ANALYSIS: SA Mining, Manufacturing Production Increases in January Cannot Hide Underlying Structural Weaknesses

Thebe Mabanga

The mining and manufacturing production statistics released this week may have been better than expected, but they cannot hide underlying structural weaknesses both sectors need to address in order to reach their full potential.

On Thursday, Stats SA reported that mining production rose 7.5% in January this year compared to a year ago and rose 6% when adjusted for seasonal factors compared to December last year.

Mineral sales rose 24% in January compared to a year earlier.

The performance was driven by iron ore, platinum group metals and coal on the production side as well as gold and nickel on the sale side.

At the same time, Stats SA reported that manufacturing production fell by 2% in January from a year earlier but rose 2.5% on a seasonally adjusted basis compared to December, after falling 3% in December from November.

The Nedbank Economic Unit says in a research