Another key challenge is whether there will be a market for our beneficiated products. Most of this industry is located in the developed world, where an established market consumes their manufactured products. We need to negotiate, where possible, long-term supply agreements to access some of these markets.
Moeletsi Mbeki predicts that South Africa will have its own "Arab Spring" in 2020. We shall then fall off the fiscal cliff, because China's industrialisation programme will cease buying our minerals, draining our fiscal resources more. But he is wrong! Our new extended domestic market, a vital ingredient to growing our beneficiation industry, is on our doorstep. That is Africa. Let me explain why, and the figures are astonishing. [Interjections.] Africa, for example, holds 60% of the world's future farming potential. Just as the Chinese took off in 1990 and India in 2000, it is now the time for Africa.
We in South Africa must be in the engine room. If the growth in smartphone users tells you anything about Africa's potential, then this is a good story to tell. [Interjections.] Listen. In the next five years the number of smartphones will grow from 120 million to more than 620 million - 500 million in five years. Mobile data traffic will double every year. Currently, there are 15 million mobile Internet users in South Africa, and that will grow to 35 million in 2018. [Interjections.] I am coming to the point.
Economists refer to this as the iGDP. The McKinsey report says that Africa will grow from US$18 billion to US$300 billion. Mozambique's iGDP is larger than that of Brazil. By 2018, 84% of Africa will be on line - this will happen in the next four years.
Now, what a market opportunity awaits us - a lifetime experience on our doorstep! This is a massive wave breaking for Africa. We can either be drowned in it or we can surf it. Data does not dominate - character does.
We need to learn lessons from previous failed initiatives. All stakeholders should work together. We need strategic partnerships. We need a proudly South African private sector. We need a streamlined legal framework. Finally, we need a predictable, supportive regulatory environment. So, we need a mixed bag.
Yes, to have the minerals is an advantage ...