SA hosting Brics, inviting African leaders ‘a genius move by Cyril’

As the Brics heavyweights – Michel Temer of Brazil, Russia’s Vladimir Putin, India’s Narendra Modi, and Xi Jinping of China – descended on South Africa ahead of the 10th Brics summit starting today, political economist Lyal White yesterday described President Cyril Ramaphosa’s hosting of the sitting as being “of immense importance to the country and the continent”.

Brics – the major emerging economies of Brazil, Russia, India, China and SA – are known for their significant influence in regional affairs.

“South Africa’s hosting of this very important gathering, also attended by several African heads of state, has proven to be a genius move by Ramaphosa,” said White.

“His extension of an invitation to other African leaders adds a considerable weight within Brics and paves the way for inclusive pan-African investment, proving South Africa to be of major diplomatic importance in the continent’s multilateral approach to trade and investment.

“This is of enormous political and economic significance for South Africa to be part of Brics because it is the largest configuration of heavyweights in new and emerging markets.

“The size of influence in their respective regions is huge. With all these Brics countries combined, you are talking about 40% of the world’s GNP (gross national product),” he added.

With trade between South Africa and Brics partners having increased from $200 billion (R2.6 trillion) to $500 billion in the past 10 years, White said there were significant economic tangibles for the country.

“Investment into South Africa has certainly increased. The only negative factor has been the drop in the country’s competitiveness over the past 10 years due to poor governance,” he said. “The establishment of the Brics Development Bank in 2014, with a $10 billion equity, will serve as a huge economic boost when it becomes active this year.”

Ramaphosa, who has been busy hosting bilateral meetings with foreign counterparts, has committed himself – as the body’s chairperson – to give priority to the promotion of value-added trade and intra-Brics investment in productive sectors.

The three-day summit is set to discuss, among other things, cooperation on peace-keeping, vaccine research collaboration, the fourth industrial revolution, and tourism.

– brians@citizen.co.za

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