“President Cyril Ramaphosa is using the BRICS Summit in New Delhi to advocate for expanded trade and investment among member states, aligning with South Africa’s priorities under the African Continental Free Trade Area. His push comes at a time when South Africa’s trade surplus has sharply narrowed and Durban’s port congestion threatens export competitiveness.”
South Africa’s trade landscape is undergoing a critical transformation. On 12 September 2026, President Cyril Ramaphosa addressed the BRICS Business Forum in New Delhi, emphasizing the need for stronger intra-BRICS trade and investment. His remarks come against the backdrop of domestic economic pressures, including a deteriorating current account balance and logistical bottlenecks at Durban’s port. Together, these developments highlight the dual challenge of advancing international trade diplomacy while resolving structural weaknesses at home.
BRICS Summit Context
The 18th BRICS Summit, chaired by India, is themed “Building for Resilience, Innovation, Cooperation and Security.” Ramaphosa’s agenda focuses on:
- Expanding intra-BRICS trade and investment
- Promoting industrialisation and value addition
- Mobilising investment in African infrastructure aligned with AfCFTA priorities
South Africa’s participation is strategic. BRICS economies collectively represent over 40% of global population and nearly 30% of global GDP. For Pretoria, deeper integration offers opportunities to diversify trade partners beyond traditional Western markets, particularly in sectors like pharmaceuticals, critical minerals, and electric vehicle battery supply chains.
Domestic Trade Challenges
Despite these ambitions, South Africa’s trade fundamentals are under strain:
- Current account deficit: The balance 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.
This reflects 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 has worsened bottlenecks.
- Industry frustration: The Southern African Association of Freight Forwarders has demanded 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.
Strategic Implications
Ramaphosa’s BRICS push must be understood in this context:
- Diversification: Stronger BRICS ties could reduce reliance on Western markets.
- Infrastructure investment: Mobilising BRICS capital for African logistics could ease port bottlenecks.
- Resilience: Enhanced cooperation in supply chains and digital trade could mitigate shocks from oil price volatility and currency fluctuations.
Risks and Trade-Offs
However, challenges remain:
- Geopolitical tensions: BRICS expansion raises questions about alignment with Western partners.
- Domestic reforms: Without urgent port efficiency improvements, trade diplomacy may not translate into tangible gains.
- Fiscal pressures: Rising deficits limit government capacity to invest in trade-supporting infrastructure.
Conclusion
South Africa’s trade future hinges on balancing international diplomacy with domestic reform. Ramaphosa’s advocacy at BRICS offers a vision of expanded trade and investment, but its success depends on resolving structural weaknesses at home—particularly port congestion and current account imbalances. The coming months will reveal whether Pretoria can leverage BRICS cooperation to transform its trade trajectory or whether domestic bottlenecks will continue to constrain growth.
