Emerging Commercial Rivalries in Africa: A View from South Africa

The document analyzes the shift in African investment patterns as BRIC nations (Brazil, Russia, India, and China) increase their presence on the continent. While this trend boosts overall African economic growth and infrastructure, it creates new challenges for South African companies, including increased competition in resources and construction, and the risk of being undercut by state-subsidized Chinese firms. However, the author identifies opportunities for South Africa to leverage its local expertise through strategic partnerships with these new investors.

• The entry of BRIC nations into Africa has shifted the balance of commercial power away from Western states and increased the continent's international status. China's engagement is characterized by massive trade and investment, with total trade reaching $107 billion in 2008 and FDI of $5.49 billion in the same year. 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 overall projects compared to China and Brazil.
• Brazil and Russia have distinct strategies for African engagement. Brazil has a strong presence in Angola, with over 300 companies operating there, and has expanded into Mozambique through the $1.3 billion Moatize coal project. Russia is leveraging its liberation-era ties to re-establish commercial engagement, primarily focused on securing resources and expanding its multinational corporations.
• South Africa is a major continental investor, with its economy representing approximately one-third of sub-Saharan Africa's GDP and 25% of the total continental economy. Unlike BRIC investments which focus heavily on utilities, mines, and oil, South African investment is broad-based, covering retail, property, ICT, manufacturing, agriculture, insurance, banking, transport, and tourism.
• South African companies face significant threats from new investors, including the ability of Chinese firms to undercut bids using state-subsidized finance and cheap labour. There is also a risk that BRIC investors may compromise on corporate ethics and transparency, which disadvantages South African firms bound by strict corporate governance and shareholder disclosure rules. Additionally, cheap and counterfeit Chinese goods are undermining formal retail markets.
• Despite the competition, South Africa can find opportunities by offering its continental experience and business networks to new investors who lack these assets. An example of this synergy is the 2007 deal where the Industrial and Commercial Bank of China acquired a 20% stake in Standard Bank for $5.5 billion. Furthermore, BRIC-funded infrastructure projects are expected to lower the overall cost of doing business for all companies in Africa.

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} }