The 16th BRICS Summit took place in Kazan, Russia, from October 22 to 24, 2024. This summit brought together leaders from some of the world’s most influential emerging economies under the theme “Strengthening Multilateralism for Just Global Development and Security.” South African President Cyril Ramaphosa arrived in Kazan to lead the country’s participation, holding bilateral meetings and contributing to discussions on global governance reform.
This summit is particularly noteworthy, given the bloc’s recent expansion and the introduction of new initiatives, including the possible creation of a BRICS currency. Let’s dive into the details of this event and explore what BRICS represents, the role of South Africa, and the latest developments within the group.
What is BRICS?
BRICS is an acronym for an economic and political alliance comprising Brazil, Russia, India, China, and South Africa. The group was initially formed to foster collaboration between emerging economies, providing an alternative to Western-dominated institutions like the G7. Since its inception, the alliance has emphasized multilateralism and global development, aiming to create a more equitable global governance system.
The first BRICS Summit was held in 2009, with South Africa joining in 2010. The bloc has since evolved from a loose forum into a structured organization with an expanding influence, now covering 43% of the world’s population, contributing 35% of global GDP, and accounting for 20% of global exports.
Expansion of BRICS: Is the ‘S’ Now Saudi Arabia?
At the Johannesburg II Summit in August 2023, Saudi Arabia, Egypt, the UAE, Iran, and Ethiopia were invited to join BRICS, marking the bloc’s first major expansion. However, South Africa’s ‘S’ still remains intact in the BRICS acronym. The inclusion of these new members is seen as a strategic move to increase economic leverage and foster South-South cooperation.
South Africa’s Participation and Political Controversy
South African President Cyril Ramaphosa’s participation in the 16th BRICS Summit comes amid political tension at home. During a bilateral meeting with Russian President Vladimir Putin, Ramaphosa called Russia an “ally and friend,” a statement that drew sharp criticism from the Democratic Alliance (DA).
The DA, part of the Government of National Unity (GNU), distanced itself from Ramaphosa’s comments. DA leader John Steenhuisen argued that aligning South Africa with Russia, which is currently embroiled in conflict in Ukraine, goes against the country’s national interests. Steenhuisen emphasized, “Putin is your ally, Mr. President, not South Africans.” The cracks in the GNU coalition have grown deeper, with tensions mounting over South Africa’s foreign policy stance.
Did South Africa Quit BRICS?
Despite the internal political strife, South Africa remains committed to BRICS. There were speculations that the GNU might reconsider South Africa’s membership due to the controversial relationship with Russia, but no formal decision to leave BRICS has been announced. Instead, South Africa’s participation in the Kazan summit signals the country’s intention to strengthen relations with BRICS members and contribute to ongoing discussions around a multipolar world order.
Launch of a New BRICS Currency
One of the most talked-about developments at the summit is the possibility of a new BRICS currency to reduce reliance on the US dollar. Reports from the summit indicate that BRICS finance ministers are exploring local currency transactions and independent payment platforms to facilitate trade between member states. The aim is to boost financial sovereignty and minimize exposure to currency fluctuations linked to the dollar.
The concept of a BRICS currency has been championed by Russia and China, both seeking alternatives to Western financial systems. While it is still in the discussion phase, such a currency could fundamentally reshape global trade and financial systems if implemented.
Key Discussions at the 16th BRICS Summit
The 16th BRICS Summit focuses on several critical issues, including:
- Global Governance Reform: Leaders are reviewing the reports submitted by BRICS Foreign and Finance Ministers on expanding the use of local currencies and developing partner country models.
- Strengthening Multilateral Cooperation: The summit emphasizes collaboration between member states to promote economic growth, sustainable development, and peace.
- Relations with the Global South: The outreach session, themed “BRICS and Global South: Building a Better World Together,” aims to deepen relations with developing countries.
Bilateral Meetings and Future Partnerships
During the summit, President Ramaphosa held several bilateral meetings with world leaders, including President Putin, to enhance political and economic ties. These meetings provide South Africa with an opportunity to align its national interests with BRICS priorities and explore joint projects in energy, agriculture, and innovation.
In his address, President Putin highlighted Russia’s commitment to strengthening ties with African countries and praised South Africa’s role in fostering a fair multipolar world order. Both nations reaffirmed their strategic partnership and agreed to further expand trade and investment.
The 16th BRICS Summit underscores the growing importance of multilateralism and economic cooperation among emerging economies. Despite domestic political tensions, South Africa remains actively involved in the bloc, pursuing both national and foreign policy objectives. The potential launch of a BRICS currency could mark a turning point in global finance, challenging the dominance of the US dollar and promoting regional economic integration.
As BRICS expands and strengthens ties with the Global South, it positions itself as a counterbalance to Western influence, offering new opportunities for economic growth and global governance reform. South Africa’s role at the summit demonstrates its commitment to multipolarity and inclusive development, even as political debates continue at home.
The future of BRICS will depend on how effectively it manages internal dynamics, such as the Russia-South Africa alliance, and how it navigates complex geopolitical landscapes moving forward.
