Cape Town – President Cyril Ramaphosa has highlighted the economic benefits of South Africa’s participation in the BRICS grouping (Brazil, Russia, India, China, and South Africa).
He told Members of Parliament on Tuesday that South Africa’s trade with BRICS countries has grown by an average of 10% annually from 2017 to 2021.
“The total South African trade with other BRICS [Brazil, Russia, India, China and South Africa] countries reached R830 billion in 2022, which represents an increase of more than 70% from R487 billion in 2017,” the president said.
Ramaphosa emphasised that BRICS has been a source of foreign direct investment in various sectors, including mining, automotive, transportation, clean energy, financial services, and information technology. These investments have led to significant job creation in South Africa.
“South Africa has experienced significant benefits through its membership as well as its association with the BRICS grouping of countries. South Africa uses its BRICS membership to improve investment, trade, tourism, as well as capacity building, and it also flows into skills acquisition and technological capabilities that we see this relationship yielding for our country.
President Cyril Ramaphosa says that the overall trade with BRICS partners has increased by an average of 10% every year between 2017 and 2021. Ramaphosa was speaking during a question and answer session in Parliament. #DStv403 pic.twitter.com/3HFjyFvraR
— eNCA (@eNCA) September 5, 2023
“Strengthening economic as well as financial ties between BRICS member countries is one of the key pillars of this cooperation that we have forged with all these countries,” he said.
In 2020, BRICS countries adopted the Strategy for BRICS Economic Partnership to increase market access, promote mutual trade and investment, and create a business-friendly environment. The BRICS Business Council and BRICS Women’s Alliance facilitate trade and investment partnerships, while the New Development Bank supports infrastructure and sustainable development projects, having funded 12 projects in South Africa.
President #Ramaphosa: BRICS is an important source of foreign direct investment in key areas such as mining, automotive, transportation, clean energy, financial services and IT. These investments and projects lead to significant job creation.
Furthermore, the #BRICS Business… https://t.co/Fb4E3MqGeB
— Presidency | South Africa 🇿🇦 (@PresidencyZA) September 5, 2023
BRICS also contributes to South Africa’s Economic Reconstruction and Recovery Plan, particularly in growing the tourism industry and ensuring energy security. The recent addition of new members (Argentina, Ethiopia, Egypt, Iran, Saudi Arabia, and the United Arab Emirates) is expected to further strengthen economic cooperation, with opportunities in various sectors such as oil, energy, telecommunications, agriculture, textiles, logistics, air transportation, and medicine.
Overall, South Africa expects increased trade links and investments with the expanded BRICS group, contributing to the country’s economic growth and recovery efforts.
The president emphasised that BRICS membership has clear economic benefits, fostering economic growth and cooperation among member countries.
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Compiled by Betha Madhomu
