UK Deepens Collaboration with South Africa on Critical Minerals and Economic Development While Promoting Inclusive Growth at Mining Indaba 2026

The United Kingdom is ramping up its partnerships with Africa in the mining sector, unveiling a series of initiatives at Mining Indaba 2026 that aim to stimulate economic growth, create jobs, and support the global clean energy transition.

These efforts build on the momentum from the UK Prime Minister’s visit to South Africa last November, highlighting a clear commitment to collaboration that benefits both regions.

At the core of this engagement is a focus on critical minerals, which are essential for technologies such as electric vehicle batteries and renewable energy systems.

The UK’s approach seeks to ensure these resources are produced responsibly while promoting economic development across Africa.

Driving SME Growth Through Impact Finance

A key feature of the UK’s involvement is the launch of a £2 million Impact Finance Facility in partnership with Anglo American.

This initiative is designed to expand access to capital for South African SMEs, which are recognized as vital drivers of job creation in a country where unemployment exceeds 40 percent.

The facility is structured to attract additional investment from private partners, multiplying the impact of the initial UK funding.

By recycling repayments, the program ensures that resources continue to support new projects, fostering long-term benefits.

The initiative is expected to generate around 5,000 new jobs and stimulate further private sector investment, demonstrating the UK’s transition from traditional aid to strategic, investment-focused engagement.

Critical Minerals Partnerships and Regional Collaboration

British High Commissioner to South Africa, Antony Phillipson, highlighted the importance of regional and international cooperation to unlock Africa’s potential in the battery and critical minerals value chain.

He described the UK’s approach as pragmatic and partnership-driven, aiming to attract private investment while ensuring mining practices remain responsible, transparent, and sustainable.

The UK Critical Minerals Strategy, first presented at the Johannesburg G20 Summit, outlines a vision for resilient and diversified supply chains achieved through long-term collaboration with global partners.

This strategy is a central part of the UK’s broader Africa approach, which emphasizes equality, mutual benefit, and responsiveness to the priorities outlined by African governments.

Beyond Mining: Inclusive Growth and Economic Diversification

The UK’s initiatives are not limited to extractive industries.

By leveraging expertise in mining, finance, engineering, ESG standards, and community-centered development, the UK aims to ensure that Africa’s mineral wealth leads to inclusive economic growth.

The UK-SA Growth Partnership provides a framework that supports regional development and South Africa’s Just Energy Transition, promoting diversification and demonstrating how partnerships can deliver tangible benefits beyond traditional mining.

These initiatives illustrate how development partners and African governments can collaborate to ensure economic gains are widely shared.

A Catalytic Model for Long-Term Impact

The Impact Finance Facility exemplifies a catalytic, value-for-money approach. Its design encourages private investment while recycling funding to maximize long-term benefits for South African SMEs.

By moving away from traditional donor-based funding toward investment-driven partnerships, the UK is creating a model that delivers stronger returns for taxpayers while empowering local businesses.

These efforts highlight the potential of public and private sectors working together to establish resilient and equitable supply chains, ensuring that the economic rewards of Africa’s mineral resources benefit a broad spectrum of communities.

What’s Next?

Looking ahead, the UK plans to expand these initiatives to other African nations, integrating more SMEs into global supply chains and strengthening regional coalitions in critical minerals production.

Investment will continue to align with the goals of the Just Energy Transition, and UK expertise in finance, ESG, and technical support will be leveraged to foster sustainable growth across the continent.

If successful, these partnerships could become a global blueprint for responsible, inclusive mining, demonstrating how strategic investment and collaboration can drive long-term economic and social impact.

Summary

At Mining Indaba 2026, the UK showcased its commitment to supporting Africa’s economic transformation.

Through the Impact Finance Facility and broader UK-Africa partnerships, the focus spans critical minerals, SME growth, job creation, sustainable economic development, and the Just Energy Transition.

The initiatives combine responsible mining practices with investment strategies that ensure shared prosperity, moving away from aid toward partnerships that deliver measurable, long-lasting impact.