The BRICS summit held in Durban, South Africa in 2013 marked a pivotal opportunity for Africa to forge stronger bonds with these emerging economic giants – Brazil, Russia, India, China, and South Africa. Under the theme “BRICS and Africa – partnerships for integration and industrialization,” the summit aimed to harness the untapped potential of collaboration between BRICS and Africa. Africa’s abundant resources, growing consumer power, and promising demographics positioned it as an ideal partner for these major players, and hopes soared for a mutually beneficial partnership that could reshape the continent’s trajectory.
In recent years, the BRICS have deepened their engagement with Africa. Their trade volume and foreign direct investment (FDI) inflows have surged dramatically. For example, trade between China and Africa escalated from $10 billion in 2000 to $190 billion in 2012. India’s partnership with Africa bolstered the growth of small and medium-sized enterprises, while Brazil and Russia ventured into Africa’s mining and energy sectors through public-private collaborations.
The BRICS have emerged as Africa’s primary trading partners, with trade projected to exceed $500 billion by 2015, a substantial portion coming from China. Investment from the BRICS in Africa has extended to manufacturing and services, strengthening their presence compared to traditional partners like the U.S. and Europe. BRICS’ share of FDI inward stock and inflows to Africa reached 14% and 25%, respectively, in 2010. Their involvement in African greenfield projects rose to 25% in 2012, up from 19% in 2003. Surprisingly, the BRICS trade more with Africa than among themselves.
The motivations driving the BRICS’ engagement in Africa are diverse:
- Natural Resources: Africa’s abundant natural resources are a significant pull for the BRICS. Countries like China and Brazil are actively involved in oil, gas, and minerals exploration in nations like Angola and Nigeria. Despite this, most of the BRICS’ investments in Africa (75%) are in manufacturing and services, rather than natural resources.
- Agricultural Sector: Africa’s agricultural sector holds immense potential for development. The BRICS, especially Brazil, possess successful agricultural models that can boost Africa’s productivity and alleviate food insecurity.
- Market Diversification: With reserves amassed over the years, the BRICS seek new markets to diversify their investments. Africa’s burgeoning middle class and untapped consumer base provide the ideal avenue for diversification, especially in sectors like telecommunications and finance.
- Regional Powerhouse: South Africa’s inclusion in the BRICS reflects its influential role as a regional power, serving as a gateway for BRICS countries to access Africa’s markets.
- New Funding Model: The BRICS are promoting a new funding model to support multi-country projects that enhance regional integration. The establishment of the New Development Bank is a step towards boosting investments and infrastructure development in Africa.
Africa’s partnership with the BRICS could yield transformative benefits. Leveraging their expertise, resources, and investments, the BRICS have the potential to facilitate Africa’s sustainable development journey. As Africans, we must seize this opportunity to collaborate, learn, and harness our collective potential to drive prosperity and reshape the continent’s destiny.
