SPOTLIGHT ON THE 16th BRICS SUMMIT, RUSSIA 2024

As the last guest leaves the southwestern Russia city of Kazan, many a discussion will be held about the growing significance of the BRICS group of countries whose 16th summit was hosted by President Vladimir Putin.

In attendance were the leaders of countries which together make up nearly half the world’s population and account for about a fifth of global commerce. A photograph with President Putin holding a BRICS banknote went viral and created widespread speculation about a BRICS currency. However, this was later clarified to be a mock-up presented to Putin by enthusiasts.

The summit was also attended by UN chief Antonio Gutteres and Recep Erdoğan, president of NATO member Turkey. A fact some commentators say countered the narrative that Russia is a pariah state isolated from the global economy more than two years since the war in Ukraine.

South Africa is one of the founding BRICS member states which include Brazil, Russia, India, and China. However, by its 16th anniversary, it has expanded to embrace Iran, Egypt, Ethiopia, the United Arab Emirates, and Saudi Arabia, with more than 30 countries applying to join.

The final communique spoke about plans by BRICS member states to launch its own payment system that will challenge the dollar’s supremacy. The move will be hailed by much of the global south who are typically emerging countries who feel under-represented in IMF decision-making. And as their dissatisfaction grows with the global financial system which is seen to be under-serving much of the world.

Another important announcement made by BRICS New Development Bank head and former Brazilian President Dilma Rousseff, of allowing debtor nations to repay development loans in the currency of their respective countries. However, the BRICS club of emerging economies may still be far from posing any real challenge to The Bretton Woods Institutions—the IMF and World Bank.

The BRICS Development Bank expects to distribute $5 billion worth of development loans, compared to the World Bank’s $72.5 billion this year alone. On Prime Live, we examined how South Africa’s BRICS membership will advance the country’s economic goals and also how it is likely to impact the rest of the African continent.

Our guest is Victor Kgomoeswana who has traveled to 25 African countries on the African continent over three decades and where he documented case studies of African businesses and enterprises that showcase Africa as a place of opportunity and a fertile ground for business.

He subsequently authored his seminal works on business on the African continent ”Africa is Open for Business” in 2015 and “Africa Bounces Back” in 2021. Kgomoeswana shared with viewers his assessment of whether a BRICS currency could one day become a reality and if so, how is it likely to impact the continent of Africa.

He noted the combined economic and political clout of the BRICS groups of countries which also included China, the second biggest economy and a nation increasingly growing in influence on the global stage.