World
BRICS and Africa: Balancing Interest Between Geopolitics and Development
By Kestér Kenn Klomegâh
BRICS (Brazil, Russia, India, China and South Africa), a group of emerging market powers and one of the most popular organizations, seeks to approve African States into its fold and build on its existing economic and trade with other invited African leaders during the 15th summit in Johannesburg, South Africa.
The BRICS members are meeting to deliberate on a broad range of important multiple issues, including new membership, common currency, various parameters of development and security and institutional architecture. More than 70 states are participating, including African leaders, while 23 States have submitted formal applications to join the group.
During his pre-summit visit to Addis Ababa, Foreign Minister Qin Gang pointed out Chinese support and solidarity with the government. Ethiopia’s relations with the West have deteriorated over the deadly conflict in its northern Tigray region.
In 2021, Washington imposed sanctions on Ethiopian officials involved in the conflict, cut aid and denied Ethiopia special access to the United States market under its African Growth and Opportunity Act of 2000. However, China accused the United States of meddling in Ethiopia’s internal affairs and assured Addis Ababa’s desire to join BRICS.
Ethiopian Prime Minister Abiy Ahmed has also been vocal on critical issues, most of the time urging African leaders to look for inside, within the concept of African Problems, African Solutions. His views are mostly focused on creating a fairer global system even while diversifying their partnerships under African strategies.
After a series of media monitoring and research, only three African States might gain membership into the bloc. These are Algeria, Ethiopia and Egypt. BRICS members have to agree on the criteria; the differences of opinion between China and India, as well as Brazil, preclude a quick resolution to the issue of accepting new members.
But both Brazil and India have promptly rebutted this “assumption” against BRICS expansion. The essence of BRICS lies in unity, and while India harbours concerns about China’s economic clout and has consistently asserted the border disputes.
Notwithstanding these, if expansion finally happens, it will bring the total African representation to four, including South Africa. It implies, in principle, the new members contribute to the changing processes and further give potential force for substantial geopolitical shifts.
Many experts believe that the expansion of BRICS would help Beijing promote its Belt and Road Initiative projects. The potential expansion of the group has set off alarms for Brazil and India, which are proud of BRICS’ exclusive nature. In this group, China is the strongest country from an economic point of view. It is really positioning itself as a leader of the Global South.
China needs raw materials, and Africa has a lot of them. China needs markets for its goods. It also needs investment projects, in particular for investing in infrastructure. China has a lot of companies building railroads, airports, and seaports. Chinese President Xi Jinping plans to hold a special meeting with African leaders to be chaired by the host South African Cyril Ramaphosa.
In addition, Xi and Ramaphosa are talking about strengthening ties and will witness the signing of some agreements with African delegations, according to the South African president’s office. China and South Africa would have comprehensive bilateral agreements.
Already on August 10, ahead of Xi’s visit, Chinese companies signed 20 deals to buy products worth US$2.2 billion from South Africa. South African Trade Minister Ebrahim Patel and Chinese Minister of Commerce Wang Wentao witnessed the signing at a joint economic and trade committee meeting aimed at boosting South African manufacturing exports to China. Anglo American Platinum, Glencore, Sappi and Pioneer Fishing were among South African companies involved in the agreements.
Across Africa, BRICS members are seen as important trade partners, sources of foreign investment and champions of the concerns of so-called developing countries, according to Tim Zajontz, a Research Fellow in the Centre for International and Comparative Politics at Stellenbosch University, South Africa.
“We can expect President Xi to stress at the summit that China and the BRICS are at the centre of South-South cooperation and ready to boost economic development across Africa,” Zajontz said, referring to collaboration among countries in the Global South.
In the run-up to the summit, however, the grouping’s shortcomings are in the spotlight. Some say there is a lack of coherent vision. “The objective necessity for a grouping like BRICS has never been larger,” said Rob Davies, South Africa’s former trade minister, who helped usher his country into the bloc in 2010. “The multilateral bodies are not places where we can go and have an equitable, inclusive outcome.”
Still, challenges abound for the BRICS and, indeed, the discussions surrounding its expansion. BRICS members have to reach the needed consensus; a broader problem was referred to recently by Jim O’Neill, namely that there is a lack of focus on pragmatic themes that matter for the economy and markets. Too much effort has sometimes been expended on secondary issues that have no bearing on the economy, markets or global governance.
Lord Jim O’Neill, a former Goldman Sachs economist who first gave the BRICS bloc its name, has slammed the idea of the five nations ever collaborating to create a common currency. But O’Neill, who coined the bloc’s name in a 2001 research paper, is unconvinced. “It’s just ridiculous,” he told the Financial Times in an interview. “They’re going to create a BRICS central bank? How would you do that? It’s almost embarrassing.”
De-dollarization is the latest buzzword to capture the market’s imagination and refers to efforts aimed at undermining the greenback’s command of global trade by promoting the use of other currencies.
According to the International Monetary Fund, proponents of the idea point to the fact that the dollar’s share of global reserves has fallen over the past two decades — though it still makes up nearly 60% of the world’s foreign-exchange holdings.
In the interview, O’Neill criticized the dollar’s role in directing the movements of other currencies around the world. “The dollar’s role is not ideal for the way the world has evolved,” he said. “You’ve got all these economies who live on this cyclical never-ending twist of whatever the (US Federal Reserve) decides to do in the interests of the US.”
Yaroslav Lissovolik, former Advisor to Russia’s Executive Director in the International Monetary Fund and currently the Founder of BRICS+ Analytics, argues that, despite the challenges and risks, BRICS+ together have the capability of creating a new layer of global governance that is represented by regionalism, i.e. coordination mechanisms for regional blocs and their development institutions.
With respect to the core, the BRICS are likely to unveil the main criteria for the expansion of the core, which may include, among other things, the economic weight of the candidate countries in their respective regions.
But before these grand plans are to materialize, BRICS needs to deliver on some of the most pressing issues for the global economy and for Africa, he explained and added “the best contribution is for BRICS to create and deliver through a support mechanism to the African States. This, for instance, would go a long way towards contributing to the success of the African Continental Free Trade Area (AfCFTA).
With an estimated 58 million population, South Africa is the 25th largest country in the world. South Africa welcomed and fully supported the adoption by African nations of the African Continental Free Trade Agreement (AfCFTA), which we believe will contribute tremendously in pursuit of the economic integration of our continent towards the attainment of our vision: Agenda 2063, the Africa We Want.
At a broad glance, Africa is becoming an essential part of the world. And it is a natural task for South Africa to promote the African agenda in this group. The theme: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism” reflects the priority for Africa.
Four BRICS leaders will attend in person. Russian President Vladimir Putin will take part in the summit in an online format. Foreign Minister Sergey Lavrov will travel to Johannesburg to represent Russia at the summit in person.
But today, what is South Africa’s investment in BRICS? How do we assess the level of development and food security if BRICS control that huge natural resources and human capital? How has South Africa, these several years as the only African State in BRICS, used its membership to facilitate and promote investment from BRICS into the African continent?
Ultimately, the BRICS alliance represents a distinct shift in global power dynamics; it somehow provides a platform for greater influence and assertiveness on the global stage and will continue potentially reshaping the existing world order. At present, BRICS members account for 23% of the global gross domestic product and 18% of trade, further having around 42% of the world’s population.
By Kestér Kenn Klomegâh
The Arab Republic of Egypt, a country spanning the northeast corner of Africa and the southwest corner of Asia, has a highly strategic location and attracts multifaceted interests of foreign players. For decades, Russia has established diplomatic relations with Egypt and has consistently sustained diverse ties with this country. It is no secret that Russia’s lust for the region is primarily due to the strategic importance of the Mediterranean Sea for investment and economic cooperation with the Maghreb region.
Determined to strengthen, particularly, economic cooperation, Russian President Vladimir Putin has maintained regular contacts with his colleague, President of Egypt, Abdel Fattah el-Sisi, mostly discussing both bilateral cooperation and broader regional developments. The current world’s geopolitical development, for instance, the United States-Israeli war on Iran in the Middle East, constitutes one theme both leaders frequently review, attempting to find long-term solutions.
On April 2, Putin met with the Minister of Foreign Affairs, Emigration, and Egyptian Expatriates of the Arab Republic of Egypt, Badr Abdelatty, in the Kremlin – the seat of Russia’s presidency. In attendance during the official talks on the Russian side were Foreign Minister Sergei Lavrov and Presidential Aide Yury Ushakov, while Egypt was represented by Ambassador Extraordinary and Plenipotentiary to the Russian Federation Hamdy Shaaban. Ultimately, there is no need to overstate the importance of this meeting.
Russia’s footprints are expanding in Egypt, highlighting the growing industrial investment and the strengthening of bilateral manufacturing ties by undertaking projects to ensure energy security. At the same time, maintaining regular dialogue remains very important for both leaders.
Putin, speaking with the three-member delegation in the Kremlin, underlined the fact that there are many promising initiatives underway, many of which are already being implemented. He has previously spoken in detail about the construction of a nuclear power plant and the construction of an industrial zone, and over ten major Russian companies have expressed interest in participating in this project.
Nuclear Plants in El-Dabaa, Egypt
The construction of nuclear plants in the city of El-Dabaa, about 320 kilometres northwest of Cairo, the capital of Egypt. It is the first nuclear power plant in Egypt, and will have four VVER-1200 reactors, making Egypt the only country in the region to have a Generation III+ reactor. On November 19, 2015, Egypt and Russia signed an initial agreement, under which Russia agreed to build and finance Egypt’s first nuclear power plant. These are now being carried out, not as a charity project, but with a loan of $28 billion. According to reports, Russia will finance 85% as a state loan of $25 billion, and Egypt will provide the remaining 15% in the form of instalments. The Russian loan has a repayment period of 22 years, with an annual interest rate of 3%.
At the meeting, Putin also raised the construction of an industrial zone in Egypt. There are many appealing and related opportunities in this, regarding having an industrial zone to be located on the banks of the Suez Canal. The industrial zone is also entering a new phase, as Russian auto-manufacturing enterprises are advancing distinctive plans to expand local vehicle production, reinforcing the country’s role as a regional manufacturing hub. The move reflects broader economic linkages between Russia and Africa, particularly in industrial development and supply chain integration.
Conveying Greetings and Reviewing the Middle East Situation
Naturally, the situation in the region remains a shared concern, according to Putin, and further hope that the ongoing conflict will be promptly resolved. “As you know, President Trump also addressed this issue yesterday. Let me reiterate that we are prepared to make every effort to help stabilise the situation and, as they say in such cases, return it to normal,” he stressed during the meeting. In this context, it is particularly important to know Egypt’s assessment as a key country in the Middle East.
Putin reminded the delegation of another Russia-Africa summit, which is planned for October 2026. With high hopes that Egypt will be represented by a strong, high-level delegation. Should the Egyptian President’s schedule allow, he would, of course, ahead of the summit, be very pleased to welcome him to Moscow. Jointly chaired by Vladimir Putin and Abdel Fattah el-Sisi, the first Russia-Africa summit, an important acute phase of the developments with Africa, under the motto of ‘For Peace, Security and Development’, was held for the first time in October 2019, in Sochi, a city located on the Black Sea coast. The idea to hold a Russia-Africa forum was initiated by President Putin at the BRICS (Brazil, Russia, India, China and South Africa) summit in Johannesburg in July 2018.
The head of the Egyptian Foreign Ministry, as traditionally expected, conveyed greetings from President El-Sisi to the Russian president and handed over a written message. President el-Sisi places great value on all aspects of the bilateral cooperation, and is extremely grateful for constructive collaboration on the El Dabaa Nuclear Power Plant, which represents a key milestone in the partnership. Despite the challenges, it is evident that the project is moving forward and will be completed by 2028.
In summary, as Egypt and Russia are reliable and time-tested partners, Putin plans to promote strategic projects, particularly in trade, economics, energy, and food security. With over 107 million inhabitants, Egypt is the most populous country in the Arab world, the third-most populous country in Africa, and the 15th-most populous in the world.
By Kestér Kenn Klomegâh
In an interview, Senator Mushahid Hussain, President of Pakistan-Africa Institute for Development and Research (PAIDR), explicitly offers a few important insights into the US-Israeli war on Iran and its implications for BRICS+ and Africa. Here are the interview excerpts:
What’s your interpretation of the US-Israel war on Iran, in the context of developments in the Middle East region?
The US-Israel illegal and unwarranted war on Iran was spearheaded by [Benjamin] Netanyahu (Prime Minister of Israel) and actively supported by [Donald] Trump (President of USA) as a Joint Operation with three fundamental goals: a) decimate the Islamic Revolutionary Regime; b) reshape the Middle East as part of Zionism’s ‘Greater Israel’ Project; c) preclude any possibility of establishing a Palestinian State with Jerusalem as its capital.
What is your assessment of Iran’s joining BRICS+ in 2025, China’s and Russia’s roles as members of this association, in this US-Israel war with Iran?
China and Russia have played, by and large, a low-key diplomatic role in supporting Iran but without any active political initiatives. BRICS is divided from within, as India is keen to curry favour with the USA and avoids close association with BRICS since the time that Trump attacked BRICS last year. But China & Russia are clear political beneficiaries of the war as American prestige is at an all-time low, having got entangled in an unwinnable war, resulting in weakening of the US ‘sole superpower’ image.
As an Asian expert, how would you characterise Africa’s reactions? And do you think that reactions were objectively authentic, basing perspectives broadly on Arab and Middle East contributions to Africa’s development?
Africa’s reactions to the war are primarily through the prism of the Global South, viewing Iran as resisting American-Israeli hegemonic designs, as, for example, manifested in two examples: South Africa’s rejection of American pressures to wean South Africa away from its support for Iran. Plus, Somalia joined Pakistan and China in supporting the Russian resolution in the UN Security Council seeking an immediate ceasefire and negotiations to halt the War, despite strident Western/US opposition to the Russian resolution.
By Adedapo Adesanya
The Director-General (DG) of the World Trade Organisation (WTO), Mrs Ngozi Okonjo-Iweala, has said the global trading system is experiencing the worst disruptions in the past 80 years.
The trade body chief warned about the consequences as the WTO ministerial conference opened Thursday in Cameroon.
“The world order and the multilateral system we know has irrevocably changed,” she said, adding: “We cannot deny the scale of the problems confronting the world today.”
The organisation’s 166 members appear deeply divided as trade ministers gather in the Cameroonian capital for the WTO’s top conference, amid global economic turmoil linked to the Middle East war.
Over four days in Yaounde, WTO members will try to revitalise an institution weakened by geopolitical tensions, stalled negotiations, and rising protectionism — against the backdrop of the war in the Middle East, which poses a serious threat to international trade.
“The scale of the problems confronting the world today, even before the conflict in the Gulf, destabilised trade in energy, fertiliser and food,” Mrs Okonjo-Iweala said.
“National governments and international institutions alike have been struggling to navigate rising geopolitical tensions, intensifying climate pressures, and rapid technological change.
“Accompanying these shifts has been an increasingly loud questioning of multilateralism,” she added.
Mrs Okonjo-Iweala said these disruptions were just one symptom of broader upheavals shaking the international order created after World War II to prevent a repeat of the disasters of the first half of the 20th century.
“It feels appropriate that at the moment when the world is in turmoil with conflict in the Middle East, Sudan, Ukraine, and elsewhere, at this time of great disruption and uncertainty, we have gathered in Africa to discuss the road ahead for the global trading system,” she said.
“Africa is the continent of the future.”
WTO ministerial conferences are typically held every two years. The current edition in Yaounde is the second to be held in Africa, after Nairobi (Kenya) in 2015.
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