Ramaphosa Calls for Greater Use of BRICS to Boost South Africa’s Economy and Trade
Pretoria, The Gulf Observer: South Africa must make greater use of its BRICS membership to deepen economic cooperation, expand trade and investment, and improve the livelihoods of its people, President Cyril Ramaphosa has said.
In his weekly newsletter following the 18th BRICS Summit in New Delhi, India, Ramaphosa said the grouping had strengthened its role in promoting a more inclusive global economy and a more representative international order.
He said South Africa would continue using BRICS to support the Global South’s call for an inclusive world order based on mutual respect, shared prosperity and international cooperation, while leveraging the grouping to advance domestic economic development.
BRICS as a platform for economic cooperation
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 approximately a quarter of global trade.
For South Africa, Ramaphosa said BRICS provides an important platform for strengthening political and economic relations while contributing to a fairer multilateral system governed by international law and centred on the United Nations.
South Africa has expanded practical cooperation with BRICS partners in areas including science and technology, research, education and skills development. The country has also participated in people-to-people exchanges through initiatives such as the BRICS Youth Council, BRICS Think Tanks Council and BRICS Network University.
Ramaphosa noted that more than one-fifth of South Africa’s trade is conducted with BRICS countries. The country has also benefited from development financing provided through the New Development Bank, commonly known as the BRICS Bank, which has supported major investments in energy, water and transport infrastructure.
South Africa also has access to a $100 billion currency reserve pool through the BRICS Contingent Reserve Arrangement in the event of a liquidity crisis.
Strengthening South Africa-India business relations
The President said BRICS cooperation extends beyond governments, with the private sector playing a key role in expanding trade and investment.
During his visit to New Delhi, Ramaphosa participated in the BRICS Business Forum, where heads of state, ministers and business leaders discussed opportunities to strengthen commercial ties.
He also used the visit to advance economic relations 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 more than 18,000 jobs.
South African companies, including Naspers, FirstRand Bank, Sanlam and Momentum, also maintain significant investments in India.
The South Africa-India CEOs’ Roundtable brought together senior executives from major companies in both countries to explore opportunities for greater investment and business partnerships.
Ramaphosa said Indian companies had welcomed structural reforms underway in South Africa’s energy, logistics, telecommunications and water sectors, as well as reforms related to visas and public digital infrastructure.
South Africa also highlighted investment opportunities in green industrialisation, critical minerals and beneficiation, infrastructure, agriculture and the digital economy.
Focus on practical partnerships
Ramaphosa said South Africa and India possess complementary resources and capabilities that could generate mutual economic benefits.
He noted that India’s expertise in pharmaceuticals and health technology could support South Africa’s efforts to expand domestic production of medicines and vaccines.
India’s capabilities in information technology, financial technology and digital public infrastructure could likewise contribute to the modernisation of South Africa’s systems and public services.
At the same time, South Africa’s critical mineral resources could support India’s expanding renewable energy, battery and automotive value chains, while creating opportunities for greater mineral processing within South Africa.
Ramaphosa said South Africa was seeking to restore direct flights between the two countries and strengthen cooperation between their business chambers to turn these opportunities into practical partnerships.
Looking ahead, he said South Africa’s priority would be to use its BRICS membership to deepen bilateral cooperation, expand trade and investment and strengthen the voice of the Global South.
He added that South Africa would continue pursuing opportunities through BRICS to promote domestic economic growth and improve the lives of its people.
