Africa set for a decade of growth and prosperity
Free trade will unlock potential
AFRICA is set for a decade of “unbelievable growth and prosperity”. This is according to Dr Iqbal Survé, chairperson of the SA chapter of the Brics Business Council, who will take up the annual rotating chairmanship of the overall Brics Business Council at the mid-term meeting, which takes place in Shanghai, China, next week.
Brics is made up of Brazil, Russia, India, China and South Africa.
Survé said the mid-term meeting was very important, coming a few months before the 10th Brics summit between July 25 and 27 in Gauteng, with the Brics Business Council set to meet in KwaZuluNatal on July 22 and 23.
A Brics Business Forum meeting will take place on July 25 in Gauteng.
Established in March 2013 during the fifth Brics summit in Durban, this year will see South Africa become the first Brics nation to hold the rotating chairmanship of the Brics Business Council for a second time. The Brics Business Council aims to facilitate co-operation between the five countries in various sectors, as well as promote trade and industry.
Commenting on the growing momentum on the African Continental Free Trade Area (AfCFTA), which saw 44 countries sign the AfCFTA agreement in Kigali, Rwanda, this week, while a number of others, including SA, signed the Kigali Declaration, which committed to the establishment of the African economic community, which aspires to the free movement of persons and goods to facilitate trade, Survé said: “This is absolutely the best thing to happen to Africa in a very long time.”
The AfCFTA has the potential to bring together 1.2 billion people with a combined gross domestic product of more than $25 trillion (R294.8 trillion) if successfully implemented.
Survé said the AfCFTA would allow the Brics grouping to attract further investment into Africa to create skilled jobs, while, more importantly, enable increased intra-Africa trade from a lowly 12%. “The global norm for intra trade is 30% but Africa has not been trading with itself,” Survé added. “But Africa is now set for a decade of unbelievable growth and prosperity.”
The Brics nations make up more than 40% of the global population, and, according to Survé, the formation of Brics has proved to be hugely beneficial to Africa as a whole.
“Brics countries are now Africa’s biggest trade partners,” he said.
“A number of our initiatives as the Brics Business Council have been very successful to date, including the launch of the New Development Bank (NDB) also known as the Brics Bank and the pending formation of the alternative ratings agency. The African Regional Centre of the NDB was launched in Sandton in August last year, the first of the NDB regional centres to be launched.”
Survé also pointed to the deepening of inter-Brics relations in areas such as financial services, skills development, manufacturing, and the easing of travel restrictions.
“For Africa, it is important that there is continued infrastructure investment and deepening investment,” added Survé, who will be leading about 50 senior business executives from various sectors to the midterm meeting.
Continued deregulation and the digitalisation of economies are key focal areas, as are the green economy and the energy sector which he described as critical.
“We will also focus on agriculture and the involvement of small farmers on the African continent, incorporating them into the mainstream economy.”
The BBC has eight working groups in the areas of infrastructure, manufacturing, financial services, energy and the green economy, skills development, agribusiness, deregulation and regional aviation.
“Among the key priorities for my chairmanship will be ensuring skills development and job creation among the youth,” he said, citing SA’s introduction of a youth initiative and the fact that the Brics community has the most young people in the world,” Survé said.
“We must strengthen the involvement of youth, women and SMMEs and accelerate the digitilisation of the economy.”
He said that realising Africa’s full potential would involve upskilling young people and embracing the Fourth Industrial Revolution.