“President Cyril Ramaphosa used the BRICS Summit in New Delhi to advocate for expanded trade and investment among member states, emphasizing industrialisation and African infrastructure priorities. His call comes as South Africa faces a narrowing trade surplus and severe congestion at Durban’s port, threatening export competitiveness.”
South Africa’s participation in the 18th BRICS Summit in New Delhi marks a pivotal moment in its business policy trajectory. President Cyril Ramaphosa’s remarks at the BRICS Business Forum on 12 September 2026 underscore Pretoria’s dual challenge: advancing international trade diplomacy while tackling domestic structural weaknesses. His emphasis on expanded intra-BRICS trade and investment reflects both opportunity and urgency, as South Africa grapples with a deteriorating current account balance and logistical bottlenecks at Durban’s port.
BRICS Context and Strategic Importance
The BRICS bloc—Brazil, Russia, India, China, South Africa, plus new members Egypt, Ethiopia, Iran, UAE, Saudi Arabia, and Indonesia—represents over 40% of the global population and nearly 30% of global GDP. Ramaphosa’s agenda aligns with the summit’s theme: “Building for Resilience, Innovation, Cooperation and Security.” His priorities include:
- Expanding intra-BRICS trade and investment to diversify beyond Western markets.
- Promoting industrialisation and value addition, particularly in pharmaceuticals, critical minerals, and EV battery supply chains.
- Mobilising investment in African infrastructure, dovetailing with AfCFTA priorities.
This strategy positions South Africa as a gateway to African markets, leveraging BRICS partnerships to strengthen regional integration.
Domestic Trade Challenges
Despite ambitious international goals, South Africa’s trade fundamentals are under strain:
- Current account deficit: Shifted from a surplus of R181.6 billion in Q1 2026 to a deficit of R205.5 billion in Q2 2026.
- Merchandise trade surplus: Fell sharply from R428.8 billion to R146.4 billion due to surging imports.
- Terms of trade deterioration: Import prices rose faster than export prices, eroding competitiveness.
These figures highlight structural vulnerabilities—heavy reliance on commodity exports, rising demand for manufactured imports, and exposure to global price shocks.
Durban Port Crisis
The Durban port, handling over 60% of South Africa’s container traffic, faces severe congestion:
- Offshore waiting times of 8–12 days for container ships.
- Transition to the NAVIS N4 terminal system worsened bottlenecks.
- Industry frustration: The Southern African Association of Freight Forwarders demanded urgent government intervention.
Prolonged inefficiencies risk undermining export reliability, discouraging foreign investment, and raising costs for domestic producers. For Ramaphosa, resolving this crisis is as critical as securing BRICS investment.
Policy Implications
Ramaphosa’s BRICS push signals a pro-business policy shift with several implications:
- Diversification of trade partners reduces dependence on traditional Western markets.
- Infrastructure investment in ports, logistics, and energy is essential to restore competitiveness.
- Industrialisation focus aligns with South Africa’s need to move beyond raw commodity exports.
- Investor confidence hinges on credible reforms to ease bottlenecks and stabilize macroeconomic fundamentals.
Risks and Challenges
- Global volatility: Geopolitical conflicts and tariff shifts could disrupt BRICS trade flows.
- Domestic bottlenecks: Without urgent reforms, Durban’s congestion could negate gains from expanded trade.
- Fiscal constraints: South Africa’s debt stabilization efforts limit fiscal space for large-scale interventions.
Conclusion
President Ramaphosa’s advocacy at the BRICS Summit reflects South Africa’s ambition to reposition itself within global trade networks while addressing domestic vulnerabilities. The success of this strategy depends on balancing international diplomacy with domestic reform, particularly in logistics and industrialisation. If executed effectively, South Africa could transform its trade landscape, strengthen investor confidence, and secure a more resilient economic future.
