If Africa is added to BRICS this block would represent almost 4 billion people, which is half of global population today at roughly 8,04 billion!
South Africa was admitted as a full member to the then BRIC block in 2010 at the BRIC Foreign Ministers meeting in New York. Brazil, Russia, India and China probably realised that that the formation which was established on 16 June 2009, needed Africa representation in its ranks, adding a near 1,4 billion more people to an economic block that is now challenging the status quo in terms of global financial system.
BRICS and Africa demographics and GDP information 2023:
| Country/Territory | Population | Gross Domestic Product (GDP) | GDP Growth Rate |
| China | 1,425,671,352 | $19,373 trillion (nominal 2023 est.) $33,014 (PPP, 2023 est.) | 5.6% |
| India | 1,428,627,663 | $3,737 trillion (nominal 2023 est.) $13,033 trillion (PPP; 2023 est.) | 6.1% |
| Brazil | 216, 422,446 | $2,081 trillion (nominal, 2023 est.) $4,020 trillion (PPP; 2023 est.) | 1.7% |
| Russia | 144,444, 359 | $2,063 trillion (nominal; 2023 est.) $4,989 trillion (PPP; 2023 est.) | 4.9% |
| South Africa | 60,414,495 | $407.5 billion (nominal;2023 est); | 0.3% |
| Africa | 1,465,248,076 | $3.3 trillion (nominal; 2023 est.) $8,86 trillion (PPP; 2023 est) | 3.2% |
Relatively speaking in terms of population or GDP, SA does not fit in with this group on its own. However, by virtue of being the most advanced or industrialised economy in Africa, SA is well positioned as a gateway to the rest of the African continent, and continues to use its seat on the now BRICS formation to represent the entire continent. In this blog we argue for the inclusion of the entire continent in the BRICS block!
The potential for Africa within the BRICS group (Brazil, Russia, India, China, South Africa) is significant due to Africa’s youthful demographic, vast natural resources, and potential for economic growth. Leveraging these factors could lead to increased trade, investment, and cooperation within the BRICS framework, contributing to the overall development of the region and the member countries. However, challenges such as infrastructure deficits and political stability need to be addressed to fully realize this potential.
How Africa can benefit and contribute to inclusion in BRICS?
Africa can leverage on the financing capacity of BRICS New Development Bank (NDB) to fund infrastructure needed to facilitate the implementation of Africa’s Continental Free Trade Area (AfCFTA), which is meant to accelerate integration of Africa to drive intra-Africa trade, including free movement of people and goods, investment in power generation infrastructure to drive industrialisation and improve the lives of Africans.
AfCFTA forms part of the AU’s Agenda 2063 which has the ultimate goal of uniting Africa, dismantling the artificial barriers imposed on Africa by former colonial masters. Africa can also gain access to further capital from private sector investments from sovereign wealth funds of BRICS nations, such as the China Investment Corporation (CIC).
Africa has a wealth of mineral resources to offer, which under the new structures must be beneficiated or processed at source to enhance their value to the countries who own the resources, while also creating jobs. The finished products would be utilised in global trade, contributing to national revenue accounts, enhancing the ability of Africa to repay development debts. Africa’s youthful population must be educated to create the workforce needed to drive an industrialised Africa, with a focus on sectors such as large scale Agriculture, Hydro electric power, Mining and other industrial scale processing of finished goods in a greening economy.
With the BRICS assembling in South Africa from 22-24 August 2023, this may result in a further shift away from the dependence on the current Western-led global financial system which was formed at the Bretton Woods Conference 01 Jul 1944 – 22 Jul 1944. This will accelerate the pace of de-dollarization, removing the dollar as global reserve currency to create a new multi-polar world.
A world without the U.S. dollar as the global reserve currency could lead to several significant changes in the global financial landscape.
- Currency Multipolarity: A shift away from the dollar could result in multiple currencies, such as the euro, Chinese yuan, or even a digital currency, gaining prominence as alternatives for global transactions and reserves. This would increase the diversity of currencies used in international trade and finance.
- Reduced U.S. Economic Dominance: The U.S. would likely have less influence over global monetary policy and economic conditions. Its ability to use the dollar as a tool for economic and political leverage might diminish.
- Impact on Trade Balances: Countries that heavily rely on dollar-denominated transactions might need to adjust their trade strategies. Nations could be incentivized to diversify their trade partnerships and explore new markets to mitigate currency risks.
- Global Financial Stability: The transition could create uncertainties in financial markets, leading to increased volatility in currency exchange rates and potentially impacting global financial stability. Nations would need to work together to manage this transition smoothly.
- Trade Costs and Efficiency: A multipolar currency system might increase transaction costs and complexity due to the need for currency conversion and hedging mechanisms. However, advancements in financial technology could help mitigate some of these challenges.
- Reduced Dollar Demand: The reduced demand for the dollar in international transactions could influence its value, potentially leading to depreciation. This might affect the purchasing power of dollar holders and holders of dollar-denominated assets.
- Shift in Geopolitical Dynamics: The transition could impact geopolitical relationships, altering the influence and power dynamics among nations. Countries might seek closer economic ties with regions using their preferred reserve currency.
- Emergence of New Financial Instruments: New financial instruments, such as international settlement systems and payment mechanisms, could emerge to facilitate cross-border transactions in a multi-currency world.
It’s important to note that any transition away from the dollar as the global reserve currency would be complex and require careful coordination among nations, institutions, and market participants to ensure stability and mitigate potential disruptions. The exact outcome would depend on the strategies adopted by various countries and their ability to adapt to the changing financial landscape.
The BRICS recognised Africa’s potential when they initially invited South Africa to join the block and Africa has a huge role to play in enabling the BRICS broader strategy to rebalance global economics for real and unconstrained growth to achieve joint prosperity of the Global South.