Geopolitical Risks to Global Supply Chains Warned by South Africa's Deputy Minister

South Africa’s Deputy Minister for Trade, Industry and Competition, Zuko Godlimpi, highlighted the adverse effects of geopolitical fragmentation on global supply chains at the 14th BRICS Trade Ministers’ Meeting in Moscow. "Multilateralism today is under threat from global fragmentation as a result of geopolitical frictions. This fragmentation does not bode well for the resilience of global supply chains and could set back the gains developing countries have made over the years. We need to push back, defend the foundational principles of these institutions, and strive for meaningful development outcomes," Godlimpi said.

Strengthening Multilateral Trading Systems

Godlimpi stressed South Africa's commitment to reinforcing the multilateral trading system and supporting World Trade Organisation (WTO) reforms that foster development. "Strengthening the rules-based multilateral system is essential, especially to protect developing countries against the interplays of power. We can use the system to pursue our shared development interests. It is important that we amplify our voice and build a critical mass that orients the multilateral trading system towards promoting development," Godlimpi said.

The Deputy Minister also noted a troubling trend where developed nations are undermining key principles in multilateral forums. These include special and differential treatment in the WTO and Common but Differential Responsibilities and Respective Capabilities (CBDR-RC) in the United Nations Framework Convention on Climate Change (UNFCCC).

BRICS and African Development

Godlimpi emphasised that South Africa’s involvement in BRICS has significantly positioned Africa on the global economic and investment stage. "The BRICS countries constitute Africa’s largest trading partners and an important part of the continent’s investment community. South Africa will continue to use the BRICS platform to advance the developmental interests of Africa and promote the African Continental Free Trade Area AfCFTA," Godlimpi shared.

He urged member countries to focus on more balanced trade involving higher value products to boost trade and investment within BRICS. "We are of the view that cooperation on joint value chains should aim at diversifying production and supporting industrialisation objectives of the BRICS members and developing countries in general," he said.

Promoting Industrialisation through Joint Value Chains

Godlimpi highlighted the importance of creating effective joint value chains to promote industrialisation, enabling BRICS nations to integrate into the global economy on favourable terms. He also pointed out that South Africa supports initiatives aimed at enhancing mineral beneficiation on the African continent.

"South Africa encourages all BRICS members to work together to enhance mineral beneficiation – value addition of mineral resources closest to source for the decarbonisation goals, and to offer the world products it needs and not just raw materials," Godlimpi said.

The Deputy Minister concluded by reiterating South Africa's dedication to using its participation in BRICS to further African development goals. By leveraging this platform, South Africa aims to ensure that Africa remains a significant player in global trade and investment.