BRICS Investment Report
BRICS Investment Report
Institution: United Nations Conference on Trade and Development (UNCTAD)
Prepared for: BRICS Trade and Investment Working Group
Publication Year: 2023
Publisher: United Nations
Authors: Joseph Clements, José Henrique Vieira Martins, Yongfu Ouyang, Astrit Sulstarova
Supervision: James X. Zhan, Director of Investment and Enterprise, UNCTAD
Additional Contributions: Massimo Meloni, Diana Rosert
Note: The report was commissioned under China’s BRICS Presidency (2022) and does not represent the official views of BRICS member states.
About This Report
The BRICS Investment Report provides a comprehensive examination of investment trends, policy developments and future prospects within the BRICS economies—Brazil, the Russian Federation, India, China and South Africa—now established as one of the world’s most influential economic blocs. Representing over a quarter of global GDP and 42 per cent of the world’s population, the BRICS have strengthened their international economic presence over the past two decades, emerging as major drivers of global growth, trade and cross-border investment. The report highlights how foreign direct investment (FDI) has been central to the bloc’s development trajectory, with inflows more than quadrupling between 2001 and 2021 and contributing significantly to gross fixed capital formation.
The study traces the evolution of investment patterns, noting that while BRICS experienced rapid FDI growth during the first decade of the 2000s, inflows stabilized after 2011 against the backdrop of global FDI stagnation. The report also explores the increasingly supportive investment policy environments adopted by BRICS countries, as well as the reforms to national regulations and international agreements that shape this environment. It argues that despite current global investment challenges, intra-BRICS investment holds strong long-term potential, provided deeper economic cooperation and coordinated policy action continue to develop.
By analysing greenfield investment, mergers and acquisitions, project finance, and the broader regulatory landscape, the report offers a strategic view of how BRICS can leverage investment for sustainable and inclusive development. It concludes that enhanced policy coordination and strengthened collaboration can transform investment into a central pillar of BRICS economic partnership, ensuring that the bloc continues to expand its role in the global economy.
Contents
1. Introduction
2. FDI in the BRICS: Overall Trends
2.1. Overview of the BRICS Economies
2.2. FDI Inflows and Stock in the BRICS
2.3. FDI Outflows and Stock from the BRICS
2.4. Top Investors in the BRICS Economies
2.5. Intra-BRICS Investment
2.6. Significance of FDI to the BRICS
3. FDI Trends by Mode of Entry
3.1. Greenfield Projects
3.2. M&A Deals
3.3. Project Finance Deals
4. Developments in Investment Policies and Regulatory Frameworks in the BRICS
4.1. Recent Developments in National Investment Policies
4.2. International Investment Agreements (IIA) Reforms in the BRICS
5. Policy Coordination and the Way Forward
Annex 1. Background on BRICS Economic Collaboration
Annex 2. BRICS National Initiatives on PPPs and Infrastructure Investment
