As far as South African agribusiness is concerned, improving fertiliser availability, and advancing trade and investment between Brics countries should be the top priorities at the upcoming fifteenth Brics Summit.
This past week, the business councils of the Brics Group – Brazil, China, India, Russia, and South Africa – gathered virtually to discuss a range of priorities for the year in preparation for the 15th Brics Summit in August 2023.
Within the Agribusiness Working Group, chaired by the Agricultural Business Chamber of South Africa (Agbiz), there are five priority areas for the year.
Most urgent points
According to Wandile Sihlobo, Agbiz chief economist, in all these priority areas, the most urgent point for South Africa is trade and investment, as well as the improvement of fertiliser availability.
“On trade, the main interests of South African agriculture and agribusiness in the grouping are advancing exports, specifically to China and India,” Sihlobo said. “These countries have relatively solid economic growth prospects and large populations (and therefore markets).”
Brazil tends to be a competitor with South Africa in major agricultural commodities, while Russia is an important market for South African fruit and a major supplier of wheat.
Through the trade and investment workstream, the Agribusiness Working Group hopes for business facilitation and sharing of information about export opportunities in each country. They also hope this workstream will assist in connecting businesses with government officials when trade-related challenges require urgent attention.
Another key focus area for South Africa is the availability of fertiliser and use among Brics countries and the broader African continent.
Sihlobo explained that the theme will explore ways of boosting fertiliser production and trade among Brics countries.
“This theme also aligns with the African Union Strategy of Agriculture, which recognises that fertiliser usage has increased agricultural productivity and reduced poverty. All Brics countries will share their expertise on soil health, fertiliser usage and trade information,” he said.
Other important themes
Best practices on agricultural sustainable development among Brics countries
All the Brics countries are major agricultural role players, and climate change presents a significant long-term challenge for agricultural production. This workstream will build on the work started by the China chapter in 2022. There will also be a focus on information sharing about climate change initiatives.
Moreover, Brics countries will prioritise knowledge sharing on agri-technology. With the growing adoption of various technologies to improve farming efficiencies and productivity, there is a need for Brics countries to continuously share information about the available technologies in their countries that could benefit other members. This will also be a business opportunity for exporting services.
Agricultural finance
The drive towards smart climate agriculture and the adoption of new farming methods, such as the European Union’s Green Deal, requires new ways of production and investments in global agriculture. This requires innovative ways of financing. Given that some Brics members are more advanced in their agricultural sectors than others, information sharing about agricultural finance and domestic experiences would be valuable.
Academic interactions for the private sector benefit
The working group will explore the academic programmes to align research and collaboration between academic and private sector role-players.
These workstreams were adopted by the Brics global teams this past week and will be the primary work areas for the agriculture and agribusiness sectors. The expected outcome or model of delivery in each of the work streams will include business facilitation, seminars, and research papers. Importantly, Brics is a political grouping, not a free trade agreement.
Therefore, there will remain some limitations in facilitating trade, although the group offers the opportunity to highlight the hindrances that each country experiences regarding trade. The South African agribusinesses will be represented in these discussions through Agbiz, and some can join the South African working group to help deliver these priorities.
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