BricsConnect recently sat down with Tafadzwa Chibanguza, chairperson of the Manufacturing Working Group of the South African chapter of the BRICS Business Council, to discuss the mission of this key sector.
Q: The 2025 17th BRICS Summit emphasised stronger trade, investment and industrial cooperation across the Global South. How does the Manufacturing Working Group plan to translate those commitments into tangible projects for businesses?
A: The central shift required within the Manufacturing Working Group is from declaratory cooperation to structured execution. This means moving beyond broad thematic alignment toward a disciplined pipeline of high-impact, bankable cross-border projects anchored in real economic demand, particularly in infrastructure, energy and logistics.
Each project must follow a standardised preparation pathway from feasibility to bankability, with a clearly defined financing route, ideally linked to institutions such as the New Development Bank. Critically, projects must be institutionally anchored with a lead country, an industry sponsor and a defined execution structure. In this configuration, the Manufacturing Working Group evolves from a discussion forum into a deal origination and execution platform that is capable of translating political commitments into measurable industrial outcomes.
Q: BRICS countries are increasingly focusing on innovation and new industrial technologies, including AI and digital manufacturing ecosystems. How can South African firms ensure they remain competitive within these evolving BRICS value chains?
A: Competitiveness within BRICS value chains will increasingly be defined by capability rather than cost. South African firms must position themselves around standards compliance, engineering depth and reliability within integrated supply chains. This requires deeper digital integration, including traceability, interoperable manufacturing systems and alignment with original equipment manufacturer requirements. Strategically, firms should focus on niche, higher-value segments where South Africa retains comparative advantage, particularly those linked to infrastructure, energy and mining value chains. The shift required is from operating as standalone producers to becoming embedded participants in coordinated, multi-country production systems.
Q: The alliance is also exploring new mechanisms to stimulate investment—such as a guarantee facility linked to the New Development Bank to reduce risks for investors. Could initiatives like this unlock greater manufacturing investment across BRICS economies?
A: The introduction of a guarantee facility linked to the New Development Bank has the potential to materially shift the investment landscape across BRICS economies by addressing one of the most binding constraints, namely risk. By reducing sovereign and project risk premiums, such a mechanism can crowd in private capital, particularly into infrastructure-linked manufacturing investments that are otherwise difficult to finance. It also improves project bankability by bridging the gap between feasibility and financial close. However, the effectiveness of such an instrument will ultimately depend on the strength and quality of the underlying project pipeline, as well as the clarity of governance and eligibility criteria, without which the facility risks being underutilised.
Q: With BRICS expanding and building deeper partnerships across the Global South, what new markets and supply-chain opportunities are emerging for manufacturers in South Africa and Africa more broadly?
A: The expansion of BRICS is effectively giving rise to a parallel Global South trade and production architecture, creating new opportunities for South African manufacturers. Supply chains must increasingly shift away from traditional markets, and position Africa, with South Africa as a gateway, as a production base within these networks. This is reinforced by infrastructure-led demand across energy, transport and water systems in the Global South, which directly drives demand for metals, components and engineering services. The opportunity is therefore not limited to increased exports but extends to deeper integration into multi-country supply chains that underpin long-term industrial participation.
Q: Industrial cooperation within BRICS increasingly intersects with critical minerals, renewable energy technologies and advanced manufacturing. How important are these sectors for future BRICS manufacturing collaboration?
A: All of these areas together form the backbone of future industrial systems. Critical minerals are central to the global energy transition and present opportunities for beneficiation and downstream industrialisation. Renewable energy technologies are directly linked to grid expansion and industrial demand, aligning strongly with South Africa’s existing capabilities. Advanced manufacturing, including additive processes and AI-driven production, provides an opportunity to leapfrog traditional industrial development pathways. Collectively, these sectors signal a transition from volume-based to value-based industrialisation within BRICS cooperation.
Q: Climate resilience and sustainable development have become key themes in BRICS cooperation. How can the manufacturing sector contribute to greener and more sustainable industrial growth within the alliance?
A: The manufacturing sector must reposition itself from being viewed as part of the emissions problem to being integral to the solutions architecture for climate resilience. This involves decarbonising production processes through energy efficiency and cleaner inputs, while simultaneously supplying the components required for the green economy, including renewable energy systems, grid infrastructure and storage technologies. There is also an increasing imperative to integrate circular economy principles such as recycling and material efficiency. Importantly, environmental compliance is no longer optional, as market access is increasingly contingent on meeting sustainability standards, making this both a risk and a competitiveness issue for manufacturers.
Q: Looking ahead to the upcoming 2026 BRICS Summit under India’s presidency, what concrete outcomes would you like to see for manufacturing cooperation among BRICS countries?
A: The 2026 BRICS Summit must prioritise execution over additional frameworks by delivering concrete outcomes for manufacturing cooperation. This should include the establishment of a formal Manufacturing Working Group project pipeline comprising a limited number of priority cross-border projects with defined sponsors and timelines, alongside the operationalisation of financing instruments through the New Development Bank. In addition, there should be progress toward digital platforms that facilitate supply chain integration across BRICS economies, with a clear sectoral focus on energy infrastructure, critical minerals and advanced manufacturing. Ultimately, success will be measured by projects implemented, capital deployed and supply chains integrated, rather than by the volume of policy commitments articulated.
