A linkage model for the South African mineral sector: A plausible option
Date
2012-07-04
Authors
Leeuw, Paseka Johannes Katleho
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Abstract
The mining industry is an important sector of the South African economy
contributing approximately 10% to the GDP in the last decade. It is also the
largest contributor to the country’s exports, bringing in the necessary foreign
income.
The strength of the South African mining industry stems from the country’s
mineral endowment and mining expertise built over many years of mining. Some
of the legacies of mining in South Africa are the establishment of cities of
Johannesburg and Kimberley and the creation of the biggest stock exchange and
economy in Africa. However South Africa is crippling with one of the highest
income inequalities in the world, high unemployment rate, and poverty despite its
mineral endowment, stable political climate, and constitutional democracy.
To fight inequality, unemployment, and poverty, this document proposes the use
of Resource-based Research and Enterprise Development Model or the Linkage
Model as one of the instruments at the disposal of the government. The Linkage
Model is strategic in nature and is primarily based on the economic linkage theory.
It comprises of six components or pillars, namely government support, research
funding, functional research institutions, adequate research skill supply, resourcebased
research output, and commercialisation of research findings. Through the
latter, it is hoped that employment opportunities will be created in industries that support the mining industry.