https://en.sputniknews.africa/20230823/russias-economic-growth-fuels-confidence-in-africa-and-strengthens-brics-says-expert-1061567984.html
Russia's Economic Growth Fuels Confidence in Africa and Strengthens BRICS, Says Expert
Russia's Economic Growth Fuels Confidence in Africa and Strengthens BRICS, Says Expert
Sputnik Africa
On August 22-24, the South African city of Johannesburg is hosting the 15th BRICS Summit, where leaders are discussing trade, political and economic... 23.08.2023, Sputnik Africa
2023-08-23T19:03+0200
2023-08-23T19:03+0200
2023-08-23T19:03+0200
2023 brics summit in johannesburg
brics expansion
brics summit
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de-dollarization
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Russia's economy has demonstrated remarkable resilience, maintaining growth despite facing sanctions and geopolitical challenges, Ovigwe Eguegu, a Nigerian policy adviser specializing in geopolitics, told Sputnik Africa.Eguegu noted the significance of Russia's sustained economic growth, as it instills confidence in African countries' engagement with the Russian market. The opportunities for partnership and trade are expected to expand as African nations view Russia's economic resilience favorably.In terms of Russia's role within BRICS, Eguegu emphasized that Russia's increased confidence and growth have elevated its global standing.According to Eguegu, within BRICS, countries like South Africa, China, and India value Russia's partnership and recognize its contribution to the alliance's strength and stability. Additionally, as more countries express interest in joining BRICS, Russia plays a vital role in supporting their aspirations. Nearly two dozen developing countries, including Africa's largest economy – Nigeria, have formally applied for BRICS membership in recent months and are awaiting approval of their bids at the ongoing 15th BRICS Summit in the South African city of Johannesburg.De-dollarization 'Inevitable'One of the key issues on the agenda of the BRICS Summit is de-dollarization and the use of national currencies in trade settlements between the BRICS countries and their partners, including on the African continent.During his speech at the summit, Russian President Vladimir Putin emphasized the irreversible nature of de-dollarization within the association, highlighting the growing preference for national currencies among BRICS countries.Eguegu explained that countries across the developing world, not just in BRICS, are seeking an alternative to the dollar due to geopolitical uncertainties and challenges. According to him, these concerns, coupled with limited access to US dollars and volatility resulting from US monetary policy, have pushed countries worldwide to search for alternative means of trade settlement.Transforming Global Economic OrderSpeaking on the potential impact of the BRICS New Development Bank (NDB) and the bloc's growing influence, Eguegu highlighted the positive impact on African economies and their ability to access credit for infrastructure development, given the NDB's intention to lend in local currencies.The shift towards lending in national currencies by the New Development Bank is expected to be a game-changer, according to the Nigerian expert.He explained that many countries face challenges in repaying debt due to the lack of access to foreign currencies, particularly the US dollar. Eguegu also emphasizes the strength and potential of the BRICS bloc. He highlights that BRICS countries have outperformed the G7 in terms of purchasing power parity, signaling a significant shift in global economic power.He added that the attractiveness of BRICS for many countries, especially African nations, stems from the economic opportunities it presents, as well as its distinct approach to global affairs.According to the expert, BRICS countries are seen in the developing world as "reformist" and "revisionist", challenging traditional "economic orthodoxies" and advocating for changes that benefit their own interests.He concluded, saying, "BRICS has become a middle power magnet. It's pulling towards itself several emerging economies and countries who want to play a bigger role in world affairs."
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brics expansion, brics summit, brics, de-dollarization
brics expansion, brics summit, brics, de-dollarization
Russia's Economic Growth Fuels Confidence in Africa and Strengthens BRICS, Says Expert
Muhammad Nooh Osman
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On August 22-24, the South African city of Johannesburg is hosting the 15th BRICS Summit, where leaders are discussing trade, political and economic cooperation, and de-dollarization. They are also considering the expansion of the group's membership to include other emerging economies.
Russia's economy has
demonstrated remarkable resilience, maintaining growth despite facing sanctions and geopolitical challenges,
Ovigwe Eguegu, a Nigerian policy adviser specializing in geopolitics, told
Sputnik Africa.
Eguegu noted the significance of Russia's sustained economic growth, as it instills confidence in African countries' engagement with the Russian market. The opportunities for partnership and trade are expected to expand as African nations view Russia's economic resilience favorably.
"I think that it's very significant that Russia is able to achieve this type of growth and economic resilience. From an African perspective, it is going to increase confidence in African countries' engagement with Russia," he said. "I think the opportunities are there and the resilience of Russia, of Russia's economy, is only going to increase confidence on African partners looking at the Russian market."
In terms of Russia's role within BRICS, Eguegu emphasized that
Russia's increased confidence and growth have elevated its global standing.
"Russia's role in the world has really increased over the last one-year plus. This is because, one, its economy is able to withstand massive shock. And not only withstand massive shock, the resilience and economic growth and also maintaining key political relationships has only increased global confidence in Russia's capacity, forgetting the military components," the policy adviser said.
According to Eguegu, within BRICS, countries like South Africa, China, and India value Russia's partnership and recognize its contribution to the alliance's strength and stability.
Additionally, as more countries express interest in joining BRICS, Russia plays a vital role in supporting their aspirations.
Nearly two dozen developing countries, including Africa's largest economy – Nigeria, have formally applied for BRICS membership in recent months and are awaiting approval of their bids at the ongoing 15th BRICS Summit in the South African city of Johannesburg.
"Now, looking at Russia's economic growth, but also Russia's trade with BRICS partners that is really growing rapidly. It is only going to consolidate Russia's position in BRICS and the world," he said.
De-dollarization 'Inevitable'
One of the key issues on the agenda of the BRICS Summit is de-dollarization and the
use of national currencies in trade settlements between the BRICS countries and their partners, including on the African continent.
During his speech at the summit, Russian President Vladimir Putin emphasized the irreversible nature of de-dollarization within the association, highlighting the growing preference for national currencies among BRICS countries.
Eguegu explained that countries across the developing world, not just in BRICS, are seeking an alternative to the dollar due to geopolitical uncertainties and challenges. According to him, these concerns, coupled with limited access to US dollars and volatility resulting from US monetary policy, have pushed countries worldwide to search for alternative means of trade settlement.
"The search for an alternative has been a longstanding aspiration, and I think BRICS for the first time is showing that this is possible. And it's not just possible, it is inevitable," Eguegu said. "I think for the foreseeable future, in short time this is going to be much of a reality, and it's going to decrease US dominance as its share of global trade."
Transforming Global Economic Order
Speaking on the potential impact of the BRICS New Development Bank (NDB) and the bloc's
growing influence, Eguegu highlighted the positive impact on African economies and their ability to access credit for infrastructure development, given the NDB's intention to lend in local currencies.
The shift towards lending in national currencies by the New Development Bank is expected to be a game-changer, according to the Nigerian expert.
He explained that many countries face challenges in repaying debt due to the lack of access to foreign currencies, particularly the US dollar.
"Lending in local currencies, particularly with countries that are friendly, that would not weaponize their currencies, I think is going to make it very easy for African countries to access credit, to build infrastructure that would end up developing their economies," Eguegu stated.
Eguegu also emphasizes the strength and potential of the BRICS bloc. He highlights that BRICS countries have outperformed the G7 in terms of purchasing power parity, signaling a significant shift in global economic power.
"It's a turning point in terms of global economic power, centers of power, because for many years the G7 has been the biggest economic bloc or biggest economic club of countries. But we are now seeing global South countries taking that lead role, and they are just five compared to seven," Eguegu told Sputnik Africa.
He added that the attractiveness of BRICS for many countries, especially African nations, stems from the economic opportunities it presents, as well as its distinct approach to global affairs.
According to the expert, BRICS countries are seen in the developing world as "reformist" and "revisionist", challenging traditional "economic orthodoxies" and advocating for changes that benefit their own interests.
"So an expanded BRICS is only going to consolidate this shift towards the global South. And specifically for African countries, it means that for the first time they would be able to put forward their views and perspective on how to improve the global economy and their development the way they have not been able to," Eguegu said.
He concluded, saying, "BRICS has become a middle power magnet. It's pulling towards itself several emerging economies and countries who want to play a bigger role in world affairs."
