BRICS African leaders
The city of Johannesburg has received a lot of officials for the BRICS Summit, with many African leaders expressing interest. Image-Supplied: Avi Lasarow

Home » African leaders take center stage as BRICS Summit unfolds

African leaders take center stage as BRICS Summit unfolds

As the bloc debate de-dollarization and methods to boost local currency trade, a growing number of African nations have expressed interest in joining BRICS.

By Bonolo Moloi
23-08-23 19:44
in News
BRICS African leaders
The city of Johannesburg has received a lot of officials for the BRICS Summit, with many African leaders expressing interest. Image-Supplied: Avi Lasarow

Johannesburg hosts the BRICS Summit, showcasing the growing clout of Brazil, Russia, India, China, and South Africa. Over 60 leaders were invited, including 30 from Africa.

At the heart of the summit are talks about reducing dollar reliance and promoting local currencies in trade.

While doubts linger about a shared currency, the Chinese renminbi’s influence grows. The renminbi is gaining ground as a reserve currency in Africa, e.g., Mauritius, Nigeria, and Zambia.

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AFRICAN LEADERS INTERESTED IN JOINING BRICS

According to Foreign Policy one of the focal points of the summit is the discussion around de-dollarisation and strategies to boost the use of local currencies in trade.

Despite doubts about the feasibility of adopting a joint currency, the potential for an increased role for the Chinese renminbi is considered likely. The renminbi is already being used as a reserve currency by several African nations, including Mauritius, Nigeria, and Zambia.

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“BRICS countries, representing 40% of world population, overtook G-7 GDP in March. Their rising influence entices 23 nations to join. Summit discusses expansion criteria.

Ahead of the summit, Cyril Ramaphosa stressed expanding BRICS, fostering African partnerships, and boosting trade, investment, and infrastructure.

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PRESIDENT CYRIL RAMAPHOSA SUPPORTS EXPANSION

Ramaphosa responds to U.S.-South Africa tensions over Russia ties. Accusations aside, he said that he prioritises partnerships, not global alliances.

Ramaphosa’s stance is in part a response to escalating tensions between the United States and South Africa due to the latter’s close ties with Russia.

Despite accusations from the U.S. ambassador regarding weapon supply, Ramaphosa maintained South Africa’s commitment to seeking strategic partnerships rather than aligning with global powers.

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ALGERIA PLEDGES $1.5 BILLION

The BRICS summit attendance is a reflection of Africa’s demand for reforms in institutions like the World Bank and International Monetary Fund. Algeria, for instance, has submitted a request to become a shareholder member of the BRICS New Development Bank, pledging $1.5 billion.

This move is seen as an effort to secure trade interests with Beijing and Moscow amid pressure to halt arms purchases from Russia.

BRICS Bank, like the World Bank, shifts lending to local currencies. Ramaphosa notes $5.3B infrastructure financing.

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Dollar dominance concerns African leaders, hampering growth. China seeks BRICS expansion; however, India and Brazil are wary of the West. China’s economic struggles and Russia’s isolation reduce the BRICS appeal.

Nigeria, Africa’s largest economy, initially considered BRICS membership due to its call for U.N. Security Council reforms. However, Nigerian officials currently prioritize addressing domestic crises over joining the bloc.

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