By William Gumede
African countries should review their current investment model with BRICS countries, which is not working optimally for the continent, if they want to unlock growth, economic development and reduce poverty to a greater extent.  The current investment model of the BRICS company in Africa can boost growth, but it does not significantly reduce poverty, neither create massive jobs nor widely distribute wealth. In addition, the investment model of Africa of the company BRICS does not transfer technology, improve the skills bases of African countries or create new African companies.
In fact, the current African investment model of the BRICS company creates high growth rates in Africa, creates wealth only small African elites, but creates massive jobs and large incomes for BRICS countries at an economic pace.
South Africa must push for a new African investment model of the BRICS company, which would encourage higher-quality economic growth in African countries, which could create more African companies, distribute wealth more widely and encourage more employment.
The current investment model in Africa of the BRICS company is based on BRICS companies that buy mines or farms and establish factories in Africa, using unskilled African labor, producing at low cost and with relatively low investments.
BRICS companies extract African raw materials, or manufacture textiles or cement at low cost, and export them back to the BRICS countries to convert them into refined products, and then sell them in markets of emerging or industrial countries or back to countries Africans at higher prices. The investment model of the BRICS company in Africa does not require that the BRICS companies invest massively in African infrastructure.
In addition, the investment model is often accompanied by massive destruction of the environment, social disorganization and ignorance of the basic workplace and human rights. There is often little consultation with local communities.
Low skill level, low salaries
In some African countries with more advanced infrastructure, capabilities and resources, BRICS companies produce semi-finished products, rather than just raw materials and exports. these from African countries.
In such cases, the production of semi-finished products is still based on low skills, low wages and low costs, and low investment in infrastructure, although it may bring more jobs for African countries, than just extracting and exporting raw materials.
China in its rise to be a global manufacturing giant, initially produced unskilled and low-cost labor, products for industrial companies, and then eventually moved up the value chain, producing more added value, more advanced products, as they mastered the new technologies, increased the levels of training and income of the country.
Currently, many Southeast Asian countries, such as Vietnam, Indonesia and Cambodia, have adopted C The place of hina, which produces unskilled and low-cost labor for Chinese companies.
Most African countries have not been able to update this BRICS investment model, based on inexpensive low-skilled labor and low investment, to produce more added value and advanced products.
BRICS companies would invest in African countries, and the continent becomes a factory for BRICS countries, causing their masses of unskilled unemployed to work for low-wage, low-cost, low-wage mines, factories and farms owned by BRICS. capital investments.
The BRICS investment model has turned Africa into a globally positive investment story, rewriting the African narrative in one of the new opportunities, instead of the old narrative of the continent being a burden, waiting brochures from the west and the old colonial powers.
However, African countries seem to remain stuck in the low-cost BRICS-Africa investment model, unskilled labor and low wages; unable to move up the production value chain, producing more value-added products and services. The current investment model of the BRICS companies has fit well, with the current lack of interconnected infrastructure in Africa.
The BRICS companies that invest in Africa in accordance with this investment model often invest in African infrastructure, which takes its investment products from the production source to the coast or to an airport to export to the BRICS countries. Infrastructure in such circumstances is often not interconnected with other growth areas or markets where industrial development occurs or is planned, to increase economic development more broadly.
In addition, this BRICS investment model has brought high growth rates, but low quality, with fewer jobs created and without significantly reducing poverty or inequality.
BRICS companies have seen how BRICS companies extract raw materials from the continent and export them to their own countries, and end up in higher value products and, often, prices. The extraction of raw materials does not create massive jobs, and creates wealth for only a few people.
South Africa must press for a more sustainable BRICS-Africa investment model. In such a new model, African countries could identify investment opportunities, according to a development plan. The different African countries should develop realistic industrial plans, which establish how they will refine raw materials, develop new industries and acquire new technologies, and establish objectives to achieve them.
Once African countries have an industrial plan, they can invite BRICS companies to invest. Next, they must force BRICS companies to partner with existing local companies to develop investment opportunities.
If there are local African companies, these companies could secure a capital association in the BRICS companies. In these capital partnerships, there must be transfer of technology, management and skills as a requirement for the transaction.
BRICS companies must refine African raw materials from the African source and then export semirigid or fully refined products to world markets. . In this way, more jobs will be created in Africa than at present, poverty will be reduced more widely and wealth will spread more widely.
If it is said that there are no existing African companies, the BRICS companies could be forced to bring small local businesses and farmers into supply chains of the BRICS companies, similarly, for example, small and medium enterprises ( SMEs) in Taiwan or South Korea produced the pieces or products for large Taiwanese or South Korean conglomerates.
The BRICS companies may then need to train African suppliers to build parts of complete products or products, which are used as inputs for the manufactured products of the BRICS.
The BRICS New Development Bank (NDB) could provide financing for existing African companies that partner with BRICS companies to manufacture semirigid or fully refined products or for African SMEs that supply complete parts or products for products manufactured by BRICS companies.
South Africa, as Afric's voice at BRICS, has a golden opportunity during its BRICS presidency to drive the transformation of Africa's current investment model from the BRICS company, which offers low quality growth, to one that produces a growth of higher quality.
A new BRICS The investment model of the company in Africa must produce more jobs, reduce poverty more effectively, create more wealth, more widely for Africans; and transfer technology, improve Africa's skills base and create new African domestic enterprises.
Finally, a new investment model must have protections for the protection of human rights and the workplace, the protection of the environment and community participation at its core. The BRICS NDB, when it finances the investments of the BRICS companies in Africa, must guarantee that in exchange for financing, the companies comply with the minimum environmental, labor and human rights safeguards and community participation.