<h2 class="wp-block-heading" id="h-topline">Topline</h2>



Donald Trump announced Saturday he would impose a 100% tariff on BRICS nations if they try to replace the dollar in international trade, impacting a group of major developing economies whose members include Russia, India, China and Iran, among others, marking the latest threats by the president-elect to impose tariffs on imports from several countries.



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



In a&nbsp;<a href="https://truthsocial.com/@realDonaldTrump/posts/113573130299319701" rel="noreferrer noopener" target="_blank">post</a>&nbsp;on Truth Social, Trump said the 100% tariff would affect all BRICS countries—Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates—until they commit to not creating a new BRICS currency or back another currency that could replace the “mighty” dollar.



Brazilian President Inacio Luiz&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-04-13/lula-supports-brics-currency-to-replace-dollar-in-foreign-trade?leadSource=uverify%20wall" rel="noreferrer noopener" target="_blank">called on</a>&nbsp;BRICS nations to develop an alternative to the dollar in foreign trade last year, arguing countries that don’t use the dollar should not be forced to use the currency, while&nbsp;<a href="https://www.reuters.com/markets/currencies/what-is-brics-currency-could-one-be-adopted-2023-08-23/" rel="noreferrer noopener" target="_blank">suggesting</a>&nbsp;a new BRICS-supported currency “increases our payment options and reduces our vulnerabilities.”



There is “no chance” BRICS could replace the dollar in international trade, and any country that tries to do so should “wave goodbye to America,” Trump said.



<h2 class="wp-block-heading" id="h-crucial-quote">Crucial Quote</h2>



“The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is OVER,” Trump wrote, adding the nations “should expect to say goodbye to selling into the wonderful U.S. economy.”


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<figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="1024" height="683" src="https://cms.forbesafrica.com/wp-content/uploads/2024/11/GettyImages-2183216841.jpg" alt="" class="wp-image-63584" srcset="https://cms.forbesafrica.com/wp-content/uploads/2024/11/GettyImages-2183216841.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2024/11/GettyImages-2183216841-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2024/11/GettyImages-2183216841-768x512.jpg 768w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">(Photo by Chip Somodevilla/Getty Images)</figcaption></figure></div>


<h2 class="wp-block-heading" id="h-key-background">Key Background</h2>



Trump’s proposed tariffs on imports from BRICS nations is his latest economic threat in recent weeks. BRICS was founded as an informal international group in 2006 by Brazil, Russia, India and China, though its membership&nbsp;<a href="https://infobrics.org/page/history-of-brics/" rel="noreferrer noopener" target="_blank">expanded</a>&nbsp;to more nations with “reflecting common stances on topical global development issues,” according to the organization. The group has increasingly called for reduced dependence on the U.S. as it aims to establish new financial organizations. Earlier this month, Trump announced a 10% tariff on Chinese goods and a 25% tariff on all products from Mexico and Canada, which he said would remain until the three nations curb the flow of fentanyl into the U.S. and migrants. Trump has claimed the tariffs would protect American jobs, though&nbsp;<a href="https://www.forbes.com/sites/alisondurkee/2024/09/10/will-trumps-tariffs-raise-prices-what-to-know-as-kamala-harris-slams-policy-at-debate/">experts</a>&nbsp;have claimed his proposed tariffs could substantially raise prices for American consumers. During his first administration, Trump launched a trade war with China after imposing tariffs that targeted $200 billion worth of Chinese imports.



<h2 class="wp-block-heading" id="h-tangent">Tangent</h2>



Canadian Prime Minister Justin Trudeau said Saturday he had an “excellent conversation” with Trump after he threatened Canada with tariffs. The pair had a “positive wide-ranging dinner” with topics that included trade, border security, Ukraine and China, among others, <a href="https://apnews.com/article/trudeau-trump-canada-tariffs-mexico-border-e0ee7f9b3dddc80d1260585c11869fff" target="_blank" rel="noreferrer noopener">according</a> to the Associated Press. President Claudia Sheinbaum <a href="https://www.forbes.com/sites/tylerroush/2024/11/26/mexico-could-hit-us-with-tariffs-in-retaliation-for-trumps-threats-president-suggests/">suggested</a> earlier this week Mexico would impose tariffs on the U.S. in response to Trump’s tariff proposals. Sheinbaum said she would be meeting with Trump “soon.”

Brics Summit in Johannesburg, South Africa August 22-24, 2023

Donald Trump Threatens BRICS Countries—Including Russia, India—With 100% Tariffs

September 2023 was a month of conferences.



It started off with the summit of the Norwegian-African Business Association in Oslo.



A Reuters event in London followed. Then the revered United Nations General Assembly (UNGA) in New York. And the month finished with the AIIB Annual Meeting at Sharm El Sheikh in Egypt. Fascinating as always. Thousands of clever people flying around, talking and promising. Everywhere, the Africa question is dominant but cautious. Risk, coups, exchange rates, crime… are oft-repeated words.



The fine balance of today’s geopolitics means Africa has to appease to the rhetoric and the threats of a rejuvenated West while still looking at the East for all things important.



Tough for our leaders, fraught as their countries are with inflation, currency issues, elections, and poverty.



The fundamental architecture where Africa provides the minerals, and the world produces goods they then sell back to the continent creates an imbalance that no amount of Bretton Woods fiddling can resolve.



The climate challenge exposes the hypocrisy too. Africa, home to labor, land, minerals and oodles of sun, wind and water (read renewables).



Why keep manufacturing then outside its shores? At least one eminent minister told me that the Washington Consensus on Trade in the 1980s, which was 40 years after the original Bretton Woods’ party and now another 40 years later, the climate agenda (and the ESG paraphernalia), has one thing in common.



A 40-year itch perhaps.



Extract not engage. Lecture but not lead. Promise but not provide.



Can happy endings come from this relentless pursuit of a status quo camouflaged as aid and grant?



The question is: what then?



Possibly the BRICS bank is the answer to getting an alter ego?



They seem serious albeit the principle of ‘my enemy’s enemy is my friend’-kind-of binding force. Well, my school had said ‘charity begins at home’.



My mother, like all mothers, had told me: “You don’t get what you want, you get what you deserve.” And my little daughter used to say: “United we stand, divided we fall.”



African unity cannot remain a myth. African collaboration cannot be an illusion. African solidarity cannot be confined to speeches. The global quest for minerals, gas and gold interlaced with ‘dead aid’, fits nicely into the greed, guilt, and fear syndrome. How do we collectively enhance that fear factor?



The fear of food shortage when Africa has so much arable land.



The fear of global warming when Africa can absorb it all through its forests.



The fear of energy sourcing when Africa has all the gas, oil and the coal the world needs.



The fear of growth when Africa has the youngest and largest unserved markets.



The fear of supply chain concentration when Africa has the obvious renewable energy- based manufacturing at source (critical minerals) solutions. The fear of mass immigration; fundamentalism when simply adding value to Africa’s resources will create jobs and keep them south of the Mediterranean.



Collective bargaining, anyone?



Into that valley of hope let Africa awake. To take charge and be masters of our own destiny. Maybe we should start with banning Africa’s soccer stars from playing in Europe? That should make them feel the pinch – or at the very least, let’s make a pledge to not export any raw materials without value addition at source. Therein lies the start to a world where jobs exist and prosperity reigns.

African woman plucking tea leaves on plantation, East Africa

The Conundrum Facing Africa. Question Is: What Then?

BRICS&#8217; expansion with five new members, set against Argentina&#8217;s decision to decline, presents a nuanced challenge to US influence, markin a complex evolution in international dynamics. BRICS, the international governmental organization focused on bilateral relations, investment, and economic cooperation, has officially admitted five new member countries, effective from January 1, 2024. The inclusion of Saudi Arabia, the United Arab Emirates (UAE), Egypt, Iran, and Ethiopia effectively doubles the bloc&#8217;s membership to 10 nations, adding significant economic weight and potential. Notably, Argentina, one of the six countries invited to join BRICS, declined the offer under newly-elected President Javier Milei.



The formal admission of the new BRICS member countries follows last year’s summit in Johannesburg, South Africa, where the invitations were extended. South African President Cyril Ramaphosa, a proponent of the expansion, highlighted its importance for the Global South&#8217;s representation and the economic and trade development of member states.



“&#8230; South Africa stands to benefit from its relationship with these countries,” said Ramaphosa in a press release concluding the conference. “Together, these countries account for nearly a third of the global economy and are home to 46 percent of the world’s population.”



While the BRICS group (comprising of Brazil, Russia, India, China and South Africa) has long been viewed as an alternative to Western, particularly American, economic and geopolitical influence, independent risk and political analyst Marisa Lourenço in South Africa suggests that this expansion is unlikely to immediately disrupt the current economic order.



“The expansion of BRICS occurs in an era of multipolar politics, where countries can seek alternatives&#8230; and challenge US hegemony with different trading partners,” says Lourenço to FORBES AFRICA. “A BRICS currency seems highly unrealistic, and though trade between countries might increasingly use currencies other than the USD, it will take more to challenge the dominance of the USD in global trade.”



The entry of Saudi Arabia and the UAE is anticipated to significantly enhance the global influence of BRICS. Both countries bring substantial financial resources and geopolitical clout, especially as prominent members of the Organization of Petroleum Exporting Countries (OPEC).



The economic implications of BRICS&#8217; expansion are vast and varied. With the inclusion of major oil producers and emerging economies, the bloc is poised to redefine trade dynamics and create new investment opportunities. This could lead to a reshaping of global trade routes and partnerships, offering a diversification of economic alliances beyond the traditional power centers. As the bloc grows, so does its capacity to influence global economic policies, potentially leading to more equitable trade terms for emerging markets.



The addition of Ethiopia and Egypt marks a notable step in increasing African representation within the bloc, resonating with Ramaphosa’s remarks at the 2023 summit. However, Lourenço believes Africa will not likely dominate the BRICS agenda soon, with the strategies of larger member states expected to dictate overall direction.



Regionally, the impact of BRICS&#8217; expansion on African countries, both within and outside the bloc, deserves a closer examination. For countries like South Africa and Ethiopia, this could mean enhanced access to markets and capital, fostering development and economic growth. However, the challenge lies in ensuring that these benefits are equitably distributed and that the voices of smaller economies are heard within the bloc. As BRICS evolves, its ability to address these regional disparities will be crucial in determining its effectiveness and relevance.



“Africa has improved representation&#8230; but overall remains the weakest link, with the economic sizes of both countries overshadowed by their peers,” states Lourenço. “It will be interesting to observe how Saudi Arabia deepens ties with the continent&#8230; especially as the kingdom has recently increased its investments in numerous African countries, alongside other Middle Eastern powers like Turkey, the UAE, and Jordan.”



Lourenço argues that China is the primary beneficiary of the BRICS expansion, being the bloc&#8217;s most influential member and a direct competitor of the US in strategic areas such as East African infrastructure and access to raw minerals. “Politically, BRICS&#8217; expansion is particularly advantageous for China&#8230; The alignment of global powers like China, Iran, and Saudi Arabia within BRICS is likely to unsettle the US, which may perceive this as a direct challenge to its hegemony.”



The expansion of the bloc occurs at a critical juncture amid global economic and political tensions. BRICS faces the challenge of integrating member states engaged in conflicts with Western allies while maintaining relations with countries closely allied with the US. While BRICS has the potential to significantly expand its political and economic influence, Lourenço warns that this is not a foregone conclusion.



“If it can establish a formal institutional framework, it could become a powerful entity, but member disagreements make this unlikely in the next two to three years,” Lourenço notes. “Its role is likely to remain primarily political, considering the economic challenges of creating a common currency and the prevailing dominance of the US dollar in global trade.”



Furthermore, the global response to BRICS&#8217; expansion, especially from nations outside the traditional Western power bloc, will be an essential factor. Countries in Europe, Asia, and other regions will likely recalibrate their strategies in response to this new power alignment. The expansion of BRICS, thus, not only changes the dynamics within the bloc but also has far-reaching implications for global diplomacy and international relations.

New Members, Old Powers: BRICS’ New Year Expansion As 10-Country Bloc

At day three of the 15th BRICS Summit, the bloc’s expansion, welcoming Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, heralds a new phase of global collaboration and influence.



In a significant move that has captured global attention, the BRICS bloc is set to welcome new members for the first time since the adoption of South Africa in 2010, ushering in a chapter of expanded collaboration and shared markets. Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) are poised to become full members of the BRICS family, amplifying the possible leverage the bloc is able to implement globally, as well as increasing the entity’s capability as a counterbalance to the West.



“The world is changing,” commented South African President Cyril Ramaphosa in his closing remarks at the three-day BRICS Summit in Johannesburg. “New economic, political, social, and technological realities call for greater cooperation between nations. These realities call for a fundamental reform of the institutions of global governance, so that they may be more representative and better able to respond to the challenges that confront humanity.”



The expansion announcement was made by Ramaphosa, who chaired the summit. It represents a carefully deliberated and agreed-upon step signifying consensus among the existing BRICS members – Brazil, Russia, India, China, and South Africa – to broaden the bloc&#8217;s scope and deepen its collaborative efforts.



The BRICS grouping, which collectively represents a significant portion of the global economy, trade, and population, has garnered attention not only for its economic significance but also for its potential to shape international discourse and policy. The inclusion of Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE extends this influence to regions that bring unique perspectives, resources, and challenges.



The invitations to join the bloc are particularly significant given the close relationship between Saudi Arabia, the UAE, and the West, for which BRICS has increasingly come to counterbalance. The expansion indicates a clear view for a multipolar world order characterized by equitable development, sustainable growth, and collective security. It is a testament to the bloc&#8217;s commitment to fostering cooperation in areas such as trade, investment, technology exchange, and cultural understanding. By embracing these new members, BRICS solidifies its role as a platform for dialogue and collaboration, even as the global geopolitical landscape continues to evolve.



This multipolar support was no clearer than in the addresses of China’s President Xi Jinping, noting the event&#8217;s historic significance; “The expansion is also a new starting point for BRICS cooperation. It will bring new vigor to the BRICS cooperation mechanism and further strengthen the force for world peace and development.”



President Vladimir Putin too gave a closing address via video call.



Prime Minister Narendra Modi of India, a key player in the BRICS partnership, emphasized the expansion&#8217;s significance in his address; “India has always supported the expansion of BRICS. India has always believed that adding new members will strengthen BRICS as an organization.” Modi highlighted that the inclusion of these nations is a symbol of openness, inclusivity, and cooperation that extends beyond national boundaries. This sentiment resonates with the BRICS ethos of mutual respect and the pursuit of common goals for the betterment of all member nations.



The BRICS expansion holds the potential to foster economic growth, innovation, and the sharing of best practices among member nations. It is anticipated to enhance trade ties and investment opportunities. This enlargement positions the BRICS bloc as a resilient and collaborative force, capable of influencing economic outcomes and promoting stability.



Beyond the economic realm, the expansion offers an avenue for constructive dialogue on pressing global issues. By incorporating nations from different regions, the BRICS bloc can diversify its perspectives and responses to challenges such as climate change, cybersecurity, and geopolitical tensions. The inclusion of nations like Iran, Saudi Arabia, and the UAE brings a heightened focus on Middle East dynamics, allowing for enhanced dialogue and understanding.



Of note regarding the attempts at the bloc&#8217;s expansion are the inclusion of offerings of membership of the UAE and Saudi Arabia, which have long-established relationships with the West, with which the Russian Federation and China find themselves opposed with the war in Ukraine and trade conflicts, respectively.



As the world watches this expansion unfold, it&#8217;s worth noting that BRICS is not merely an economic or political grouping but a lever of global diplomatic influence.

New Name For BRICS? Summit In South Africa Unveils Newer Members In The Bloc

India&#8217;s Chandrayaan-3’s successful moon landing marks a historic achievement in global space exploration. The Indian Space Research Organisation&#8217;s (ISRO) triumph has garnered international attention and celebration.



India has achieved a historic milestone in space exploration, solidifying its position as a key player in global space exploration, successfully landing the Chandrayaan-3 probe on the moon&#8217;s Southern Pole. With this, the Indian Space Research Organisation (ISRO) has ushered in a new era of triumph for the nation&#8217;s space endeavors, one that was watched and celebrated around the globe.



The entire world turned its gaze skyward as the lander, a culmination of meticulous planning and cutting-edge technology, touched down on the lunar surface. The event was a global spectacle, as millions of people tuned in to the live stream on ISRO&#8217;s official YouTube channel. This achievement was marked by India&#8217;s Prime Minister Narendra Modi as not just one for India as a nation but for humanity as a whole, emphasizing that the feat transcends national borders and stands as a testament to human ingenuity and aspiration. &#8220;It belongs to all of humanity,&#8221; he remarked, underscoring the significance of such achievements in advancing our collective understanding of the cosmos.



Modi delivered his celebratory address while in attendance at the ongoing BRICS Summit in Sandton, Johannesburg, where other affiliated world leaders are sure to celebrate India&#8217;s achievement. Chandrayaan-3&#8217;s success belongs to &#8220;… all of humanity,&#8221; said Modi in a livestreamed statement, a sentiment reaffirmed by opposition party and Congress leader Mallikarjun Kharge, who tweeted that the landing was the success of &#8220;every Indian&#8221;.



In India itself, reports of jubilation were rife as people from all walks of life gathered around televisions, computer screens, and cafes to witness and celebrate this milestone. This achievement comes on the heels of a recent setback for space exploration – just two days prior to India&#8217;s triumphant landing, Russia&#8217;s Luna-25 module experienced a crash landing on the moon&#8217;s surface – an unfortunate turn of events for a nation that was once at the forefront of space exploration.



India’s previous efforts at lunar landings have proved unsuccessful, with the Chandrayaan-2 probe crashing spectacularly into the moon&#8217;s surface in 2019. However, the ISRO has made significant improvements in the latest probe, developing extensively both the capabilities of the probe as well as expanding the landing area, key elements in the landing&#8217;s success. Central to the Chandrayaan-3 mission is the prospect of uncovering water ice on the moon&#8217;s surface. This discovery could have profound implications for future lunar exploration, potentially paving the way for sustained human presence on the moon. The lander is equipped with state-of-the-art scientific instruments, including a spectrometer designed to analyze the composition of the lunar surface. Discoveries in this field could greatly support long-term lunar missions in the future, accounting for the key observation of the landing in the scientific communities. Beyond national pride, the landing serves to represent the spirit of collective endeavor and global commitment to space exploration, evidenced by the millions worldwide who waited with bated breath for the successful landing.



&#8220;I reached my destination and you too!&#8221; the ISRO tweeted on touchdown. At the time, at least 6 million viewers were tuned into the livestream.

Indian Students Remotely Observe ‘Chandrayaan-3’ Launch to Land Spacecraft on Moon

‘To All Of Humanity’, Says Modi At BRICS Summit In South Africa As India Celebrates Historic Landing On The Moon

The BRICS Summit currently underway in Johannesburg explores expansion and a shared currency, challenging the US dollar&#8217;s dominance.



The annual BRICS Summit kicked off in Sandton, Johannesburg, today to rapt viewers around the world, as the economic and political bloc touched on critical developments such as the expansion of its membership as well as the possibility of implementing a shared currency.



The summit is being attended by Brazil’s Lula da Silva, South Africa’s Cyril Ramaphosa, China’s Xi Jinping, India’s Narendra Modi, and notably Sergey Lavrov in place of Russian President Vladimir Putin. Clear in a number of speeches, including those of presidents Jinping and Ramaphosa, was a definite willingness for the expansion of the bloc, which is increasingly being seen as a counterweight to global Western influence and more representative of the interests of the Global South.



Critical to this shift is a move away from what is seen as the hegemony of the United States dollar in global exchanges, which has seen both China and Russia suffer due to ongoing trade disputes and the war in Ukraine respectively. Moves towards stronger ties with BRICS-aligned nations were previously noted by President Ramaphosa on Sunday.



“We have steadily strengthened trade and investment ties with other BRICS countries alongside collaboration in areas like development, skills, technology, security, and innovation…” said Ramaphosa in a press release. “South Africa has benefited from the New Development Bank, which was established by the BRICS countries in 2015.”



These increased economic ties are what South Africa, the BRICS bloc, and possible future member states stand to benefit from should a shared currency be implemented, with the African Continental Free Trade Area (AfCFTA) being highlighted as a stepping stone towards this.



“As we speak, there are 47 countries that have ratified the agreement establishing the AfCFTA… only one country is yet to sign. All of these countries that have ratified have accepted the legal obligations, commitments to significantly reduce barriers to intra-Africa trade… estimated at only 18%, which is very low,” said the AfCFTA’s Secretary-General, Wamkele Mene, during a plenary discussion at the BRICS Business Forum today.



Using the example of a Kenyan businessman trading in the Republic of Djibouti, Mene continued; “Why is the dollar involved? Two African countries trading using a third currency.”



Mene further highlighted the introduction of the Pan African Payments and Settlements System (PAPSS), a SWIFT competitor estimated to save $5 billion annually in fees on payments on the continent.



“We’ve introduced the Pan African Payments System… you will no longer have to rely on a third currency, you will no longer have to buy a third currency, to trade in Africa,” said Mene to applause from the room. “We want to move beyond the trade agreement but introduce tools that will enable the trade to happen.”



Much of the conversation around consolidation of the solidarity of existing BRICS member countries, the bloc’s willingness to accept new memberships, and its successes in establishing both ease of trade and cost-saving initiatives appeared to be a possible preparation of the ground for the introduction of a BRICS-wide currency, which, while previously posited, has not until recently offered the level of advantage it might to countries such as Russia and China.



Nations in the bloc have long discussed the possibility of BRICS Pay, aimed at allowing for seamless, decentralized digital payments between member countries. As recently as last month, Brazil’s President Lula also highlighted the impact of US dollar dependence. With Russia reeling from US-based sanctions due to the war in Ukraine, the country too has been vocal about lessening dollar-based dependence.



However, a realistic and technically viable plan as to how a multinational currency would work for the bloc has yet to have been posited, despite several speakers at the conference discussing it during the opening day.



In attendance were dozens of world leaders from across the African continent, either considering the possibility of joining the bloc or being courted for membership – and as talks proceed over the next few days of the summit, considerations around new membership and realistic postulations around the implementation of a BRICS currency will play a major focus, watched not just by the member countries themselves but also by many in the West.



As if to underline this point, said Ramaphosa: “BRICS has a vitally important role to play in the reform of global governance and in the promotion of multilateralism and cooperation throughout the world.”

Opening Day of The 15th BRICS Summit

BRICS Summit: Paving The Way For Shared Currency And Economic Expansion

Busi Mabuza has just been appointed Chair of the South African chapter of the BRICS Business Council. Also the chairperson of the Industrial Development Corporation, she speaks to FORBES AFRICA about her plans for trade and investment.&nbsp; 



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What is your first point of focus as the chair of the South African chapter of the BRICS Business Council? 



It is still early days. I am just lucky I was appointed to
the BRICS Council last year… In my few months, my sense was that the sister
countries in BRICS were much more organized in terms of what it is they are
looking for and in bringing a coordinated voice of business. We were still
trying to get there in terms of coordinating our efforts and channeling our
objectives and making sure we agree on the priorities.



I look forward to, first of all, picking up from where
others left off. This is a council that has been around not long after 2010,
and it has a long-enough track-record. 



I think where things have been done well, we just need to
make sure they are done better. Where there are gaps, I’d like for us to close
those gaps. On the administrative side, I have noticed our sister countries,
the business councils of the other countries, are much more coercively
organized, more streamlined, business has a very strong voice and business
facilitates all of it. 



I would like to see that engagement with all corners of
business, big and small. I think there is room for everybody there. If one
looks at the African continent, the majority of the population is young people.
If we sit in those meetings without understanding the voice of the youth, without
talking to and addressing the issues of the youth, we will be left behind. 



I think it is an opportunity to make sure business rolls up
its sleeves and we actually benefit from the linkages our political principles
have cemented. 



As a woman in leadership, how will you navigate this space? 



It is one that also challenges me ideologically. I never wanted to be labeled ‘the first black woman [in anything]’, and yet I have worked most of my life in environments where it has been lonely just by the mere fact that when the guys are talking rugby, I want to talk about something else. 



Rugby is great, I also enjoy that, but it is also good to talk about other things. One success factor when one is thrown into such environments is to [bring] others in deliberately. I’d love to demonstrate to the women out there that there are opportunities such as these and we need to be there and we need to show up at our best in terms of our game. 



We need to work diligently because when it comes to the results and output, the assessment won’t be based on whether you are a man or woman, it will be based on what you deliver tangibly. South Africa has an opportunity to make the other BRICS countries aware that women have to be at the table and we do it through our actions rather than just talk. 



What is on the 2019 agenda for business in South Africa?



With this being new days, I believe in consultation. I believe in making sure I understand the mandate I have been given. I understand what the Department of Trade and Industry is about, and their focus on creating export opportunities because that will grow our trade. 



I understand their focus on empowerment, because as a country we do need to see a better profile and reflection of society in the economic space. The focus will continue to be on trade and investment, as we move along, I would like for us to do this in an inclusive manner.



Which sector will South Africa prioritize? 



I would definitely take a cue from the president’s [Cyril Ramaphosa] focus on agriculture. Agriculture is fantastic for this continent because we have land, we have the people and if you look outside South Africa, there is water. The resources are there. 



The other side of the coin is that agriculture can be a great employment opportunity. Agriculture is getting more technical and technology-intensive and that excites me. If we had a trading bloc arrangement, we will be talking much bigger opportunities within the country.

Busi-Mabuza

‘Time For Business To Roll Up Its Sleeves’

Analysts predict BRICS could become as big as the Group 7 by 2027. Can the BRICS nations effectively come together promoting inclusiveness, trade and technological collaboration?

The recurring question at the three-day BRICS summit in July, which brought some of the planet’s most powerful leaders to Africa’s richest square mile Sandton, was the importance of the Fourth Industrial Revolution (4IR) when it comes to inter-trade. So what happens next?
The 4IR, like the three revolutions preceding it, has disrupted economies and societies around the globe. In many instances, developing countries have been left behind, perpetuating the exclusion of the past rooted in colonialism and exploitation.
The leaders of Brazil, Russia, India, China and South Africa (BRICS), who are aware of the enormous hurdles, used the gathering in Johannesburg to issue a clarion call for united and concerted action for the impending revolution.
Host president Cyril Ramaphosa of South Africa – which is the current chair of BRICS – said the 4IR presents the world with opportunities and should be embraced.
“As the BRICS forum, we can neither ignore, nor take for-granted, the reality that is the Fourth Industrial Revolution and the impact that it will have on the global economy. There is no area of economic activity that is immune from technological disruption.
&nbsp;
<div id="attachment_37173" style="width: 750px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-37173" class="wp-image-37173 size-large" src="https://www.forbesafrica.com/wp-content/uploads/2018/09/Cyril-Ramaphosa_GL-1024x682.jpg" alt="" width="740" height="493" srcset="https://cms.forbesafrica.com/wp-content/uploads/2018/09/Cyril-Ramaphosa_GL-1024x682.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Cyril-Ramaphosa_GL-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Cyril-Ramaphosa_GL-600x400.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Cyril-Ramaphosa_GL-768x512.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Cyril-Ramaphosa_GL.jpg 1241w" sizes="auto, (max-width: 740px) 100vw, 740px" />Cyril Ramaphosa. Photo by Gypseenia Lion</div>
&nbsp;
<blockquote> “It [The Fourth Industrial Revolution] has the potential to solve many of the social problems we face, by better equipping us to combat disease, hunger and environmental degradation.”</blockquote>
The 10th summit, hosted in South Africa for a second time, was held from July 25 to 27. It brought together a galaxy of delegates, government officials, business people and the media at the Sandton Convention Centre.
Roads were barricaded amid heavy police and military presence, with strict no-flying zones applied as Vladimir Putin and Xi Jinping, among some of the world’s most reclusive leaders, spent a night or two under African skies.
Under the theme, ‘BRICS in Africa: collaboration for inclusive growth and shared prosperity in the 4th Industrial Revolution’, the focus of the summit was issues and solutions to achieve inclusive growth through collaboration.
Technology, big data and innovation were amongst the most operative words. Ramaphosa set the agenda by highlighting the role technology will play years from now.
“The technologies of the Fourth Industrial Revolution provide developing and emerging economies with the opportunity to leapfrog the technologies of the preceding revolutions.
“It aims to translate the vision of the second decade of BRICS cooperation into reality through deepened cooperation on industrialization, innovation, inclusiveness and investment,” he said.
India’s Prime minister, Narendra Modi, emphasized the need for shared policies and collaboration in order to unlock the opportunities of the future.
But, he added, the consequences of the revolution may be difficult to predict.
“Whatever happens will be far-reaching. We need to discuss how we will prepare for it. Traditionally, manufacturing will continue being a source of jobs for our youth. We need to make changes in our approach and make sure that schools prepare our youth for the changes,” said Modi.
The BRICS Youth Forum started off as an idea during a meeting between the heads of the five states in South Africa in 2014.
Encouraging dialogue with regard to youth policies and employment, the forum has notched some progress.
<a href="http://www.forbesafrica.com/woman/2018/09/10/why-we-need-hard-cash-into-the-economy/" target="_blank" rel="noopener">READ MORE: Why We Need ‘Hard Cash In The Economy</a>
South Africa’s Minister of Higher Education and Training, Naledi Pandor, said the youth forum consolidated a set of messages that was to be sent to the BRICS leaders.
“The youth have begun to speak, they believe BRICS should be a solid formation and they have ideas on how the youth should collaborate to ensure that the BRICS idea is not just the idea of our generation but one that exists in perpetuity,” she said.
As argued by the South African Minister of Science and Technology, Mmamoloko Kubayi-Ngubane, collaboration between the youth from the five states will take the form of what she called “young researchers’ exchange”.
For Kubayi-Ngubane,“the inclusion of young people especially with regard to new tech and innovations should be prioritized as much as  the formal trade collaboration.
“Innovation [is] becoming the cornerstone for our economy going forward,” she told FORBES AFRICA.
<div id="attachment_37174" style="width: 750px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-37174" class="wp-image-37174 size-large" src="https://www.forbesafrica.com/wp-content/uploads/2018/09/Family-photo_km-1024x681.jpg" alt="" width="740" height="492" srcset="https://cms.forbesafrica.com/wp-content/uploads/2018/09/Family-photo_km-1024x681.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Family-photo_km-300x199.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Family-photo_km-600x399.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Family-photo_km-768x510.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Family-photo_km.jpg 2048w" sizes="auto, (max-width: 740px) 100vw, 740px" />(left to right) India&#8217;s Prime Minister Narendra Modi, President of China Xi Jinping, South Africa&#8217;s President Cyril Ramaphosa, President of Russia Vladimir Putin and the President of Brazil Michel Temer. Photo by Karen Mwendera.</div>
The BRICS countries, which account for 40% of the world’s population, have not been laggards with regard to technological advancements, with the World Economic Forum noting in 2016 that four of them – South Africa, Brazil, China and Russia – are in the top 100 list of countries with the latest technologies.
The President of BRICS’ New Development Bank, K V Kamath, says that some of their big investments “include power, port and renewable power”.
Analysts predict that BRICS could become as influential as the Group 7 (the USA, Japan, Germany, France, Britain, Canada and Italy) by 2027.
Therefore, the collaboration of BRICS nations is a key strategy to strengthen not just political powers but technological capabilities as well.
However, this collaboration calls for the redefinition of borders and going against the norms of sovereignty.
During the summit, emphasis was placed on establishing open economies. This would help foster easier trade between BRICS countries.
Within the hallways of the convention center, presidents Jinping and Ramaphosa shared a joke as they walked side by side towards the stage. They had caught up earlier.
China has dominated the trade relationship with South Africa, with some analysts going so far as to suggest that the world’s second largest economy is dumping goods in South Africa.
Dressed in black and a blue tie, the Chinese president said he was delighted to visit the Rainbow Nation once again and used his opening address to drive home a message clearly directed at US President Donald Trump.
“We BRICS countries should firmly promote an open world economy, be resolute in rejecting unilateralism and protectionism, promote trade and investment liberalization and facilitation, and jointly steer the global economy toward greater openness, inclusiveness, balanced growth and win-win outcomes for all,” he told the 1,000-plus business leaders present.
Among those present at the summit was Alan Mukoki, CEO of the South African Chamber of Commerce and Industry, which groups approximately 20,000 small, medium and large enterprises.
Mukoki said as desirable as having open economies among the BRICS countries is, it may have negative implications for those members not as developed as the others.
“You need to manage those things correctly, you need to say ‘let’s all start on an equal footing’. We start together and then when we are equal, we can then go and race an open race,” he told FORBES AFRICA.
“Even though I look fit, you can’t say that I should run the same race as Usain Bolt. It is not going to happen…otherwise we will destroy and decimate the economies of the region. South Africa’s economy cannot be big if the economies of the region are actually small,” he said.
Mukoki said the right mechanisms and strategies should be put in place in order for each member state to compete equally.
Others however remain hopeful.
South Africa’s Minister of Trade and Industry, Rob Davies, chose his words carefully when describing what South Africa is looking for regarding trade and investment in an open economy.
“It’s all about building regional value chains allowing us to up the value chain and become more sophisticated producers of industrial products and more value-added products,” he told FORBES AFRICA.
For South Africa, the involvement in BRICS is an opportunity to strengthen intra-Africa ties. A number of countries
<div id="attachment_37176" style="width: 310px" class="wp-caption alignright"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-37176" class="wp-image-37176 size-medium" src="https://www.forbesafrica.com/wp-content/uploads/2018/09/Break-the-Brics_GL-300x200.jpg" alt="" width="300" height="200" srcset="https://cms.forbesafrica.com/wp-content/uploads/2018/09/Break-the-Brics_GL-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Break-the-Brics_GL-600x400.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Break-the-Brics_GL-768x512.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Break-the-Brics_GL-1024x683.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2018/09/Break-the-Brics_GL.jpg 1736w" sizes="auto, (max-width: 300px) 100vw, 300px" />Trevor Ngwane, coordinator of the Break the BRICS coalition, hands over a memorandum of demands to South African Minister of Public Works, Thembelani Nxesi. The Group gathered outside the Sandton Convention Centre claiming BRICS in &#8220;anti-poor&#8221;. Photo by Gypseenia Lion.</div>
were invited to an outreach program of the BRICS summit, including Ethiopia, Angola, Zambia, Namibia, Senegal, Jamaica, Gabon, Togo, Uganda and Rwanda. Each presented opportunities to deepen their partnerships with BRICS countries.
&nbsp;
“BRICS is not in competition with anyone, BRICS seeks to work with the entire global community for the betterment of humankind,” said Anil Sooklal, ambassador for BRICS, to FORBES AFRICA.
“The summit is not the end, the summit is the beginning of a process.”
&#8211; By Gypseenia Lion and Karen Mwendera

dps2_gl

Towards An Open World Economy

Busi Mabuza, the Chairperson of the Board of the Industrial Development Corporation, on the BRICS summit and why we need to start talking as an African bloc.

If there’s one person who knows what’s good for investment, it’s Busi Mabuza, the Chairperson of the
Industrial Development Corporation (IDC), a national development finance institution promoting economic growth and industrial development in South Africa.
Exactly a month after the BRICS Summit, which brought together Brazil, Russia, India and China to South Africa in July, we met with Mabuza for her views on why such forums are key for Africa:
What, according to you, was the biggest outcome of the BRICS Summit?
The countries’ focus was on attracting investment, so we had presidents of the BRICS countries coming with goody bags to the country, especially President Xi Jinping who made quite a substantial commitment to investment in South Africa. What I liked most though was the ‘BRICS Plus’ approach. The invite to other African countries to be part of some of the sessions of BRICS, because with the Continental Free Trade Area Agreement, I think we need to start talking as an African bloc.
South Africa has a minute population compared to the other BRICS countries for us to be an attractive preposition to those large economies….we have to speak with the voice that talks for the rest of Africa as well. I also liked the fact that there was conversation in a concerted [way] at a BRICS women’s forum…I didn’t see the evidence of it taking shape yet, but the fact that it was a topic of discussion, that there were initiatives around it…I think is very promising and exciting.
One of the conversations at the conference was the focus on an open economy, what would that mean for South Africa and the rest of Africa?
We should have free trade between the BRICS partners and South Africa, precisely because South Africa is quite a small economy compared to the BRICS partners.
We export raw material to those countries, they export into South Africa finished goods. So the trade still needs to be developed. We need to migrate upwards in terms of our trade mix and portfolio mix, so that if the economies are open, if the trade is open and the tariff barriers are done away with, then it shouldn’t be to the detriment of one economy. There has to be a win-win complementarity.
The other aspect I think very important is the movement of people. We have visa requirements sometimes which are quite onerous and I think there was a lot of time dedicated to talking about those obstacles. People find that when they have investments in South Africa and bring professionals to the country, they can’t stay for a long enough period for them to actually get the business up and going before they go back in order to meet the visa requirements. I think the government is making a concerted effort on that front in trying to make sure visa requirements are not as stringent and do not become an obstacle for our trading partners.
As African countries, we now need to start working towards bringing down all the tariffs, trade tariffs and the non-tariff barriers between exchanging goods and services amongst the different African countries. It’s going to take long because some of the issues are quite complex…So that would be my understanding of opening up the economy. I think there are risks on the one side and opportunities on the other side. What’s important is we move in an orderly fashion and ensure that as we do so, there is a win-win proposition for all countries.
How important are summits such as BRICS for South Africa?
It feels as though we are reintegrating into the rest of the world. I think we were almost at some stage a pariah state but I think the fact that we have been received so warmly since the new president [Cyril Ramaphosa] early this year is a great positive because it means there’s a lot of goodwill in the rest of the world for us.
South Africa’s economy has been sluggish, mainly because of lack of investment. There are other challenges. Our unemployment rates are shocking. I was looking at the statistics compared to our BRICS partners – we are at 27% officially…The need is for us to attract not just the political goodwill of the BRICS partners, but their hard cash into the economy. Not just the portfolio flow – we are not looking for people who are going to buy shares on the stock exchange and sell them as quickly as they bought them if things go wrong – we are looking for people who will bring projects into South Africa, people who will create jobs for South Africans.
[For example], the Chinese, are known for bringing their local projects that they build in countries. But I think as long as the balance is a significant majority – South Africans employed in those projects – then it will be to our benefit. Then there are opportunities for us to show them a thing or two. We do well as far as women’s representation is concerned, not in the private sector, but in the public sector; we are still ahead of our BRICS partners.
You will be amazed that our rail and road infrastructure in terms of area is way ahead of the other countries. So there are opportunities for us to see whether our skill is taken to those countries.
At the IDC, how do you promote women in business and youth?
In the recent past, we have realized something we should have known a long time ago. People focus on what is measured, and we have therefore started measuring the amounts that are collected and dispersed to youth-owned and women-owned businesses and that has done wonders for us. Four years ago, we didn’t know how much of our funding was being dispersed to companies owned by women or was being dispersed to companies owned by young people.
Now, because management is incentivized to disperse a certain percentage of our funding to women-owned and youth-owned businesses, we are seeing more and more. There are years when – I think it was the previous financial year – we overshot our targets in terms of the amounts dispersed to youth-owned and women-owned businesses. We of course pay attention to our employment equity profile within but we also look at the employment equity performance of the businesses we invest in. That’s a space where we have seen sluggish progress but I think now that we are focusing on it, when people come and look for investment, we probe their employment equity profile. We see male management teams and we ask them why and how long it’s going to take them to bring in female talent and young people. And I expect that we will start seeing a shift on that front as well.
And if the IDC portfolio companies start living as good examples of what this country should be doing more and more, then I will be happy.
In August, the IDC approved a funding of R16.7 billion ($1.1 billion). What kind of businesses will that money go towards?
The companies are diverse. We need to be focusing on industrial development and a significant majority of the companies that benefitted from our R16.7 billion disbursement were industrial companies. However, because of where the economic cycle is, there’s quite a number of distressed companies. We’re a development financial institution, therefore, we would like to think of ourselves as patient investors. And where companies are distressed, but we can see there’s an opportunity to be viable down the line, we want to support them…
What are the new industries the IDC is currently looking at?
In fact, we have a new division called New Industries. We have recognized that for IDC and South Africa to remain relevant, we need to understand the 4th Industrial Revolution.
The new era businesses cannot be valued in a similar fashion as one would value the retail company where you look at the profits and you say ‘ok, the business is doing well’.
There, you look at the technology, you look at the potential of that technology and you support the business on that basis.
I was fascinated there is a company in South Africa working in the Internet of Things (IoT) space because it is tempting to assume that those new technologies are just being developed in the rest of the world but that South Africans have actually started companies in that space is exciting for me.

BusiMabuza_GL

Why We Need ‘Hard Cash In The Economy’

The past three decades have seen a marked step change in Africa’s international relations. While geography historically favoured a European focus &#8211; especially in North Africa &#8211; the continent has shifted its gaze to the East.
China has catapulted from being a relatively small investor in the continent to becoming Africa’s largest economic partner. Africa-China trade is poised to grow 20% year on year making it seem like dragons are the new king of the African jungle.
Investment in Africa has however been structured around Chinese ownership, with roughly 90% of firms either majority controlled or owned outright by Chinese nationals. There are estimated to be over 10,000 Chinese firms in Africa that have created work for several million Africans. This economic stimulus continues to have significant economic impact in communities riddled with historic economic disparities.
Chinese firms have shown remarkable prowess in sectors such as manufacturing, resources, and infrastructure. One of the first famous examples is the Tanzania-Zambia Railway built between 1970 and 1975, for which China provided a zero-interest loan of RMB980 million ($150 million). Sectors including agriculture, banking, insurance, transport and logistics, housing, information communications technology and telecommunications are poised to see significant shifts to Chinese firms. Chinese firms have the benefit of tried-and-tested business models which bear great similarities to the African marketplace.
<a href="http://www.forbesafrica.com/woman/2017/08/24/africas-time-animation/" target="_blank" rel="noopener">&#8216;It&#8217;s Africa&#8217;s Time For Animation&#8217;</a>
To ensure the sustainability of the Africa-China partnership, three key concerns need to be addressed: Corruption, personal safety, and language and cultural barriers.
Corruption has thrived in Africa’s current climate of political and economic impunity. Corruption creates and increases poverty and exclusion. While corrupt individuals with deep political ties enjoy a lavish life, millions of Africans are deprived of their basic needs like food, health, education, housing, access to clean water and sanitation. Violence and crime across the continent derail efforts to encourage community building and foreign direct investment. Language and cultural barriers can lead to clashes that lead to misunderstanding and ignorance of local regulations.
If these problems are left unaddressed, the misunderstandings &#8211; and potentially serious long-term social issues &#8211; could weaken the overall sustainability of the Africa-China relationship.
Chinese aid to Africa has been criticized as being a form of economic colonization. Politically aid has been used to create strong bilateral ties between African countries and China. Proponents highlight the structural benefits brought about by aid; downplaying the benefits to China in the form of profit, resource extraction, and the acquisition of service contracts to Chinese companies. In a nutshell, whichever country offers the greatest economic gains based on China’s growth strategy becomes a target for aid. Currently this strategy is geared towards partnering with resource-rich countries, which often lack the political and economic structures required to efficiently and effectively manage such bilateral trade opportunities.
The key challenge is to ensure that there is an effective political and economic strategy to piggyback off Chinese intervention to ensure broad based economic empowerment.
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Part of this strategy should include elements like building a middle class in Africa, developing African entrepreneurs, allocating factors of production, industry 4.0, innovative distribution, and public-private partnerships.
The current economic polarization in Africa needs to be addressed by actively creating a middles class. Clan-based economic feudalism needs to be replaced by an educated and economically engaged middle class. Economic empowerment in turn will promote political development leading to healthier international trade relations.
Entrepreneurship, while still in its African infancy, has made significant strides both domestically and internationally. Agriculture, manufacturing, retail, and tourism can act as an employment sponge for basic labour intensive work. While not a cornerstone employment strategy, it will lead to rapid, broad-based job creation, often requiring very basic skill sets. Further vocational training can be provided in these sectors to prevent generational skills gaps.
Effective allocation of factors of production &#8211; specifically land ownership &#8211; will be critical. It&#8217;s a sensitive subject given Africa&#8217;s colonial past, however it&#8217;s one governments need to address to start an ambitious national agricultural plan. The rapid growth of Africa&#8217;s population presents significant opportunities for our poultry and grain sector.
Industry 4.0 will make global manufacturing much more competitive in the future. Traditional industrial economies, such as Germany and the United States, expect the fourth industrial revolution to create many competitive advantages, reversing the trend to relocate manufacturing processes to low-cost countries and create new high-tech opportunities at home. Africa is ideally positioned to leapfrog into Industry 4.0 by adopting best practices seen in developed countries. This will enable African-owned manufacturers to effectively compete with Chinese companies.
Africa is at the tip of an economic renaissance that will see opportunities being created that were considered impossible a few decades ago. But, this requires strong leadership in both politics and business. Citizens in turn will have to hold their political leaders accountable, specifically promoting broad-based economic empowerment, to ensure that the maximum number of people benefit from this growth. &#8211; Written by Johan Hanekom
<div id="attachment_33408" style="width: 154px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-33408" class="size-full wp-image-33408" src="https://www.forbesafrica.com/wp-content/uploads/2017/09/Johan-Hanekom.jpg" alt="" width="144" height="144" />Johan Hanekom</div>
Johan is a globally recognized expert on strategy, innovation, and growth with an emphasis on corporate entrepreneurship. A believer in social entrepreneurship, his paper while at Oxford focused on developing a nation of social entrepreneurs in Africa.

Is China Really Helping Africa?

Murray Legg likes to build things. By the age of seven, he mastered carpentry and made money out of it.
“My grandfather loved woodwork and he showed me how to make little things like letter boxes, bird nesting boxes and tomato boxes. I sold these to my friends and made money out of it,” he says.
At 15, he bought his first shares. At 21, he built a business from the ground up. At 31, he hopes to change the face of medicine.
“I have always had a passion for math, science and biology. I have always been very happy looking for solutions to problems.”
Born the son of a miner in Klerksdorp, in the North West province of South Africa, Legg moved from mining town to mining town. He was a bit of a nerd who spent Saturday nights doing calculus.
<img loading="lazy" decoding="async" class="alignleft size-medium wp-image-4177" src="/wp-content/uploads/2017/04/Murray-432-200x300.jpg" alt="" width="200" height="300" />
Legg holds a biomedical engineering PhD; has four years investment banking experience and is an entrepreneur. He hopes to give people a new lease of life though his innovative business – SA Cardiosynthetics – that makes heart valve replacements.
The heart has four valves which open and close, preventing a backflow that could kill you.
According to Legg, half a million heart-valve replacements are performed around the world each year. Current devices only cater for patients in rich countries.
The idea for his business came to Legg while working at a medical devices company in Pretoria where he met valve surgeon, David Wheatley, and they set up SA Cardiosynthetics.
“My understanding of engineering and his understanding of the human body provided an opportunity for us,” he says.
Together they created a cheaper heart valve for emerging markets.
“Rheumatic fever is prevalent in the BRICS countries and heart valve replacements are needed to give the patient an extended life.”
Following successful animal trials and fatigue tests, the pair will bring in a global valve manufacturer to run human trials on its way to world approval from the Food and Drug Administration (FDA).
“Other valves are made out of carbon, cow or pig tissue. Our valve is made out of biostable polymer designed to offer patients a much longer life without the need for continuous medication.”
Legg says it will also create jobs through manufacturing.
These heart valves are expected to be in operation by 2016. SA Cardiosynthetics has been granted patents in the United States, Europe, India, China, Australia, New Zealand, Russia, Brazil, South Africa, Japan and Canada.
Starting the business was difficult because funders don’t always understand high risk investments. Now that Legg has the money in place, he believes it was woodwork, hard work and being different that got him there.
“At the time, everyone thought I was a nerd but I was very interested in how stock and equity markets work.”
It was at university where necessity proved the mother of invention.
“My dad said if I go to a university other than the University of the Witwatersrand I should pay for my own accommodation, so I took the risk because I wanted to study at the University of Pretoria.”
He had to make a plan to cover costs. It was a risk, but his marks convinced an engineering company to give him a bursary. Then he started a tutoring company, in his second year.
“Maths and science were problems for many people so my friend and I started a tutoring company. We would employ tutors for these subjects and the company started to grow.”
Penguin Tutoring is now franchized across the country.
“Stay at home mums work on the system we created, all they have to do is make calls and arrange with tutors… Over the course of 10 years, through this platform, we have created about 6,000 jobs for students,” he says.
Penguin Tutoring turned out not to be as big a money spinner as they would have hoped. Legg’s digital passion however grew and he partnered with Mike Sharman, in 2010, to start Retroviral Digital Communications, a digital agency that helps business improve online.
“We loved the idea of using digital to take out the right messages and make them go viral. That’s why we called it retroviral.”
In 2012, Legg founded Webfluential; a global platform that allows brand campaigns reach the right target market.
Webfluential is designed for social media, with a means to generate new revenue streams off the posts they have created. It employs 2,800 people.
According to Legg, technology businesses that address global challenges are on the rise.
“I have to be working in the entrepreneurial world rather than a corporate. All the things I do sound very different but they all have great commercial sense because they are very scalable and they have intellectual property which is protected.”
Legg may have been a nerd 20 years ago, but in the 21st century he has the heart an entrepreneur.

An Entrepreneur With Your Heart In His Hands

South Africa, a country heavily dependent on fossil fuels for its energy generation, is ranked 13th out of the 21 countries on KPMG’s 2013 Green Tax Index. The country releases 559 million metric tons of greenhouse gas a year and this figure is steadily rising. At a climate change conference in Copenhagen in 2009, South Africa committed to cutting emissions by 34%, by 2020.
Managing greenhouse gas (GHG) production can be done using tax levies or incentives. The South African government is proposing a mixture of the two. The tax can either be levied on upstream emission, which some companies can mitigate by changing the way they produce; on direct measured emissions or the downstream final product. Irrespective of the way in which the tax is implemented, it will eventually be passed through to the end user. Making a more pollutant end product more expensive will hopefully result in an environmental incentive for friendlier production.
Environmental tax isn’t new. The price of new cars already includes a form of environmental tax, which is why the discussion here isn’t whether or not to implement environmental tax but rather how the taxes should be expanded.
South Africa will be the first African country to introduce carbon tax and the second BRICS nation, after India initiated a nation-wide tax on coal produced in and imported into the country. The initial rate will be R120 ($11.5)/ton of carbon-dioxide, with various levels of exemption increasing at 10% a year during the first phase between 2015 and 2020.
South Africa’s carbon tax is postponed until 2016, in this time government will further investigate the tax’s impact on growth, job creation and other economic implications. The announcement of the tax sparked growing concern that carbon taxation may hold South African companies back.
The proposed tax will hit Scope 1 GHG emitters the hardest. These are emissions from sources that are directly owned or controlled by an entity. Sectors will receive an initial 60% discount, an additional 10% for those that compete internationally, 10% for process emissions; there is also the option for trade in carbon credits – granting another 5 to 10% relief.
According to a Nedbank Group’s sustainability carbon specialist, Marco Lotz, one of the barriers to implementation of the carbon tax is the lack of knowledge on carbon footprinting by all the stakeholders. He mentions that other aspects that should be expanded are the capacity of the institutions that audit and manage the magnitude of information that will be received by government institutions, as well defining who owns the carbon offsets.
The annual emissions of public utility company Eskom are around 228 million metric tons a year. It contributes 75% of South Africa’s carbon footprint. With a possible guaranteed discount of around 60 to 70%, further relief will need to be argued for. Eskom has mentioned it will pass on the effects of the tax to the consumer. South African consumers have already suffered through an avalanche of price increases by the utility company. Since 2008, there have been approved increases of 20% each year. An 8% annual increase, which began in 2013, will continue until 2018.
There is currently a R0.04/kWh ($1=R10.4) environmental levy on electricity included in the price consumers pay. At this stage, it will be replaced by an equivalent amount of carbon tax, leaving the price of electricity initially unchanged, proceeded by a 10% increase on the R0.04 each year.
“The current proposal will have a significant financial impact on the already high cost base of producing steel, estimated to be R630 million ($60 million) per annum. This is based on a 70% exemption and our steel production of around 5 million tons,” says steel maker ArcelorMittal – one of the country’s top emitters.
The company says that existing technologies for manufacturing steel do not allow for more carbon efficient alternatives and that there are no new technologies available either.
The estimated revenue from the tax is set at R8 billion ($764 million). There is uncertainty as to where this money will go, although there is talk of it feeding into the general state coffers, therefore not directly assisting in decreasing greenhouse gas pollution.
Government needs to ensure that the standards set are realistic and enforceable. A combination of tax, environmental regulations and investment in renewable energy projects could be the answer the world is looking for.

Carbon Tax Needs To Be Realistic

He calls himself an African optimist; in the coming days, he faces a test of this comforting belief.
Iqbal Survé has made millions investing in the continent, turning himself, in less than a decade, from a medical doctor into one of South Africa’s top entrepreneurs. Now, he faces controversy and opposition around his newest deal to buy a clutch of Africa’s most powerful newspapers.
At the same time, he will promote the continent in the global economy, as a member of the recently launched BRICS business council. South Africa came late to the party. It joined the group of significant emerging economies in April 2010, turning BRIC into BRICS, nine years after its inception. Today, the southern African nation plays an important role within the forum. It acts as a gateway to the continent for China, Brazil, India and Russia; as a catalyst for African integration. BRICS launched a business council in March, which consists of five key business leaders from each nation.
“The council is an important development to foster intra-BRICS economic ties. It will not only focus on trade, but also on technology transfer, skills development, banking, manufacturing and industrialization,” says Survé.
He will direct South Africa’s role within the BRICS council together with mining magnate Patrice Motsepe, Business Unity SA CEO Nomaxabiso Majokweni, Zungu Investment Company executive chair Sandile Zungu and Transnet CEO Brian Molefe.
“The members of the business council are people who understand the nexus between business, politics and economic growth,” says Survé, who serves as an economic advisor to South African president, Jacob Zuma.
The business council will work to boost trade, encourage entrepreneurs in member countries to pool capital and form joint ventures; while the five governments will usher in market access by easing visas, registration of companies and exchange controls.
“Our purpose is to create the smoothest possible interaction between companies,” says Survé.
Already, trade between BRICS and Africa has increased tenfold since 2002, with an estimated current value of $340 billion.
But there’s more to it. South Africa wants to use the BRICS business council to advance, not only, its own agenda but also that of the continent. Part of this will be moving trade relations with China, India, Brazil and Russia away from the narrow focus of commodity exports.
Africa’s progress is something close to Survé’s heart. The former ‘struggle doctor’ cared for political prisoners and victims of detention and torture during apartheid, including former South African President Nelson Mandela. He left medicine, in 1997, to launch investment holding company Sekunjalo Group, which is known for purchasing controlling stakes in firms to empower black workers.
Sekunjalo has investments in more than 170 companies and is South Africa’s top-rated black empowerment company. It comes as little surprise that Survé, from a poor family in Cape Town, has made a fortune from investing in oil in Africa and is regarded as an entrepreneur who is shaping the continent’s future.
“At Sekunjalo, we pay serious attention to skills development, corporate social investment, enterprise development and transformation. It’s a gentler form of capitalism that puts people before profits,” he says.
The newest acquisition by Sekunjalo could prove a test of these words. A consortium, led by Sekunjalo, bought the South African arm of Irish Independent News and Media for $200 million.
The deal means that Sekunjalo will acquire newspapers such as The Star, Pretoria News, Sunday Independent, Cape Times, Cape Argus, Mercury, Daily News, which employ around 1,400 people. There has been an uproar about the failure to disclose the identity of the other funders. Survé was sworn to secrecy by the Irish media house but revealed the funders in late June after a general meeting of the sellers, when it emerged that the Congress of South African Trade Unions (COSATU) and some of its affiliates comprise a major portion of Sekunjalo Independent Media’s (SIM) shareholding and that employees of Independent News and Media South Africa (INMSA), would get 10% of shares in the company. It has been reported that if the sale goes through, banks could write off €100 million ($133 million) of the group’s debt. Sekunjalo Independent Media, will claim 75% ownership, while the remaining stake is reported to be held by the Government Employees Pension Fund. But Survé has refuted this statement. Staff at the media group—who formed a trust to acquire the remaining 25%—say it is being bought by a newly formed company with no records, turnover or assets.
Away from acquisitions, Survé believes BRICS presents an opportunity for Africa to attract more foreign direct investment (FDI).
“FDI is key for development. Our continent is on the threshold of dramatic change. For the first time, we are at a point where all people might be able to access capital,” the black empowerment pioneer and philanthropist reckons.
This economic growth is closely tied to the continent’s fortunes, Survé stresses: “BRICS is not a South African exercise. It’s good for the whole of Africa and will lead to stronger bridges between South Africa and its African counterparts, too,” he says.
If all goes to plan, Africa could emulate the Asian tigers.
“Some African countries, like Mozambique and Ethiopia, do it already. Thirty years ago, China was in exactly the same place where Africa is today. It has seen enormous development from not being among the top 100 of the gross domestic products in the world to being the world’s second largest economy,” he says.
A key role of the BRICS business council, which will convene twice a year, is to examine business models.
“The idea is to learn the lessons of how some of the countries, such as Brazil and China, have achieved their phenomenal economic growth. How do they support the private sector? What policies and capital initiatives were put into place? What are the lessons in terms of infrastructure development?”
Survé stresses the fact that the formation of the BRICS business council does not mean trade relationships with western countries will be put on the back burner.
“From our perspective, we need the African economy to grow. For that to happen we need to do business with multilateral partners, whether they come from BRICS, North America or Europe.”
With his foray into newspapers, Survé may need nerve as well as optimism.

Activist Doctor  Turned Capitalist

In its five-year history, the community of countries that make up BRICS (Brazil, Russia, India, China and South Africa)—collectively home to 45% of the world’s population; 20% of output and whose contribution to global economic growth over the last decade has reached 50%—has been more pilloried than praised.
And its critics made it clear that they were not about to let up. Brazil’s Dilma Rousseff, Russia’s Vladimir Putin, China’s newly-elected leader Xi Jinping, host Jacob Zuma, and Indian Prime Minister Manmohan Singh, met again on March 26-27, for the first time on African soil, in Durban, South Africa. They were joined by 15 of Africa’s 54 heads of state.
Bold announcements at the end of the summit did not seem to placate the critics either—including the decision to create a Brics development bank that could rival the World Bank and the IMF; the signing of a Contingent Reserve Agreement (CRA) to pool $100 bilion from the five countries’ reserves; as well as a Multilateral Agreement on Co-operation and Co-financing for Sustainable Development.
Although grudging acknowledgements were made here and there and backhanded compliments were given, the coverage of major American and British publications was around inherent problems within and among the BRICS countries.
“The alliance faces serious questions about whether the member countries have enough in common and enough shared goals to function effectively as a counterweight to the West. For all the talk of solidarity among emerging giants, the group’s concrete achievements have been few… partly because its members are deeply divided on some basic issues and are in many ways rivals, not allies, in the global economy,” wrote the New York Times.
Parallels were drawn between India, Brazil and South Africa’s strong democratic traditions on the one hand, and Russia and China’s autocratic one on the other, although the good democrats were not spared either. The host country came in for a hiding for its small economy and anemic growth rates, while Brazil’s economy had cooled drastically, and India’s hope of reaching double-digit growth had ebbed.
The BRICS economic development ministers, met ahead of their heads of state to tie down decisions for final approval. They must have wondered as to whether there was any co-incidence in the release, the day before the BRICS summit, of a comprehensive report of the United Nations Conference on Trade and Development. The detailed report showed how the BRICS countries hardly invest in one another, preferring their neighbors and the developed world’s major economies instead, like those of the European Union, the United States and Japan.
Previous remarks of President Zuma, criticizing the way trade was conducted between China and the African continent were hauled out to show how he had appeared to have a change of heart before the summit meeting. But the same was not done to Sanusi Lamido Sanusi, the 2011 FORBES AFRICA Person of the Year and head of Nigeria’s central bank, who has been just as critical of the International Monetary Fund (IMF) and the World Bank as he was in the opinion article published in The Financial Times about how China has grown to be “a significant contributor to Africa’s de-industrialization and underdevelopment”.
The morning after the summit, China threw a lavish breakfast for the African heads of state. There are no prizes for guessing why it felt the need to do so.
With the promises of the BRICS heads of state from the previous afternoon’s session gnawing at their minds, African leaders were queuing up, one by one, at the office of their host. The purpose of the meetings were to strike the iron while it is still hot—ostensibly to open discussions that could lead to trade deals and to make sure they were not taken for a ride as guests who just came to hobnob and have a party.
Indeed, the time for African leaders to party and enjoy crumbs falling from their dishonorable colonial friends, while the looting of the continent’s resources continues unabated, is over. And so too should be the growing tendency of having too few people—usually a motley bunch of well-connected, cigar-puffing, whisky-drinking and posh-car-driving elite—benefitting handsomely from the opportunities that are being created by the world’s renewed focus on the continent.
According to Standard Bank, BRICS-Africa trade will increase threefold, from $150 billion in 2010 to $530 billion in 2015. Between 2010 and 2015, BRICS’ share of Africa’s total trade will increase from one-fifth to one-third and BRICS FDI stock in Africa will swell from around $60 billion in 2009 to more than $150 billion by 2015. The IMF also conducted a study, which indicated that the trade and investment from BRICS to low-income countries was deemed as a critical factor to protect them from the shock of the recent global recession.
With all its remaining problems and imperfections, Africa is a much better place today than it was two decades ago. But leaders would do well to remember that the reason coup d’états are frowned upon, elections are held regularly, and governments are a lot more open and transparent, is because Africa’s people are ready to take care of their own destiny, if they feel that their leaders are betraying their trust.
BRICS and many other opportunities that are sure to come our way need not be squandered.
And given our dreadful colonial past, now is the time to be even more vigilant. It’s the only way to deal with the derision emanating from pretentious, ideological dispositions of the western media, its commentators and research institutions—all of whom seem to have conveniently forgotten how they built their countries on the carcasses of Africans, their mineral resources, and how those structural adjustment programs imposed on the ‘dark continent’ by the IMFs and the World Banks of the so-called first world, have continued to play their part in strangulating many an African country, to this day.

How To Strangle Africa

The selection of Hage Geingob as a future presidential candidate, during the party congress, has been widely seen as the end of the 50 years of liberation politics, which former President Sam Nujoma had dominated. A sigh of relief by the local and international business community—who feared a Zimbabwean-like land nationalization program and a confiscatory tax regime, had either of his opponents won—was heard across Namibia.
While he still has to face national and presidential elections in two years’ time, Namibia’s single-party dominant system is such that only a major political catastrophe would prevent Geingob from replacing President Hifikepunye Pohamba in 2015.
Geingob was Namibia’s prime minister since independence, in 1990, until suddenly being dismissed by Samuel Nujoma in 2002. He was banished to the political wilderness for five years before being re-appointed as prime minister by Pohamba in a transitional Cabinet that is notable for its promotion of technocrats.
Government insiders said that Geingob’s surprisingly easy victory over the more trenchant elements of the party, that has ruled Namibia since independence, would now see the country adopt a more developmental economy model. This is opposed to its current ‘mixed economy’ approach, whose success, to a large extent, would depend on oil and gas being discovered off the Namibian Atlantic coastline.
Geingob’s approach was not at variance with the ruling party’s official policies, his stress on an energy-based economy, which is needed to bring development to rural areas and address massive unemployment of more than 53%, was one that would see the state take on a more assertive role in developing the economy, according to analysts.
While the details still are not clear, chances are that Namibia under Geingob will adopt a policy of national champions as espoused by the Asian Tigers. This will boost local manufacturing and the development of so-called ‘energy corridors’ linking Namibia to its land-bound neighbors such as Botswana, Zambia and those further afield such as the Democratic Republic of the Congo, amongst others.
“The Namibian government under Geingob is increasingly likely to look towards the other BRICS (Brazil, Russia, India, China and South Africa) countries for development partners because of the ongoing crises in the Euro and Dollar areas,” says Professor Andre du Pisani, head of the University of Namibia’s Economics department and a high-level government advisor.
The stress, he said, would be more on pragmatic politics and economic cooperation, rather than the ideological stance that has characterized much of SWAPO’s 50-year-long history as battler of imperial colonialists.
As a stable democracy blessed with good, if not super-abundant, resources supported by a strong mining industry; a world-class fisheries sector and good tourism potential—Namibia has never quite met high expectations because of a lingering ideological rift between moderates and hard-line nationalists that often saw executive decisions getting bogged down in turf battles.
Geingob has made much of the fact that while the country, and its ruling party, has adopted progressive policies over the past 22 years, where it most often failed was in implementing those policies. His political victory as a moderate has raised hopes that the economy would now get out of the blocks and overcome its political inertia.
And signs are that this time, this could actually happen. In what amounted to the biggest surprise over the outcome of the party’s congress, incumbent President Pohamba announced a sudden major Cabinet reshuffle two days later that firmly sidelined the hard-line factions without totally alienating them by re-assigning half of the 24 ministerial positions in a careful political balancing act.
Former regional government and housing minister Jerry Ekandjo, who is Geingob’s strongest opponent and a noted party hardliner and Nujoma loyalists, who backed by the party’s youth league had waged an increasingly nasty campaign for the presidential nomination, were re-assigned to the ministry of youth and sports instead.
Former justice minister and party secretary-general, Pendukeni Iivula-Ithana, who had hopes of becoming Namibia’s first female president, was thrown a political lifeline by being handed the politically powerful home affairs portfolio. This after she switched her support to Geingob during the congress, rather than supporting Ekandjo, whose political views she echoes.
And to keep everything in the family, Utoni Nujoma, who first backed Iivula-Ithana but then switched back to Ekandjo, was handed the justice portfolio.
He was replaced by technocrat Netumbo Nandi-Ndaitwah as foreign affairs minister.
Pohamba, who had taken over from Nujoma as his preferred candidate in 2004, has always labored under the perception that he was a mere figurehead doing Nujoma’s bidding; this amounted to his greatest political moment in the 50 years he has lived in Nujoma’s shadow: “Going out with a bang,” as he had put it to a political confidante.
His open backing of Geingob, which upset the other two candidates no end, has effectively allowed him to bestow his own legacy upon the party by helping to elect the first non-Oshiwambo person to the country’s most powerful office and so bring to an end to Nujoma’s domination of a party he helped found in 1960.
Geingob’s victory also saw moderates make a clean sweep of all the top offices in the party hierarchy; putting paid to a mooted plan to have the hard-line Ekandjo take over the presidency for one term in order to prepare the way for Nujoma’s son, Utoni, to have a clean run at the presidency in 2019.
In his closing speech to the congress, Pohamba, with uncharacteristic frankness, referred to a “watershed” moment in the party’s history. Although he did not say so, the message was clear after Nujoma had called for a female presidential candidate, allegedly to split the pro-Geingob vote and hand victory to Ekandjo, only to see Iivula-Ithana humiliated with a mere 10% of the vote as delegates deserted her in favor of Geingob.
All agree that the rising resource nationalism as espoused by the hard-line factions in the party had now been taken off the table, although questions remained how an even-handed Geingob would be in framing policies as future president, says Graham Hopwood, director of the Institute for Public Policy Research (IPPR), a local think-tank.
“The question hanging over the Geingob candidacy is whether he will be able to distance himself from the interests of big business when making executive decisions and crafting policy,” Hopwood noted.
On the one hand, Geingob fought off Walmart’s proposed entry into the local market as not being in the interest of Namibia, but then also granted special tax status to French nuclear company Areva, a benefit that other uranium miners did not have, according to Hopwood.
This latter aspect is perhaps the most troubling aspect in an otherwise newly optimistic landscape: Geingob has admitted to receiving a $300,000 consultancy fee from Areva, albeit while still just a party backbencher in 2007.
But at least one can now expect that any future political debate over Namibia’s future would be centered on issues, rather than personalities, and that in itself amounted to major political progress, all agreed.

Tag: BRICS

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