“President Cyril Ramaphosa used the BRICS Summit in New Delhi to advocate for expanded trade and investment among member states, aligning with South Africa’s African Continental Free Trade Area priorities. His push comes as South Africa faces domestic challenges, including a deteriorating current account balance and severe congestion at Durban’s port, threatening export competitiveness.”
South Africa’s trade policy is at a crossroads. On 12 September 2026, President Cyril Ramaphosa addressed the BRICS Business Forum in New Delhi, urging deeper economic integration among BRICS nations. His remarks underscored Pretoria’s ambition to diversify trade partners beyond traditional Western markets, while simultaneously confronting domestic structural weaknesses that threaten competitiveness.
BRICS Summit Context
The 18th BRICS Summit, chaired by India, is themed “Building for Resilience, Innovation, Cooperation and Security.” Ramaphosa’s agenda focused on:
- Expanding intra-BRICS trade and investment
- Promoting industrialisation and value addition
- Mobilising investment in African infrastructure aligned with AfCFTA priorities
BRICS economies collectively represent over 40% of global population and nearly 30% of global GDP. For South Africa, deeper integration offers opportunities in pharmaceuticals, critical minerals, and electric vehicle battery supply chains.
Domestic Trade Challenges
Despite international ambitions, 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.
- Trade surplus narrowing: Merchandise trade surplus fell 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: reliance on commodity exports, rising import demand for manufactured goods, and exposure to global price shocks.
Durban Port Crisis
Compounding the macroeconomic picture is severe congestion at Durban’s Pier 2 terminal:
- Delays: Container ships face offshore waiting times of 8–12 days.
- System transition issues: The new NAVIS N4 terminal system worsened bottlenecks.
- Industry frustration: The Southern African Association of Freight Forwarders demanded urgent government intervention.
Durban handles over 60% of South Africa’s container traffic. Prolonged inefficiencies risk undermining export reliability, discouraging foreign investment, and raising costs for domestic producers.
Policy Implications
Ramaphosa’s dual focus—international diplomacy and domestic reform—illustrates the balancing act facing South Africa’s policymakers. On one hand, BRICS integration promises new markets and investment flows. On the other, unresolved domestic bottlenecks could erode credibility and limit the benefits of international trade agreements.
Coalition Governance and Policy Continuity
The BRICS push also intersects with broader governance reforms recently unveiled by the Cabinet, including coalition stabilization measures and procurement modernization. These reforms aim to restore institutional trust and ensure policy continuity, critical for sustaining investor confidence.
Business and Investor Reactions
Business Leadership South Africa CEO Busi Mavuso recently emphasized the need to lock in reforms before Ramaphosa leaves office, warning that political uncertainty could derail progress. Investors have warmed to South Africa as reforms begin to bear fruit, with improved electricity supply and a stronger rand.
Conclusion
President Ramaphosa’s BRICS trade push represents a bold attempt to reposition South Africa within global trade networks. Yet the success of this strategy hinges on domestic reforms—particularly resolving Durban’s port crisis and stabilizing coalition governance. Without these, South Africa risks missing the opportunity to leverage BRICS integration for sustainable growth.
