"Trade and investment with Russia is very vital," Business Unity South Africa CEO Jerry Vilakazi tells Engineering News Online. "Russia is a very key strategic partner for South Africa."

"When we speak of emerging markets today," he explains, "we speak of the BRICs."

BRIC is the acronym for Brazil, Russia, India, and China, the biggest and strongest emerging market economies, as well as some of the fastest growing.

"We are targeting all the BRIC countries. The BRIC markets are very important for us. These are greenfield markets, if I may say so, for us."

The current global economic crisis, Vilakazi highlights, has shown the South African business community the danger of being overreliant on the country's traditional investment and trading partners, namely Europe and the US. "Clearly," he points out, "a diversification strategy has become even more critical. We see Russia becoming one of the major critical partners for us in investment and trade."

Some Russian companies have already invested in South Africa, including Evraz (which owns Highveld Steel & Vanadium), Norilsk Nickel (which owns 50% of Nkomati Nickel), and Renova (which has 49% of the United Manganese of the Kalahari project).

"Also, although Russia is one of the key emerging economies, in a number of areas it is also highly advanced in technology," he cites. There are opportunities for South Africa to benefit from Russian technological capabilities. And, in return, South Africa can provide advanced technologies as well, particularly in mining. "There are opportunities to exchange technologies," he says. "For example, there is a bilateral project in solar energy."

"The historical-political relationship we have with Russia gives us a very sound point of departure in terms of our relations," affirms Vilakazi. In Africa, Russia has no legacy of colonialism or imperialism. "So, partnering with Russia in Africa makes a lot of sense. This partnership is being promoted by both governments at the highest level."

Currently, South Africa exports a lot of commodities, foodstuffs (including fruit and vegetables) and flowers, to Russia. "We see, going forward, a diversification beyond commodities and foodstuffs," forecasts Vilakazi.

However, a number of South African products exported to Russia suffer under tariffs imposed by Moscow. "We are very positive that the South Africa-Russia Business Council will allow us to raise these issues," he assures.