The release of South Africa's August mining production figures on Tuesday is highly anticipated after the sector's dismal performance in July. According to Statistics South Africa, the sector contracted by 7.5% year-on-year in July, primarily due to weaker output from platinum group metals, coal, and iron ore. This decline has raised concerns about the sector's impact on the country's overall economic growth.
Economists at Absa noted that mining was one of the key weak points in South Africa's GDP data for the second quarter of the year, with production shrinking by 2.6% quarter on quarter. However, Absa expects some improvement in the August data, citing the normalization of operations at Implats' Rustenburg operations following a safety-related incident. The incident had temporarily closed the operations, affecting platinum group metals output.
A report by professional services firm PwC noted that while the overall sector entered the 2026 reporting period in a stronger position than previously, the lack of real investment in recent years has put pressure on output levels. This has prevented companies from fully benefiting from high commodity prices. The report highlighted the need for increased investment to boost the sector's performance.
This week, attention will also turn to global events, including the International Monetary Fund and the World Bank's annual meetings in Bangkok, Thailand. The meetings will bring together central bankers, ministers of finance and development, private sector executives, civil society representatives, and academics to discuss the state of the global economy. The meetings will focus on the growth outlook, financial stability, and poverty reduction.
On Monday, Financial Stability Board chair Andrew Bailey will deliver a note on vulnerabilities and monitoring of global stablecoins and finalised sound practices on AI adoption. The FSB will also publish Bailey's letter to G20 finance ministers and central bank governors ahead of their meeting in Bangkok. The letter will summarise the FSB's ongoing work on vulnerabilities related to global stablecoins.
On Tuesday, the IMF will launch its latest World Economic Outlook, presenting the global lender's updated assessment of global economic developments and prospects for the global economy. The report will include breakdowns for regions such as Sub-Saharan Africa and individual member states like South Africa. In its July 2026 update, the fund predicted growth of 1.1% this year for South Africa.
Other notable events this week include the AgriSA congress, where industry leaders, policy experts, and government officials will discuss practical solutions to the agricultural sector's most pressing challenges. The South African Reserve Bank will also brief the media on key developments and reforms shaping the country's payments landscape, including initiatives to modernise payments and improve access to low-cost, real-time digital payments.
Key points
- The release of South Africa's August mining production figures on Tuesday is expected to provide insight into the sector's performance after a 7.5% year-on-year contraction in July.
