SA ‘ not competing with rest of Africa ’
SOUTH Africa’s contribution to the Brics grouping goes beyond just the size of its economy and the rise of Nigeria does not threaten the country’s position as a gateway to Africa.
This is according to International Relations Minister Maite NkoanaMashabane, who said that South Africa’s successful hosting of the fifth Brics summit in Durban this week was a victory for all of Africa.
She said the decision to create a Brics development bank would have an impact on not only the member states, but also other developing countries.
“South Africa is not in competition with any African country. It will continue working together with all countries, including Nigeria, to champion the African agenda so that Africa is no longer seen as the dark continent, but one that is rising,” she said.
“The championing of the African agenda is not the preserve of South Africa alone. It’s South Africa working together with other pan-Africanist leaders. At the moment, South Africa leads the most diverse and biggest economy on the continent. We are the most advanced . . . in terms of financial services, recognised globally. The Johannesburg Stock Exchange is right there on top of the list.”
Her comments come as observers continue to question South Africa’s membership of the Brics grouping, given that the country’s economy is much smaller than those of its counterparts, which are considered as emerging superpowers. China’s economy, the biggest in the Brics, is 22 times larger than that of South Africa. Nigeria is projected to overtake South Africa as the continent’s biggest economy in the next two years.
“[ Being a] gateway is not just about a gateway of a shipment coming through South Africa. We need to understand that and contextualise what it means. It’s not a gateway against others getting access . . . that’s where [the debate becomes] very narrow,” said NkoanaMashabane.
She said that the purpose of the development bank was not to be in competition with established financial institutions such as the International Monetary Fund or the World Bank.
Its main purpose would be to mobilise financial resources for infrastructure and “sustainable development projects” in member countries and other developing countries.
“The commitment will be Brics-led, focusing on the Brics member states, but also taking into consideration the needs of other developing countries . . . particularly African countries,” she
The championing of the African agenda is not the preserve of South Africa alone
said, adding that the 2011 and 2012 summits had made it clear that the Brics should have partnerships with African countries.
The finance ministers of the five member states will now report back to their principals.
“The next step is . . . for the [Brics] ministers of finance to look at the modalities . . . how different this Bricsled development bank would be from the ones that we know.
“When they are done with the modalities, then you announce how much you are putting [in] . . . but, also talking specifically about South Africa, the value we bring into the membership of the Brics is more than just hard currency. ”