By Lehlohonolo Lehana.
The Industrial Development Corporation (IDC) and Bank of China (BoC) have signed a memorandum of understanding (MoU) to strengthen regional trade and investment.
As part of the MoU, the IDC and BOC are in the process of concluding a R10 billion funding package for tangible projects spread across energy, infrastructure, manufacturing, agriculture and mining sectors over five years.
The manufacturing forum focused on issues related to funding mechanisms to support the industrial value chain enabling greener manufacturing; building a resilient industrial value chain and regional manufacturing hub in South Africa, and green industrialisation.
Speakers at the forum emphasised the importance of building resilient value chains that promote economic growth while preserving the planet.
It was further noted that investments into green manufacturing can promote innovation and drive sustainable economic growth.
Minister of Trade, Industry and Competition, Ebrahim Patel, says BRICS partners have a key role to play in harnessing digital and green industrialisation.
Patel says South Africa is ready to partner with all the BRICS countries on the development of new energy vehicles, technologies, capital and market experiences in a mutually beneficial partnership.
He has invited BRICS countries to take up joint ventures with South Africa and to increase investment into the country through green manufacturing.
“BRICS energy ministers met two weeks ago and adopted a range of measures to work closely together. These include a centre for industrial innovation and excellence that we will do in collaboration with BRICS partners. The third area is to partner in the green economy. Of particular interest to us is to increase energy security through partnerships of green energy generation, green hydrogen, air mobility and battery manufacturing and production of green components. These components and solar PV and structures, wind towers among others are already being manufactured in South Africa.”
Deputy Chairperson of the Manufacturing working group of the SA BRICS Business Council, Lesetja Mogadi, says the fourth industrial revolution has not rapidly been adopted in South Africa, which has left it less competitive compared to other regions.
He says the BRICS partnerships will help to advance South Africa’s digital technological ambitions.
“What we are looking to establish here today is fundamentally to build alliances between global south nations or BRICS, leveraging the Africa Continental Free Trade Agreement but especially looking to be able to create links between our industrial complexes as well as the kasi (township) economy. Far too often in the calculation of the gross domestic product, the informal sector is included. Our argument is that with the technology that we have today, it shouldn’t be a challenge to drive that big data motivation.”
Old Mutual Wealth investment strategist Izak Odendaal said from a trade point of view, the dollar value of exports to the other BRICS nations had barely grown since South Africa joined the group in 2011.
Odendaal said it was often forgotten that South Africa’s natural export market remained its neighbours and that the nascent AfCFTA held much promise, but substantial investment in institutions and infrastructure was needed to fulfil it.
“There is still a massive opportunity to grow and diversify exports to these countries, particularly India and China, and to attract tourists to our shores. But there is still no sign of a BRICS free trade agreement to facilitate this.
“Moreover, it would be unwise to seek growing trade with BRICS at the expense of existing relationships with Western democracies. The ongoing African Growth and Opportunity Act negotiations with the US will test our diplomatic nous in charting a course between East and West.”
Watch Live in the video below:
Video Courtesy of SABC.