Feature/OPED
South Africa BRICS Presidency: Challenges and Future Perspectives
By Kestér Kenn Klomegâh
The next year 2023, South Africa, as per stipulated approved guidelines and rules, will hold the rotating presidency of BRICS, the organization of five emerging developing countries made up of Brazil, Russia, India, China and South Africa. This implies that South African President Cyril Ramaphosa has a lot more at hand, especially with the current global geopolitical changes to drum home, to consolidate the growing support underway for a few others to join BRICS.
Ramaphosa has already reminded us that South Africa will hold the BRICS rotating presidency in 2023. “That BRICS summit next year under the chairship of South Africa, the matter of expanding BRICS is going to be under serious consideration. A number of countries are consistently making approaches to BRICS members, and we have given them the same answer that it will be discussed by the BRICS partners, and thereafter a collective decision will be made.” the president said this December.
Russia’s Foreign Affairs Minister Sergey Lavrov told the gathering at the Primakov Readings forum held this early December that the quintet of BRICS economies (Brazil, Russia, India, China and South Africa) may turn into an organization of 15-17 countries, not just enthusiasm but if those wishing to join it are granted membership based on two principles: have the necessary conditions and the collective decision of the organization.
Lavrov, in his presentation, traced the historical establishment and development of the organization. “We all know that this format [RIC – Russia, India, China] paved the way for the BRICS Five, which currently enjoys great publicity and many countries line up seeking a full-fledged membership,” Lavrov said.
“If we meet all bids, then the ‘five’ will turn into about 15-17 countries as the BRICS summit in June, which was organized in a video conference format by our Chinese colleagues, showed us,” the foreign minister noted, and further stressed that the RIC remains an operational format and not only foreign ministers, but ministers of economy, energy and economic development as well, are meeting within the framework of this format.
“The RIC keeps thriving today, and not many know that this ‘trio’ continues holding meetings at the level of foreign ministers,” Lavrov continued. “Just a couple of months ago, we held such a meeting in the online format, and it was the 20th meeting of this kind since [ex-Foreign Affairs Minister] Yevgeny (Primakov) proposed to keep developing this format.”
“Besides the meetings of foreign ministers, there are meetings of energy, trade and economic development ministers as well as of numerous industrial members of the corresponding governments,” the Russian foreign minister added.
“We have real partners – BRICS, the SCO, the EAEU, and the CSTO, regardless of what is written about it,” Lavrov stated. The top diplomat stated that the RIC structure (Russia, India, China), a Primakov initiative, “spawned the BRICS five, which currently receives enormous attention.” Several states are lined up for full membership, and the five could expand to roughly 15-17 countries, Lavrov added.
Russia’s local Vedomosti reported that the number of BRICS members might triple during the Primakov Readings forum. According to the report, organizations such as BRICS are becoming an alternative against the backdrop of the weakness of the European Union. The emphasis on cooperation with non-Western states appears to be even more warranted in light of Europe’s current problems. The United States and its closest allies’ unjust policy toward key EU members.
Berlin and Paris do not have complete autonomy in international politics; thus, they deliberately cede some of their foreign policy functions to Washington, according to Alexander Kamkin, a Senior Researcher at IMEMO. The expert admits that the European countries are capable of taking the initiative in a few circumstances, but on the whole, they follow Washington’s lead.
According to Andrey Kortunov, Director General of the Russian International Affairs Council, BRICS can provide countries with an alternate partnership path to the EU that does not require a high admission threshold. According to him, the group is now developing along two avenues: by admitting new members and by strengthening cooperation.
In the second case, additional countries will not be admitted to BRICS, but each organization’s partner will be able to choose a convenient mode of cooperation within the BRICS+ structure. Kortunov noted that the EU is unwilling to seek strategic autonomy from the US not only due to the Ukrainian crisis but China’s ascent.
The possibility of expanding membership in the organization is still under discussion within the BRICS framework. Noteworthy to reiterate here that a decision was made at the five BRICS members summit on June 23-24 to launch a discussion for the purposes of determining the principles, standards, criteria and procedures of this process.
China and Russia have been pushing for the expansion of BRICS, soliciting support for the multipolar system of global governance instead of the existing rules-based unipolar directed by the United States. Often explained that a bigger BRICS primarily offers huge opportunities among the group members and for developing countries.
Russian President Vladimir Putin said at a plenary session of the Valdai International Discussion Club held on October 27 reaffirmed Russia’s unshakable support for Saudi Arabia joining BRICS. “Yes, we support it, but this requires a consensus of all the BRICS countries,” he said.
According to him, Saudi Arabia is a rapidly developing country, which is due not only to its leading position in the hydrocarbon market. “This is also due to the fact that the Crown Prince, the government of Saudi Arabia, has very big plans for diversifying the economy, which is very important. They have entire national development plans designed for this goal,” the Russian President said.
He expressed confidence that, given the enthusiasm and creativity of Crown Prince Mohammed bin Salman Al Saud, these plans will be implemented. “Therefore, of course, Saudi Arabia deserves to be a member of major international organizations, such as the BRICS and such as the SCO. Most recently, we determined the status of Saudi Arabia in the SCO and will develop relations with this country both bilaterally and on multilateral platforms,” Putin added.
With the current global unstable and volatile situation creating skyrocketing uncertainties in global economic recovery, China has unreservedly shown its contribution to strengthening BRICS. For 16 years since its inception, China has offered the largest financial support for the BRICS National Development Bank and contributed tremendously to other directions, including health, education and economic collaboration among the group.
That is why BRICS has gained extensive recognition. More and more countries are willing and interested in becoming members of the organization, making joint efforts to overcome difficulties and challenges, and realising common development and prosperity. BRICS activities have expanded during the past few years. Countries participated in the Outreach and BRICS plus segments of the organization. But now, with the emerging new global order, BRICS seeks to expand its membership and consolidate its platform as an instrument for pushing against the existing rules-based order unipolar system.
BRICS activities have expanded during the past few years. Countries participated in the Outreach and BRICS plus segments of the organization. There are also a number of African countries, including Algeria, Egypt, Ethiopia, Nigeria, and Senegal, that have also shown interest. Egypt has already been involved for a fairly long time. Last December 2022, Egypt, the decision on its accession to the New Development Bank was made by BRICS.
Russia has consistently advocated for deepening the organization’s interaction with the African continent, the diplomat stressed. In particular, President of the Russian Federation Vladimir Putin mentioned this at an expanded meeting of leaders of the five BRICS member-states in the BRICS plus format on June 24. It is, however, expected that this avenue of efforts will get an extra impetus during the presidency period of South Africa in 2023.
On May 19, China’s State Councillor and Foreign Minister Wang Yi chaired a video conference dialogue between foreign ministers of BRICS countries and their counterparts from emerging economies and developing countries. It was the first BRICS Plus dialogue at the level of foreign ministers. Participants in the dialogue came from BRICS countries as well as invited countries such as Kazakhstan, Saudi Arabia, Argentina, Egypt, Indonesia, Nigeria, Senegal, United Arab Emirates and Thailand.
According to Wang Yi, the dialogue’s importance was to further expand cooperation between the BRICS countries and other emerging economies and developing countries. In addition, Wang Wenbin, during his weekly media briefing on October 20, explained that as the BRICS chair for this year, China has actively supported the BRICS in starting the membership expansion process and advanced the BRICS Plus cooperation.
During the 14th BRICS summit successfully held in June 2022, President Xi Jinping noted at the meeting that BRICS countries gather not in a closed club or an exclusive circle but in a big family of mutual support and a partnership for win-win cooperation. At the summit, BRICS leaders reached important common understandings about BRICS expansion and expressed support for discussion on the standards and procedures of the expansion.
“This has been well received in the international community, and many countries have expressed interest in joining the BRICS. China supports and welcomes this. Going forward, China will work with fellow BRICS members to steadily proceed with the BRICS expansion process and enable more partners to join this promising endeavour,” Wenbin said at the media briefing.
Despite its large population of 1.5 billion, which many have considered an impediment, China pursues admirable collaborative strategic diplomacy with external countries, and that has made it attain superpower status over Russia. A careful study and analysis monitored by this author vividly show that muscle-flexing Russia largely lacks public outreach diplomacy, Russia contributing towards its own ‘cancel culture’ policy, and this is seriously detrimental to the emerging new global order.
South Africa was a late minor addition to the group, to add a bridgehead to Africa, says Charles Robertson, Chief Economist at Renaissance Capital. All the BRICS countries are facing economic challenges that need addressing urgently. The BRICS is keenly aware of the importance of contributing to Africa’s development agenda.
“Therefore, it could expand because the BRICS are under-represented in the global financial architecture. Europe and the United States dominate institutions like the International Monetary Fund (IMF) and the World Bank, and to some extent many others,” explained Robertson in an emailed query.
According to him, “Russia and others in the BRICS would like to see larger power centres emerge to offer an alternative to that Western-dominated construct. That is reasonable enough – providing there are countries with the money to backstop the new institutions, such as China supporting the BRICS bank, and if the countries offer an alternative vision that provides benefits to new members.”
South African Ramaphosa has repeatedly said that BRICS as a dynamic group would usher in a new global development era that promises a system of more inclusive, sustainable and fair principles. BRICS group, in an expanded form, can support a sustainable and equitable global economic recovery.
For South Africa, Ramaphosa further believes that the BRICS is simply a highly-valuable platform fixed to strengthen ties with partner countries in support of South Africa’s economic growth for discussing global economic problems and challenges and, above all, strengthening the role of developing countries.
After his official visit to Saudi Arabia in mid-October, Ramaphosa said that Crown Prince Mohammed bin Salman Al Saud had expressed the desire to join BRICS. “The Crown Prince did express Saudi Arabia’s desire to be part of BRICS. They are not the only country seeking membership in BRICS,” according to the local radio station ABC. That report said Argentina, Iran, Turkey and the UAE also voiced their intention to join the organization.
The BRICS embody a synergy of cultures and are a model of genuine multilateral diplomacy. Its structure is formed in compliance with the 21st century’s realities. Efforts within its framework are based on the principles of equality, mutual respect and justice.
Historically, the first meeting of the group began in St Petersburg in 2005. It was called RIC, which stood for Russia, India and China. Then later, Brazil joined and finally, South Africa in February 2011, which is why now it is referred to as BRICS. The acronym BRICS is derived from the member countries’ names in English. The BRICS (Brazil, Russia, India, China and South Africa) collectively represent about 26% of the world’s geographical area and about 42% of the world’s population.
Feature/OPED
The Future of Payments: Key Trends to Watch in 2025
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
Feature/OPED
Ghana’s Democratic Triumph: A Call to Action for Nigeria’s 2027 Elections
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
Feature/OPED
The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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