South Africa needs a concrete BRICS strategy

The research paper argues that South Africa lacks a concrete strategy for the BRICS process, which is currently viewed as too bureaucratic and of limited use to South African business. It examines the limitations of the Contingency Reserve Arrangement in preventing currency runs and the uncertainties surrounding the New Development Bank's Africa Regional Centre in Johannesburg.

• South African business perceives the BRICS process as overly bureaucratic and ineffective, noting that the government avoids addressing critical issues like 'fair' trade. There is a disparity in trade barriers, as South Africa maintains the lowest average import tariffs among BRICS nations while implementing the fewest nontariff barriers.
• The Contingency Reserve Arrangement (CRA) is insufficient to protect South Africa from significant capital flight or a run on the rand. South Africa's potential draw is capped at $6.5bn, which is a small fraction of daily currency market turnover, and the CRA rules require IMF involvement for further funding, contradicting claims that it allows members to avoid IMF conditionalities.
• While South Africa secured the establishment of the New Development Bank's Africa Regional Centre, likely to be located in Johannesburg, there is significant ambiguity regarding its autonomy, its relationship with the Shanghai head office, and the criteria for project selection and sustainability.
• South Africa's decision to join the Asia Infrastructure Investment Bank (AIIB) is questioned in terms of strategic value and may potentially undermine the effectiveness of both the New Development Bank and the Africa Regional Centre.

APA

South African Institute of International Affairs (2015). South Africa needs a concrete BRICS strategy. https://saiia.org.za/research/south-africa-needs-a-concrete-brics-strategy/

Chicago

South African Institute of International Affairs. South Africa needs a concrete BRICS strategy. 2015. https://saiia.org.za/research/south-africa-needs-a-concrete-brics-strategy/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=South Africa needs a concrete BRICS strategy |date=7 July 2015 |url=https://saiia.org.za/research/south-africa-needs-a-concrete-brics-strategy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2015south, author = {{South African Institute of International Affairs}}, title = {{South Africa needs a concrete BRICS strategy}}, institution = {South African Institute of International Affairs}, year = {2015}, month = jul, url = {https://saiia.org.za/research/south-africa-needs-a-concrete-brics-strategy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }