Premature for SA to discuss de-dollarisation - Godongwana
Finance Minister Enoch Godongwana believes it’s too early for South Africa to enter discussions about de-dollarisation and creating an alternative to the cross-border payments system Swift.
Godongwana was speaking to the media on the sidelines of the state visit by Chinese President Xi Jinping at the Union Buildings on Tuesday.
Ramaphosa and Xi are meeting ahead of the official start of the BRICS Summit in Sandton.
The conversation around de-dollarisation is one of the topics on the agenda as emerging economies seek to assert their voice as a counterweight to Western dominance in global affairs.
"It is too early for South Africa to enter that discourse because our trade as it stands is skewed in favour of the West,” said Godongwana.
“Seventy-five percent of our foreign liabilities are Europe and North America, now to come and say we as South Africa can do that is premature. It doesn't mean we can't participate in other payment systems. There are some discussions within central bank streams.
"There are a lot of languages that are being used which I am uncomfortable using at this stage because that is not the current debate. The current debate is how do we finance projects in each of the BRICS member states in their own currencies,"
He said the New Development Bank has raised R1,5 billion to finance South African projects.
"In the NDB we have already extended the scope of the membership, Egypt has already joined, and Saudi Arabia and other countries have already joined. Botswana is likely to apply, and Namibia has also shown interest.”
He maintained that South Africa is still an attractive investment destination.
"We, as South Africa, look at it from our own eyes, an investor look at South Africa comparably with other emerging markets. When you look at South Africa compared to other emerging markets, South Africa is still one of the best investment destinations.”
Amid claims that the summit will be merely another talk shop, Godongwana said he believes it will put South Africa on the map as a global player.
"The decisions that are going to be implemented here have been work that has been ongoing, chaired by different South African streams from deputies up to ministers.
“So, what we are likely to see here is an emergence of a work already done. This meeting is going to profile South Africa as one of the major countries in the global South. That is the benefit we are likely to see.”
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