Ramaphosa: BRICS membership must translate into real gains for South Africans

Writing after the 18th BRICS Summit in New Delhi, President Cyril Ramaphosa argues South Africa's BRICS membership, a body now expanded to 11 nations representing half the world's population, delivers tangible benefits beyond diplomacy. He cites over a fifth of South African trade flowing through BRICS countries, access to New Development Bank financing, and a $100 billion currency-reserve safety net via the Contingent Reserve Arrangement. Highlighting deepened India ties (4th largest trading partner, $10 billion in Indian investment), Ramaphosa points to opportunities in pharmaceuticals, critical minerals, and digital infrastructure, and commits to using BRICS to expand trade, investment and a fairer global order..By Cyril Ramaphosa*.Over this past weekend, we were in New Delhi, India, for the 18th BRICS Summit, an event that cemented the pivotal role of the group in building a more inclusive global economy and world order.At the BRICS Summit in Johannesburg in 2023, it was decided to expand the group beyond Brazil, Russia, India, China and South Africa. In addition to these five countries, BRICS now includes Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia and the United Arab Emirates.Together these countries account for around half of the world’s population and around a quarter of global trade.For South Africa, BRICS is an important platform for building political and economic ties that benefit our country and people. Through BRICS, we can help to build a fairer multilateral world order governed by international law with the United Nations at its centre.Through our BRICS membership we have deepened practical cooperation in fields such as science and technology, research, education and skills development. We have led people-to-people exchange through bodies like the BRICS Youth Council, BRICS Think Tanks Council, the BRICS Network University and others.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.It is an important forum for investment and trade. More than a fifth of South Africa’s trade is with BRICS countries. As a shareholder in the New Development Bank – also known as the BRICS Bank – South Africa has been able to access development finance to support major energy, water and transportation infrastructure investments.Through the BRICS Contingent Reserve Arrangement, South Africa is able to access a pool of $100 billion in currency reserves in the case of a liquidity crisis. We also benefit from BRICS cooperation across areas such as health, science, agriculture and skills development.Cooperation between BRICS countries extends beyond government. A number of sectors of society participate in BRICS activities, most notably the private sector. While in New Delhi, we took part in the BRICS Business Forum, where heads of state, ministers and business leaders discussed how to deepen trade and investment between our countries.We used the opportunity of being in India to strengthen links between South African and Indian business.We already have strong ties. India is South Africa’s fourth largest trading partner. More than 150 Indian companies have invested over $10 billion in our country, creating employment for over 18,000 South Africans. A number of leading South African firms like Naspers, FirstRand Bank, Sanlam and Momentum also have significant investments in India.Building on these links, we convened the South Africa-India CEOs Roundtable with leaders from some of India’s leading firms and a number of South African companies. We also held a number of meetings with individual Indian companies that either want to expand existing interests in South Africa or explore new opportunities.The Indian companies commended South Africa for the structural transformation that is underway in the energy, logistics, telecommunications and water sectors, and the reforms being undertaken in visas, public digital infrastructure and other areas.We highlighted various opportunities for investment and partnership in areas such as green industrialisation, critical minerals and beneficiation, infrastructure, agriculture and the digital economy.South Africa and India have complementary resources and capabilities that when combined can create great value for both countries.For example, India’s strengths in pharmaceuticals and health technology can support our ambition to expand the local production of medicines and vaccines. It has capabilities in information technology, financial technology and digital public infrastructure that can support the modernisation of our own systems and services.Our endowment of critical minerals can feed India’s fast-growing renewable energy, battery and automotive value chains, while ensuring that more of the processing of these minerals happens on South African soil.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.Looking ahead, our priority as South Africa is to continue to use our membership of BRICS to deepen bilateral cooperation and expand trade and investment ties..Read more:.Indonesia joins BRICS, boosting global South’s influence.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..*Cyril Ramaphosa is the President of South Africa.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.

Ramaphosa: BRICS membership must translate into real gains for South Africans

Related Stories

Solly Moeng: DA in danger of becoming the ANC

Ramaphosa says Eskom should learn from Telkom's monopoly break-up

US tourists outnumber all of BRICS combined — SA's real friends aren't who Pretoria says

ANC councillor fined R50,000 for forwarding hateful WhatsApp message to groupchat