The South African government’s efforts to ease mining regulations and privatise infrastructure present fresh opportunities for Indian businesses, said Nitin Agrawal, Group Chairman of Oza Holdings, which operates in mining and manufacturing.

Agrawal was addressing 36 business leaders from the NPO Young Indians, part of the Confederation of Indian Industry (CII), during a delegation visit to South Africa under the G20 Young Entrepreneurs Alliance. South Africa holds the G20 Presidency this year. The group met with Indian Consul General Mahesh Kumar, local business leaders, government representatives, and business school officials.

“South Africa is a large and developed economy within Africa, with well-established mineral reserves and robust infrastructure, including roads, rail, and ports capable of handling large commodity volumes,” Agrawal said. He highlighted that obtaining licences for mineral prospecting and mining is relatively straightforward, a unique proposition compared to other economies, though infrastructure challenges remain.

The South African government has initiated improvements in rail and port operations in 2025, with further enhancements expected in 2026. Agrawal noted that this will boost mining competitiveness and create opportunities for Indian companies, particularly in rail services and capital equipment, which could be sourced from India.

The government is also promoting local beneficiation of minerals, historically exported in raw form, creating opportunities for value-added products. Indian firms, agile in operation, are well-positioned to thrive in such environments. Agrawal cited successes in pharma, IT, mining, and secondary steel, where Indian companies dominate in South Africa.

Despite challenges like power shortages and limited water resources, Indian businesses can provide expertise and skills transfer to a nation with a largely young workforce but limited specialised skills.

Agrawal emphasised that the India–South Africa partnership will grow, with Indian capital machinery supporting mining and infrastructure investment. He noted that industries such as automobiles and mining machinery are increasingly shifting from Europe to the East, with India and China emerging as dominant players.

Examples of investment include a diamond cutting and polishing facility in an Industrial Development Zone, aligned with the government’s goals of beneficiation, skills transfer, and local employment, while enabling Indian firms to establish manufacturing units.

“There is a significant gap in mineral beneficiation capital equipment and mining machinery, which Indian manufacturers are well-placed to fill. Growth opportunities extend beyond minerals to ancillary products, creating a broad role for Indian businesses,” Agrawal said.

Consul General Kumar encouraged Indian businesses to propose solutions that benefit both South Africa and the wider southern African region as India explores new investment avenues.