While exports between Brazil, Russia, India, China and South Africa (Brics) grouping countries have been growing at an average of 2.8% a year since 2010, South Africa’s export basket continues to be dominated by primary products and low-value-added products.
As such, Trade and Industry Minister Dr Rob Davies has stressed the need for Brics nations to identify complementarities, share experiences and promote capacity building in a number of trade- and investment-related issues.
While attending the Brics Trade Ministers meeting earlier this week, Davies also welcomed joint studies to inform cooperation in a number of policy areas. This could assist the development of a coordinated position in the multilateral fora.
Meanwhile, a welcome development has been an increase in intra-Brics investment in key sectors of the South African economy. For example, South Africa has benefited from China-based Beijing Automobile International Corporation’s R11-billion investment in the automotive sector.
Small Business Development Minister Lindiwe Zulu, who also attended the summit, emphasised that Brics countries needed to cooperate on the development of small, medium-sized and microenterprises (SMMEs), with growth targeted towards promoting supplier development, the participation of SMMEs in the Brics countries’ value-chains, and the exchange of best practices in terms of development.