Rising prices for key commodities such as gold and platinum are creating a significant economic opportunity for South Africa, with an estimated R350 billion inflow that could stimulate investment in mining and infrastructure. This potential upswing could also benefit the construction sector and companies such as AfriSam, which is well positioned to support future infrastructure development with cement, aggregates and readymix solutions. Afrisam budget breakfast highlights economic upside from commodity price surge
T he strong rally in commodities such as gold, platinum, rhodium and palladium is creating significant windfall opportunities for South Africa to support its economic turnaround. Speaking at AfriSam’s annual Budget Breakfast event in Sandton recently, Econometrix Chief Economist Dr Azar Jammine said the exceptional surge in commodity prices could have an “absolutely enormous” impact on the South African economy. Dr Jammine pointed to an estimated inflow of about R350 billion into the country from commodity sales, arriving just as the economy began showing signs of recovery toward the end of last year. This follows a prolonged period during which South Africa lagged global growth levels, resulting in a decline in living standards of between 6% and 7% over the past eight years. He noted that the key opportunity now lies in government directing this windfall toward higher levels of fixed capital formation through targeted investment in infrastructure, thereby creating an environment in which business can thrive. “If this can be converted into real investment in new exploration and development in the mining sector, the knock-on effects through the rest of the economy could be unbelievable,” he argued. Dr Jammine highlighted that the third quarter of 2025 saw a modest uptick in fixed investment of 1.1% - the first positive movement in two and a half years. The Medium-Term Budget Policy Statement released in November 2025 also indicated that the Government of National Unity was beginning to produce “some positive results,” particularly through its commitment to fiscal discipline. Higher commodity inflows have also contributed to a stronger rand against the US dollar, helping to reduce inflation to around 3.5%. This supports government’s
Econometrix Chief Economist Dr Azar Jammine speaking at AfriSam’s annual Budget Breakfast event.
Reliable infrastructure starts with quality construction materials.
Jammine said. Improving economic prospects have also been recognised internationally, with ratings agency S&P Global upgrading South Africa’s credit rating for the first time in 16 years. n
lower inflation target of 3% and has helped shift inflation expectations downward. “This has meant that long-term interest rates have declined, resulting in considerable savings for government in terms of interest payments on its debt,” Dr
May 2026 | www.modernminingmagazine.co.za MODERN MINING 7
Made with FlippingBook flipbook maker