The world is rapidly shifting from a bilateral economic arrangement, characterised by developed vs developing or emerging economies, to one where trade policy, led by US efforts to concentrate on ‘America first’, is reorganising global economic alliances. The BRICS bloc, which includes South Africa (SA), is a major player in this reorganisation. BRICS has expanded rapidly in recent years and emerged as a potential global alternative to traditionally Western-dominated markets.

A lot of the success of BRICS as a trading bloc rests on how effectively it can facilitate intra-BRICS trade, something that may also benefit SA’s export markets.

BRICS expansion and intra-BRICS trade

The BRICS bloc, according to Boston Consulting Group, accounts for around a quarter of global gross domestic product (GDP), 40% of global crude oil production and exports, 40% of global trade in goods, and nearly half the world’s population.

In a series of conscious policy decisions, the BRICS nations – Brazil, Russia, India, China, and SA since 2010, joined in 2024/25 by Iran, the United Arab Emirates (UAE), Ethiopia, Egypt, Indonesia, and Saudi Arabia – have expanded trade among themselves to reduce dependence on traditional global currencies and Western financial systems. Intra-BRICS trade reached more than US$600 billion in 2022, driven by factors like local currency settlements, strategic trade agreements to optimise supply chains and reduce transaction costs, and a shift towards localised economic cooperation.

Intra-BRICS trade will ultimately diversify global markets and potentially represent a new economic grouping that can renegotiate trade agreements through institutions like the IMF and the World Bank.

Benefits of trading with BRICS countries

As an exporter in SA, you can access several benefits of the expanding trade with other BRICS countries. President Cyril Ramaphosa has already put on record that our BRICS membership has improved investment, trade, tourism, and capacity building. From a capital perspective, the establishment of the BRICS New Development Bank to finance and support South African infrastructure and sustainable development projects has yielded more than R100 billion for various projects, including loan agreements to embattled state-owned enterprises.

The big challenge in this new trade equation is that, despite the growth in both imports and exports, SA continuously sees trade deficits with the other major BRICS economies. The Industrial Development Corporation (IDC) notes that the deficit amounted to around R250 billion in 2024, which was almost 4 times greater than the R66 billion deficit reported in 2010 when SA first joined the BRICS bloc. The key issue is the slow growth of our export economy, especially relative to China.

Key opportunities for South African exporters

The composition of SA’s export basket to other BRICS nations has not changed much. In 2022, according to the IDC, South Africa’s BRICS exports were mainly bulk mineral products – coal, iron ore, manganese, ferroalloys, and chromium ores, with significant agricultural but limited manufactured exports.

Manufactured imports made up most products coming into SA from the BRICS nations. Clearly, export opportunity and industrial policy need to focus on diversification into manufactured and agricultural goods. If you do have an export business in these segments, there are existing BRICS forums, the BRICS Business Council, and diplomatic channels to address challenges and build new export opportunities. The Department of Trade, Industry and Competition also offers incentives for businesses trading in services that are crucial for market penetration.

Exploring export markets

The recent expansion of the BRICS economic bloc has welcomed influential new members such as Saudi Arabia, the UAE and Egypt, as well as new ‘partner’ countries, including Malaysia. The bloc has significant implications for global trade, and it also presents a unique opportunity for SA. Our geographical position offers a natural trade gateway connecting the growing economies of Asia with the potential of the African continent and the growing markets of South America.

If SA is to act as a trade hub, we will need to properly address our infrastructure and logistics challenges, particularly the current road and rail issues. But BRICS expansion could be the catalyst for much-needed investment and growth in our logistics sector, especially considering a private-public partnership approach, which has already been proposed. The increased trade volumes anticipated within the expanded bloc could incentivise both domestic and international investors to divert capital into upgrading and expanding SA’s infrastructure.

While BRICS is developing, SA remains a participant in the African Continental Free Trade Area. This gives us the opportunity to position our country as a new strategic link in the evolving global trade network, fostering economic growth and solidifying its role on the world stage.

Relevance of the G20 for South African exporters

South African business owners embracing BRICS opportunities should also investigate export relationships with other countries in the G20. SA took over the presidency of the G20 at the end of 2024, at a time of increasing global turmoil. Currently, the G20, including both rich and developing countries, accounts for about 67% of the world’s population, 85% of global GDP and 75% of global trade. The global economy, international financial governance, financial inclusion, and the financing of infrastructure were among the issues under discussion throughout 2025.

In November, we hosted a successful G20 Leaders' Summit in Johannesburg, despite the absence of the United States. The number of countries included every year varies, and this year SA invited 13 countries (including Denmark, Egypt, Finland, Singapore and the UAE) to meet and discuss policy and regulation with another 24 invited international organisations like the International Monetary Fund, the World Bank, the United Nations and 8 African regional organisations, among others.

Leaders at the summit committed to supporting African growth, industrialisation, food security, disaster resilience, and clean energy transition. The summit ended with the adoption of the Johannesburg Declaration, which pledges support for the Global South, economic reforms, and financing to mitigate the effects of climate change.

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