South Africa’s inclusion within the BRICS (Brazil, Russia, India, China and South Africa) poses the thought of how relations will be affected between South Africa and the rest of Africa. The 5th BRICS summit will definitely test this idea of how much benefit can be attained for rest of Africa. The position of South Africa as the African representative, described by some as being the self proclaimed defender of the other African countries, needs to implement an approach which works for both South Africa and the rest of the continent. Political analysts are worried that trade between Africa and the BRICS countries (which have increased 10 times to $340 billion dollars in 2012) are conducted in a bilateral manner only. If the BRICS are to engage more effectively with the rest of Africa, the trade agreements need to be structured with the entire bloc rather than just with individual members of the BRICS. If this continues, the BRICS are at risk of confirming initial thoughts that they will not be effective in shaping the political landscape and are merely a “talk show”.
South African President Jacob Zuma at the 5th BRICS Summit held at the Inkosi Luthuli International Conference Centre in Durban, South Africa (Adapted from the official BRICS5 website)
The truth remains that African trade with the BRICS remains similar to the trade patterns between Africa and the west. There is need for more defined balance. At the moment African countries are a source of raw materials for the BRICS nations and an export market for the manufactured goods especially from China. We need to ask ourselves, what are the benefits that Africa will receive? Infrastructure? Economic growth? South Africa and SADC (Southern African Development Community) will play an important role in assuring that real development is achieved in Southern Africa which will hopefully filter into the rest of Africa.
Besides the issues of economic growth and development, the BRICS need to illustrate the leadership to tackle security issues in the rest of Africa. In the recent past, unrest in Mali and the Central African Republic need to be resolved to create a stable environment for civilians but also for the economy. An interesting debate will be who South Africa decides to back on the issue of who will replace the director general of the World Trade Organisation. The choice of Brazil’s Roberto Carvalho de Azevêdo or the African Union’s, Ghana’s Alan John Kwadwo Kyerematen will surely contribute to how South Africa is viewed by its African peers. The reduced dependence on the global reserve currency (the American dollar) by Africa by increasing trade with the BRICS countries is one way that South Africa may enhance their standing amongst other African countries. Trade between the BRICS as a bloc and other African countries and the possibility of finance by the potential “BRICS bank” would allow for more infrastructure in the rest of Africa and not just South Africa. The reduced dependence on the third party currency has been illustrated with banks in Africa including foreign currency (Renminbi) within their holdings. With the BRICS Summit due to close today in Durban, there is hope that the BRICS nations address the issues of trade within the continent for a more fruitful involvement of Africa within the BRICS in the future.
More coverage of the BRICS Summit here.
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