Pretoria: South Africa must leverage its BRICS membership to enhance economic cooperation, boost trade and investment, and ultimately improve the lives of its citizens, President Cyril Ramaphosa emphasized recently.
According to South African Government News Agency, President Ramaphosa articulated this vision in his weekly newsletter following the 18th BRICS Summit held in New Delhi, India. He highlighted that BRICS has reinforced its role in shaping a more inclusive global economy and world order. "Through BRICS, we will continue to add our voice to the growing call from the Global South for an inclusive world order rooted in mutual respect and shared prosperity, and we will continue to use our membership of BRICS to develop our economy and improve the lives of our people," he stated.
BRICS, which was expanded after the 2023 Summit in Johannesburg to include Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia, and the United Arab Emirates alongside Brazil, Russia, India, China, and South Africa, now represents around half of the world's population and about a quarter of global trade. For South Africa, BRICS is a crucial platform to fortify political and economic bonds and to contribute to a more equitable multilateral world order governed by international law, with the United Nations at its nucleus.
President Ramaphosa noted that South Africa has intensified practical cooperation with BRICS nations in various fields such as science and technology, research, education, and skills development. Additionally, the country has engaged in people-to-people exchanges through entities like the BRICS Youth Council, BRICS Think Tanks Council, and BRICS Network University.
Despite BRICS Summits seeming distant from the everyday experiences of South Africans, the nation reaps significant benefits from its membership. Over 20% of South Africa's trade occurs with BRICS countries, and the nation has accessed development finance via the New Development Bank, also known as the BRICS Bank. This financing has facilitated major investments in energy, water, and transport infrastructure. Moreover, South Africa can access a $100 billion pool of currency reserves through the BRICS Contingent Reserve Arrangement during liquidity crises.
The President underscored the importance of private sector participation within BRICS, evident in the BRICS Business Forum held in New Delhi. This forum provided a venue for Heads of State, Ministers, and business leaders to explore avenues for enhancing trade and investment. President Ramaphosa also utilized this occasion to fortify business relationships between South Africa and India, which is South Africa's fourth-largest trading partner, with over 150 Indian companies investing upwards of $10 billion in South Africa, generating employment for more than 18,000 citizens.
South African companies like Naspers, FirstRand Bank, Sanlam, and Momentum have substantial investments in India. The South Africa-India CEOs' Roundtable, which convened leaders from major Indian and South African companies, explored opportunities for increased investment and partnerships. Indian companies praised South Africa for its ongoing structural reforms in sectors like energy, logistics, telecommunications, and water, along with reforms in areas such as visas and public digital infrastructure. South Africa showcased investment prospects in green industrialisation, critical minerals and beneficiation, infrastructure, agriculture, and the digital economy.
President Ramaphosa pointed out that South Africa and India possess complementary resources and capabilities that could be mutually beneficial. India's proficiency in pharmaceuticals and health technology, for instance, could aid South Africa's goal to broaden local production of medicines and vaccines. Additionally, India's strengths in IT, financial technology, and digital public infrastructure could support the modernization of South Africa's systems and services. Concurrently, South Africa's critical mineral resources could bolster India's renewable energy, battery, and automotive value chains, while fostering more local mineral processing opportunities.
To translate this potential into tangible partnerships, President Ramaphosa expressed the desire to restore direct flights between South Africa and India and emphasized the need for closer collaboration between business chambers of both countries. Moving forward, South Africa's focus is to capitalize on its BRICS membership to deepen bilateral cooperation and expand trade and investment ties. The President asserted that South Africa would persist in utilizing the grouping to amplify the voice of the Global South while pursuing avenues to grow the domestic economy and enhance the lives of its citizens.