Abstract:
The BRICS (Brazil, Russia, India, China and South Africa) countries have agreed to strengthen
their economic ties, thus paving the way for enhanced trade and investment performance. South
Africa’s strategic value in BRICS is that it is a gateway to the opportunity-rich Southern
African Development Community (SADC). By using South Africa as a production hub for
exports to the surrounding region, foreign investors would have ready access to neighbouring
markets. This article addresses the question of whether, and in what ways, foreign direct
investment (FDI) from the BRIC (Brazil, Russia, India and China) countries to the SADC
influences the SADC’s export performance. A series of empirical analyses revealed a positive
causation between BRIC FDI and SADC exports, offering a clear incentive for the SADC to
rejuvenate its trade and investment policies and structures, and strengthen its ties with BRIC
countries in the interests of attracting more FDI and building a strong and sustainable export
sector.
