Johannesburg, Wednesday 27 March 2013 – The 5th BRICS Summit taking place in Durban South Africa, themed “ BRICS and AFRICA: Partnership for Development, Integration and Industrialisation” today announced the establishment of a BRICS Development Bank and the BRICS Business Council. Brand South Africa welcomes the announcement as a significant step that will allow for the further deepening of relations among BRICS members.
It is crucial that right at the beginning there is a structured involvement of the business community across the BRICS countries. This will ensure that multilateral agreements that are made across these countries are given economic meaning and can result in increased trade amongst the BRICS countries. The CEO of Brand South Africa Mr Miller Matola said that Brand SA acknowledges that the Summit takes place at a time when the world is experiencing a seismic shift in economic power towards the BRICS and one that is set to continue well into the future.
“Whilst the most highly developed countries are battling to find the necessary solutions to address the continuing impact of the global economic contraction, and are looking more towards consolidation and risk mitigation, the BRICS countries are focused on development, expansion and investment.” said Matola. The key difference is that this bank will be expected to take more risk on development projects as opposed to current existing western development finance institution.
As the newest member of BRICS, which represents almost 3 billion people, a combined GDP of US$ 14.9 trillion and an estimated US$ 4 trillion in combined foreign reserves, this represents good news for South Africa, providing access to unprecedented opportunities for growth.
This body powerful catalyst to stimulate and facilitate development in South Africa, providing access not only to new and developing markets, but also the opportunity to play a significant role in building new and mutually beneficial commercial links for the country’s business and industry, and generate new foreign direct investment for key projects. “We congratulate all the members of the new body especially those that are representing our country – and wish them well in this important responsibility” said Matola.
Brand South Africa is particularly pleased by the establishment of a BRICS development bank. This concept was mooted at the 4th BRICS Summit held in India last year and has now been finally endorsed by all the BRICS countries. . We believe that the BRICS development bank would be not only to strengthen economic cooperation between member countries, but also to mobilize resources for infrastructure and sustainable development projects in BRICS emerging economies. The CEO of Brand South Africa, speaking on the side lines of BRICS sais “The establishment of a BRICS development bank could, in the future, provide an alternative source of development financing for major initiatives such as the National Infrastructure Plan roll-out and a further opportunity for cooperation between South Africa and fellow BRICS nations- It must be embraced with all its possible imperfections”.
Issued by Brand South Africa
Note to Editors
Brand South Africa, previously known as the International Marketing Council of South Africa, officially changed its name to best align with its mandate of building South Africa’s nation brand reputation in order to improve its global competitiveness.
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