South Africa aiming for ‘BRICS’ during recent China visit
Less than a year after the formal establishment of BRIC, South Africa has started to flex its muscle in its bid for inclusion in this group of global emerging powers, writes Hayley Herman.
The recent visit to China by South African Minister of International Relations and Cooperation Maite Nkoana-Mashabane showed clearly that the South African government has viewed BRIC as a relevant and strategic grouping, and one which South Africa cannot be excluded from. Yet in order to do join the party South Africa needs to call on its bilateral relations with BRIC countries to make its case for membership.
While South Africa’s GDP and population growth cannot match the impressive growth rates of China, India and Brazil, geopolitics favour South Africa’s inclusion to BRIC, and this was made known during Minister Nkoana-Mashabane’s China visit.
Africa remains an important factor in the economic growth of BRIC. Trade between BRIC and Africa increased from $22.3 billion in 2000 to approximately $162 billion in 2008, while investment into Africa has been spurred by companies in search of natural resources, infrastructure and construction deals and market access. In 2008 Sub-Saharan Africa took 77% of BRIC’s trade to Africa according to a report from Standard Bank.
South Africa has served as a conduit for business into Africa through its financial institutions, long term experience in operating in African markets and its extensive corporate footprint across the continent. Relations between South Africa and China has grown rapidly over the past number of years with China becoming South Africa’s largest trading partner and one of China’s top trading partners in Africa, while South Africa serves as one of China’s largest suppliers of iron ore. Furthermore, China’s Industrial and Commercial Bank of China (ICBC) acquired 20% of South Africa’s Standard Bank, one of China’s largest foreign investment deals in Africa to date.
Minister Nkoana-Mashabane’s visit built on this established engagement and expressed the South African governments wish to further increase its trade and investment prospects with China while also expressing an agenda that sees South Africa becoming more proactive in its strategic relationship with China. Specifically, mention was made of the need for investment in the area of infrastructure development not just in South Africa, but also throughout the Southern African region. China is seen as a potential partner in financing and constructing infrastructure to facilitate transport in particular. Taking engagement beyond the remits of the provision of raw mineral resources to China, South Africa was vocal in voicing its wish to act as a mineral processing hub for the continent. South Africa will seek investment from China towards these processing plants which will see the country take an active role in providing mineral beneficiation facilities in Africa- thus going beyond the provision of raw materials to fuel China’s domestic demand. Minister Nkoana-Mashabane alluded to the fact that agreements would be signed addressing these issues during President Zuma’s visit to China in the near future.
These actions point to a maturing relationship between South Africa and China and South Africa’s strategic geopolitical position in China’s Africa Policy and more broadly among the BRIC countries and this was highlighted through South Africa’s voicing of its intention to be included in BRIC. The argument for an African country in the group has been ongoing since the first BRIC summit in June 2009. It is argued that membership of an African country would give the group greater representation of the global South and burgeoning south-south relations. South Africa’s representation as a voice of Africa is however a debated subject and one which will undoubtedly be highlighted if South Africa is indeed included in BRIC.
The China visit over the past fortnight has indicated however that the South African government sees a strategic space for itself to be included in BRIC, including the standing it would potentially gain in trade negotiations. The South African government asked for China’s support for its inclusion into BRIC during the visit and will surely be on the agenda for further discussion during President Zuma’s upcoming visit to China.
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* Hayley Herman is programme officer based with Fahamu’s China/Emerging Powers in Africa Programme.
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