President Cyril Ramaphosa has warned BRICS countries not to recreate within the expanded bloc the global economic divide that has left Africa exporting raw materials while manufacturing and value addition take place elsewhere.
Addressing the BRICS Business Forum Leaders’ Dialogue in New Delhi on Friday, Ramaphosa called for investment to be directed towards manufacturing, mineral beneficiation, industrial technology, energy systems, infrastructure and logistics.
He said increasing trade between BRICS members was not enough if it did not build productive capacity in developing economies.
“We cannot accept a future where Africa supplies the minerals … while value addition and manufacturing take place elsewhere,” Ramaphosa said.
He urged companies to establish production facilities and develop local capabilities instead of investing only to gain access to new markets.
The message was delivered to political and business leaders ahead of the 18th BRICS Summit, which takes place in New Delhi on Saturday and Sunday.
Around 130 South African business leaders have travelled to India to strengthen trade, investment and commercial ties with companies from BRICS member and partner countries.
The delegation includes representatives of the South African chapters of the BRICS Business Council and the BRICS Women’s Business Alliance.
Ramaphosa said developing economies had long participated in global value chains mainly as suppliers of raw commodities, while technology and higher-value manufacturing remained concentrated elsewhere.
BRICS should not reproduce that pattern within its expanded membership, he said. Its ambition should extend beyond increasing trade to developing stronger production links between member economies.
Ramaphosa said changing where value was created would require a change in where investment was directed.
He called for governments and businesses to work together, with governments creating the conditions for trade and investment and companies identifying opportunities for production and commerce.
The BRICS Business Council should become more than a forum for consultation and should help turn proposals and partnerships into commercial relationships and economic development, he said.
The council was established during South Africa’s BRICS chairship in 2013 to increase private-sector participation in the bloc’s economic programme.
Ramaphosa said BRICS had reached an inflection point as global trade patterns changed, technological advances accelerated and climate pressures increased. These changes were forcing governments and companies to reconsider where they sourced goods, produced them and invested.
He described the disruption as an opportunity for BRICS to build a more diversified and inclusive economic future for the Global South.
His remarks set the stage for an India-South Africa Business Leadership Roundtable on Saturday, where the two countries will focus on increasing bilateral trade and investment.
The Presidency said South Africa would seek greater Indian investment in pharmaceuticals, infrastructure, critical minerals and the electric-vehicle battery value chain.
The meeting takes place weeks after India and the Southern African Customs Union, which includes South Africa, revived negotiations for a preferential trade agreement.
The two sides signed terms of reference for the negotiations in August. The proposed agreement would lower tariffs on selected goods rather than establish a comprehensive free-trade arrangement.
India is seeking better access for exports including vehicles, pharmaceuticals and industrial machinery, while the customs union wants to increase its exports to India.
For South Africa, the critical question is whether closer trade and investment ties will support domestic processing and manufacturing or reinforce its role as a supplier of unprocessed minerals.
Ramaphosa also held a bilateral meeting with Russian President Vladimir Putin aimed at renewing high-level engagement, strengthening relations and discussing issues of mutual concern.
The BRICS summit will include discussions on trade and investment, reform of global institutions and the role of the expanded bloc in advancing the interests of the Global South.