South Africa rang in the New year by assuming the rotating Chairmanship of BRICS from China. The bloc — Brazil, Russia, India, China, and South Africa — is viewed as a potent alternative to counter the dominance of the Western economies on the global financial architecture. There is a firm conviction among the developing countries that the existing multilateral system does not take care of the interests of the global South. Failure of equitable distribution of COVID -19 Vaccines in Africa was a manifestation of the indifference of the Western powers to the needs of the developing world.
Taking the driver’s seat at BRICs, President Cyril Ramaphosa promised that he would use his chairmanship of the BRICS’s leading emerging economies to open a gateway of business opportunities for his fellow Africans. The BRICs Annual Summit to be hosted by South Africa, this year, after three years of virtual meetings due to pandemic restrictions, is expected to see wide participation from African countries.
No doubt, South Africa is trying to harness the collective strength of the BRICS, its technological capability and market size, that can make it a robust development partner for Africa. Closer ties with BRICS can pave the way for a greater access to the global economy, creating jobs and lifting the living standards of the people of Africa.
At the same time, for the member countries of the BRICS bloc, Africa offers a host of opportunities. After the Ukraine war, many prominent global players are reaching out to Africa for sourcing crucial products like minerals, rare earth, oil and gas, etc. The potential of the recently formed African Continental Free Trade Area is gradually unfolding, opening a clear pathway for intra-continental trade and investment. China, is already the continent’s single largest trade partner, while Russia and India also have growing economic cooperation.
BRICS is also on the cusp of a structural change including a a broader membership. SA presidency will give an extra push for the membership expansion that can turn BRICS into an organization of 15-17 countries. It might soon expand to include Algeria, Argentina and Iran who have already applied for membership, while Saudi Arabia, and Turkey have announced their interest in becoming the group’s members.
The presidency of BRICS is coming at a time when Ramaphosa is in the grip of several challenges including a precarious domestic economic situation mired in massive power cuts, price rise, and importantly a general election a few months from now in 2024. Recently, he was re-elected as the chairman of the African National Congress (ANC) and the nominee from his party to contest for the country’s top post once again, at a time, popularity of his party is dithering. Will he have the time to devote for BRICS upfront with these challenges, when sensitive structural changes are underway?
