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Five Reasons to Stay in South Africa Despite Law Firm Exits


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Five Reasons to Stay in South Africa Despite Law Firm Exits

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14th October 2024

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In recent months, we’ve seen a wave of international law firms closing their doors in South Africa, citing a range of challenges such as economic uncertainty. As a mining lawyer with a deep-rooted belief in this country’s potential, I think now is precisely the time to stay and seize the opportunities that lie ahead.

Mining is the backbone of South Africa’s economy, and while the legal landscape may be shifting, it is far from barren. Here are five compelling reasons to invest in the future of the legal profession in South Africa.

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1. South Africa’s Mining Sector Remains Globally Competitive

Despite challenges such as regulatory pressures and shifting commodity prices, South Africa continues to hold its position as one of the world’s leading mining jurisdictions. From platinum and gold to rare earths, the resources beneath our feet are irreplaceable. The legal issues surrounding mining—from environmental compliance to international trade—are becoming more complex and nuanced, creating a strong demand for specialised legal expertise (that’s us!).

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For those of us with deep knowledge of the sector, this complexity is an opportunity to add value. Multinationals and local mining companies need skilled lawyers to navigate the evolving regulatory environment, manage risk, and structure deals that foster growth.

2. The Opportunity to Shape South Africa’s Mining Policy

Mining legislation in South Africa is a hot topic currently, with ongoing debates about amendments to the Mineral and Petroleum Resources Development Act (MPRDA) and the introduction of new regulations. Having had the opportunity to advise on these changes in regulation I don’t view these debates as a deterrent, it should be seen as a unique moment for lawyers to be at the forefront of shaping policy and ensuring the industry’s sustainability.

Lawyers will play a key role in influencing the regulatory landscape for decades to come, contributing to a framework that promotes responsible mining, economic growth, and investor confidence. We can help shape South Africa into the world-class country she has the potential to be.

3. Untapped Markets and New Investment Opportunities

While some law firms may be retreating, the mining sector is far from stagnating. New mineral discoveries, particularly in renewable energy components like lithium and cobalt, are opening doors to previously untapped markets. These developments align with global trends toward cleaner energy, and South Africa’s mining industry is poised to play a critical role in the supply chain for green technologies.

For legal practitioners, this presents an opportunity to advise on cutting-edge projects like data centres to support AI to exploration to commercial agreements and joint ventures. The future of mining law is evolving, and those who stay in South Africa can capitalise on emerging trends in mining-related investments and technologies.

4. People over Paper in the Face of Economic Challenges

South Africa has never been a stranger to adversity, but it has also proven its resilience time and again. The legal profession here has adapted to shifting political and economic climates, and the mining sector, despite its cyclical nature, continues to be a cornerstone of the economy.

Firms that focus on the people they do business with, offer specialised knowledge and prioritise long-term relationships that can help guide the industry through this period of transformation. South African’s are good at building relationships and nurturing them, and these interpersonal skills can mean the difference between retaining a client and losing revenue. This type of hands-on approach is reinforced in NSDV’s mantra of “people over paper”.

5. The Importance of Local Expertise and Communities

Mining operations are deeply intertwined with the communities and regulatory bodies of South Africa. Global firms may have impressive resources, but local knowledge and relationships remain invaluable. In a sector as sensitive as mining, where legal, environmental, and social factors overlap, understanding the local landscape can be the difference between success and failure.

Lawyers with strong ties to local regulators, communities, and industry players have a competitive edge. This kind of relationship capital cannot be easily replicated by firms parachuting in from other jurisdictions. Staying in South Africa offers the advantage of being deeply embedded in the local ecosystem, where trust and expertise go hand-in-hand.

While some firms may see South Africa’s challenges as insurmountable, those of us who choose to stay recognise the incredible opportunities that exist. The mining sector, despite its complexities, remains one of the most dynamic and rewarding fields for legal practitioners. With the right vision and commitment, we can help shape the future of South Africa’s mining industry and, by extension, our economy. Now is not the time to retreat but to dig deeper, build relationships, and seize the opportunity to lead.

Written by Lili Nupen, Co-founder & Head of Mining And Environmental, NSDV

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