South Africa’s decision to loosen mining rules and speed up the privatisation of infrastructure is drawing growing interest from Indian companies, with the reforms expected to reshape the country’s mining sector and boost Africa’s global competitiveness.
- South Africa is implementing reforms to privatize infrastructure and liberalize mining rules.
- Indian companies express interest due to improved licensing frameworks and mineral exports.
- Privatization efforts in rail and port operations enhance mining sector competitiveness globally.
- Collaboration with Indian businesses encourages skill transfer and supports local workforce development.
The reforms are part of a wider shift that began under the government’s Operation Vulindlela programme launched in 2020, which aimed to reduce red tape, unlock investment, and allow greater private-sector participation in key sectors.
Since 2023, Pretoria has accelerated efforts, particularly in transport and logistics, where inefficiencies in rail and ports have long hampered mineral exports.
Indian Businesses Eye Opportunities
Nitin Agrawal, Group Chairman of Oza Holdings, which operates in mining and manufacturing, told a business gathering in Johannesburg, held on the sidelines of the G20 Young Entrepreneurs Alliance, that the country’s reforms offer unique openings for foreign partners.
While addressing 36 Indian entrepreneurs from the Confederation of Indian Industry’s Young Indians network, who visited the country last week, Agrawal said:
“South Africa is a large and developed economy within Africa. It has very well-established mineral reserves and resources, along with very well-developed infrastructure, be it road, rail, or ports that can handle large volumes of commodities. It has a very good way of conducting mining operations with very good regulatory frameworks.”
Favourable Licensing Framework
Agrawal argued that South Africa’s licensing framework makes it easier to participate in the industry. “Anyone can obtain a licence to prospect and search for minerals or to mine these minerals, which is a unique proposition when compared to other economies,” he said.
According to The Economic Times, the Indian Consul General in Johannesburg, Mahesh Kumar, hosted the delegation for talks with South African government officials, local executives, and academics.
Signs of Progress in Infrastructure
Agrawal pointed to signs of improvement in transport networks. “We have seen a significant improvement in South Africa within rail and port operations in 2025. We see 2026 to be a very improved environment for port and rail capacity, which will provide additional leverage to mining companies and improve their overall competitiveness in the global market,” he said.
On privatisation, he said the policy shift is already boosting confidence. “We believe a large portion of the rail services and rail capital equipment will be sourced from India. Indian companies have railway manufacturing facilities and some of these will be leveraged by South African businesses as this privatisation programme is rolled out,” he explained.
Push for Local Beneficiation
South Africa’s focus on beneficiation is another critical area. “With this impetus of local beneficiation several commodities have opportunities in respect of value-added products being produced,” Agrawal said.
A Partnership of Skills
He also stressed that Indian businesses, often nimble in difficult environments, could thrive in sectors where larger corporations are retreating. “This provides Indian businesses a unique ability to survive when the times are tough in challenging environments and flourish when the going is good,” he said.
While challenges such as energy shortages and water scarcity persist, Agrawal said skills transfer can help. “Indian businesses have skills while South Africa is a skills-short nation. It has a large young workforce and skills transfer from India will enable South African businesses to have a good partnership,” he added
Broader Continental Implications
With a portfolio of 67 curated investment projects valued at $40 billion and spanning diverse sectors, South Africa’s reform agenda highlights both the scale and ambition of its economic transformation.
The measures are not only aimed at resolving domestic bottlenecks but also signal a broader vision for Africa. By advancing mining liberalisation and infrastructure privatisation, the country is positioning itself as a model for how African economies can harness resources, modernise logistics, and strengthen their links to global markets.
