South Africa’s Chairmanship commenced at a pivotal time in global political and economic landscapes. This was primarily due to the negative effects of the COVID-19 pandemic and as the world opened up, an array of challenges were rampant. It is impressive to note how the BRICS communities came together in the face of this adversity and in truth, the goals of inclusivity and multilateralism were showcased positively in these challenging times. Kudos are therefore awarded to South Africa as it managed to steer forward the agenda of BRICS and emerge as a stronger, versatile, transformative, and adaptive community. Here, one shall endeavor to outline some of the successes of and the challenges faced by the BRICS community under South Africa’s Chairmanship.
As a leading country in technological advancement, good governance, progressive trade with an increasing Gross Domestic Product on the continent, South Africa brought to the BRICS platform, a myriad of opportunities that the BRICS bloc will continue to benefit from.
Under its current Chairmanship, South Africa has propelled BRICS towards attainable and sustainable development programs. Chief among them is the mutual benefits that BRICS and its partnering countries will enjoy through the African Continental Free Trade Area. Presently, Africa’s global exports consists mainly of primary commodities and natural resources. This is an indication for its need to diversify and expand its industry. Through intra-exports and intra- African trade, Africa’s potential could spike by 15,5% as synergy between countries collaborating without borders and selling their products as one, stands to be more attractive than limited individual markets.
It must be noted that a direct result of the African Continental Free Trade Area is, there has been an increase in BRICS countries and partners that are pursuing to locate manufacturing and processing plants in Africa in order to benefit from the preferential trade awarded through AfCTA. This will foster domestic economies by reducing unemployment and proceeds from beneficiation projects will improve local communities. In this regard, South Africa has proven itself a reliable partner to the BRICS bloc and to Africa by being a bridge that has initiated, facilitated, and enhanced collaborations and investment partnerships amongst the different countries in the mentioned blocs.
With a population equivalent of 42% of the global demography, it has been an imperative that BRICS would focus on infrastructure investment, technological cooperation, and counter- terrorism measures. South Africa was able to pave ways for joint ventures that strengthened intra-BRICS bonds. Notable successes include the Intra Working Group and Commercial MOU. These MOUs are pivotal in the facilitation of better collaborations among working groups in the different platforms of the BRICS body. They fundamentally improve communication channels and allow for effective exchange of ideas. It is therefore easy to see that these MOUs will boost commercial ties whilst creating business pathways that promote opportunities and mutual growth.
Of paramount interest is the establishment of the Agreed Joint Statement on Trade and Investment that came about during South Africa’s tenure. This testament alone is an impressive milestone towards global stability and economic growth. It speaks towards the removal of barriers to trade, a commitment to the improvements in facilitating trade and promoting investments within the BRICS nations. This is direct progress that will propel fair trade balance, encourage inclusive trade practices, and encourage investments flow that benefit all BRICS economies. This has the capacity to assist the developing countries that are today, still recovering from the harsh effects of the COVID-19 pandemic, which South Africa highlighted at length at the last BRICS summit. This outline of the unbalanced hardships of COVID-19 pandemic led to the citation of the tremendous efforts by the New Development Bank in providing loans to small to middle scale entrepreneurs in developing countries during the greater lockdown period. These projects amongst others, contributed to the investments output of over $32 billion by BRICS to date. This has also set forth the growing need to diversify the infrastructures needed that can perpetuate alternate economic policies that are stable, reliable and exercise fairness at their operating core. What is important to note is the increase in interest by states towards the use of local currencies as well as the need to explore other financial arrangements and alternate payment systems that will foster the implementations of the Agreed Joint Statement on Trade and Investment.
The assessment of South Africa’s Chairmanship would be incomplete if there was no mention of the BRICS Women’s Business Alliance that was included in the main program this year. This speaks volumes towards notable efforts being implemented in the BRICS agenda. To note is how the last Summit in Johannesburg had an increase in the participation and representation of women and the youth. This speaks to the future of BRICS partnerships and the realization of the fundamental principles on which BRICS was formed. This shows that BRICS has substantially undergone a remarkable transformation and is emerging as an influential force and a formidable multilateral governance institution.
This is further evidenced by the formation for the BRICS Centre of Excellence in Africa which is set to evolve into a BRICS Energy Agency. All these inclusive forums are geared to foster energy research and innovation through increased collaborations. They will also provide skills development and capacity building that monitor global energy trends and collaborate with international organizations to be the leader of Policy Formulation Centre for the BRICS energy community and beyond.
South Africa has equally resonated the United Nations Charter by encouraging peaceful resolutions in member states of BRICS as well as Africa without relegating to pursue for reforms that bring equanimity to developing countries on global governance. Multiple diplomatic visits and cross-cultural people-to people programs have emerged as a direct result of South Africa’s Chairmanship. Pragmatic solutions that are aimed at maintaining peace on the African region and among the BRICS countries have been brought forward to the extent necessary for political and socioeconomic growth and sustainability for all nations. In this, South Africa has managed to merge its role as an advocate for Africa and developing countries with its obligations to BRICS by engaging all measures necessary that foster greater unity of purpose and benefit all stakeholders. Simply put, South Africa has shaped its Chairmanship in a way that accelerates the efficacy of global economic growth through sustainable development and pursuit for true global alliances that foster peaceful equanimity.
The reality is, the BRICS Business Community’s potential on global trade is yet to be fully realized. There have been adverse challenges mostly emanating from inherent barriers to trade especially those tied to singular financial payment systems and limited financial instruments but there remains a potential for the BRICS Business Community to challenge other business blocs. As a platform that represents more than five emerging economies, BRICS has made notable strides that strengthen economic ties and enhance investment opportunities among member states. It is no wonder there is an increasing interest for other states to join the BRICS community and in true multilateralism and inclusivity form, BRICS will see 5 more countries being added to their community.
Equally imperative was to look into the forecast of the BRICS Business Community for the next decade and focus was placed on activities and initiatives that promote economies, trade and business ties among member states by encouraging regulations that bring harmony, identifying and eradicating barriers to trade within specific industry sectors and essentially building an inclusive and diverse environment for trade and investment. Ultimately, combined, these initiatives will provide opportunities from micro to macro enterprises in the BRICS nations, partners and the African continent.
When viewed from this perspective, it would be fair to conclude that BRICS has managed to advance economic partnerships, is bolstering prosperity among member states, and is strengthening a platform that not only serves the interest of its member states but equally acts as a catalyst in driving a positive economic front, globally. South Africa’s Chairmanship has continued the culture of supportive collaborations for governments and organizations and as they all continue working together, the BRICS future can only shine brighter.