Use BRICS leverage for sustainable development
THE attention of foreign investors will be focused on two endeavours of the South African government – the unprecedented Covid-19 vaccination programme and Eskom’s lack of institutional capacity to keep the national power grid stable, thus eroding investor sentiment and the country’s vital manufacturing capacity.
The two issues could be better addressed by deepening co-operation with its BRICS partners, Brazil, Russia, India and China, and ultimately assisting South Africa with its post-covid economic recovery.
So far, only some 300 000 people have received the Covid vaccine. Despite the vigorous efforts by President Cyril Ramaphosa and Health Minister Zweli Mkhize, the country managed to receive only a tiny portion of the secured amount of vaccine shots from Western pharmaceutical companies – Pfizer and Johnson & Johnson.
Instead of sending their apologies and trying to rectify the embarrassing situation, developed countries resort to vaccine diplomacy and stigmatising BRICS countries.
UK foreign secretary Dominic Raab asserts that developing countries should wait for “gold standard” vaccines instead of settling for Russian and Chinese jabs. In the US, Joe Biden’s doctrine is focused on targeting Moscow and Beijing. The EU countries seem to be split, with leaders in Austria, Czech Republic, Germany, and Slovakia pushing for the use of Russia’s Sputnik V vaccine and Italy willing to start its own production.
But on April 23, Germany agreed to buy 30 million doses of Sputnik V vaccine for Covid-19, according to Saxony’s minister-president. Michael Kretschmer made the announcement in a tweet on Thursday, saying the purchases would be split into three batches of 10 million doses between June, July and August. This signals a game-changer where Europe’s most stringent health regulator choose a vaccine, realising its superior technical and medical benefits and that is vital for their clear and present danger of Covid-19 in Germany.
By contrast, the EU is now suing Astrazeneca for lack of delivery as per their agreement. If the EU can take a pragmatic approach in its national interest and to protect their populations, it seems South Africa has taken the converse approach – one of begging Western multinationals and being given the kick at the same time. A double blow for South Africa.
Sadly, the notion of regulatory capture is evident and South Africa’s bungled Covid-19 response with lack of consistency in approvals of vaccines is bizarre. History shall judge the country’s Covid response as one the most diabolical, mismanaged with layers of unscientific inconsistencies in its decision making.
South Africa’s over-reliance on western help has yielded minimum results. The authorities have halted use of the Astrazeneca-oxford coronavirus vaccine after evidence emerged that it is not effective against mild or moderate illness caused by the more contagious virus variant prevalent in the country.
In February, South Africa became the first country in the world to roll out the Johnson & Johnson vaccine, yet J&J’S “silver bullet” roll-out had to be temporarily stopped due to the US Food and Drug Administration decision to suspend its use following reports of six women developing unusual blood clots with low platelets after receiving it.
Pfizer doses are to come with serious delays. The current pace suggests that further deliveries will cover the bulk of the government’s aim to inoculate 67% of the country’s 60 million people by early next year, but the third wave is expected as early as this month.
The BRICS countries could establish a co-operation of national pharmaceutical regulators (the likes of the South
African Health Products Regulatory Authority) to ensure swift exchange on vaccine information, including the trials. With Sputnik-v being endorsed in no fewer than 55 countries and Chinese vaccines being donated to 69 developing countries, it is rather irrational to continue to see Western pharmaceutical countries as the only saviours.
As for Eskom, the fragile state of the company is further exacerbated by the move of the US It-company Oracle to stop providing its services to the embattled power utility. Eskom’s contractual dispute threatens the livelihoods of many South Africans.
The Nuclear Industry Association of South Africa’s managing director, Knox Msebenzi, told journalists recently that anti-nuclear lobbyists were responsible for misconceptions and propaganda about nuclear energy, despite the longterm employment and support for local economies associated with new builds, with new cutting edge nuclear being the greenest of technologies available in the world today, putting many nations in reach of meeting its carbon efficiency targets as per the UN IPCC Paris agreement.
BRICS countries have much to offer for South Africa’s energy system, including some sought-after renewable technologies.
China has already accelerated the adoption of solar power around the world, and now there is hope that it could do the same for hydrogen. Hydrogen is quietly emerging as a key component of the world’s renewable energy mix.
In a report published in the Green Belt and Road Initiative Center, authors Mengdi Yue and Christoph Nedopil Wang noted that between 2017 and 2020, China had established 61 hydrogen refuelling stations, developed the first fuel cell-powered tram, and successfully tested a manned aircraft powered by hydrogen.
Brazil’s experiment with biofuels generation through sugar agri production and new green research and development projects offers many opportunities for Africa.
A new post-covid world order is rapidly emerging, with the economic and social power of BRICS nations such as China offering an example of real delivery to its people and meeting the UN development goals for hundreds of millions of its citizens.
Patel is digital economy associate at Unisa.