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By William Gumede
African countries must overhaul their current investment model with BRICS countries, which is not working optimally for the continent, if they are to unlock growth, economic development and poverty reduction more widely. 19659004] The current BRICS 'company Africa investment model can boost growth, but it does not reduce poverty significantly, nor does it create wealth. Furthermore, the BRICS 'company African investment model does not transfer technology, upgrade African countries' skills in African businesses.
In fact, the current BRICS' Africa company model creates high growth rates, creates wealth for only Small African elites, but a large volume of jobs and large incomes for BRICS countries
South Africa must push for a new BRICS 'Africa investment model company, which would encourage a higher quality of economic growth in African countries, which could
BRICS 'company is a BRICS company based in the United States of America.
BRICS companies extract African raw materials, or low-cost textiles gold cement, and export these back to BRICS countries to be turned over to new products, and then to those markets or to other countries. This BRICS companies also invest heavily in African infrastructure.
Furthermore, the investment model often comes with mbadive environmental destruction, social disruption and ignorance of basic workplace and human rights. There are often little consultation of local communities.
Low skills, low wages
In some African countries with more advanced infrastructure, skills and resource base these from African countries.
In such cases, producing semi-finished goods based on low-skills, low wages and low costs, and low infrastructure investment exporting raw materials.
China, in the manufacture of low-cost, low-cost, low-cost manufacturing, and the production of more value-added, more advanced products, as it has been mastered new technology,
Currently, many countries in South-East Asia, such as Vietnam, Indonesia and Cambodia, have taken C hina's place, producing low-cost, unskilled plowing for Chinese companies.
BRICS investment model, based on low-cost, unskilled labor and low investment, to produce more value-added advanced products.
BRICS companies would invest in African countries, and the continent becomes a factory for BRICS countries, BRICS company-owned mines, factories and farms at low wages, at low costs low capital investments.
New opportunities
The BRICS investment model has turned Africa into a globally positive investment story, rewriting Africa's narrative into one of new opportunities, rather than the old narrative of the continent being a burden, waiting for handouts from the West and form colonial powers
However, African countries appear to remain stuck in the low-cost, unskilled labor, low wage BRICS-Africa investment model; unable to move up the production value chain, with more value added products and services. The current dominant BRICS companies' investment model has been established with Africa's present lack of interconnected infrastructure.
BRICS companies investing in Africa based on this investment model has often invested in African infrastructure, which takes their investment from the source of production to the coast or an airport for export to the BRICS countries.
Furthermore, this BRICS investment model has not yet been interconnected with other growth areas.
BRICS companies extracting the continent's raw materials and their resources, and finishing them at higher value products and selling them at higher prices prices.
South Africa must push for a sustainable BRICS-Africa investment model. In such a new model, African countries could identify investment opportunities, according to a development plan.
African countries have an industrial plan, which will be used in developing countries. , they can then invite BRICS companies to invest. BRICS companies are present in the United States.
BRICS companies. In these equity partnerships, there should be technology, management and skills transfer as a requirement for the transaction.
BRICS companies must refine the African raw materials at the African source and then export the semi- or fully-refined products to global markets . This way, more jobs are likely to be created.
If there are no existing African companies, BRICS companies could be compiled to bring small local companies companies in Taiwan, South Korea, Taiwan, South Korea Taiwanese South Korean conglomerates.
BRICS companies could then be required BRICS companies manufactured products.
The BRICS New Development Bank (nbsp) brics companies providing manufacturing semi-or fully-refined products for the manufacture of goods and materials for the manufacture of goods for the United States
South Africa, as a voice for Afric BRICS 'company Africa investment model, which delivers low-quality growth, to one that produces a higher quality growth.
A new BRICS company Africa investment model needs more wealth, more wealth to Africans; and transfer technology, upgrade African businesses.
Finally, a new investment model and environmental protection and community participation safeguards at its core. The BRICS NDB, when it finances BRICS company investments in Africa, must ensure that in return for funding companies adhere to minimum environmental, workplace and human rights participation community safeguards.
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