BRICS FOREIGN DIRECT INVESTMENT: A PRELIMINARY VIEW

The document finds that while trade among BRICS nations has grown, intra-BRICS FDI remains low and lacks strategic policy direction. Most BRICS countries rely on traditional investors from the EU, US, and Japan, though China, India, and Brazil have increased resource-seeking investments in Africa. The briefing recommends collaborative research, comparative studies of investment frameworks, and improved statistics to foster sustainable, development-oriented FDI within the bloc.

• Intra-BRICS trade has grown significantly, reaching an estimated $310 billion in 2012, but foreign direct investment (FDI) flows between these countries do not correlate with these trade figures.
• Traditional economies, specifically the EU-27, the US, and Japan, remain the primary sources of FDI for BRICS nations. The EU-27 is the largest overall source, with the UK leading investment in Russia and China, Spain in Brazil, and Germany in India.
• China's outward FDI strategy focuses on acquiring strategic assets and expanding in Africa, where it has established six special economic zones. Its African investments primarily target resources like oil, mining, and natural gas, often linking these to debt-financed infrastructure via government-backed soft loans.
• Indian outward FDI is traditionally resource-seeking or technology-seeking, with significant activity in Libya, Gabon, Sudan, Australia, and Indonesia. Since 2006, it has expanded into manufacturing (such as drugs and refined petroleum) and services (including financial and engineering services).
• Brazilian outward FDI has shifted from primary industries like energy and mining toward the financial services sector between 2006 and 2011. While it has increased involvement in African agriculture and renewable energy, FDI to Africa represents just under 10% of its total outflows.
• Russian outward investment is characterized by the 'neighbourhood effect' toward former Soviet countries, driven by market-seeking motives and a desire to bypass US and European protectionism in the metals sector.
• South Africa is a major source of FDI for other African nations, with 34 Johannesburg Stock Exchange listed companies having projects across 27 African countries by 2005. The government is currently reviewing its bilateral investment treaties (BITs) and has tabled a Foreign Investment Bill focused on inward FDI.

APA

Grant, C., Rantao, I., Wentworth, L., Wood, C., & Schroeder, S. (2013). BRICS FOREIGN DIRECT INVESTMENT: A PRELIMINARY VIEW. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/03/Policy-Briefing-63.pdf

Chicago

Grant, Catherine, Itumeleng Rantao, Lesley Wentworth, Chris Wood, and Sven Schroeder. BRICS FOREIGN DIRECT INVESTMENT: A PRELIMINARY VIEW. South African Institute of International Affairs, 2013. https://saiia.org.za/wp-content/uploads/2013/03/Policy-Briefing-63.pdf.

Wikipedia

{{cite report |last1=Grant |first1=Catherine |last2=Rantao |first2=Itumeleng |last3=Wentworth |first3=Lesley |last4=Wood |first4=Chris |last5=Schroeder |first5=Sven |title=BRICS FOREIGN DIRECT INVESTMENT: A PRELIMINARY VIEW |publisher=South African Institute of International Affairs |date=March 2013 |url=https://saiia.org.za/wp-content/uploads/2013/03/Policy-Briefing-63.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{grant2013brics, author = {Grant, Catherine and Rantao, Itumeleng and Wentworth, Lesley and Wood, Chris and Schroeder, Sven}, title = {{BRICS FOREIGN DIRECT INVESTMENT: A PRELIMINARY VIEW}}, institution = {South African Institute of International Affairs}, year = {2013}, month = mar, url = {https://saiia.org.za/wp-content/uploads/2013/03/Policy-Briefing-63.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }