The share of the European Union in South Africa’s total trade has declined from 36% in 2005 to 26.5% in 2011. “By contrast, the share of the BRIC countries in South Africa’s total trade has increased from 10% in 2005 to 18.6% in 2011,” he said.

South Africa, said Davies has a direct interest in extending BRICS cooperation to support Africa’s economic development agenda.

Davies arrived in Indonesia at the weekend, and co-chaired the two countries’ Joint Trade Committee (JTC) with his Indonesian counterpart Gita Wirjawan.

“The BRICS countries can contribute to Africa’s development by increasing financial aid to build infrastructure and industrial capacity, and increasing imports of value-added manufactured products from the continent.

“The abundant natural resources of Africa, the growing consumer power of Africa’s emerging middle class, and high growth rates offer an opportunity to build a more sustainable and mutually beneficial relationship with Africa in the next decades,” said Davies.

The South African government is of the view that the BRICS led Development Bank that is under discussed should mobilise resources for infrastructure and sustainable development projects in BRICS and other Emerging Economies and Developing Countries (EMDC).

South Africa will host the 5th BRICS Summit in March 2013 with preparations of the summit being already at an advanced stage. South Africa was admitted to the economic bloc of emerging markets in 2010.

Among the key decisions expected to come out of the South African summit include the formation of a BRICS Development Bank. The plan is a subject of discussion among BRICS leaders who see it as a possible alternative financial institution to the International Monetary Fund and World Bank.

The aim behind the creation of a BRICS bank is to have a development-focused finance institution to support and drive commerce between the BRICS economies.

Compiled by the Government Communication and Information System, 19 October 2012

http://www.sanews.gov.za/news/12/12101910051001