An Investigation into the Impact of the Economic Ties Between South Africa and
Russia as BRICS Countries
97
Mbeki in Cape Town stated that one Russian company intends to invest more than $1
billion in South Africa’s economy. Putin also indicated another company was ready
to help South Africa to develop electricity and build an aluminium plant. Although
South African companies, such as fruit producers and brewer SAB/Miller, which
produces several popular brands of beer at a plant in central Russia, have made inroads
into the Russian market, the Kremlin believes trade could be significantly increased
from the 2005 figure of $171 million.
Russia and South Africa agreed to develop cooperation in the energy and
transportation sectors, the defence and aerospace industry, the fishing industry,
healthcare, culture, sports and tourism. Speaking about cooperation in the energy
sector, President Putin suggested that Russia “will supply South Africa with nuclear
fuel”. An agreement was signed on supplying Russian nuclear power plant until 2010
[6].
Three other documents were signed in the presence of the two presidents after
their talks in Cape Town. The head of the Russian Space Agency and the South
African minister of science and technology signed an intergovernmental agreement on
cooperation in civilian space. President Mbeki told the press conference that a South
African micro-satellite would be launched.
Officials from the Russian and South African health minister signed a
bilateral agreement on cooperation in healthcare and the medical sciences. The
Russian justice minister and the South African defence minister signed an
intergovernmental agreement on the protection of intellectual property rights in
military-technical cooperation. Furthermore, the group of businessmen accompanying
Putin included Viktor Vekselberg, the head of the Renova Group and one of Russia’s
richest men, Alexander Nichiporuk, the president of diamond giant Alrosa, as well as
Igor Makarov, the head of the Russia’s largest independent natural gas producer,
Novatek.
Materials and Methods
This study uses mixed methods namely a survey and interviews in
establishing what is going on between South Africa and Russia in the BRICS. Twenty
people participated in the survey and the interviews altogether. They were selected
purposively as the study is designed predominantly as a qualitative research. The
survey was just another mean of getting some additional information whereas the
profound interviews were in depth and open-ended in many instances. They were semi
structured, and allowed dichotomous, biographical, and other types of questions to be
asked to participants. Questionnaires were administered to a selected citizen of South
Africa to determine their views about the effects of diplomatic ties between South
Africa and Russia as BRICS member countries. Both men and women took part in the
survey and the interviews. All participants were conversant in English. Prior to the
main study, a pilot study was conducted to allow the rewording of questions.
