Ramaphosa Calls for Value Addition in BRICS Global Supply Chains

Developing economies within the BRICS bloc must dismantle traditional trade models that relegate them to mere suppliers of raw materials, according to South African President Cyril Ramaphosa. Speaking at the BRICS Business Forum, leaders and trade representatives gathered ahead of the summit to debate trade expansion, investment structures, and industrial cooperation across member states.

South Africa and Brazil Target Value Addition and Supply Chain Shifts

President Cyril Ramaphosa emphasized that developing nations have historically participated in global supply chains primarily as raw material providers, leaving value-addition processes to other regions. According to the South African leader, member states must avoid replicating this unequal model within the expanded BRICS framework. Ramaphosa called on the bloc to deepen production links and channel direct investment into manufacturing and local processing.

Brazil’s Foreign Minister, Mauro Vieira, shared a similar perspective at the forum, noting structural shifts in the global economic system driven by the growth of the Global South. According to Vieira, low- and middle-income countries have increased their share of global gross domestic product from 20 percent in 1960 to over 50 percent. Vieira highlighted that strengthening manufacturing ties between member states is vital for Brazil, which counts BRICS countries as destinations for more than a third of its total foreign trade. Vieira also pointed to Brazil’s tax reform implemented in 2024 to simplify the system alongside the country’s position in 2025 as the world’s third-largest recipient of foreign direct investment, attracting over US$77 billion.

Iran Proposes Digital Customs Integration and Joint Reinsurance

Iranian President Masoud Pezeshkian addressed the forum by outlining specific mechanisms to transform raw material trade into an integrated network of industrial production chains. To expand trade within BRICS, we must move from fragmented cooperation to the gradual integration of trade infrastructure, Pezeshkian stated. He emphasized the digitalization of customs procedures, the reduction of regulatory barriers, and the development of cross-border markets.

To support major infrastructure and energy projects, Pezeshkian proposed that the New Development Bank serve as the primary financing instrument through specialized credit lines and guarantees designed to draw in private capital. Additionally, Iran introduced a proposal to establish a joint BRICS reinsurance company backed by an initial capital of US$10 billion to cover project risks. Pezeshkian noted that BRICS will solidify its role in the global economy only when cooperation translates into concrete contracts, factories, and ports.