Trade and Industry Minister Dr Rob Davies
Photo by: Duane Daws
South Africa was looking at upping its game in respect of value added trade with its Brics partners, South African Trade and Industry Minister Rob Davies said on Friday.
Speaking from Ufa, Russia, following the conclusion of the two day Brics/SCO Summit, Davies said cooperation with fellow member states Brazil, Russia, India, and China, was resulting in South Africa being able to make progress with its Industrial Policy Action Plan (Ipap).
“We see results beginning to materialise,” said Davies ahead of his return to South Africa.
Evidence of this progress was showcased in Ufa on Wednesday.
A 40-tonne dump truck, the product of a joint venture between South Africa’s Bell Equipment Company and Russia’s Nefaz, was unveiled by the two companies and Davies.
Most of the truck was made at the Bell Richard’s Bay Plant with only the bin being produced in Russia. More of these trucks are expected to be exported to Russia.
“There are a range of industrial development opportunities which are beginning to open up both ways,” said Davies.
“As an example, we showcased the Bell truck.”
Davies added the trade figures between Russia and South Africa were significant, having tripled since the latter joined the Brics group in 2010.
However, trade figures with other Brics member states had declined.
“This is because the mineral market supercycle is past its peak,” said Davies, in reference to stagnating commodity prices.South Africa’s exports to Brics countries are still dominated by minerals.
South Africa had conveyed this to the Brics group, and told their trading partners it was intent on industrialising its economy, and moving up the value chain.
“All of them [the rest of the Brics group] indicated the willingness to work with us,” said Davies.
“Cooperation could already be seen in the investments being made in South Africa’s productive sectors by China in our railway infrastructure, and the entry of Brazil’s Marco Polo buses on our roads.”said Davies.
Davies said the DTI, in its relations with the rest of the Brics nations and in implementing the Ipap, would continue to move ahead with trade in value-added products, and in ramping up competitive advantages.