South Africa must use its membership of BRICS to deepen economic cooperation, expand trade and investment and ultimately improve the lives of its people, President Cyril Ramaphosa said on Monday.
In his weekly newsletter following the 18th BRICS Summit in New Delhi, India, the President said the grouping had cemented its role in building 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 said.
BRICS a platform for economic ties
BRICS was expanded following the 2023 Summit in Johannesburg, with Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia and the United Arab Emirates joining Brazil, Russia, India, China and South Africa.
The expanded grouping represents around half of the world’s population and around a quarter of global trade.
For South Africa, President Ramaphosa said BRICS provides an important platform to strengthen political and economic ties, while contributing to a fairer multilateral world order governed by international law, with the United Nations at its centre.
He said South Africa had deepened practical cooperation with BRICS countries in areas including science and technology, research, education and skills development.
The country has also participated in people-to-people exchanges through structures such as the BRICS Youth Council, BRICS Think Tanks Council and BRICS Network University.
“While BRICS Summits may seem far removed from the daily lives of South Africans, the country gains a lot from our membership of the group,” President Ramaphosa said.
More than a fifth of South Africa’s trade is with BRICS countries, while the country has also benefited from development finance through the New Development Bank, commonly known as the BRICS Bank.
The financing has supported major investments in energy, water and transport infrastructure.
South Africa also has access to a $100 billion pool of currency reserves through the BRICS Contingent Reserve Arrangement in the event of a liquidity crisis.
Strengthening South Africa-India business ties
The President said cooperation within BRICS extends beyond governments, with the private sector playing an important role.
During the visit to New Delhi, South Africa participated in the BRICS Business Forum, where Heads of State, Ministers and business leaders discussed ways to deepen trade and investment.
President Ramaphosa also used the visit to strengthen business ties between South Africa and India.
India is South Africa’s fourth-largest trading partner, while more than 150 Indian companies have invested over $10 billion in South Africa, creating employment for more than 18 000 South Africans.
South African companies including Naspers, FirstRand Bank, Sanlam and Momentum also have significant investments in India.
The South Africa-India CEOs’ Roundtable brought together leaders from major Indian and South African companies to discuss opportunities for greater investment and partnership.
The President said Indian companies had commended South Africa for structural reforms underway in the energy, logistics, telecommunications and water sectors, as well as reforms in areas including visas and public digital infrastructure.
South Africa highlighted investment opportunities in green industrialisation, critical minerals and beneficiation, infrastructure, agriculture and the digital economy.
Focus on practical partnerships
President Ramaphosa said South Africa and India had complementary resources and capabilities that could create value for both countries.
India’s expertise in pharmaceuticals and health technology, for example, could support South Africa’s ambition to expand local production of medicines and vaccines.
India’s capabilities in information technology, financial technology and digital public infrastructure could also support the modernisation of South Africa’s systems and services.
At the same time, South Africa’s critical mineral resources could support India’s growing renewable energy, battery and automotive value chains, while creating opportunities for more mineral processing to take place locally.
“To turn this potential into practical partnerships, we are keen to restore direct flights between South Africa and India. We also need closer working relationships between our business chambers,” he said.
Looking ahead, South Africa’s priority is to use its BRICS membership to deepen bilateral cooperation and expand trade and investment ties.
The President said South Africa would continue to use the grouping to strengthen the voice of the Global South, while pursuing opportunities to grow the domestic economy and improve the lives of South Africans. – SAnews.gov.za
Source: Original report at SAnews.gov.za.
