Cape Town - The burgeoning economic growth of Africa and the Bric countries represent an "epoch-changing" shift in the global economy and an opportunity for South Africa, the Minister of Finance Pravin Gordhan said in his Budget Speech in Parliament on Wednesday.
Gordhan said global economic growth is being driven by India, Brazil and China, as the world's economic base shifts to developing countries.
The advanced economies of mostly Europe and North America account for 80 percent of global output, but the International Monetary Fund (IMF) forecasts that by 2015, developing countries will account for about 40 percent of economic output.
South Africa's invitation to join the Bric grouping represents serious opportunities in trade and investment, with South Africa having been invited to attend the Bric summit in Beijing in April.
"Over the next five years these economies will account for 36 percent of world economic growth. We have to construct our own growth and development strategies to propel our economy forward to create jobs and compete on the global stage," he said.
Africa too represents a significant opportunity for South African businesses, with Sub-Saharan Africa having grown by a cumulative 74 percent since 2000.
In April South Africa will host a summit to set up a free-trade area building on two years of talks between the East African Community, the Common Market for East and Southern Africa (Comesa) and the Southern African Development Community (SADC).
Added to this the Development Bank of Southern Africa (DBSA) plans to invest R3.8 billion in infrastructure projects in SADC countries over the next 12 to 18 months.
The World Bank estimates that it will cost US$93 billion a year over a decade to overcome Africa's infrastructure deficit - which results in high transport costs and customs bottlenecks and does nothing to improve the already poor rate of trade between African countries.
However, Gordhan pointed out that South Africa's economic prospects are still highly dependent on global trade and investment, with the sovereign contagion in Europe representing a risk for the country.
Added to this stronger growth in emerging economies has resulted in higher inflation from rising food and oil prices, which creates social tension in these regions.
