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BRICS+ and G20: Competing or Collaborating for Global South

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BRICS Global South Cooperation

By Kestér Kenn Klomegâh

South Africa’s Cyril Ramaphosa heads G20, an intergovernmental forum comprising 19 sovereign countries, the European Union, and the African Union, while Brazil’s Luiz Inácio Lula da Silva chairs BRICS+, an association made of Brazil, Russia, India, China and South Africa with four new members and 13 partner states in a category mostly from developing countries.

At a quick glance, the G20 and BRICS+ are respectively chaired this year 2025 by South Africa and Brazil, both BRICS+ members, which makes it distinctively important development for the changing geopolitical world. In 2025, G20 and BRICS+ agenda features a pivotal role and pledge to continue making concerted strides, either in keen competition for economic revitalization or in close collaboration as development players, in the Global South.

Historically, G20 was created back in 1999 as a group of twenty of the world’s largest economies to deal primarily with multifaceted aspects of existing global economic, trade, health, climate change and political issues. Dissatisfied with the global dominance of the United States and the stack failure of leaders of developing countries, especially in Africa, to raise their economic status to an appreciable levels and improve standards of living for the largely impoverished population, BRIC appeared in 2009, in city of Yekaterinburg, Russia.

South Africa ascended in 2010, transforming it into BRICS. As popularly now referred to as BRICS+, its key objective aspiration is to support building a better economic architecture for the Global South. In addition, BRICS+, as a non-western association, operates against western hegemony and uni-polar, rules-based system. Its key priority aims at shaping a more equitable and a more balanced global order while collaborating with developing countries in raising their economic status in the Global South.

An insight into G20 and BRICS+ including its “partner states” category shows the huge economic structure, the natural and human resources necessary for the future of mankind. We have observed several discussions, at highest levels these several years, on intensifying whatever political dialogue and exchange of views, economic collaborations and interactions on bilateral and multilateral mechanisms for developing better conditions in the Global South. Bridging the economic and standards of living gap have been on the agenda for both G20 and BRICS+ during previous years.

Every year, the leaders of G20 members meet to discuss mainly economic and financial matters and coordinate policy on some other issues of mutual interest. Every year, BRICS+ members summit features extensive deliberations on the United States global dominance and hegemony, without adequately addressing economic lapses in the developing Global South. Several summit declarations have adopted in that directions, but remain purely as collective declarations.

G20 and BRICS+ agenda in 2025?

As geopolitical situation heightens, G20 and BRICS+ are championing its a fresh version of governance reforms in their ways, and further reviewing the current operations of multilateral institutions such as the United Nations, the World Trade Organization (WTO), International Monetary Fund (IMF)and the World Bank for developing countries in the Global South. Despite these common goals, G20 and BRICS+ still have the main points of discontention. BRICS+ shares, in its declarations, dissatisfaction over over-exploitation of resources in and rules-based approach towards developing world.

In the Ministry of International Relations and Cooperation’s media release in January 2025, titled “The G20 is made up of 13 Engagement Groups”, stated that “South Africa fully supports the approach of strengthening partnerships and expanding dialogue with a wide range of actors; including States, international organizations and civil society; to collectively shape the G20’s approach to issues requiring international cooperation.” (South Africa’s chairmanship of G20, Jan. 2025)

It further recognizes the significant strides made by the Brazilian G20 presidency (2024) in enhancing the G20 as a site of democratic global engagement. The South African presidency will continue this trajectory. In South Africa’s G20 presidency, further modalities will be developed to involve a wide range of stakeholders throughout the year, particularly on priority initiatives. Until the G20 Leaders’ Summit in November 2025, South Africa is expected to bring together representatives of the existing engagement groups and other segments of civil society that may offer meaningful contributions to the G20.

For the BRICS+ agenda, focus is placed on the need to reform the current international financial architecture to meet the global financial challenges. As already explained, the measures are to facilitate the development of the economy, international trade, and the achievement of the sustainable development goals.

In addition to the financial architecture, BRICS+ has agreed to discuss and study the feasibility of establishment of an independent cross-border settlement and depositary infrastructure, an initiative to complement the existing financial market infrastructure, as well as independent reinsurance capacity and the possibility of expanding innovative financial practices and approaches for projects and programmes, including finding acceptable mechanisms of financing in local currencies.

BRICS+ has reaffirmed its commitment to maintaining a strong and effective Global Financial Safety Net with a quota-based and adequately resourced IMF at its centre. On G20, BRICS+ recognized the importance of the continued and productive functioning of the G20, based on consensus with a focus on result-oriented outcomes. In other words, both would play complimentary role in the global economy, and appreciating efforts with a focus on development trends in the Global South.

South Africa Driving Development Goals

In accepting G20 chairmanship early December in Cape Town, South Africa explicitly indicated a number of practical ways forward in consolidating G20 on the world stage as it strives to gain additional significant momentum in 2025.

South Africa, however, insisted that G20’s relations have to be compatible with development gaols of the Global South. The main argument here is that the G20 comprises many of the world’s largest developing and developed economies. Therefore, G20 has to play a critical role in influencing policies and foster economic stability to have a direct impact on the lives of all members of the global community.

It has a wide agenda that now includes trade sustainable development, health, agriculture, energy, the environment, climate change and anti-corruption. These agenda initiatives are not only to drive economic progress but also to accelerate and support long-term investment opportunities across the continents especially in Africa.

The outlook for global economic growth remains unpredictable, and many economies carry the burden of unsustainable levels of debt. Geopolitical instability, conflict and war are causing further hardship and suffering. Across the world, billions of people are affected by under-development, inequality, poverty, hunger and unemployment.

Strengthening Economic Partnership

Working together with G20 members and building partnerships across society is one the surest pathways to confront the development challenges. Exploring the development pathways, without any geopolitical discrimination but with caution, to achieve more rapid, inclusive and economic growth for future generations.

The G20 provides us with a platform to pursue these collective goals. South Africa has adopted the theme ‘Solidarity, Equality and Sustainability’ for its G20 Presidency. Through solidarity, we can create an inclusive future that advances the interests of people at the greatest risk of being left behind.

Under South Africa’s leadership, the G20 leaders have to work seriously with African Union and European Union, through this year, until its final summit which will take place in Johannesburg in November 2025. South Africa’s presidency, for the first time an African country has presided over the G20, in line with above-mentioned theme, there is the necessity to strengthen and advance consistent efforts to achieve the Sustainable Development Goals by 2030.

Africa’s Noticeable Challenges

Until today, Africa faces multitude of challenges. The continent, comprising 55 States, was declared as politically independent in 1963 and yet is confronted with challenges of an excellent model of governance and exemplary leadership. Basic tenets of transfers as stipulated within framework of constitutions are usually marked by conflicts, opposition groups are frequently banned from operating in the country.

This is further simply compounded by economic under-development which impact heavily on living standards of majority of the population across the Africa. Despite huge untapped natural resources, tackling the economy requires finances which many African countries lack primarily due to inability to design national priority actions. Urban-rural development disparities have taken its characteristic shape in many geographic parts of Africa.

The local African, multilateral financial institutions, development banks and the private sector need to scale up, with a fairer and appropriate lending conditions to ensure debt sustainability for low-income countries.

In fact, Africa still needs more investment in infrastructure, healthcare, education and finance for sustaining many other development needs, and as well as to consider extending debt relief to developing economies. These are challenges for G20 and BRICS+ to champion their critical positions as engines for growth and development in Africa, and Global South.

In 2025, there is unshakeable (amplified) hope that both South Africa’s G20 directorship and Brazil’s BRICS+ chairmanship, focus would be on pursuing remarkable progress on cross-cutting development issues throughout Africa and across Global South.

Logical Expectations

In this fast-changing landscape characterized by forging new alliances, the practical implementation of the Russia’s initiatives, against the backdrop of escalated tensions, fostering cooperation not confrontation, will rather help effectively in addressing challenges. One more significant point is that there may be important linkages emerging between BRICS+ and G20. Undoubtedly, Brazil in 2025 is likely to base its priorities on some of the themes that were pursued in 2024 during its chairmanship in G20.

BRICS and G20, critical over global political developments and economic growth, but both could complement efforts as partners in tackling existing challenges, coordinate approaches and strategies. Particularly, Africa, as part of the developing Global South, has increasingly become the subject of deliberations at high-level summits and conferences, noting that more 60% of its population still wallow in abject poverty.

Understanding the puzzling paradox that Africa has huge untapped natural resources and adequate human capital to engage in development. Often asked rhetorical question why ‘the Asian tigers’ developed while ‘the African lions’ declined these past several years. South Africa, as the current G20 president, has to set the platform this 2025 for practical dialogue at G20, which includes BRICS members, to adopt collective towards Africa’s development goals including those in energy, industrialization, infrastructure and agriculture.

Logical Conclusion

As we mark the end of this first quarter century in 2025, it behoves on individual leaders, states and their stakeholders to act rather than engage in persistent criticisms and trading geopolitical rhetoric. On one hand, BRICS+ bloc is rapidly evolving as an alternative platform for global cooperation. For substantive continuity, BRICS+ apparently has to ensure that the initiatives raised during Russia’s presidency, and previous summits, members and the “partner states” maintain unwavering commitment towards their realization.

But on the other hand, G20 has to readjust and adapt its collective approach towards diverse perspectives, reform its models of operations to compliment and support development initiatives of the Global South. While appreciating in the final summary that G20 and BRICS+ platforms are created for driving global development and expected optimal economic growth, and further to engage in tackling challenges in order to register visible impact, it is highly necessary to emphasize the importance of trust and collaboration.

Moreover, the geopolitical implications are already known. But this, as a whole, becomes ultimately the greatest interest in their current deliberations. It is really a defining moment for Africa, and in general, for the Global South. Both G20 and BRICS+ have to subsequently demonstrate strategic steps in actualizing the aspirations as we move forward into the future.

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AXIAN Energy Secures $60m for Expansion Across Africa

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axian energy

By Aduragbemi Omiyale

A financing facility of up to $60 million has been secured by AXIAN Energy, the energy division of the AXIAN Group.

The funding package was provided by MCB, one of the leading financial institutions in the Indian Ocean region.

It comprises a $40 million revolving credit facility with a three-year tenor and extension option, and $20 million in unfunded instruments, providing AXIAN Energy with enhanced financial flexibility, enabling the company to rapidly mobilise resources and seize development opportunities across its target markets.

The energy firm is expected to use the capital to deliver large-scale energy infrastructure projects across Africa.

Over the past two years, AXIAN Energy has significantly accelerated its growth by expanding its renewable energy project pipeline, with solar projects currently under development in Senegal, Benin, Zambia, Côte d’Ivoire, Madagascar, and Burkina Faso.

Building on this momentum, AXIAN Energy now operates a portfolio comprising 350 MW of installed renewable energy capacity, supported by 77 MWh of energy storage capacity, positioning the AXIAN Group as a major contributor to Africa’s energy transition.

The chief executive of AXIAN Energy, Mr Benjamin Memmi, said, “This transaction marks a key milestone in AXIAN Energy’s growth trajectory. It provides us with the financial capacity to sustain the momentum we have built over the past two years, further strengthening our renewable energy portfolio and expanding our presence across new African markets.”

Also commenting, the Global Head of Structured Finance at MCB, Mr Mathieu Delteil, said, “We are proud to support AXIAN Energy in structuring this facility, reaffirming our commitment to enabling transformative projects across Africa.

“By leveraging our sector expertise and deep understanding of regional markets, we have delivered a tailored financing solution that aligns with AXIAN’s long-term renewable energy ambitions.

“This partnership highlights our role as a strategic financial partner, mobilising capital towards investments that drive sustainable growth and accelerate the energy transition across the continent.”

The financing agreement between the two organisations strengthens their long-standing relationship because it is driven by a shared commitment to supporting infrastructure development and economic growth across Africa.

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S&P Restores Afreximbank to Investment-Grade Status After 12 Years

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Afreximbank

By Adedapo Adesanya

Credit ratings agency, S&P Global Ratings, has restored the African Export-Import Bank (Afreximbank) ​to investment grade, nearly 12 years after its last assessment, citing the entity’s countercyclical lending record and ‌strong shareholder support.

The BBB+ rating with a stable outlook is one notch above Moody’s Baa2 and comes months after Afreximbank severed ties with Fitch Ratings.

The lender accused the agency of misjudging its mission, following a downgrade to junk status amid disagreements over the bank’s role in debt ​restructurings for Ghana and Zambia. Fitch subsequently withdrew its ratings entirely and flagged governance concerns.

S&P said in ​a statement on Thursday that Afreximbank’s record as a countercyclical lender and its substantial shareholder ⁠support served as rationale for its rating. Credit ratings often guide the costs of capital for a borrower.

The lender’s total assets, S&P noted, had expanded to $42.3 billion by the end of 2025, up ​from $7.1 billion in 2015.

S&P said it did not incorporate preferred creditor status into its assessment because Afreximbank ​provides almost 80 per cent of its loans to private-sector entities.

However, it acknowledged that Afreximbank, alongside other institutions, had experienced prolonged payment arrears in ‌recent ⁠years, notably following the defaults and debt restructurings in Ghana and Zambia.

S&P noted that Afreximbank said in December that it had come to an agreement with Ghana on its $750 million loan, but that the lender had not announced a resolution with Zambia.

The agency warned that further sovereign restructurings could weigh on Afreximbank’s asset quality.

S&P’s assessment described Afreximbank’s governance and management as “adequate”, saying the ⁠inclusion of ​two independent directors and the African Development Bank (AfDB) as a permanent board ​member provided institutional oversight.

It noted that while increasing participation of private-sector investors through Class D shares could influence the bank’s risk appetite, Class A ​shareholders retained veto rights over big institutional changes, balancing potential risk.

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Elon Musk Becomes World’s First Trillionaire as SpaceX Soars in Nasdaq Debut

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elon musk spacex

By Adedapo Adesanya

Mr Elon Musk, the world’s richest man, is now a trillionaire as his SpaceX rose 11 per cent in its Nasdaq debut on Friday, lifting its valuation to about $1.96 trillion as investors piled into the world’s largest initial public offering (IPO).

The stock opened for trading at $150 compared with the IPO price of $135 per share.

The landmark listing cemented Mr Musk’s status as the first trillionaire ever and propelled SpaceX into the ranks of the ⁠world’s most valuable companies

The listing is being used as a benchmark of what is to come for the market ahead of forthcoming IPOs for AI heavyweights Anthropic and OpenAI.

The record IPO is a culmination of Mr Musk’s long-held ambitions in space and technology.

Most of Musk’s wealth now rests with SpaceX, where ⁠he holds a stake worth roughly $866 billion. Along with Tesla and the rest of his properties, his net worth will exceed $1.1 trillion when the stock begins trading on Friday.

At a quoted $75 billion, the deal’s proceeds were more than double those of Saudi Aramco’s record-setting 2019 IPO.

The valuation could rise further should underwriters exercise their right to sell additional shares, a decision typically made within 30 days after the offering.

Although SpaceX may have to wait for entry into the S&P 500, its expected fast-track inclusion in the Nasdaq 100 will soon make it a major holding for passive funds and ETFs that track the index, creating a fresh source of demand for its shares.

It will take about a month before it gets added to that index under Nasdaq’s new fast-entry rules, as opposed to a typical wait of as much as a year.

SpaceX said its market opportunity spans $28.5 trillion, a figure it called the largest in human history.

Mr Musk, 54, was born in Pretoria, South Africa, to a Canadian mother and South African father. He attended the University of Pennsylvania, graduating in 1997.

He took over as Tesla’s CEO in 2008. Beyond Tesla and SpaceX, Mr Musk ‌has co-founded ⁠five other companies, including tunnelling startup The Boring Company and brain implant maker Neuralink.

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