South African President Cyril Ramaphosa recently highlighted the need for cooperation between Brazil, Russia, India, China, and South Africa (BRICS). These countries aim to improve government-to-government relationships while fostering strong ties among their populations. Over the past decade, BRICS economies have significantly reshaped the global economy, representing a quarter of the global economy, a fifth of global trade, and over 40% of the world’s population.
Progress and Challenges
Despite the progress made by BRICS economies, President Ramaphosa noted that the rise of protectionism and unilateral measures that contradict World Trade Organization rules have hindered global economic growth and development. He called for inclusive and transparent economic growth compatible with a multilateral trading system that supports a developmental agenda.
The Role of the New Development Bank
The New Development Bank, established by BRICS countries in 2015, has been crucial in mobilizing resources for infrastructure and sustainable development in emerging economies without imposing conditionalities.
Addressing Risks for Employment and Poverty
However, the rapid economic, technological, and social changes underway have created new risks for employment, equality, and poverty. Therefore, President Ramaphosa urged the business community to collaborate with governments to identify solutions to these challenges.
Opportunities for Investment in Africa
From South Africa’s perspective, there is immense untapped potential for investment within the country and across the African continent. The 15th BRICS Summit’s theme is “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism.”
The African Continental Free Trade Area
The African Continental Free Trade Area creates a single market that requires significant investment in infrastructure. Financing must be directed toward women-owned businesses, enabling them to harness the benefits of the continental free trade area.
Investment in South Africa
South Africa’s industrial strength, mineral endowments, and large market opportunities provide a compelling value proposition for companies looking to establish their businesses in the country. Opportunities for investment and partnership exist in renewable energy, infrastructure, aquaculture, ICT, automotive, pharmaceuticals, and advanced manufacturing, among others.
BRICS and Africa’s Growth Story
BRICS countries can contribute to and participate in Africa’s growth story through increased cooperation in areas such as infrastructure, agriculture, manufacturing, new energy, and the digital economy.
