What China's New Approach To BRICS Means For South Africa

South Africa is a member of the BRICS group of emerging economies (Brazil, Russia, India, China and South Africa). The group was established in 2011 with the aim of building an economic bloc with common interests to promote sustainable development and economic growth.

China is South Africa's largest trading partner by volume, followed by the EU and India. In 2017-2018, trade between China and South Africa was worth more than $60 billion, while imports from China were worth more than $33 billion. It is estimated that Chinese investment in South Africa will reach $1 billion by 2020.

While South Africa is one of the most trade-dependent countries in the world, Chinese investment is more focused on building manufacturing capacity in South Africa than expanding trade flows. This has changed since last year's announcement that Chinese companies would be allowed to invest directly in local infrastructure projects without having to resort to third parties such as banks or financial institutions. local government. This is part of China's broader effort to transform its economy from export-driven growth to domestic consumption-driven growth through increased domestic investment - including in state-owned enterprises. water.