The inclusion of Egypt, Ethiopia, and other Global South states into BRICS marks a step toward moving away from the dollar-centric global trade system, according to experts interviewed by the Jeune Afrique magazine.
Elizabeth Rossiello, CEO of AZA Finance, the Kenyan financial company, highlighted that the reliance on the dollar in trade prevents African countries from engaging in transactions using local currencies. She emphasized that African states are seeking new investment sources, as international financial institutions like the World Bank often neglect the continent.
Another significant factor driving the participation of developing nations in BRICS is the desire for protection against US sanctions policies, as noted by Steve Hanke, a professor of applied economics at the Johns Hopkins University. Joining BRICS is seen by Global South countries as a means to counterbalance the US-dominated global financial system.
However, some experts argue that the BRICS expansion won't lead to a fragmentation of the global economy. Adam Slater, a chief economist at Oxford Economics, pointed out that the new members' share in global trade is only 3%. Former White House and World Bank official Harry G. Broadman suggested that joining BRICS holds more political and symbolic significance than economic.
Established in 2006, the BRICS group has undergone two waves of expansion. In 2011, South Africa joined the original members (Brazil, Russia, India, and China). In August 2023, six more countries, including Argentina, were invited, but in late December, Argentina declined. The five new members—Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates—officially began their full-fledged participation in BRICS on January 1 under Russian chairmanship.
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Based on materials from TASS