Brics fits NDP objectives says Zuma

Image: GCIS

"Brics will stimulate employment through faster economic growth, improve the quality of education, skills development and innovation and build the capacity of the state to play a developmental role," he said while briefing reporters ahead of the Fifth Brics Summit in Durban.

He said the collective strength of the Brics economies was a crucial factor in the global economy adding that South Africa valued its membership of Brics immensely.

"At a global level, we want to obtain increased support for the reform of International Financial Institutions, the revival of the Doha Development Agenda, as well as the reform of the United Nations and the United Nations Security Council," he said.

To further expand economic relations, a Brics business forum is focusing on infrastructure, energy, financial services, mining and beneficiation as well as agro-processing initiatives. Delegates from all five countries will participate in the forum and make recommendations to the five heads of state at the summit.

Other deliberations will focus on the proposed Brics trade and risk development pool, which will harness the collective and reinsurance capacity of the countries as well as facilitate intra-Brics trade and investment.

Furthermore, the mooted Brics cable - a new high-capacity optic fibre cable of 28 400km to link the Brics countries - will be considered. The objective is to remove the dependency on using developed countries as interconnection points. The new cable will provide direct communications links in all five countries.

"Another major consideration being discussed at the summit is the formation of the Brics Development Bank to mobilise resources for infrastructure and sustainable development projects," said Zuma. He said the Brics finance ministers are expected to present the results of the feasibility study conducted for this bank.

Zuma said the importance of Brics for South Africa is best reflected in South Africa's trade figures. In 2012, South Africa's total trade with the Brics countries was R294bn, which is 11% higher than the R264bn in trade the previous year.

Trade with Brazil grew from R18bn in 2011 to R20bn in 2012, while trade with Russia increased from R3bn to R5bn and trade with India, which is South Africa's sixth largest trading partner, grew from R53bn to R67bn or by 26%.

China is the largest of the Brics partners and is also South Africa's largest trading partner with total trade expanding from R188,4bn to R201bn.

Zuma said he will be hosting the Brics leaders Africa dialogue forum retreat immediately after the conclusion of the summit. The theme for the retreat is Unlocking Africa's potential: Brics and Africa Co-operation on Infrastructure.