The 16th BRICS Summit convened longstanding and new members with a shared vision to strengthen economic alliances and deepen cooperation. For Africa, this expanded bloc presents both opportunities and risks, as some analysts warn.
For the first time, Egypt and Ethiopia participated in a BRICS summit as new members, while Nigeria and Algeria have been included as partner countries. The BRICS alliance, which originally comprised Brazil, Russia, India, China, and South Africa, has also welcomed Iran and the United Arab Emirates (UAE) into its ranks.
In the summit’s closing session in Kazan, Russia, President Vladimir Putin emphasised that the new members share a commitment to a more democratic global order. This expansion demonstrates these countries’ collective aim to strengthen ties and collaborate across various areas.
Push for De-Dollarisation and Local Currency Use
A key economic discussion at the summit focused on reducing reliance on the US dollar in trade between BRICS countries. For African nations, this proposed shift could bring greater trade stability by mitigating exchange rate volatility. By moving towards local currency use within the BRICS bloc, African economies could stabilise trade flows, reduce the influence of Western financial systems, and reinforce their financial independence.
This transition holds particular relevance for African nations, which often face high inflation and debt burdens linked to dollar-based loans. Utilising local currencies could help alleviate these challenges and provide greater financial autonomy.
Energy and Technology Partnerships
Energy independence and technological innovation were central to discussions, with BRICS members pledging to expand cooperation. Russia and China, in particular, have undertaken significant energy projects across Africa, including nuclear and solar power developments, to help reduce the continent’s energy deficits. Russia’s partnership in Egypt’s El-Dabaa nuclear plant exemplifies BRICS’ commitment to providing long-term energy solutions for Africa.
China and India have also pledged to enhance Africa’s digital infrastructure, a vital element for the continent’s economic growth. Projects in digital economies and smart city initiatives could open new revenue streams and improve governance. However, African leaders are urged to consider the implications of over-reliance on BRICS for technology, which could impact policy autonomy.
Trade and Economic Collaboration: Opportunities and Challenges
A key promise of the BRICS alliance lies in promoting trade within the bloc, with the New Development Bank (NDB) playing a crucial role. By funding infrastructure projects across Africa and other developing regions, the NDB offers an alternative to Western financial institutions like the IMF and World Bank, which often impose stringent lending conditions. This shift is attractive to African nations seeking financial flexibility for their development agendas.
Nevertheless, there are challenges. Some African analysts express concern about over-reliance on BRICS, particularly regarding China’s trade policies. With minimal tariffs on exports to Africa, China risks undermining African manufacturing by flooding the market with inexpensive goods, potentially stifling local industries and reducing export opportunities.
Should Africa Align with the West or BRICS?
As BRICS deepens its engagement with Africa, a critical question arises: should African nations prioritise their ties with the West or pivot towards BRICS? Some leaders advocate for a balanced approach, suggesting that partnering with BRICS need not exclude collaboration with Western allies. Congolese analyst A.L. Kitenge Lubanda advises that African countries can benefit from BRICS while retaining strong diplomatic and economic ties with the West.
South African President Cyril Ramaphosa echoed this view, advocating for a multipolar world where Africa’s alliances are diverse and aligned with its unique interests. The overarching message from the summit is clear: Africa can build partnerships that promote sustainable development, inclusive growth, and equitable relations without choosing sides.
With additional African members joining BRICS, the bloc’s influence on the continent is set to grow, offering an alternative to Western economic models and expanding Africa’s strategic options. Nonetheless, African countries must navigate these partnerships carefully to ensure that BRICS’ support aligns with their long-term developmental and political aspirations.
