The Industrial Development Corporation (IDC) has signed three memoranda of understanding (MoUs) with its counterparts from China, Russia and Brazil to facilitate mutual cooperation for improved economic growth and job creation.

Economic Development Minister Ebrahim Patel said the agreements put detail to the commitment to increase investment by Brics countries in one another’s economies.

“South Africa is ready to partner with investors from other Brics countries to expand our manufacturing base and support the development of small businesses.

We are expanding our own support to small businesses and the agreements with State financial institutions from Brazil and Russia will allow us to learn from each other. Smart financing is as critical as more financing," he said.

He was also pleased that the agreement with Brazil provided for potential co-funding in key industrial areas.

BNDES Cooperation
The MoU between the IDC and Brazilian development finance institution (DFI) Banco Nacional de Desenvolvimento Economico e Socia l-BNDES would focus on the automotive and components sectors, alternative-fuelled vehicles, aeronautics and components, energy generation, the use of renewable-energy sources, cogeneration, food processing, agro-industries, pharmaceuticals and mineral resource beneficiation.

The two parties aimed to strengthen and enhance trade and economic relations between Brazil and South Africa, and identified areas for potential synergy and possibility for cooperation.

SME Support
In addition, IDC subsidiary, the Small Enterprise Finance Agency, signed an MoU with the Russian State Corporation Bank for Development and Foreign Economic Affairs, as well as the OJSC Russian Bank for Small and Medium Enterprises (SME) Support to cooperate on SME development.

The parties specifically agreed to exchange information and work together in the provision of training, delegation visits and business forums.

The MoU would serve as the basis for further negotiation and agreement.

All parties agreed to cooperate in the areas of capacity building, as well as in the exchange of technical expertise through the placement of personnel and the creation and realisation of shared capacity-building initiatives.

Study and training programmes for each other’s employees would be included.

The agreement would see parties working with one another’s branches and representative offices, as well as introducing one another to clients who had an interest in investing in the respective countries.

In addition, under the MoU, the parties would seek to extend financial operations with a view to supporting export-financing programmes.

They would also strengthen cooperation on supporting SMEs and expand structured and trade finance business, including export-import financing and business transactions.