By Masibongwe Sihlahla
South Africa, as a key player in the global economy, has been a member of the BRICS (Brazil, Russia, India, China, and South Africa) bloc since its inception in 2009 hence the acronym BRICS.
South Africa is the largest and most advanced economy in Africa and 41st in the world. This economic alliance has brought together the five major emerging national economies to cooperate on issues of mutual concern, promoting economic growth, and advancing global governance. As the only African country in the BRICS grouping, South Africa has a unique position to leverage its membership to drive economic development and regional integration on the continent. In this essay, it is argued that South Africa should strengthen its BRICS alignment to reap the benefits of this economic partnership.
One of the primary reasons South Africa should strengthen its BRICS alignment is that it provides an opportunity for the country to diversify its trade and investment partners. Historically, South Africa's economy has been heavily reliant on Western markets, particularly Europe and the United States.
However, the BRICS grouping offers an alternative source of investment, trade, and economic cooperation. By strengthening its ties with BRICS nations, South Africa can reduce its dependence on traditional partners and tap into the vast and growing markets of these emerging economies. This is particularly important in the context of the ongoing global economic crisis, where diversification is key to mitigating risks and promoting economic resilience.
The western economic system which is de facto the world economic system is dominated by US. When the Ukraine-Russian war broke out America immediately blocked $600 billion of Russian cash in American banks, the same was done by blocking Iranian access to it’s $120 billion in American banks and only reluctantly allowing Iran to withdraw $6 billion but subject to only buying food and medicine. America treats countries like small children and force the world to buy and sell petroleum in US dollars.
Iran and many other countries are trying to move to euros and thus has earned the wrath of America. Because of these reasons South Africa and the other BRICS countries are held ransom by the US and dictated to by them as America controls the world economy through mostly gunship diplomacy.
Another significant advantage of strengthening South Africa's BRICS alignment is that it enhances our country's ability to promote regional integration and development on the African continent. As the most industrialized economy in Africa, South Africa has a critical role to play in promoting economic development and regional integration. The BRICS grouping provides a platform for South Africa to engage with other emerging markets and develop partnerships that can drive economic growth and development in Africa. For instance, the BRICS-led New Development Bank (NDB) has provided critical financing for infrastructure development projects in Africa, which has improved connectivity and facilitated trade within the region.
South Africa's membership in BRICS also provides an opportunity for the country to promote its own economic development agenda especially in ensuring the success of NEPAD. Since 2003 the US has through its proxies the IMF and the World Bank ensured that NEPAD is stumped but BRICS by its very nature is interested to see the success of NEPAD. The BRICS grouping has been instrumental in promoting economic cooperation and development among its member states. By actively participating in BRICS initiatives, such as the BRICS Business Council and the BRICS Think Tank Council, South Africa can promote its own economic development priorities, such as industrialization, trade facilitation, and infrastructure development. This is particularly important in the context of South Africa's national development plan, which aims to promote economic growth, reduce inequality, and eradicate poverty.
Furthermore, strengthening South Africa's BRICS alignment can enhance the country's global influence and diplomatic leverage. As a member of BRICS, South Africa has an opportunity to engage with other emerging markets and promote its own national interests on the global stage. By working closely with other BRICS nations, South Africa can promote its own priorities and shape global governance institutions, such as the International Monetary Fund (IMF) and the World Bank. This is particularly important in the context of the ongoing global governance reform agenda, where emerging markets are seeking to play a more prominent role in shaping the global economic architecture.
In addition, strengthening South Africa's BRICS alignment can promote cooperation on critical global issues, such as climate change, sustainable development, and global economic governance. The BRICS grouping has been instrumental in promoting cooperation on these issues, and South Africa's active participation in BRICS initiatives can enhance its own national efforts to address these challenges. For instance, South Africa has been a key player in promoting the African Renewable Energy Alliance, which aims to promote renewable energy development and reduce greenhouse gas emissions on the continent. It is well –known by now that America was behind the forcing out of power of Sheikh Hasina the Prime Minister of Bangladesh as she refused to give them access to build a naval base on St Martin Island in the Bay of Bengal and she made it clear she is going to join BRICS. The Non-Aligned Movement was not able to protect countries from the power of the American bully but BRICS is clearly in a position to set up alternative structures outside the dominance and disrespect of the west.
Another benefit of strengthening South Africa's BRICS alignment is that it can provide an opportunity for the country to enhance its human capital development. The BRICS grouping has been instrumental in promoting cooperation in areas such as education, science, and technology. By participating in BRICS initiatives, such as the BRICS University League and the BRICS Science, Technology, and Innovation Framework, South Africa can enhance its own human capital development and promote cooperation in these critical areas.
Recently a South African Dr Iqbal Surve was Chairman of the BRICS Business Council. South Africa with its cutting edge banking technology and expertise should also join forces with Russian and Iran to speed up the proposed BRICS alternative to SWIFT so that countries are no longer held ransom by the USA when they impose willy nilly sanctions on countries such as happened with Iran and recently in 2022 when Russia invaded Ukraine and America switched off access for Russian banks to the SWIFT banking system.
Many hundreds of millions of rands could not be paid to South African citrus exporters due to Russia not being able to pay them. It is in South Africa and Africa’s interest to advance and bring online the alternative BRICS banking alternative to the SWIFT system so the USA is no longer to bully African countries and treat them like they treated their slave with contempt.
Since 1999 Indonesia has brought 50% of their population out of poverty and this can be speeded up when less countries are under the dominance of the Dollar which is the most important weapon after the SWIFT banking system as most commodities can only be settled in Dollars instead of a country’s local currency. Every time a country uses Dollars they enrich American and impoverish themselves. One of the most important reasons South Africa has a low growth rate of not even 0.5% is because of American banking, financial and economic imperialism
Strengthening South Africa's BRICS alignment can also promote tourism and cultural exchange between South Africa and other BRICS nations. The BRICS grouping has been instrumental in promoting cultural exchange and people-to-people cooperation among its member states. By participating in BRICS cultural initiatives, such as the BRICS Cultural Festival and the BRICS Film Festival, South Africa can promote its own cultural heritage and enhance cultural exchange with other BRICS nations.
In looking ahead to the future , South Africa should strengthen its BRICS alignment to reap the benefits of this economic partnership. By doing so, the country can diversify its trade and investment partners, promote greater regional integration and development in SADC as well as on the African continent, promote its own economic development agenda, enhance its global influence and diplomatic leverage, cooperate on critical global issues, enhance human capital development, and promote tourism and cultural exchange.
As the BRICS grouping continues to evolve and grow, it is critical that South Africa remains an active and committed member, pushing for greater cooperation and collaboration among member states. By strengthening its BRICS alignment, South Africa can promote its own national interests, while also contributing to a more equitable and just global economic order.
* Masibongwe Sihlahla is an independent writer and political commentator.
** The views expressed do not necessarily reflect the views of IOL or Independent Media.