Brian Sokutu
Senior Print Journalist
4 minute read
2 Aug 2021
5:15 am

How the mining sector gave SA’s economy an unexpected boost

Brian Sokutu

Mining sector revenue paid to Sars helped the country boost the economy, reduce its deficit, allocate resources and provide financial support.

Fire Mahlangu inside one of the Boekenhouthoek Village gemstone mines in Mpumalanga, 8 March 2021. Picture: Jacques Nelles

Against all odds: economic gloom, the adverse impact of the Covid pandemic and the recent unrest, South Africa’s economy has made an amazing unexpected come-back, driven by a huge tax windfall from strong commodity prices, which have lifted government revenue. At R57.7 billion, SA recorded a massive trade surplus in June – which Stanlib chief economist Kevin Lings has described as “monster” – pushed by precious metal exports, which in the first six months, rose to 96.2%, compared to last year. This has made it possible for National Treasury to announce a R39 billion economic relief package funded by the...