South Africa’s chrome riches fuel a deadly underground economy

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-06 • Permanent link

Rumors of a leadership vacuum in the South African government have been circulating for months, but it wasn't until this week that President Cyril Ramaphosa officially announced the resignation of his long-time ally, Deputy President David Mabuza. Mabuza, who has been serving as the country's second-in-command since 2018, tendered his resignation citing personal reasons. The sudden departure has sent shockwaves through the ruling African National Congress (ANC) and the country's economy, which has been struggling with high inflation and unemployment rates.

The news has significant implications for the global mining industry, particularly in South Africa, where chrome is a major export commodity. The country's chrome reserves are among the largest in the world, and the mining sector is a significant contributor to the country's GDP. With Mabuza's resignation, there is a risk of instability in the mining sector, which could lead to supply chain disruptions and higher prices for chrome and other minerals.

South Africa's chrome industry has a complex history, dating back to the apartheid era when the country's black population was denied access to mining rights. Since the end of apartheid, the industry has been dominated by a handful of white-owned companies, which have been accused of exploiting workers and the environment. In recent years, there have been efforts to diversify the industry and increase black ownership, but progress has been slow.

As the country navigates the power vacuum left by Mabuza's resignation, investors are watching closely to see how the ANC will respond. The ruling party has a history of using the presidency as a springboard for future careers, and some analysts believe that Ramaphosa may be seeking to consolidate his power by appointing a new deputy president. Whatever the outcome, the situation highlights the ongoing challenges facing South Africa's economy and the need for the ANC to address the country's deep-seated structural problems.