South Africa’s role in BRICS: how the republic influences the future of the group

18.10.24
16:12


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South Africa’s role in BRICS: how the republic influences the future of the group

South Africa’s contributions to global governance and BRICS collaboration

BRICS, which originally began as a union of five major emerging economies (Brazil, Russia, India, China, and South Africa), has recently expanded to ten nations with the inclusion of Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.

South Africa, as a founding member of BRICS, continues to play a pivotal role in shaping the union’s future. This article delves into the multifaceted role South Africa plays within BRICS, focusing on its contributions to global governance, economic collaboration, health initiatives, and mutual projects.

South Africa’s strategic importance in BRICS: historical context

South Africa joined BRICS in 2011, marking the entry of the African continent into the group. Since then, the country has been pivotal in steering BRICS’ focus on African issues. According to President Cyril Ramaphosa, South Africa’s leadership within BRICS has prioritised advancing the African agenda, with a focus on trade, development, and the creation of an inclusive global economic system, as reports an official website of the South African Government.

Ramaphosa highlighted that South Africa’s BRICS expansion promotes mutually beneficial growth, ensuring that African goods and services can compete on a global scale. He pointed out that the African Continental Free Trade Area (AfCFTA) will unlock opportunities for African nations within BRICS, as reports an official website of the South African Government.

15th BRICS Summit in Johannesburg

From 1 January 2023, the Republic of South Africa took over the presidency of the BRICS group (which at the time consisted of Brazil, Russia, India, China, and South Africa), having accepted it from China. The presidency lasted until the end of the year. The country has already held the BRICS chairmanship in 2018, at which time its work was positively acknowledged by the partners.

At the 15th BRICS Summit in 2023, held in Johannesburg, Cyril Ramaphosa outlined how BRICS nations are working towards using local currencies for trade and investment. This move, which involves creating a BRICS international settlement platform, will strengthen financial resilience and boost trade among BRICS members, said South Africa’s leader following the outcomes of the BRICS summit.

In addition, the New Development Bank (NDB), also known as the BRICS Bank, has been instrumental in financing sustainable infrastructure and development projects in South Africa. With its headquarters in Shanghai and regional offices in South Africa, the NDB supports various sectors, including energy, transport, and water management.

The final declaration from the 15th BRICS Summit, known as the Johannesburg II Declaration, was announced on August 24, 2023, and focuses on strengthening collaboration among BRICS nations to promote inclusive multilateralism and sustainable growth, particularly in Africa.

At the 15th BRICS Summit, several key outcomes were highlighted in the Johannesburg II Declaration:

BRICS expansion: Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia were invited to join BRICS as full members starting January 2024, significantly increasing the group’s global influence.

Economic cooperation: The declaration focused on enhancing trade and investment, particularly in energy, technology, and infrastructure.

Global governance reform: BRICS leaders called for reforms to international institutions like the United Nations Security Council to provide better representation for developing nations and promote a balanced global order.

Climate change and sustainability: The summit reaffirmed the group’s commitment to addressing climate change, with a focus on sustainable energy transitions and digital transformation.

These outcomes reflect BRICS’ goals of fostering economic resilience, promoting fair global governance, and driving sustainable development, reports
CGTN, a partner of TV BRICS.

New Development Bank-South Africa cooperation

One of the key NDB-South Africa initiatives is the Battery Energy Storage Project, which aims to support South Africa’s transition to a low-carbon economy, as reported by the official New Development Bank website. This project involves the installation of 1,440 MWh of distributed battery storage and a 60 MW solar photovoltaic generation facility. By storing excess renewable energy and releasing it during peak hours, the project helps minimise the reliance on fossil fuels and stabilises the country’s power grid.

Another critical area of NDB’s involvement in South Africa is funding, which aims to modernise and enhance the efficiency of South Africa’s freight rail sector. It will be used for rail network infrastructure renewal, locomotive overhauls, and fleet renewal, contributing to improved operational performance and sustainability within the country’s transport network, as reported by the official New Development Bank website.

In addition, NDB has approved US$2.3 billion in loans for renewable energy projects in South Africa. These include technologies like solar photovoltaics, wind power, and hybrid systems with energy storage, reinforcing the country’s push towards greener energy solutions. This is reported by
Pretoria News, a partner of TV BRICS.

South African technological and industrial innovation within BRICS

South Africa’s collaboration with BRICS in improving infrastructure also extends to the digital economy. The country has pushed for policies that enhance digital transformation across BRICS nations, particularly with an emphasis on the Fourth Industrial Revolution. This transformation involves numerous projects designed to accelerate technological adoption and industrial innovation across sectors.

According to the official website of South Africa, one of the key initiatives is the BRICS Young Innovators Prize. This annual initiative aims to recognise and promote young innovators who develop solutions to address societal challenges. The Prize is closely linked to South Africa’s Decadal Plan for Science, Technology, and Innovation, which emphasises interdisciplinary approaches to innovation and prioritises challenges relevant to all BRICS nations.

Another initiative, the Hydrogen Society Roadmap proposed in 2022, is part of South Africa’s commitment to renewable energy. This roadmap seeks to explore and develop hydrogen and fuel cell technologies. This project highlights South Africa’s unique resources, like its extensive platinum reserves, to create a sustainable hydrogen economy, which is crucial for advancing industrial innovation across BRICS nations.

The short-term focus is on the transport sector and on demonstrating industrial technologies, while for the long term, the roadmap envisions sector coupling and use of hydrogen also in the power sector. This could create more than 30 000 jobs annually by 2040.

Marine Sciences and Blue Economy Initiatives are also part of South African technological development. According to the official website of the South African Government, the republic is actively promoting marine sciences research and development of a blue economy, which involves sustainable use of ocean resources. This area offers opportunities for collaboration with other BRICS nations, particularly in scientific research and innovation.

South Africa-BRICS сooperation in public health

The COVID-19 pandemic amplified the need for stronger collaboration in health, and BRICS members have since prioritised healthcare reform and capacity-building across the group.

South Africa, in cooperation with BRICS, has led initiatives focused on improving healthcare infrastructure and access to essential medicines. In August 2023, South Africa hosted a dialogue during the BRICS summit aimed at shaping a cooperative framework for pandemic prevention, preparedness, response, and recovery (3P2R). This event, co-hosted by the Ministry of Health in South Africa and Africa Centres for Disease Control and Prevention (Africa CDC), engaged various BRICS member states alongside representatives from Ethiopia and Egypt, discussing strategies for collective action in pandemic preparedness.

The discussions focused on leveraging BRICS nations’ collective expertise in dealing with pandemics like COVID-19 while addressing gaps in pandemic response systems. Notably, the cooperation between BRICS nations and the African Union aims to improve equitable access to medical countermeasures, including vaccines. The Developing Countries Vaccine Manufacturing Network (DCVMN), comprising manufacturers from BRICS nations, was highlighted for contributing 60 per cent of the COVID-19 vaccines during the pandemic. South Africa has been advocating for using these capabilities to support more robust pandemic preparedness and response across Africa.

South African role in technology and digital economy

According to the official website of the South African Government, South Africa has undertaken significant projects within the BRICS framework, particularly in advancing its technology and digital economy sectors. One key initiative is South Africa’s participation in the BRICS Partnership on the New Industrial Revolution (PartNIR), which focuses on fostering digital transformation and innovation. The PartNIR initiative seeks to integrate advanced technologies such as artificial intelligence (AI), digital manufacturing, and big data analytics into South Africa’s economy, boosting competitiveness and addressing development challenges.

Another significant element of South Africa’s efforts is its collaboration with other BRICS countries in building smart cities and digital governance frameworks. By participating in joint projects with partners such as China and Russia, South Africa aims to modernise its public sector and increase the efficiency of its services through digitalisation and the adoption of AI and blockchain technologies. Additionally, South Africa’s National Development Plan integrates these digital economy goals with broader objectives to foster economic growth and reduce inequality through technological innovation.

South Africa is also promoting digital entrepreneurship within the BRICS MSME sector. Through these efforts, the country seeks to empower micro, small, and medium enterprises to engage in global trade and access e-commerce opportunities. By leveraging BRICS cooperation, South Africa is creating new pathways for MSMEs to participate in international markets, utilising digital tools and platforms to enhance their productivity and competitiveness.

Future projects of South Africa within BRICS

In line with the BRICS 2030 agenda, South Africa is focusing on enhancing cooperation in several key areas. These include leveraging the Fourth Industrial Revolution (4IR) for economic transformation, boosting digital entrepreneurship among MSMEs, and fostering sustainable development through partnerships across BRICS nations. The overarching goal is to accelerate technological adoption and industrial innovation, positioning South Africa as a leader in the digital economy and sustainable development.

Key projects in this regard focus on digital transformation, such as promoting MSME participation in global e-commerce platforms. South Africa is also contributing to the broader BRICS agenda by leading initiatives in health, climate resilience, and energy, all of which align with the UN’s Sustainable Development Goals (SDGs) for 2030. This is stated in the XV BRICS Summit Johannesburg II Declaration, BRICS and Africa: “Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism,” released on August 23, 2023.

Photo:
iStock

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