In the global economy, African nations have always seemed like outsiders looking in—in exact terms, like guests to a party co-organised by them. From arbitrary manufactured borders drawn up at the Berlin Conference of 1884-1885 to the colonisation of the continent by varied Western powers, Africa has always been positioned geopolitically as a passenger, not an active driver of its economic and political destiny. BRICS presents a new opportunity for redefinition and prioritisation of key growth metrics and a forum for economic and political coordination. At the January 2024 BRICS summit, the organisation expanded to include five new members, two of which were the African nations of Egypt and Ethiopia, informally known as BRICS+.  In late 2024, Nigeria, Uganda and Algeria joined a list of thirteen nations, admitted to BRICS as partner countries. 

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First Principles- Why B.R.I.C.S for Africa? 

The current international financial system was formulated at a unique time in global history, at the end of the Second World War. As could be suspected, the meeting of minds at the Bretton Woods Conference in 1944, which created the International Monetary Fund (IMF) and the World Bank, saw very little African representation. Ethiopia, Liberia, Egypt, and an apartheid-sympathetic South Africa were the only African nations with representation at the forum. In essence, African nations received little representation at Bretton Woods because most African countries were still faced with the scourge of colonialism, with nationalist independence movements barely springing up across the continent during the period.

For African nations, BRICS membership is seen as an opportunity to rewrite the narrative and seek two primary terms of engagement: political equality and economic sovereignty. A brief economic and political profile of the new African member states and partner nations to BRICS will suffice to show their strategic importance to the organisation, alongside the potential motivation for membership or partnership:

• Egypt (BRICS +): Egypt is Africa’s 2nd largest economy with a GDP of about 400 billion dollars according to the IMF’s economic projections for African economies in 2024. Historically, Egypt has been an important transcontinental geopolitical player in Africa and the Middle East. Egypt is a key member of the Arab League and boasts arguably the most critical trade shipping route in the world, the Suez Canal, generating substantial revenue, albeit at a reduced capacity due to geopolitical tensions. 

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• Ethiopia (BRICS +):  Ethiopia is culturally and economically significant in East Africa and the Horn of Africa as a regional trade partner. It also houses the headquarters of the African Union (AU) in Addis Ababa. The government of Abiy Ahmed has undertaken several ambitious infrastructure projects, including the Grand Ethiopian Renaissance Dam (GERD) and the Koysha Hydroelectric power project, aimed at enhancing energy production. Ambitious Infrastructure projects like this position the nation as a key player and provide fertile ground for strategic investment, which partnership with BRICS can offer.  

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• Nigeria (Partner Nation): Nigeria is at an economic crossroads.  IMF data for African economies for 2024 shows Nigeria has lost its place as Africa’s largest economy. Nigeria slid down to fourth place behind Algeria, Egypt and South Africa. However, the Bola Ahmed Tinubu-led administration intends to embark on a global rebrand hinged on its unique “4D Policy: Democracy, Development, Demography, and Diaspora”. With recent developments based on the decision to float the naira and the removal of fuel subsidy, Nigeria has been thrown into bone-crunching inflation with a near-25% rate after a Consumer Price Index (CPI) rebasing exercise. Investments are essential for the current administration. However, there are concerns about whether it holds any promise due to a largely under-diversified economy and an over-reliance on oil exports, still accounting for about 75% of Nigeria’s exports in Q2 2024. BRICS present a fresh forum to explore potential areas of multilateral collaboration and financial injection through a possible future membership of the New Development Bank. 

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• Uganda (Partner Nation): Strong similarities fuel Uganda’s objectives for joining BRICS with those of Nigeria. Multilateral investment is also critical to the Yoweri Museveni-led government as the nation looks to boost key sectors of the economy, including oil, minerals, coffee, and tea. Uganda is also intent on diversifying its trade partners and seeking new partnerships in development financing.

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• Algeria (Partner Nation): Algeria is Africa’s third-largest economy by GDP, and a major hydrocarbon player on the African continent. The country seeks to diversify its economic alliances. As one of Africa’s largest economies, it is playing an increasingly important role for its European partners to supply gas exports due to the embargo on Russian gas by the European Union. Algeria has also joined the NDB, which shows its intention to improve its access to development financing. 

While the intentions of these new African partners vary, they can be summarised as a need for a fresh start and new economic and development partnerships. 

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Out with the Old, in with the New Development Bank?

The New Development Bank (NDB), formerly called the BRICS Bank, is headquartered in Shanghai, China and has been funded through a common pool and mutual commitment from BRICS member states. At the time of writing, the bank is headed by former Brazilian head of state Dilma Rousseff. The NDB presents an interesting development as some scholars project the NDB as an antithesis to the World Bank and the IMF. The NDB reflects the wishes of BRICS members—a reformed global financial system where member states have an egalitarian position, equal voting rights and an offer of alternative financing models with fewer political conditions tied to the loan instruments.  

The NDB has already kicked off financing of a few projects across the African continent, particularly in South Africa. The NDB, in partnership with the Development Bank of Southern Africa (DBSA), has approved a $100 million loan to finance sustainable infrastructure initiatives and environmental sustainability in South Africa. The NDB has also sanctioned a $1 billion loan to support water and sanitation for underprivileged households in South Africa. As more African states become members of BRICS and, subsequently, of the NDB, development financing collaborations like this are expected to be replicated throughout the continent. 

However, there are valid concerns that if not catered to, African states could simply find themselves in a new debt cycle, swapping old indebted partners with new ones. China’s Belt and Road Initiative (BRI), an ambitious foreign policy project by the Xi Jinping administration, looks to reproduce China’s ancient trading power through the resurrection of the Silk Road. China is a key BRICS member and has about 70% of the total GDP of the organisation, alongside its significant fund contribution to the NDB.

The issue is that some African states, including Zambia, are already in significant debt to the Chinese government. While the Chinese government funds ports, railways, and roads on the continent, a significant portion of these projects are secured through debt financing, with critics accusing China of employing debt-trap diplomacy tactics.

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The Next Steps: Attempts at Reforms and Redefinition 

BRICS members account for more than 45% of the world’s population, about 30% of the world’s land mass and now with a combined total GDP (PPP) that dwarfs the Group of 7 (G7), with about $4 trillion. The 17th BRICS Summit will be held in July 2025 in Rio de Janeiro, Brazil, under the theme, Strengthening Global South Cooperation for More Inclusive and Sustainable Governance.  Key priorities for discussion will include trade, investment and finance, institutional development of BRICS, climate change, and multilateral peace and security architecture.  As mentioned earlier, BRICS founding members are united in their quest for economic cooperation and political equality and support the position for an African seat as a permanent United Nations Security Council member.

The world is watching, critics, skeptics and supporters alike. The proposer of the BRICS acronym, British Economist Jim O’Neill, a former Chief Economist at Goldman Sachs, has voiced criticism of the organisation. In his article, The BRICS Still Don’t Matter. O’Neill depicts a dissatisfaction at BRICS for being a loose community of nations without much else connecting them except annual summits and symbolic gestures. O’Neill also expresses disappointment at the perceived failure of BRICS to implement meaningful reforms and provide a viable alternative to the Bretton Woods institutions. 

Conversely, globally renowned economist Jeffrey Sachs, in his paper, “We don’t need the G7”, criticised the G7 as being “unrepresentative of today’s global economy”. While BRICS countries are still laying deep foundations, it must be noted that any meaningful reform will take time and collaboration beyond well-established and familiar diplomatic ties. BRICS members have recorded astounding economic growth, and with most members part of the global south economy, it only means that the future potential for further growth is practical and is to be expected.

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Source: Visual Capitalist and The Globalist

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Africa’s Seat at the Table: People, Programs, Prosperity

Population projections show that by 2050, Africa’s population could rise to 2.5 billion people, 40% of whom will be aged 15 or younger. Nigeria is projected to hit over 400 million people in the next 25 years. There is a double-edged theory when writing about population growth in the global south nations, the primary question being whether development will keep pace with population growth. These people will need new urban areas, more basic social amenities, quality access to education, healthcare and reliable national security.

Ambitious companies globally have a unique opportunity to tap into uncharted territories and explore the investment terrain. BRICS presents an opportunity for African leaders to engage constructively with new trade and diplomatic partners and redefine the continent’s place as a hub for trade and a future investment hotspot. BRICS could become the unified voice of the global south on the most pressing issues, and a partnership with such ambition is worthy of exploration. 

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References

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