{"id":6390,"date":"2011-02-01T14:01:23","date_gmt":"2011-02-01T14:01:23","guid":{"rendered":"https:\/\/www.sardc.net\/en\/?p=6390"},"modified":"2019-03-04T14:02:44","modified_gmt":"2019-03-04T14:02:44","slug":"south-africa-to-champion-continents-relations-with-emerging-markets","status":"publish","type":"post","link":"https:\/\/www.sardc.net\/en\/southern-african-news-features\/south-africa-to-champion-continents-relations-with-emerging-markets\/","title":{"rendered":"South Africa to champion continent\u2019s relations with emerging markets"},"content":{"rendered":"

SANF 11 No 04<\/strong><\/em>
\nThe recent invitation to South Africa to join the BRIC group of emerging economies comprising Brazil, Russia, India and China will strengthen South Africa\u2019s trade position in the world, and offer opportunities for Africa to strengthen ties with the group.<\/p>\n

South Africa, which was invited to the BRIC group in December 2010 following its application in November, will be officially incorporated into BRIC at the forthcoming Heads of State Summit set for China in April.<\/p>\n

The inclusion of South Africa \u2013 the first African country to be admitted to the group — would see the acronym changing to BRICS.<\/p>\n

The BRICS group is regarded as the fastest emerging market in the world. Studies show that by the year 2050, the combined economies of BRICS could eclipse the combined economies of the current richest countries of the world.<\/p>\n

The five countries, together, account for more than a quarter of the world\u2019s land area and more than 40 percent of the world population.<\/p>\n

South Africa\u2019s International Relations and Cooperation Minister, Maite Nkoana-Mashabane said the country would be a good ambassador for Africa when it joins BRICS.<\/p>\n

\u201cWe will be a good gateway for the BRICS countries. While we may have a small population, we do not just speak for South Africa, we speak for Africa as a whole,\u201d she said.<\/p>\n

Economic analysts concur and say South Africa has a lot to benefit from BRICS if the country represents the interests of Africa.<\/p>\n

The chief executive officer of Frontier Advisory, Martyn Davies, said South Africa as a country is small \u201cbut if we go there as a regional market, we are much bigger.\u201d<\/p>\n

\u201cFor South Africa to be treated as part of BRIC is a bit complicated,\u201d added Jim O\u2019Neill, who coined the BRIC term in 2001. \u201cBut South Africa as a representative of the African continent is a different story.\u201d<\/p>\n

Nkoana-Mashabane acknowledges this and says, \u201cWe bring the most diversified and most advanced economy on the continent.\u201d<\/p>\n

\u201cWe may not be the same size, but we can open up opportunities for them in the region and through that, we can complete our economic integration on the continent.\u201d<\/p>\n

South Africa has an economy of about US$290 billion, which is less than a quarter of that of Russia, the smallest of the BRIC nations. Its population is estimated at about 49 million compared to China\u2019s 1.3 billion, India\u2019s 1.2 billion, Brazil\u2019s 191 million, and Russia\u2019s 142 million.<\/p>\n

Regardless of the size, South Africa stands at a unique position to influence African economic growth and investment.<\/p>\n

For example, Africa\u2019s combined current gross domestic product is similar to that of Brazil and Russia, and slightly above that of India. BRICS would aim at exploring such markets.<\/p>\n

South Africa would thus act as a \u201cgateway\u201d to southern Africa and the entire African continent.<\/p>\n

This situation favours China and India, as China is South Africa\u2019s largest trading partner, and India has indicated plans to increase commercial ties with Africa.<\/p>\n

Politically, BRICS would allow emerging economies to speak with a single voice in the international arena.<\/p>\n

The inclusion of South Africa into BRICS will result in all BRICS countries being represented on the United Nations Security Council when South Africa takes up a two-year seat on the council this year.<\/p>\n

China and Russia are two of the five permanent members while India and Brazil are currently non-permanent members. This composition is expected to lay a strong foundation towards a review of the Security Council, which most developing countries have been calling for.<\/p>\n

Developing countries say the council continues to live in the past and treats members differently with the most powerful nations abusing the council to \u201cbully and threaten smaller nations.\u201d<\/p>\n

This situation has threatened relations between and among countries as well as regions and continents. Africa is now looking to China for partnership because its relations are based on mutual trust, respect and equality.<\/p>\n

In response, China has increased development aid to Africa in sectors such as agriculture, manufacturing and mining with a US$10 billion loan set aside to fund development in Africa under FOCAC.<\/p>\n

China is expanding investments into Africa at a time when other traditional sources of Foreign Direct Investment are holding back citing the impact of the global financial crisis.<\/p>\n

Africa\u2019s relations with other countries such as Brazil, India and Russia continue to be strengthened.<\/p>\n

Africa and India plan to host a joint summit this year to discuss cooperation in various socio-economic sectors. The summit will be held in Africa as India hosted the last joint meeting of leaders in 2008.
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Southern African News Features offers a reliable source of regional information and analysis on the Southern African Development Community, and is provided as a service to the SADC region. <\/strong><\/p>\r\n

This article may be reproduced with credit to the author and publisher.<\/strong><\/p>\r\n<\/span>\r\n\r\n

SANF is produced by the Southern African Research and Documentation Centre (SARDC), which has monitored regional developments since 1985.      Email: <\/em>sanf@sardc.net<\/em><\/strong>      <\/em><\/p>\r\n

Website and Virtual Library for Southern Africa<\/em>     <\/em>www.sardc.net<\/em><\/strong><\/a>  <\/em>Knowledge for Development<\/em><\/p><\/div>\n\t\t<\/div><\/p>\n","protected":false},"excerpt":{"rendered":"

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