Pretoria to back Brics expansion

• More balance with more members, Ramaphosa says

Pretoria will push for the expansion of the Brics trade bloc when it hosts the group of emerging markets annual summit in Johannesburg this week, with President Cyril Ramaphosa saying that the addition of new members will contribute to a more balanced global order, which is an alternative to the existing international financial and political forums.

In his first major foreign policy address since Russia invaded Ukraine last February, Ramaphosa walked a tightrope as he tried to draw a line under the foreign policy confusion of recent months.

He reiterated SA’s policy of non-alignment, and his explicit support for the expansion of the five-member Brics bloc will be read as support for Russia and China, both of which are pushing to expand their influence and that of Brics. At the same time he made it clear SA is keen to retain friendly ties with the West and looks forward to hosting the Agoa forum and EU Africa summit later this year.

His TV address on Sunday night came as he prepared to host the leaders of India, China and Brazil as well as scores of other heads of state at the summit this week.

“SA supports the expansion of the membership of Brics ... An expanded Brics will represent a diverse group of nations with different political systems that share a common desire to have a more balanced global order,” Ramaphosa said.

“The value of Brics extends beyond its size.

“Brics countries can collectively shape global dynamics and, acting together, it has the potential to drive significant changes in the world economy and in international relations.”

Having joined Brics in 2010, SA is a beneficiary of expansion. This is as the bloc, which was established nearly two decades ago, looks to diffuse Western hegemony in global affairs. Despite the SA economy being significantly smaller than global powerhouses such as India and China, SA is a strategic political and economic partner on the African continent because of the size of its economy and its standing in international affairs.

The issue of expansion is expected to be high on the agenda. More than 20 countries have formally applied to join, with almost as many expressing informal interest.

However, Brics leaders have been tight lipped about which countries will be joining as it expands. And there are as yet no clear criteria for such a decision.

Business Day understands that China and Russia are eager to add new members as both countries seek to grow their influence in global affairs.

India and Brazil are keen on strengthening the already existing Brics membership before expanding the bloc.

The Brics economies accounted for about 21.3% of SA’s total trade with the world in 2022. Of this, China accounted for 67.6%, India 26.5%, Brazil 4.2% and Russia 1.7%, according to data from the Industrial Development Corporation.

The countries that have formally applied to join the bloc include oil-rich Iran and Saudi Arabia. Others that have expressed interest include Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain and Indonesia. An announcement on the matter is expected at the summit.

Brics Business Council member, Phuthi Mahanyele-Dabengwa said that while the expansion of Brics is to be welcomed, the trade bloc should not be used as a platform to oppose to other intergovernmental organisations such as the UN or the Group of 20.

Brics should instead be used to advance the interests of SA.

“It is important for us in the Global South to recognise that we operate in all of the world ... regardless of whether we have new members [in Brics] or not we must ensure that we are negotiating well for SA,” Mahanyele-Dabengwa told Business Day.

GROWTH ENERGY

Trade, industry & competition minister Ebrahim Patel said the appetite to join Brics is vast because countries “recognise the world is changing and there is a new growth energy that comes from within the bloc”.

The Brics summit this week precedes the state visit to SA by Chinese President Xi Jinping. Trade deals in the areas of energy, skills and agriculture are expected to be signed.

China is SA’s largest trading partner in Brics.

“This Brics summit and the state visit by President Xi Jinping, as well as the many bilateral engagements we will have with President Lula da Silva of Brazil, Prime Minister Modi of India and many other heads of state on the sidelines of the summit have a bearing on our relationships with other countries and SA’s place in the world,” Ramaphosa said.

President Cyril Ramaphosa hosts his Chinese counterpart Xi Jinping on a state visit this week. The welcome ceremony will be at the Union Buildings in Tshwane on Tuesday ahead of the 15th Brics summit at Johannesburg’s Sandton International Convention Centre from Tuesday to Thursday.

China is SA’s biggest trading partner in the Brics trading bloc, consisting of Brazil, Russia, India, China and SA. Relations between SA and China are governed by a “Comprehensive Strategic Partnership (CSP), whose programme of action is set out in a Ten-Year Strategic Programme of Co-operation (2020-2029)”, says the presidency. It says the state visit gives the leaders and their delegations an opportunity to reflect on developments under the CSP and to consider “further deepening of co-operation”.

“The visit crowns deliberations in which the two governments have been engaging on implementing structures such as the Bi-National Commission, Joint Working Group, People-to-People Exchange Mechanism and Strategic Dialogue,” said the presidency.

“SA and China enjoy vibrant economic relations and China is SA’s largest global trading partner by volume.” China supports infrastructure development projects in SA including the small harbour development project, the TVET refurbishment project, and the Mzimvubu water project, all “instrumental in job creation”.

The visit is expected to reaffirm close, historic political ties between the two countries and highlight the importance of sustainable foreign direct investment through supporting manufacturing, infrastructure, and beneficiation and “encourage close private sector engagement”. Other expected outcomes are to enhance multilateral co-operation within the context of Brics, the G20 and to “seek Chinese support for SA and Africa’s call for the reform of global governance institutions, notably the UN Security Council”.

SA and China will co-host China-Africa Leader’s Roundtable scheduled on Thursday and engage on cooperation at multilateral level, particularly at the Forum on China-Africa Co-operation.

The Brics trade bloc accounts for 42% of the world’s population, 27% of global GDP and about 20% of international trade. The Brics economies accounted for about 21.3% of SA’s total trade with the world in 2022, of which China accounted for 67.6%, India 26.5%, Brazil 4.2% and Russia 1.7%, according to Industrial Development Corporation data. SA trade with its Brics partners rose an average of 10% from 2017 to 2021, according to international relations & co-operation minister Naledi Pandor. “Total SA trade with Brics reached R830bn in 2022 from R487bn in 2017. Trade with China remains the dominant force but the share of other Brics partners also increased by 10% from 2021 to 2022,” Pandor said.

From Sunday to Wednesday, the department of trade, industry & competition and the Brics Business Council hosts a business programme to foster economic growth, promote collaboration, attract investment, and showcase opportunities in SA, the rest of Africa and the Brics countries. The programme includes dialogues on accelerating infrastructure development through government-private partnerships; development finance institutions funding instruments; and the oceans economy.

On Tuesday, parliament’s ad hoc committee investigating the fitness of suspended public protector Busisiwe Mkhwebane to hold office will consider her submissions and the adoption of final committee report.

ANC, DA and ACDP committee members agreed at a meeting on Friday to support a recommendation to the National Assembly for Mkhwebane’s removal from office, but the EFF and Al Jama-ah opposed it.