The Launch of the BRICS Centre for Industrial Competencies: A New Era for Manufacturing Collaboration

The launch of the BRICS Centre for Industrial Competencies (BCIC) at a signing ceremony at the United Nations Industrial Development Organization (UNIDO) headquarters in Vienna marks a significant step forward for the industrial future of the BRICS Plus nations. The event, attended by UNIDO Director General Gerd Müller, senior representatives from BRICS Plus countries, and other international stakeholders, highlighted the ambition and strategic foresight behind this initiative.

More than a symbolic collaboration, the BCIC is a pragmatic response to the evolving global industrial landscape. With BRICS Plus countries accounting for over 40% of the world’s population and more than 35% of global GDP, the initiative asserts their position as drivers of inclusive and sustainable industrial development.

A Platform for Industrial Transformation

The establishment of the BCIC is timely, given the immense pressures on global manufacturing today, including rapid technological advancements, the urgent imperative for sustainability, and fierce competition for market share. Director General Müller emphasised that the Centre will serve as a "new platform to unite the BRICS countries’ national efforts and centres into a larger multilateral network." Its comprehensive yet focused mandate includes accelerating knowledge and technology exchange, integrating digitalisation and innovation into manufacturing processes, and preparing BRICS industries for the opportunities and challenges presented by Industry 4.0.

The BCIC aims to be a comprehensive networking hub, enabling manufacturers in BRICS Plus nations to become "Factories of the Future." This involves embracing advanced manufacturing technologies like robotics, automation, artificial intelligence, and smart logistics, alongside fostering sustainable practices. A key focus is on small and medium-sized enterprises (SMEs), which constitute over 90% of businesses and 60–70% of employment in most BRICS countries. The Centre provides a route for these businesses to expand, enter international markets, and contend on a global scale.

Strategic Commitment from BRICS Plus

The establishment of the BCIC was made possible by the strategic resource mobilisation efforts of the Russian Federation and China, both of whom expressed strong commitment to the Centre's mission. Alexey Gruzdev, Russia's Deputy Minister of Industry and Trade, highlighted his country's readiness to contribute expertise in digitalisation, unmanned transport systems, and human capital development—areas where Russia has developed competitive strengths. Representing China, Xiadiya of the Mission to UNIDO described the Centre as a significant achievement within the BRICS Partnership on the New Industrial Revolution (PartNIR), indicating Beijing's intention to reinforce a collaborative network of industrial capacity centers.

Brazil, through Deputy Permanent Representative César Augusto Vermiglio Bonamigo, also expressed support, highlighting the BCIC's potential to foster cooperation in artificial intelligence, bio-industry, and digital transformation. These varied commitments not only showcase the wide range of industrial strengths within BRICS but also indicate that the Centre will serve as a versatile platform spanning numerous sectors and technologies.

Anchored in Multilateralism

The integration of the BRICS Centre for Industrial Competencies (BCIC) within UNIDO is a strategic decision, offering legitimacy and access to established international networks through its alignment with a UN agency dedicated to industrial development. Ciyong Zou, Deputy to the Director General of UNIDO, emphasised the BCIC's significance as "a significant step forward" in fostering inclusive and sustainable global industrial development. This partnership extends beyond administration for UNIDO; it consolidates national centres into a unified ecosystem, thereby enhancing skills, driving innovation, and facilitating cross-border knowledge exchange.

Positioning the BCIC within a multilateral framework through the UNIDO-hosted model allows it to attract future partners beyond the BRICS nations. This inclusive approach is crucial, as inviting other emerging economies and developed countries to collaborate could significantly expand the Centre's global influence and facilitate cross-regional technology transfers.

Driving Industrial Competitiveness

The BRICS Centre for Industrial Competencies (BCIC) is strategically important for economic reasons. Manufacturing is crucial for economic growth, typically making up 20–30% of the GDP in BRICS nations. However, the sector is experiencing significant difficulties. The Industrial Development Report 2024 by UNIDO indicates a slowdown in global manufacturing growth to 2.3% in 2023 from 3.6% in 2022. This decline is attributed to disruptions in supply chains, high energy costs, and geopolitical instability. Therefore, for BRICS economies, collaborative efforts to build resilience are essential.

The BCIC plays a dual role in fostering competitiveness. Firstly, it facilitates the spread of digital technologies, thereby increasing productivity and reducing costs, which helps companies catch up with advanced economies. Secondly, it functions as a "technology marketplace" for Small and Medium-sized Enterprises (SMEs), giving smaller firms access to otherwise unattainable resources. This synergy can generate ripple effects throughout industrial ecosystems, leading to job growth, improved trade integration, and the adoption of environmentally friendly technologies.

Looking Ahead

At the Vienna launch, BRICS representatives demonstrated enthusiasm for the new BRICS Centre for Industrial Competencies (BCIC), while also acknowledging the significant work ahead. Aleksei Savrasov of UNIDO highlighted that the BCIC would operate as a network, linking existing national centers and connecting technology providers with those in need. For the BCIC to succeed, it must leverage the diverse strengths of BRICS nations and transform them into practical, cohesive initiatives.

The BRICS Centre for Industrial Competencies (BCIC) represents a commitment to 21st-century industrial policy, characterised by collaboration, digitalisation, and sustainability. As BRICS Plus nations enhance their cooperation through the BCIC, they not only bolster their collective competitiveness but also contribute to the evolution of global industrial standards. This initiative underscores a fundamental truth: industrial development transcends national boundaries, increasingly shaped by interconnected networks, partnerships, and shared expertise.

The establishment of the BRICS Centre for Industrial Competencies signifies a pivotal commitment from some of the world's leading economies. More than just an institutional achievement, it represents their dedication to pioneering the factories, technologies, and industrial ecosystems of tomorrow—ones that are more intelligent, environmentally conscious, and inclusive. This initiative is poised to have a significant impact on global manufacturing.

Written By: 

*Sesona Mdlokovana  

Associate at BRICS+ Consulting Group 

Africa Specialist

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