Page 29 - Echoes of the Global South V2

As one of the world’s largest agricultural producers, Brazil uses its agricultural exports as a strategic tool to gain influence
in global markets. The country has been a strong advocate for the interests of agricultural exporters in international
trade negotiations, particularly within the World Trade Organization (WTO). Moreover, its role in global environmental
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negotiations, particularly regarding the Amazon rainforest, is a key aspect of its geoeconomic strategy. Brazil has
sought to balance economic development with environmental conservation, although this has been a contentious issue
domestically and internationally.

Brazil’s heavy reliance on commodity exports makes its economy vulnerable to global price fluctuations. The country
has experienced significant economic volatility due to changes in global demand for its resources. Domestic political
instability has also hampered the geoeconomic strategy, particularly in the aftermath of corruption scandals and
administrative disruptions. This has affected its ability to maintain consistent leadership in regional and global affairs.
Brazil’s environmental policies, particularly regarding deforestation in the Amazon, have attracted international criticism,
complicating Brazil’s efforts to position itself as a leader in global environmental diplomacy. 71

d. South Africa: Regional Power and Continental Integration
South Africa’s geoeconomic strategy is focused on its role as a regional power and its leadership in continental integration
initiatives. As the continent’s most industrialised economy, South Africa plays a crucial role in shaping its economic
and political landscape. South Africa has historically positioned itself as a leader in the Southern African Development
Community (SADC) and the African Union (AU). Its leadership in these organisations has been critical for advancing
regional integration, promoting peace and security, and fostering economic development across the continent. 72,73

South Africa is a key proponent of the African Continental Free Trade Area (AfCFTA), which aims to create a single
market for goods and services across Africa. The AfCFTA is expected to boost intra-African trade by reducing
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tariffs and harmonising regulations, with South Africa playing a central role in its implementation. South Africa is a
major exporter of minerals such as platinum, gold, and diamonds. The country uses its mineral wealth to negotiate
favourable trade agreements and attract foreign investment. South Africa’s mining sector is also a critical source of
revenue and employment, making it a central pillar of the country’s economic diplomacy initiatives. 75

Despite being the most industrialised economy in Africa, South Africa’s growth has been sluggish, with GDP growth
rates remaining low over the past decade. Structural issues, such as a high unemployment rate (reaching 33.9% in
2022) and severe income inequality (with a Gini coefficient of 0.63, one of the highest in the world), limit South Africa’s
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capacity to act as an economic engine for the continent. These economic challenges constrain South Africa’s ability
to invest in regional development projects and to support initiatives like the AfCFTA effectively.

While South Africa has relatively advanced infrastructure compared to many African countries, it still faces significant
challenges in maintaining and upgrading it. Power shortages, primarily due to issues within Eskom, have caused
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rolling blackouts that have disrupted economic activity. The country’s transportation networks, particularly railways,
have also struggled with inefficiencies and underinvestment. These issues affect South Africa’s domestic economy
and hinder its ability to serve as a gateway to African markets for global trade.

South Africa also faces external pressures from major global powers seeking influence in Africa. China’s increasing
presence in African markets and infrastructure projects, as well as renewed interest from the United States
under initiatives like the Prosper Africa campaign, present both opportunities and competition for South Africa’s

70. Kristen Hopewell, “Heroes of the Developing World? Emerging Powers in WTO Agriculture Negotiations and Dispute Settlement”, The Journal of Peasant
Studies, 49 (3): 561–84, March 19, 2021, https://doi.org/10.1080/03066150.2021.1873292
71. “Brazil cuts environment budget despite climate summit pledge”, BBC, April 24, 2021, https://www.bbc.com/news/world-latin-america-56847958
72. Amos Saurombe, “The role of South Africa in SADC regional integration: The making or braking of the organization”, Journal of International Commercial
Law and Technology, 5 (3), January 2010, https://www.researchgate.net/publication/44796864_The_role_of_South_Africa_in_SADC_regional_integration_
The_making_or_braking_of_the_organization
73. “South Africa hands over chairship of African Union”, South African Government, Republic of South Africa, February 5, 2021, https://www.gov.za/news/
media-statements/south-africa-hands-over-chairship-african-union-05-feb-2021
74. “The African Continental Free Trade Area (Afcfta) Unveils Remarkable Benefits for South Africa”, The Department of Trade, Industry and Competition,
Republic of South Africa, July 9, 2023, https://www.thedtic.gov.za/the-african-continental-free-trade-area-afcfta-unveils-remarkable-benefits-for-south-
africa/
75. Natalie Cowling, “Mining industry in South Africa - statistics & facts”, Statista, April 8, 2024, https://www.statista.com/topics/7194/mining-industry-in-south-
africa/#topicOverview
76. “Six Charts Explain South Africa’s Inequality”, IMF Country Focus, January 30, 2020, https://www.imf.org/en/News/Articles/2020/01/29/na012820six-
charts-on-south-africas-persistent-and-multi-faceted-inequality
77. Jerry Haar, “Modernizing Infrastructure Vital to Fulfilling Africa’s Promise”, Wilson Center, April 26, 2023, https://www.wilsoncenter.org/article/modernizing-
infrastructure-vital-fulfilling-africas-promise

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