Ramaphosa warns BRICS against a new raw-material trap for Africa
Ramaphosa urges BRICS local manufacturing boost as President Cyril Ramaphosa warns that Africa must not remain trapped in a system where it exports raw materials while higher-value manufacturing and processing take place elsewhere.
Speaking at the BRICS Business Forum Leaders’ Dialogue in New Delhi on Friday, Ramaphosa called on governments and businesses within the expanded BRICS grouping to direct investment towards manufacturing, industrial technology, mineral beneficiation, energy systems, infrastructure and logistics.
The South African president said stronger trade between BRICS countries would have limited impact if it did not help developing economies build productive capacity and create more opportunities for local industries.
Ramaphosa BRICS warning: Africa must add value
The Ramaphosa BRICS warning centres on the long-standing economic pattern in which African countries export minerals and other commodities while importing finished products that contain greater technological and economic value.
Ramaphosa argued that BRICS should not reproduce this model among its own members as the bloc expands and seeks to strengthen economic cooperation across the Global South.
He warned that Africa should not simply become a larger source of raw materials for other economies.
The president called for investment that establishes production facilities within developing economies and builds local industrial capabilities.
According to Ramaphosa, companies should look beyond using emerging markets simply as destinations for their products. Instead, they should consider establishing manufacturing operations, developing skills and creating supply chains in the countries where they invest.
This approach, he argued, could help developing economies capture a greater share of the value generated from their natural resources.
Africa raw materials remain a major concern
The issue of Africa raw materials is particularly important because the continent possesses substantial deposits of minerals considered strategically important to the global economy.
These include minerals needed for energy technologies, manufacturing and infrastructure development.
However, simply possessing mineral resources does not automatically guarantee broad economic development.
Ramaphosa’s argument is that countries need greater participation in the stages of production that occur after minerals are extracted.
Instead of exporting raw commodities, countries could process them locally, manufacture products from them and develop industries around their production.
That could create opportunities for employment, skills development, technology transfer and new businesses.
For South Africa, this issue is closely connected to efforts to expand industrial capacity and attract investment into sectors with long-term growth potential.
BRICS economic development requires investment
The president’s call for stronger BRICS economic development comes as the organisation faces major changes in the global economy.
BRICS has expanded beyond its original membership and is increasingly positioning itself as a platform for cooperation among developing and emerging economies.
Ramaphosa said changing global trade patterns, rapid technological advances and climate pressures were creating an important opportunity for BRICS.
Rather than simply increasing the volume of goods traded between members, the bloc should focus on building deeper production relationships.
This would mean countries working together to manufacture goods, develop technology, improve infrastructure and establish more resilient supply chains.
Ramaphosa said governments have an important role to play by creating conditions that encourage investment and trade.
Businesses, meanwhile, need to identify opportunities for production, partnerships and commercial expansion.
The president also called for the BRICS Business Council to play a more practical role in transforming discussions into actual commercial relationships.
The council was established during South Africa’s BRICS chairship in 2013 to strengthen private-sector participation in the group’s economic programme.
From trade discussions to production partnerships
Ramaphosa’s argument is that BRICS cooperation should move beyond meetings and declarations.
For developing economies, the real benefit of stronger economic relationships should be measured through investment, factories, infrastructure, jobs, technology and increased productive capacity.
This could be particularly important for countries that have traditionally depended heavily on commodity exports.
A shift towards manufacturing could also make economies less vulnerable to fluctuations in international commodity prices.
The president described the current period of global economic disruption as an opportunity to create a more diversified and inclusive economic future for the Global South.
Mineral beneficiation could transform Africa’s role
Mineral beneficiation was one of the key areas highlighted by Ramaphosa.
Beneficiation refers broadly to processing minerals so that they become more valuable before being exported or used in further manufacturing.
For mineral-rich African economies, increasing beneficiation could allow more economic value to remain within the continent.
Instead of exporting minerals in an unprocessed or minimally processed form, countries could develop industries that process those resources into higher-value materials and products.
This could potentially strengthen domestic supply chains and create opportunities for companies operating in mining, manufacturing, engineering, logistics and technology.
Ramaphosa’s message therefore links mineral beneficiation with the broader question of industrialisation.
The objective is not necessarily to stop commodity exports, but to increase the amount of economic activity that takes place locally before products enter international markets.
South Africa BRICS trade takes centre stage
The focus on South Africa BRICS trade is expected to continue during discussions between South African and Indian business leaders.
Around 130 South African business leaders travelled to India as part of efforts to strengthen commercial and investment relationships with BRICS members and partner countries.
The delegation includes representatives from the South African chapters of the BRICS Business Council and the BRICS Women’s Business Alliance.
An India-South Africa Business Leadership Roundtable is also expected to focus on expanding bilateral trade and investment.
The Presidency said South Africa would seek greater Indian investment in areas including pharmaceuticals, infrastructure, critical minerals and the electric-vehicle battery value chain.
These sectors are particularly relevant to Ramaphosa’s argument because they offer opportunities to move beyond the export of raw commodities towards higher-value production.
India-SACU trade negotiations
The discussions come weeks after India and the Southern African Customs Union, which includes South Africa, revived negotiations for a preferential trade agreement.
The two sides signed terms of reference for the negotiations in August.
The proposed arrangement would reduce tariffs on selected products rather than establish a comprehensive free-trade agreement.
India is seeking improved access for exports such as vehicles, pharmaceuticals and industrial machinery, while the customs union is looking to expand exports to the Indian market.
For South Africa, the bigger question will be whether increased trade produces greater domestic manufacturing and processing capacity.
Closer commercial relations could create opportunities for South African companies, but Ramaphosa’s warning highlights the importance of ensuring that investment contributes to local economic development.
BRICS faces a changing global economy
The Ramaphosa urges BRICS local manufacturing boost message comes at a time when governments and businesses worldwide are reconsidering global supply chains.
Geopolitical tensions, technological change, climate pressures and disruptions to international trade have increased attention on where goods are manufactured and where critical resources are sourced.
BRICS could potentially use these changes to establish stronger production networks between member economies.
For Africa, that could mean greater participation in industries linked to critical minerals, renewable energy, electric vehicles, pharmaceuticals and advanced manufacturing.
However, achieving this would require substantial investment in infrastructure, energy reliability, logistics, skills and technology.
Ramaphosa’s remarks therefore represent a broader call for BRICS to make economic cooperation more focused on production rather than trade alone.
YOU MAY LIKE:
President Ramaphosa to attend 18th BRICS Summit in New Delhi
What Ramaphosa’s BRICS message means for Africa
The central message from the president is that economic partnerships should deliver more than increased imports and exports.
Ramaphosa urges BRICS local manufacturing boost because South Africa and other African economies need stronger productive industries if they are to capture more value from their natural resources.
The challenge will be turning political commitments into investment projects that create factories, jobs, skills and sustainable businesses.
For South Africa, stronger relationships with India and other BRICS economies could provide opportunities to attract investment into manufacturing, infrastructure and critical-mineral value chains.
Ramaphosa also held a bilateral meeting with Russian President Vladimir Putin during his visit, with discussions focused on renewing high-level engagement, strengthening relations and addressing issues of mutual concern.
The upcoming BRICS Summit is expected to consider trade and investment, reform of global institutions and the expanded bloc’s role in advancing the interests of the Global South.
Ultimately, Ramaphosa’s warning is about ensuring that Africa does not repeat an old economic pattern under a new international partnership.
If BRICS succeeds in promoting local manufacturing, mineral beneficiation and technology transfer, the expanded bloc could provide developing economies with opportunities to move higher up global value chains.
For South Africa, the priority will be ensuring that South Africa BRICS trade delivers tangible domestic economic benefits while supporting industrialisation, employment and long-term economic development.
References from mainstream media
- SABC News – “President Ramaphosa to attend the 18th BRICS Summit in India” — Covers South Africa’s push for stronger intra-BRICS trade, investment, industrialisation and infrastructure ahead of the New Delhi summit. Read the SABC News report
- Reuters – “India hosts BRICS summit as Iran war tests bloc unity” — Provides broader context on the 2026 BRICS summit, the bloc’s expansion and its economic and geopolitical role. Read the Reuters report
- IOL – “Ramaphosa: R1 trillion infrastructure drive must rebuild SA’s industrial sector” — Reports on Ramaphosa’s push for local manufacturing, mineral beneficiation, battery manufacturing and green-industry opportunities. Read the IOL report
- SABC News – “SADC must work together to realise regional integration: Ramaphosa” — Covers Ramaphosa’s call for Southern Africa to drive its own industrial revolution and increase local processing of critical minerals and agricultural products. Read the SABC News report
Support Independent Journalism with eKayNews! 📰✨
At eKayNews, we are dedicated to bringing you honest, independent, and reliable news. But we can’t do it alone—independent journalism relies on the strength and generosity of its community.
If you value our work, please consider supporting us today! You can help keep us going by choosing a subscription or simply buying us a one-off virtual coffee:
👉 Support us here: ekaynews.co.za/subscribe-form/
You can also support our mission by visiting our main site at www.ekaynews.co.za and following @eKayNews on all social media platforms.
Thank you so much for your incredible generosity and for being part of our journey! 🙏💙
