South Africa's energy and mining sectors are poised for growth due to increased investment in energy infrastructure, critical minerals, and digitalisation. According to a report by global trade credit insurer Allianz Trade, these sectors will benefit from the country's strategic importance in the mining value chain. The report, "Sector Atlas 2026", assesses corporate non-payment risk in 17 sectors across 70 countries.
The mining sector, particularly producers linked to metals supporting electrification, renewable energy infrastructure, and digital technologies, will see increased investment. Allianz Trade's global metals assessment identifies copper, lithium, nickel, cobalt, and rare earths as key beneficiaries of demand linked to electric vehicles, batteries, and renewable energy infrastructure. Governments are increasingly treating critical minerals as strategic assets and seeking alternative sources of supply.
The global energy sector is also benefiting from rising investment in power infrastructure, driven by rising electricity demand from data centres and energy security concerns. Natural gas and liquefied natural gas (LNG) remain important for reliable power generation alongside intermittent renewable sources. The report highlights the importance of investment in both renewable energy and conventional sources.
The increasing demand for electricity and data centres is driving investment in AI infrastructure, with major technology companies expected to invest $725 billion in 2026 and over $1 trillion in 2027. This investment will support demand for electricity, data centres, equipment, and high-capacity digital networks. Infrastructure spending will also support construction and machinery, with investment flowing into electricity grids, transport, water, data centres, and defence-related projects.
In contrast, the automotive and textiles sectors face weaker demand and intensifying global competition. Chinese carmakers are gaining market share in major markets, while tariffs and the shift towards electric vehicles are adding to cost and investment pressures for established producers. Textile manufacturers face rising raw material and energy costs, weaker consumer spending, and continued competition from Asian producers.
Allianz Trade notes that tariffs are reshaping supply chains but have done little to change Asia's manufacturing advantage. The insurer expects the global economy to expand 2.5% in 2026 before growth picks up to 2.9% in 2027. AI, energy, and defence are accounting for an increasing share of global corporate investment and earnings growth as economic growth slows.
The report highlights the divergent fortunes of different sectors, with energy and mining set to benefit from global investment trends, while automotive and textiles face significant challenges. As the global economy continues to evolve, sectors that can adapt to changing demand and investment patterns are likely to thrive. Allianz Trade's report provides valuable insights into the trends shaping the global economy and the sectors that are likely to benefit from them.
Key points
- South Africa's energy and mining sectors are set to benefit from increased investment in energy infrastructure, critical minerals, and digitalisation.
- The global energy sector is benefiting from rising investment in power infrastructure, driven by rising electricity demand from data centres and energy security concerns.
- The automotive and textiles sectors face weaker demand and intensifying global competition, with Chinese carmakers gaining market share and textile manufacturers facing rising costs and competition from Asian producers.
