainties were detected in the biodiesel production unit process, although the energy efficiency, and sustainability, of the overall production system remains questionable. The paper identifies a number of limitations with inventory sets that need to be addressed through further research efforts to improve the environmental evaluations of a biofuel value chain in South Africa for policy-making purposes.


2019 ◽  
Vol 22 (1) ◽  
pp. 137-154
Author(s):  
Daniel du P.S. Jordaan ◽  
Johann F. Kirsten

The ability to determine the fragility of agribusiness value chains is valuable to agribusines management practitioners and scholars in a context where risk and uncertainty are increasingly pervasive, consequential and unpredictable. The paper argues for determining the fragility of a chain to adverse events rather than trying to predict the probability and impact of such events. The paper specifically proposes a framework to detect and quantify non-linear consequences in response to progressively deteriorating chain fragility factors. The paper’s approach is a novel alternative to the traditional value chain ‘risk assessment’. Application of the framework to the South African lamb chain reveals that a number of specific factors, like quality and safety performance and cash flow position, have consistently high fragility scores throughout the chain while some factors are uniquely localized to a specific role-player or activity, which highlights the techno-economic uniqueness of individual activities in a chain.


Forests ◽  
2021 ◽  
Vol 12 (8) ◽  
pp. 1132
Author(s):  
Hilary Smith ◽  
Peter Kanowski ◽  
Rodney J. Keenan ◽  
Somvang Phimmavong

Policies to promote tree plantations in the Lao People’s Democratic Republic have been developed since independence to support national socio-economic and environmental goals, and in response to domestic and international markets. The effectiveness of these policies has been variable, and the resulting plantation wood value chains are poorly developed due to contradictory and confusing laws and regulations with inconsistent application and high transaction costs. Consequently, there has been limited tree plantation investment, and few investments have realized the anticipated benefits. Renewed interest in plantations from the government, investors and other sectors in Laos has prompted policy reviews and recognition of the need for new policy settings. We reviewed the development of plantation policies in Laos and assessed policy effectiveness and barriers to policy options. Through document analysis, interviews with key stakeholders and actors, stakeholder forums, and field research, we found that smarter regulation, and facilitating value-chain partnerships and knowledge sharing, can motivate smallholders and industry investors in plantations, and increase community-level benefits and financial returns to the Government and private sector. These results are discussed in the context of current international developments in plantation policy and the convergence in related policy processes in Laos.


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