AS South Africa’s financial community reflects on the Minister of Finance- Enoch Godongwana’s 2025 Budget Speech this week, one issue remains central to achieving sustainable growth: access to funding for emerging industries.
In mining — one of the nation’s key economic pillars — the challenge is particularly clear.
New and emerging mining operators continue to face barriers when trying to secure funding, especially during early stages of project development such as exploration and pre-feasibility studies.
Praise Ragimana, Deputy Chair of CMR Corridor Mining Resources, believes that “true transformation in mining begins with funding.”
He recently shared his views on this challenge, emphasizing that his insights are grounded in his own perspective and experience in the sector.
The Funding Gap: A Barrier to Entry
“The biggest problem for new players in mining is access to funding,” said Ragimana.
“Most financiers and investors want a project that’s already developed and close to production. They don’t want to invest from the beginning. This makes it very hard for new operators not only to start their projects but also to sustain them over time.”
He explained that early-stage expenses — such as drilling, geological studies, and environmental assessments — are essential but often overlooked by funders.
“These studies determine whether a project is worth pursuing,” he added.
“Even when communities own the land, without financial backing it’s almost impossible to move from concept to operation.”
The Minister’s Budget Speech placed renewed emphasis on investment and industrial growth — themes that directly align with the need for accessible financing in mining.
The sector’s continued development depends on bridging this early-stage funding gap.
Empowering Emerging Operators Through Funding
According to Ragimana, the lack of early-stage capital most severely affects emerging and small-scale mining entrepreneurs, many of whom are trying to enter a sector long dominated by established companies.
“Financial institutions have a responsibility to empower and assist small and emerging mining businesses,” he continued.
“If they don’t, the industry will continue to exclude capable entrepreneurs who could make a real difference,” also emphasizing that partnership and shared growth are essential principles for a sustainable mining economy.
“Supporting new entrants is not just good for transformation — it’s good business. It creates diversity, innovation, and long-term resilience in the sector.”
A Call for Partnership and Trust
Without accessible early-stage funding, many promising mining ideas never progress beyond planning. This limits innovation, slows down job creation, and holds back local economic development.
Experts continue to advocate for collaborative financing models that share risk more equitably — allowing banks, investors, and government-backed funds to co-invest in high-potential early-stage projects.
“There’s a lot of untapped potential in South Africa’s mining industry,” he noted.
“If financial institutions commit to supporting emerging players from the start and throughout the life of their projects, the entire sector will benefit.”
The Way Forward
As highlighted during the Budget Speech, growth and inclusion depend on effective investment strategies. For mining, that means ensuring that early-stage funding is not a privilege for the few but an opportunity for the many.
Ragimana’s message is simple yet profound- ‘True transformation begins with funding’.
“With the right partnerships and a commitment to inclusive financing, South Africa’s mining industry can unlock a new era of opportunity — one defined not by size or legacy, but by potential, innovation, and trust, concluded Ragimana.
Image (Finance Minister- Enoch Godongwana, delivered his mid-term Budget this week).
