BRICS and the African Agenda
Since its establishment, the BRICS has consistently sought to maintain cooperation with non-member nations in the global South. This is significant for Africa in its endeavors to strengthen partnerships with developed and emerging economies toward fostering development. Under the “BRICS Plus” framework, representatives from Rwanda, Namibia, Togo and Egypt, the head of the New Partnership for Africa’s Development, the president of the African Development Bank, and six regional executive committee secretary generals have all been invited to the 2018 Summit.
This is particularly relevant given the theme for the 2018 BRICS Summit: “BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the Fourth Industrial Revolution,” which reflects the forum’s work toward a more equitable and inclusive environment. As the host nation, South Africa has the opportunity to set the agenda and place Africa’s continental concerns high on the agenda. The 2018 Summit provides greater opportunities for African countries to engage with large developing countries to enhance regional value chains and ensure that these link into the global economy so as to generate improved terms of trade.
Tethering to these opportunities is a potentially high impact pathway for African development and industrialization, which is guided by the African Union’s Agenda 2063 (adopted in 2013). One BRICS institution that is connected to the goals of Agenda 2063 is the New Development Bank. The bank has opened an Africa Regional Center in South Africa, which is designed to assist and enable developing countries, mainly in Africa, to fund large-scale projects on their own terms.
BRICS is clearly open to supporting African countries in their developmental endeavors. African governments and businesses must ensure that they optimize the opportunity that this presents. Most importantly, they must be informed, aware and attentive to the rapidly evolving economic dynamics in the BRICS countries. Equipped with a deep understanding of this bloc, targeted strategies to enhance the extent to which they are attractive investment destinations must be crafted. An emphasis on key sectors such as telecommunications, infrastructure, manufacturing, finance, media and agriculture sectors investment is essential.
Cooperation with Africa is vital for BRICS, as Africa is still seen as the new frontier for promising business prospects and a large market to trade as incomes continue to rise gradually. South Africa must continue to act as a “launch pad” into this dynamic continental market.
1/Kenya June: China Southern direct flights between the Kenyan capital Nairobi and Guangzhou has been increased from twice per week, transporting 120,000 passengers, to the current three times per week. The flight is expected to increase trade and cultural interactions between China and Kenya and China and the greater East African region.
2/Mozambique June: Agreements detailing $100 million worth of projects have been signed between Chinese Vice Minister of Commerce Qian Keming and Mozambican Minister of Foreign Affairs and Cooperation José Pacheco. The projects include a new $60 million airport in south Xai-Xai City and a technical institute in the central region.
3/Zimbabwe June: China has begun to release the funds for the expansion of the Hwange power station. Planned to be the country’s largest-ever power station expansion project, the addition will increase the station’s capacity from 920 mw to over 1,500 mw.
4/South Africa May: Several memorandums of understanding and agreement were signed between nine Chinese companies and South Africa’s Limpopo Economic Development Agency . Over $10 billion worth of investments will be made by the Chinese firms into several projects in the Musina Makhado Special Economic Zone, including a power facility and a steel manufacturing plant. Upgrading of infrastructure in the SEZ has made it more attractive to foreign investors.
5/Nigeria May: An agreement worth $6.68 billion was signed between Nigerian Transport Minister Rotimi Amaechi and China Civil Engineering Construction Corp. to pay for the ongoing construction of a rail line linking Lagos with Kano, Nigeria’s second largest city.