The SA Brics Business Council (SABBC) is likely to press for more equitable trade within the emerging markets bloc when the group of nations’ leaders meet in Johannesburg for the annual Brics summit.
Though SA, which joined Brics (Brazil, Russia, India, China and SA) in 2010, is endowed with an abundance of natural resources, uneven trade patterns exist within the bloc, leading to a situation in which SA exports more raw materials and imports more manufactured goods, says Stavros Nicolaou, head of the council.
“We have had a growth in exports but an overall trade deficit with the Brics countries ... As a council we don’t see this as a concern but as an opportunity for more trade,” Nicolaou says.
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 data from the Industrial Development Corporation (IDC).
SA’s total imports from Brics economies rose 7.3% on average from 2016 to 2022 to reach $32bn but SA recorded a deficit of $14.9bn in its collective balance of trade with the Brics economies in 2022, about four times larger than the deficit of $3.7bn reported in 2010.
Brics nations represent 30% of the global population, and more countries have applied for membership. A total of 22 nations have formally applied to become members of Brics while an equal number have done so informally.
Saudi Arabia and Iran have formally asked to become Brics members. Others that have expressed interest in joining include Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain and Indonesia. An announcement on the matter is expected at the summit.
The SABBC mandate is to promote and enhance economic growth across the five Brics countries and to improve trade and investment.
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