Emerging Commercial Rivalries in Africa: A View from South Africa

This policy briefing examines the impact of emerging market investors—specifically the BRIC nations (Brazil, Russia, India, and China)—on the African business landscape and the resulting challenges and opportunities for South African companies and their continental ambitions.

• The entry of BRIC nations into Africa has shifted the commercial balance of power away from Western states and increased the continent's international status. China's engagement is characterized by massive scale, with total trade reaching $107 billion in 2008 and $5.49 billion in FDI flowing to Africa in 2008 alone. India's engagement is driven by energy dependence, with bilateral trade growing from $967 million in 1991 to nearly $30 billion in 2008, and a focus on a higher number of projects (130) compared to China (86) and Brazil (25).
• Brazil and Russia have utilized diplomatic strategies to secure commercial interests. Brazil has a strong presence in Angola, its largest African market, with over 300 companies operating there and significant investments in Mozambique's Moatize coal project via Comphania Vale do Rio Doce (Vale). Russia is leveraging its liberation-era ties to re-establish commercial engagement focused primarily on resources.
• South Africa is a major continental investor, with an economy representing approximately one-third of sub-Saharan Africa's GDP and 25% of the total continental economy. Unlike BRIC investments which focus on utilities, mines, and oil, South African investment is broad-based, covering retail, property, ICT, manufacturing, agriculture, insurance, banking, transport, and tourism.
• South African firms face significant competitive threats from BRIC investors. Chinese companies can undercut bids using state-subsidized finance and cheap labour, and they undermine formal retail markets with cheap or counterfeit goods. Additionally, some BRIC investors may compromise on corporate ethics and transparency, creating a disadvantage for South African firms bound by strict corporate governance and shareholder disclosure rules.
• Despite the competition, the presence of BRIC investors creates opportunities for South Africa. Infrastructure improvements funded by BRIC nations lower the cost of doing business for all. Furthermore, because new investors often lack continental experience and networks, South African companies can form strategic partnerships, as seen in the deal between Standard Bank and the Industrial and Commercial Bank of China.
• The document recommends that South Africa align its foreign policy with business expansion and increase the visibility of state visits to African countries. It suggests that South African companies should leverage their 'African expertise' to form partnerships with BRIC countries and that the government should introduce policies that provide advantages for its multinationals across the continent.

APA

Games, D. (2010). Emerging Commercial Rivalries in Africa: A View from South Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2010/02/Policy-Briefing-15.pdf

Chicago

Games, Dianna. Emerging Commercial Rivalries in Africa: A View from South Africa. South African Institute of International Affairs, 2010. https://saiia.org.za/wp-content/uploads/2010/02/Policy-Briefing-15.pdf.

Wikipedia

{{cite report |last1=Games |first1=Dianna |title=Emerging Commercial Rivalries in Africa: A View from South Africa |publisher=South African Institute of International Affairs |date=15 February 2010 |url=https://saiia.org.za/wp-content/uploads/2010/02/Policy-Briefing-15.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{games2010emerging, author = {Games, Dianna}, title = {{Emerging Commercial Rivalries in Africa: A View from South Africa}}, institution = {South African Institute of International Affairs}, year = {2010}, month = feb, url = {https://saiia.org.za/wp-content/uploads/2010/02/Policy-Briefing-15.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }