Growth Gateway: Investing in critical minerals processing in Africa, South Africa investment case (summary)
Published 17 September 2025
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South Africa holds significant reserves of critical minerals, particularly high-grade manganese and nickel, positioning it as a key player in the global energy transition. With global demand for battery-grade materials expected to triple by 2030, the country could generate between £630 million and £1.35 billion in gross profit from processing these minerals. South Africa is one of only five countries with high-grade sulphide nickel reserves and leads the world in manganese production. However, the country faces challenges in energy reliability, infrastructure, and regulatory complexity, which must be addressed to unlock its full potential.
Despite these hurdles, South Africa offers several competitive advantages. It has a mature mining and manufacturing base, a skilled workforce, and a robust financial sector. Special Economic Zones (SEZs) provide globally competitive tax incentives, while renewable energy initiatives and corporate power purchase agreements (PPAs) are helping to mitigate energy shortfalls. The country’s logistics network, though strained, connects key mining regions to ports, and ongoing reforms aim to improve efficiency. South Africa’s industrial electricity rates are also competitive, especially through independent power producers (IPPs).
The report identifies four investment-ready projects, including three in high-purity manganese sulphate monohydrate (HPMSM) and one in nickel sulphate. These include expansions by Manganese Metal Company and Thakadu Group, and new developments by Giyani Metals and Sherwood. The UK has an opportunity to support these ventures through financing, technology partnerships, and ESG-aligned investment, helping to secure resilient supply chains while contributing to South Africa’s economic development and green transition.