(5 Minutes Read)
BRICS, comprising 46% of the world’s population and 36% of global GDP presents an opportunity for Africa to reposition itself globally. It offers an alternative to Western-dominated systems that have historically marginalized the continent.
Amid sanctions and international isolation over the Ukraine invasion, Russia successfully hosted a three-day BRICS summit, in the city of Kazan from October 21-24. The summit, chaired by President Vladimir Putin witnessed a remarkable participation of global leaders and delegates from 36 countries.
BRICS is evolving into a robust platform for member countries with similar aspirations and values. The collapse of capital flows to developing economies over the last few years is pushing many developing countries to explore more partnership options. The BRICS 2024 echoed the discontent of the emerging economies with a system that is run by a handful of powerful countries, underserving the most deserving countries.
The BRICS alliance, originally comprising Brazil, Russia, India, China, and South Africa, has expanded to include 13 new nations. The bloc is gradually enhancing its footprint with the induction of Iran, Saudi Arabia, and the United Arab Emirates (UAE) into the BRICS fold. So far, South Africa solely represented Africa in the bloc. The just-concluded Summit inducted three more African countries: Algeria, Nigeria, and Uganda. . It was reported that almost 17 African countries aspire to join BRICS. Egypt and Ethiopia participated in the Summit this year for the first time.
This expansion signals a potential shift in global power dynamics. Analysts argue that BRICS, comprising 46% of the world’s population and 36% of global GDP presents an opportunity for Africa to reposition itself globally. It offers an alternative to Western-dominated systems that have historically marginalized the continent.
The emergence of a stronger BRICS has to be viewed against the backdrop of geopolitical developments across the globe. The contraction of Chinese and European economies has impacted Africa’s trade as well as investment flows from these regions. The US has been the major market for China and Europe. A possible second Trump Presidency threatens to tighten more US imports from China and Europe. This in turn could further slow down imports from Africa to China and Europe. Therefore, the continent needs to forge new partnerships and BRICS offers a platform.
Already Africa has close engagement with China, Russia, and India, the founding members of BRICS. The growing new membership of the bloc opens newer landscapes for economic engagement. This alliance could serve as a catalyst for Africa’s economic development, and foreign direct investment in key areas such as mining, automobiles, transportation, clean energy, and financial services, leading to job creation, trade, and poverty alleviation. The New Development Bank of BRICS, (NDB) devoted to fund infrastructure projects in emerging economies, could be explored for African projects. With the booming global demand for rare metals like cobalt, coltan, Zinc, etc, natural resource-rich African nations could be attractive business destinations.
As for BRICS members, the African continental free trade area will offer a huge potential to unlock opportunities for trade and investment. The Single African Air Transport Market (SAATM), a flagship project of the African Union Agenda 2063, and the African Growth Opportunities Act (AGOA) are other business opportunities. AGOA is a U.S. trade preference program that grants eligible sub-Saharan African countries duty-free access to U.S. markets. BRICS members can explore investment opportunities in Africa and leverage AGOA to promote their exports to the US.
The BRICS summit in Kazan emphasized the need to promote local currencies among member states, fairer trade mechanisms, a common BRICS currency, and alternate payment systems. The aim is to bolster financial independence and reduce debt service costs of emerging economies, which will be beneficial for the debt-ridden economies of Africa.
Nevertheless, Africa needs to strike a judicious balance with its partners. BRICS offers the potential to counterbalance Western dominance and a promise for a more equitable global order. No multi-polar world can be born without the continent. But to strengthen its foothold, Africa has to reposition itself from the bottom of the pyramid of global economic and political hierarchy to a central role. It has the critical economies of scale to industrialize, the critical raw materials for industries to flourish, and a young labour force. What Africa lacks is technological partnerships. This is what Africa should ensure from its partnership with BRICS.
