Business Post Contributor
Kestér Kenn Klomegâh
South Africa hosted the 15th BRICS summit from August 22 to 24. The BRICS (Brazil, Russia, India, China and South Africa) members have thoroughly discussed a wide range of significant issues, including the bloc’s expansion, common currency, investment and trade, the bloc’s strategy and geo-policy. We already know that BRICS members consistently champion the rights and interests of Africa and also play an increasing role and influence in the global governance system – particularly international financial and economic organisations.
Holding the 15th summit, especially this crucial time, within the context of the emerging multipolar world, BRICS discussed steps forward for deepening interaction in the sphere of trade and investment with the nations of the Global South, including Africa. In fact, the BRICS-Africa Outreach and BRICS Plus Dialogue in Johannesburg on August 24 was considered an important component event of the summit.
On the sidelines of the BRICS summit, Kestér Kenn Klomegâh had the chance to talk with Professor Arnold Boateng about a number of questions connecting BRICS and Africa. Professor Arnold Boateng is an Entrepreneur, Consultant, Speaker and Author. [Books: Dreams of Our Youth: The African Youth Question: Ananse Verses: Foundations for Life… (Available from Amazon & Kindle Store]. Here are the interview excerpts:
In your view, how do you assess the 15th BRICS summit held here in Johannesburg, South Africa
The summit was a huge success. It is living up to the hype and expectations prior to the summit. Invited guests showed up and gave a thumbs-up to the agenda. Two critical expectations were the admission of new members and the issue of BRICS currency for trading. The organisation of the summit went according to script. A notable hitch was the absence of President Vladimir Putin, but his Foreign Affairs Minister, Sergey Lavrov, is a qualified representative.
And also, how would you evaluate, within the context of an emerging new world, Egypt and Ethiopia as new BRICS members
Egypt is the largest economy in North Africa, with a GDP of $435 billion and a population of 112 million. Its economic growth is around 3.7% for this year. According to the IMF, it is expected to grow at 5% in 2024. Ethiopia, on the other hand, with its population of 120 million and a GDP of $305 billion, brings good matrices by any measure to the table. Both countries have a young population and a strong middle class. Their political environment is relatively stable for strong economic development.
With a bit of emphasis on BRICS supporting Africa’s development and … to undermine Western domination and influence, what could be Egypt and Ethiopia’s role in these issues across Africa
As I see it, BRICS may build these two countries into economic successes and use them as carrots to rope in other African nations. As you indicated, the era of photos and handshakes to get Africa dancing is over. Even the era of infrastructure funding is ending to give way to industrial base and manufacturing funding.
BRICS sees it clearly as the most secure way to go. Egypt appeals to the North African Islamic states, whilst Ethiopia appeals to the Horn of Africa and part of the East. With both nations developing economically, their economic successes would create synergies that overflow into surrounding economies. They would also be the trump card BRICS would need to demonstrate to Africa and other regions that it offers a better option than the West’s exploitative programmes. So far, BRICS support of Africa’s development is largely words since we cannot equate China to BRICS. Even if we could, China’s infrastructure funds went to corrupt governments.
Next, what’s your take on Vladimir Putin’s proposal that BRICS becomes a trading bloc? What are the obvious implications, particularly for Africa
Vladimir Putin’s call is the best and most practical statement to come from BRICS so far. He seems to have identified the pulse of Africa and our teaming youth. Africa wants more trade and less and less aid. Wealth and economic prosperity is what Africa needs. Africa needs investment in the continent and cross-border trade. Once BRICS began to function as a trading block with fair terms of trade, Africa may apply to join the block. If BRICS positions itself as a trading block with effective and open trade rules, it may very supplant WTO in a generation. Africa is tired of WTO, which favours North Atlantic Nations. BRICS has a population of about 40%, mineral resources, and technological know-how to thrive and compete. Even trade within the BRICS block would be enough for African nations to realise their respective dreams. This is what Africa has been waiting for a trading block with raw reserves, a youthful population underpinned by fair trade, open borders and honest trading partners.
How feasible that can be and what peculiar challenges it poses for Africa and for the African Continental Free Trade Area (AfCFTA) under the auspices of the African Union (AU)
Its applicability lies in the guidelines for joining the BRICS; the African Union adopting BRICS policy which is skewed towards trade. Africa’s trade policies are fragmented. That is what AfCFTA seeks to overcome and usher in an era of true free trade. The lukewarm attitude from countries, competing trade policies, and internal political situations pose huge challenges. Furthermore, road and logistical infrastructure are challenges even if Africa could overcome political and technical regimes of taxes, cross-border issues and intractable issues like corruption. Thus, nationalistic tendencies are key challenges to overcome. BRICS may have to impose its own trading protocols as an assistance to the African Union (AU) and AfCFTA to help them steer the task of streamlining trading rules. BRICS may also consider harmonising trade rules with AfCFTA. The African Union is now viewed with mistrust in certain capitals. African leaders see it as an attempt to a power grab. It must focus on coordination and getting African leaders to support AfCFTA to achieve its mandate.
