Brics investment: Load shedding, SA power crisis ‘not an issue’

Despite load shedding, there is groundswell support from Brics investors to explore investment opportunities in South Africa.

Unlike Western investors, who were more concerned about South Africa’s energy crisis, those from the Brics (Brazil, Russia, India, China, SA) bloc seemed unperturbed by the situation.

South Africa has been experiencing a series of scheduled power cuts implemented throughout the country and this has been a concern for investors inside and outside the country.

Many investors who spoke to The Citizen said they were not concerned about power supply issues at this stage, but wanted to focus on strengthening cooperation among businesses within the Brics bloc.

They said it was too early to talk about lack of power supply as they had to sign memorandums of understanding to level the playing fields.

“We are not here for that, we are here to discuss cooperation and sharing of ideas among us Brics business people.

“We want to see to the growth of our countries and assist those who are struggling economically,” said a Chinese businessman who asked to remain anonymous.

Similarly, a Brazilian investor and an Indian banker, who both declined to be named, said they were in the country to explore opportunities in cooperation, exchanges of technology and sharing of funding models.

Even small enterprise owners expressed optimism about their prospects within the Brics forum, saying it had become their gateway into world markets.

Businesses and enterprise development funders from Brics Plus, a forum that includes the Brics member states plus those aspiring to join the bloc, shared ideas about what each had to offer at the business convention.

Sector forums such as the Brics manufacturing forum discussed investment opportunities available in the Brics Plus nations.

They deliberated the framework for sustainability, transformation and investment cooperation, building resilient industry value chains and a regional manufacturing hub in South Africa, green industrialisation and the circular economy and funding mechanisms.

A speaker from AfreximBank said unless Africa industrialised, the objectives of the African Continental Free Trade Areas would fail.

He explained how the bank was able to fund small enterprises so they could grow into big industries.

An emphasis was placed on establishing business joint ventures among Brics nations, diversifying their resources, opening up new markets within Brics for enterprises and transfer of technology between companies.

Small business owners attending were optimistic about the new opportunities that would be brought by the economic forum, but were still worried about load shedding that adversely affects the growth of their businesses.

Minister of Trade, Industry and Competition Ebrahim Patel said South African businesses were open for investment from the Brics investors.

He said the investors were welcome to access SA firms and invest their monies.

Two memorandums of understanding were signed between the Industrial Development Corporation and the Development Bank of China to formalise their cooperation.

Patel said investors needed to identify the relevant industries they wanted as the country was open for business.

Investors would tomorrow be taken on a tour of the Tshwane special economic zone where a discussion on benefit and investment opportunities in the zone would take place.

Group senior executive at Aspen Pharmacy Group Stavros Nicolaou said: “This is the time to collaborate within Brics to realise its potential in a lot of areas of development.”

Founder and CEO of Zazi’s Productions Thobeka Ndabula, who came to exhibit fruit juices, biltong, dried fruit and chocolate, said Brics was good news for small businesses as it opened up new opportunities for them.

She had previously been to international business fairs to exhibit her products. Loyiso Manga, founder and director of Ubuntu Extra Virgin Olive Oil, a Cape Town-based olive oil-producing company, also said Brics was an excellent platform for them, adding that “we have to sure to strike while the iron is hot”.

But both Ndabula and Manga said as local, small enterprises, they were adversely affected by load shedding.

But they marvelled at the opportunity to be part of the international community through Brics.

Additional reporting by Brian Sokutu.