Ramaphosa says BRICS membership must improve lives of South Africans

More than a fifth of South Africa’s trade is with BRICS countries, and Indian companies have invested over $10 billion in the country, creating jobs for more than 18 000 people.

Over the past weekend, South Africa took part in the 18th BRICS Summit in New Delhi, an event that cemented the group’s role in building a more inclusive global economy and world order.

Read more: President arrives in New Delhi for 18th BRICS Summit

Together, the member countries account for around half of the world’s population and around a quarter of global trade.

For South Africa, BRICS is an important platform for building political and economic ties that benefit the country and its people. It is also a means to help build a fairer multilateral world order governed by international law, with the United Nations at its centre.

Through BRICS membership, practical cooperation has been deepened in science and technology, research, education, and skills development. People-to-people exchange has been led through bodies such as the BRICS Youth Council, the BRICS Think Tanks Council, and the BRICS Network University.

At the 2023 Summit in Johannesburg, it was decided to expand the group. In addition to Brazil, Russia, India, China, and South Africa, BRICS now includes Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia, and the United Arab Emirates.

While summits may seem far removed from daily life, the country gains a great deal from membership. It is an important forum for investment and trade. As a shareholder in the New Development Bank, also known as the BRICS Bank, South Africa has accessed development finance for major energy, water, and transportation infrastructure projects.

Also read: From unemployment to opportunity with CATHSSETA and McDonald’s SA

Through the BRICS Contingent Reserve Arrangement, the country can tap a pool of $100 billion (around R1.8 trillion) in currency reserves in the event of a liquidity crisis. Cooperation also covers health, science, agriculture, and skills development.

Cooperation extends beyond government. The private sector takes part in BRICS activities. In New Delhi, the BRICS Business Forum brought together heads of state, ministers, and business leaders to discuss deeper trade and investment.

A South Africa-India CEOs Roundtable was also held with leaders from leading Indian firms and South African companies, along with meetings with individual Indian companies looking to expand existing interests or explore new opportunities.

Also read: Investec Trophy Spirits Show honours top South African distillers in Illovo

The two countries have complementary strengths. India’s capabilities in pharmaceuticals and health technology can support the expansion of local medicine and vaccine production. Its expertise in information technology, financial technology, and digital public infrastructure can help modernise South African systems.

Indian companies commended the structural transformation under way in South Africa’s energy, logistics, telecommunications, and water sectors, as well as reforms in visas and public digital infrastructure.

South Africa’s critical minerals can supply India’s fast-growing renewable energy, battery, and automotive value chains, provided more processing takes place on South African soil.

India is South Africa’s fourth-largest trading partner. More than 150 Indian companies have invested over $10 billion (around R180 billion) and created employment for more than 18 000 South Africans. Leading South African firms such as Naspers, FirstRand Bank, Sanlam, and Momentum have significant investments in India.

Opportunities for partnership exist in green industrialisation, critical minerals and beneficiation, infrastructure, agriculture, and the digital economy. Restoring direct flights between the two countries and closer ties between business chambers would help turn this potential into practical partnerships.

South Africa’s priority is to continue using its BRICS membership to deepen bilateral cooperation and expand trade and investment ties.

Follow us on our WhatsApp channel, Facebook, X, Instagram and TikTok for the latest updates!