South Africa: Later this week, Cyril Ramaphosa is going to join the leaders of China, Brazil, Russia and India at the 14th BRICS Leaders’ Summit, which will be hosted virtually by Chinese President Xi Jinping.
The value of South Africa’s membership in BRICS has grown substantially since they all joined this group of emerging economies 12 years ago. As countries work to rebuild the country in the wake of the COVID-19 pandemic, there is much to be gained from the participation in BRICS, and the relationships countries have established with other member countries.
At the outset, BRICS countries identified the strengthening of economic and financial ties as one of the key pillars of their cooperation.
The countries have adopted the Strategy for BRICS Economic Partnership to increase access to each other’s markets, promote mutual trade and investment and create a business-friendly environment for investors in all BRICS countries.
An important part of this strategy, particularly for South Africa, is to diversify trade so that more manufactured goods, rather than raw commodities, are traded.
Last year, over 17% of South Africa’s exports were destined for other BRICS countries, while over 29% of total imports came from these countries. These countries are, therefore, significant trading partners, and the value of this trade is continuing to grow.
Total South African trade with other BRICS countries reached R702 billion in 2021, up from R487 billion in 2017.
At a time when countries are focused on improving the capacity and competitiveness of our economy, these trade linkages will prove vital to the growth of the local industry. There is, therefore, a direct relationship between, on the one hand, our reforms in energy, telecommunications and transport, our investment in infrastructure and their efforts to reduce red tape, and, on the other hand, the work underway to increase exports to our BRICS partners.
These reforms are also important for encouraging greater investment from BRICS countries into one country’s economy.
One area with great potential is tourism, which has been badly affected by the COVID-19 pandemic. Tourists from other BRICS countries accounted for 65% of all arrivals in South Africa in 2018, and these markets will therefore be expected to make an important contribution to the recovery of this sector.
It is, therefore, significant that visitors from India and China can now make use of the new E-Visa programme to make it easier and less costly to visit the country.
As government mobilise financing from different sources to fund ambitious infrastructure build programme and expect the New Development Bank – also known as the BRICS Bank – to play an important role in providing financial and project preparation support for infrastructure and sustainable development projects.
South Africa has already received $5.4 billion, currently worth around R86 billion, from the New Development Bank to improve service delivery in critical areas. The Bank also demonstrated its flexibility in rapidly approving $2 billion for each BRICS member under the COVID-19 Emergency Loan Programme to fund the fight against the pandemic and to support economic recovery.
Alongside the engagements between governments, the BRICS Business Council and the BRICS Women’s Business Alliance are building ties between respective business communities.
They have been looking at the development of sectors such as agribusiness, aviation, financial services, energy, manufacturing and infrastructure while also improving regulatory environments and developing skills.
The collaboration among BRICS members in the area of health and in response to the COVID-19 pandemic, in particular, has placed South Africa in a better position to respond effectively to current and future health emergencies.
After several years of planning, the virtual BRICS Vaccine Research and Development Centre was launched in March. This centre will enable BRICS countries to engage in joint vaccine research, development and co-production.
It will contribute to the equitable distribution of COVID-19 vaccines, strengthen health systems and help countries to respond to future pandemics.
They see the BRICS Vaccine Research and Development Centre as a valuable development in the efforts to strengthen vaccine manufacturing capacity in South Africa and on the African continent more broadly.
The administration will call the BRICS partners to support the principle that vaccines destined for Africa should be produced on the continent.
Earlier this month, the BRICS Ministers of Agriculture adopted a BRICS Strategy on Food Security Cooperation. This is especially important as concerns grow around food security in the wake of COVID-19, the conflict in Ukraine and the increasing effects of climate change.
The strategy aims to maintain sustainable agriculture production, unhindered supply of seeds, fertilizers and other agricultural inputs, access to markets and stable functioning of food value chains.
More broadly, this week’s summit aims to usher in a new era for global development that is more inclusive, sustainable and fair.
Through the reform of the multilateral system, including the United Nations, and by refocusing the attention and resources of the global community on the sustainable development agenda, the BRICS group can support a sustained and equitable global recovery.
The BRICS Leaders’ Summit is a valuable platform for South Africa to strengthen ties with its partner countries in support of our own growth and employment creation. More than that, the summit is the opportunity to contribute to a better world in which all countries have a better chance to recover from this pandemic and flourish.
