Social Media

The significance of BRICS for the African continent

In the pioneering work titled “Building Better Global Economic BRICs” (Global Economics Paper No: 66), Lord Jim O’Neill, then Chief Economist at Goldman Sachs, introduced the term BRICs, referring to the emerging economies of Brazil, Russia, India, and China. These nations’ economies were experiencing rapid growth, fuelling discussions about their potential to collectively shape the global economy by 2050. In the spirit of this vision, the leaders of Brazil, Russia, India, and China convened for the first time in July 2006, on the sidelines of the G8 Outreach Summit in St Petersburg, Russia. This marked a pivotal moment in cementing …

This content is for subscribers only. To subscribe, Click Here. Or Sign In

Subsequently, the Foreign Ministers of these countries assembled in New York City in 2006 on the sidelines of the United Nations General Assembly and embraced the term “BRIC” as originally coined by Lord Jim O’Neill. On June 16, 2009, the inaugural ‘BRIC’ Summit was held in Yekaterinburg, Russia. Later, South Africa was granted full membership in September 2010 during a BRIC Foreign Ministers meeting on the fringes of the UN General Assembly. This led to the alteration of the acronym to BRICS. Building on this progress, South Africa participated in the Third BRICS Summit in Sanya, China, on April 14, 2011.

BRICS is firmly anchored in the principles of mutual respect, sovereign equality, inclusivity, consensus, and strengthened collaboration. The foundation of BRICS rests upon three pivotal pillars: political and security cooperation, financial and economic collaboration, and cultural and people-to-people exchanges. These pillars serve as a robust framework for guiding the alliance’s interactions and ensuring its enduring viability. This sentiment is particularly pronounced as the 15th BRICS Summit, slated for August 22-24, 2023, in Johannesburg, South Africa, convenes under the theme “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism.”

Drawing from the World Bank data from 2022, the combined population of the five BRICS nations stands at 3.27 billion, constituting 41.1% of the global population. These countries’ cumulative Gross Domestic Product (GDP) for 2022 is valued at 25.92 trillion, accounting for 25.8% of the world’s GDP. In contrast, Africa’s total population across its 55 countries is estimated at 1.4 billion, representing 17.5% of the global population. Africa’s overall GDP amounts to approximately US$3.0 trillion, contributing 2.7% to the global GDP.

The African Development Bank’s African Economic Outlook for 2023, underscores Africa’s abundant natural resources — oil, gas, minerals, land, sunlight, wind, and biodiversity —whose potential remains largely untapped and undervalued. The report highlights Africa’s trillion-dollar investment potential in the climate and green growth sectors, offering a promising avenue for private sector involvement.

The UN Conference on Trade and Development’s (UNCTAD) BRICS Investment Report for 2023 reveals that the BRICS economies collectively account for 18% of global exports and approximately $250 billion in foreign direct investment outflows. Notably, the BRICS nations have emerged as significant investors in Africa, with a particular focus on industrial and service sectors, as confirmed by the Africa Development Bank’s Briefing Note titled “Africa and the BRICS: A Win-Win Partnership?” (2003).
Moreover, the BRICS countries have expanded their presence on the continent in terms of foreign direct investment, outpacing traditional partners such as the United States and Europe. This emphasis on harnessing natural resources and boosting agricultural production is also underscored by the UN Economic Commission for Africa’s (UNECA) Report “BRICS/Africa Partnership for Development” (2014).

Leveraging their substantial economic potential, the BRICS nations are optimally positioned to support Africa’s aspirations under the AU Agenda 2063. These countries play a pivotal role in driving investments in natural resource beneficiation, manufacturing, and industrialisation across the continent. They also provide strategic impetus for enhancing productivity and competitiveness, especially within the agricultural sector, through consistent investment efforts.
The emergence of the BRICS New Development Bank offers an alternative to the Western-dominated multilateral financial institutions, which have historically contributed to Africa’s infrastructure development at a gradual pace. This bank holds the promise of financing comprehensive infrastructure projects across the continent, thereby enhancing connectivity through rail, maritime, air routes, and information and communication technology — an aspiration cherished by the African populace.

A symbiotic partnership between Africa and BRICS has the potential to elevate Africa’s status as a significant player on the global stage. This partnership extends to bolstering Africa’s role in global governance structures, including institutions like the United Nations and Multilateral Financial Institutions. The expansion of BRICS to encompass additional nations, including those from Africa, is poised to inspire African countries to assume greater responsibility for funding their sustainable development endeavours.

This approach empowers African nations to form alliances with developed countries that squarely address the continent’s priorities for sustainable growth and economic transformation. Most notably, the BRICS initiative lays the foundation for a multipolar world, contrasting the prevailing unipolar influence exerted by the US and the G7 countries (Canada, France, Italy, Germany, Japan, UK, and the US). This envisioned multipolar world rests on principles such as mutual respect, sovereign equality, inclusiveness, consensus, and fortified collaborations. The International Monetary Fund, Economic Outlook (April, 2023) reveals that the population of the G7 countries is around 776.55 million representing 9.7% of the global population. The GDP for the G7 countries is around US$42.92 trillion representing around 30% of the world GDP.
In a recent interview with Africa Business in June 2023, Lord Jim O’Neill, the visionary behind BRICS, shared his perspective on the future of BRICS and its implications for Africa. He astutely remarked, “the notion that the group of seven ‘industrialised’ or ‘more developed’ or ‘early developed’ (G7) nations can single-handedly govern the world is disconcerting, given their diminishing share of the global GDP. Moreover, the G7 often finds itself aligned with the desires of Washington (US). How then can these select few address the world’s most pressing challenges? This predicament highlights the raison d’être behind my conception of BRICS: to advocate for a more effective global governance model than what the G7 offers.”

It is for these reasons that the enduring partnership between Africa and BRICS embodies a shared commitment to sustainable development, economic growth, and the transformation of global governance structures. The collaborative approach rooted in mutual benefit, respect, and a multi-polar perspective has the potential to reshape the global landscape, ensuring a more inclusive and prosperous future for all.

Advocate Batlokoa Makong is a seasoned diplomat currently working for the African Union. He writes in his personal capacity.

Enjoy Unlimited Digital Access

Already a subscriber?
Share the post

Leave a Reply

Your email address will not be published. Required fields are marked *