Regional Trade, Economic Strategy Draw Asian and African States Closer in BRICS
By Prof. Maurice Okoli
Perhaps, BRICS (Brazil, Russia, India, China and South Africa), with the new members and partner states, summit in New Delhi produced a new round of significant declarations, adapting its collective policy towards an increasingly emerging architecture, while distinctively building an ‘Asian model’ of economic alliance. Under the chairmanship of India, the summit centred on creating a genuine reputation that has accumulated for nearly two decades. The timing was, particularly, notable. The most important strategic message was coined: “Building for Resilience, Innovation, Cooperation, and Sustainability.”
Addressing the BRICS summit of leading developing nations in New Delhi, Indian Prime Minister Narendra Modi warned that rising geopolitical tensions could increasingly affect people worldwide, and called for deepening cooperation and strengthening support across the Global South.
Сorporate Economic Weight, Limited Collective Power
While BRICS’s economic weight is enormous–its ability to wield it collectively is not, some analysts argued. However, experts’ arguments closely connected to BRICS operational successes and achievements should not only be measured by whether it can pose an alternative to multinational institutions, but also whether it could make any noticeable difference, in terms of using its natural resources to increase regional trade, raise economic production and improve distribution across the Global South. Several experts portray BRICS as offering its member countries alternative pathways for channelling trade and investment that serve the collective interests of member countries–largely national development and poverty alleviation.
Meanwhile, scholars have reminded that BRICS emerged after the 2008 financial collapse and the failures of the World Trade Organization’s (WTO) Doha Round–trade negotiations aimed at reforming the international trading system in favour of Global South countries. Why would the BRICS want to take on the global governance responsibilities of the G7 members? This has been the basic question among scholars until today. It is, however, believed that reforms and greater autonomy would be a greater concern for BRICS rather than overthrowing the unravelling liberal international order.
BRICS+ Financial Architecture
The group is noticeably dominated by China, which has the largest share of the group’s GDP, accounting to about 70% of the organisation’s total. The financial architecture of BRICS is made up of the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). These components were signed into a treaty in 2014 and became active in 2015. The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank operated by the five BRICS states. It has non-members as contributors to the NDB.
The bank’s primary focus of lending is infrastructure projects, with authorised lending of up to $34 billion annually. South Africa hosts the African headquarters of the bank. The bank has a starting capital of $50 billion, with wealth increasing to $100 billion over time. Records show Brazil, Russia, India, China, and South Africa initially contributed $10 billion each to bring the total to $50 billion. As of 2020, it had 53 projects underway worth around $15 billion. By 2025, the bank had approved more than $32 billion for 96 projects.
In 2021, Bangladesh, Egypt, the United Arab Emirates and Uruguay joined the NDB. With India’s presidency in 2026, which was estimated to be comprehensive and promising for BRICS, India has outlined its framework of priorities, as it did during its G20 presidency several years ago. In close coordination with members and partner states within the BRICS, India has ensured the balance of multifaceted interests and established mutual trust in the multipolar world system. The goal of transforming into a full-fledged international organisation must go beyond addressing current geopolitical challenges; it also requires developing effective ways of engaging in global development to reflect multipolarity. Today, collectively, BRICS comprises more than a quarter of the global economy and nearly half the world’s population.
BRICS Advocates for Reforms at Financial Institutions
Finance Ministers and Central Bank Governors of BRICS countries have called for reform of global developmental financial institutions such as the International Monetary Fund and World Bank, seeking a stronger voice for emerging market economies. “We will continue to strengthen coordination among BRICS members to make international financial institutions more representative, transparent and accountable. With the growing share of emerging market and developing economies in global output and growth, reform of global economic governance remains a consistent BRICS priority,” Finance Chiefs of BRICS countries underlined in an official joint statement.
“We continue to have serious concerns with the unilateral imposition of trade and finance-related actions, including the raising of tariffs and non-tariff measures, which distort trade and are inconsistent with World Trade Organisation rules,” the statement said. “We encourage the BRICS Payment Task Force to continue discussions, building on the ongoing work, to facilitate practical solutions for cross-border payments among BRICS countries, which are fast, low-cost, more accessible, efficient, transparent, and safe,” the statement said. While acknowledging the work done by the BRICS payment task force, the finance chiefs pushed for progress in ensuring greater interoperability of payment systems across member nations. It further noted that India will push for progress on linking digital currencies across BRICS countries.
BRICS-Africa Transiting from Diplomacy to Strategic Economy
South Africa (2010), Ethiopia and Egypt (2024), as fully-fledged BRICS members, are seemingly changing policy, which has always been strategic ambiguity, to a kind of assertive flexibility. South Africa, Ethiopia and Egypt are also positioning themselves as leading African voices for the Global South while, at the same time, maintaining relationships with competing Western powers. In principle, Africa generally collaborates with the United States and Asia-Pacific partners while striking, to a certain degree, multifaceted ties with Russia, and operates within the framework of the BRICS domain.
South African President Cyril Ramaphosa, Ethiopian Prime Minister Abiy Ahmed, and President Abdel Fattah el-Sisi of the Arab Republic of Egypt held separate conversations on the current status and future prospects for their relations, and further discussed ways of strengthening BRICS strategic partnership in politics and security, economics and finance, and cultural and humanitarian ties, while exchanging divergent views on current international and regional issues that are of common significance to global development. South Africa, Ethiopia and Egypt, however, plan to take new initiatives to improve and strengthen relations within BRICS.
The Asian economic architect is strongly being advocated for as BRICS’ new direction, and subsequently as non-Western-dominated attention, according to the common statement by leaders of South Africa, Ethiopia and Egypt, while noting the significance of India’s role in hosting the 18th summit, and congratulating India for directing BRICS in shaping the South-South alliance and the new economic order. As BRICS-African members, South Africa, Egypt and Ethiopia indicated high aspirations to build an alternative order to the West, wielding power to challenge Western hegemony. Now experiencing a ‘reawakening’ from the colonial yoke, Africa began throttling alternative pathways, and consistently signalling trade and investment that would serve the interests of the African member countries–largely focused on continental economic development, economic improvement and poverty alleviation.
Historical records show that South Africa became a BRICS member after it was formally invited and supported by China, and unreservedly backed by India and Russia. South African leader, Cyril Ramaphosa, warmly extended his appreciation for BRICS members’ support during South Africa’s G20 presidency, and generally for supporting South Africa’s priorities in the system of its diplomacy, relating to multilateral organisations and global partners. It was an important opportunity to review the progress and to identify new areas of collaboration. South Africa offered the highest assurances to continue working with various multilateral forums to contribute to the broader international efforts aiming at securing peace around the world. Since January 2024, Ethiopia, as a full-fledged member of the group, has been making constructive contributions to its diverse activities, as well as other forms of support in multilateral directions. The Arab Republic of Egypt has been one of the strongest strategic partners in North Africa and, to a large extent, comprehensively participating in a spectrum of multiple questions in the Arab world.
Final Whistling Points
The grouping of emerging countries–Brazil, Russia, India, China, South Africa, and in more recent years, Iran, the UAE, Saudi Arabia, Egypt, Ethiopia and Indonesia–was created to challenge Western global dominance. The BRICS now constitutes 11 members and represents approximately 49.5% of the world’s population, 40% of global GDP, and 26% of global trade.
The geography of the BRICS network of economic relationships must enlist different partners to provide different forms of economic, technological, and, of course, political value. But trade cannot also flourish in the Asian region and with other regions where movement of technically skilled people, manufactured goods and productive services remains too difficult, and markets remain too fragmented. It is necessary to move from rhetoric to the practical phase, and towards creating strategic partnerships. Most of BRICS members have appreciable relations with the Russian Federation as they look, simultaneously, to build partnerships with other powerful countries that provide economic cooperation and concrete deals with mutual trade. Noticeably, China and India are vigorously moving through Soviet’s Central Asia into Europe.
Ultimately, in-depth debates and discussions at India’s 18th BRICS lead to communiques and declarations. But these intellectual conversations and collective positions on technology, innovation and development, as a critical transition stage, have to be shared with governments and partners to access funding, production facilities, gain regulatory support, encourage knowledge-sharing skills and entrepreneurial expertise for the ultimate realisation of practical development expectations and a better world. Establishing a system in which ideas subsequently translate into strengthening production capacity while delivering broader economic benefits. India has underlined its collaboration model and engagement template in a competitive multipolar world.
Prime Minister Narendra Modi has assertively said that “reform of institutions of global governance … has been on the BRICS agenda since its inception. We must be careful to ensure that this organisation does not acquire the image of one that is trying to replace global institutions. The strength of BRICS lies in its diversity and cooperation. BRICS is not anti-Western but simply non-Western.” BRICS has neither a permanent seat nor a secretariat. By rotational procedures and consensus, India handed over the BRICS+ presidency or chairmanship for 2027 to China, underscoring its highly enriching membership and gracious opportunity to deepen the non-Western and intergovernmental association as a leading geopolitical force in the Global South.
Professor Maurice Okoli is an economist and research fellow associated with the Russian Academy of Sciences (including the Institute for African Studies and IMEMO), as well as an expert with the Valdai Discussion Club.
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