Translation
Original language
19.04.2026
The Future of the World. A New Platform for Global Growth
Theme
INVESTMENTS IN CONNECTIVITY: The global economy is becoming increasingly INTERCONNECTED thanks to the development of international trade, transport, and the digital infrastructure, as well as the growth of information flows. What strategic investments in connectivity can help economic growth, improve the effectiveness of international cooperation, and unlock new possibilities?
Selected Topic of Discussion
Reform of global financial institutions.
Title
Reform of global financial institutions : BRICS + as a gateway for Africa’s integration and connectivity into the global economy.
Preamble
The objective of this work lies it’s in its desire to contribute to one of the most pressing geo-political debates, notably, the reform of the global financial system and more specifically it’s institutions. Our case will be centered on the region of Africa in relation to the emerging Multi-polar world, and its premier organization, BRICS. This will lead to a multi-faceted analysis of the potential pathways of development between the African Union and BRICS +, offering Africa and the Global South a new Platform for integration into the global economy.
Introduction
The global economy and its markets are mutating, geographically and culturally, the Western centric paradigm is in the midst of being subdued (or at least severely challenged) by the emergence of new and alternative poles of power, i.e. China, Russia, India, Asia as a whole and other Great Powers. The main institution encapsulating this massive and global change is the BRICS +, representing more than 35 % of the World's GDP and outweighing the West in demographic and geographic terms. The new nexus that lays in front of Africa and its representative institutions is transformational and revolutionary and could totally alter the above-mentioned un-just balance forecasting a greater role and long-awaited emergence of the African Continent as a major player on the world stage.
The following part of the essay will thus seek to explore the possibilities BRICS + have developed and could contribute to promoting Africa’s interconnectedness and integration into the global economy. The analysis will be structured in three parts: 1. Financial institutions, 2. Financial mechanisms, 3. Contributions and Investments in Industrialization and Trade Development of Africa.
1. BRICS + Financial Institutions
- New Development Bank (NDB)
The main vehicle for advancing economic transformation in BRICS is the New Development Bank (NDB). Established in 2014 during the 6th BRICS Summit held in Fortaleza, Brazil, it’s main purpose is to “mobilize resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs)”. “The initial authorized capital of the bank was US$100 billion divided into one million shares having a par value of US$100,000 each. The initial subscribed capital of the bank was US$50 billion divided into US$10 billion in paid-in shares and US$40 billion in callable shares. It was equally distributed among the five founding members–Brazil, Russia, India, China, and South Africa. The agreement on the NDB specifies that each founding member will have one vote and that no member would have any veto powers”.
One of Africa’s main problems since formal de-cocolonization in the 1960s has been its limited integration into the global financial system and by extension the capacity to influence decision making in multilateral financial institutions.
Parallel to the push for a reform of the political organs of the international system (UN Security Council Reform), the African Continent within the Global South consensus, is calling for the upheaval of the Post Bretton Woods financial architecture. The BRICS have designed “the New Development Bank as a “new type of MDB in the 21st century.”. The first area of cooperation between the NDB and Africa is thus obvious. As many countries as possible in the African Union should submit applications to join the Bank. In article 62 of the 2024 Kazan Declaration clear support is expressed for “the further expansion of NDB membership and expedited consideration of applications of BRICS countries in line with the NDB General Strategy and related policies.”
In only 11 years of existence, the NDB has already showcased stark contrasts in terms of regional representation with organizations such as the World Bank or the IMF. In the World Bank, Voting Power for African countries is divided in 5 Constituencies, amounting to 8.64% of total shares. It is important to remark that Iran and Pakistan both major regional powers are also included in one of the African constituencies. Yet, the French and British who have individual voting powers, each represent 3.86 %, which combined is almost the total share of Africa, Iran and Pakistan. On the other side, the NDB with South Africa alone affords the African Continent 18.98 % of total shares and Egypt 2.27 %.
- National/ Sovereign wealth funds.
The majority of countries around the world have Sovereign/National wealth funds and presenting the case for Africa to use BRICS as a model may sound absurd, even contradictory at first. Nevertheless, when we take a deeper look at the matter, the link between BRICS and Africa presents itself as obvious.
From a historical background, the BRICS economies have been faced with the similar economic dilemma as African economies, which involved the transformation of natural resources into means of production and later on the perennation of these means, to ensure sustained development. The Sovereign /National wealth funds are the ultimate stage of transformation possible in the financial architecture of today. The irony of the matter is that, as a result of excellent policy making, prioritizing the re-divestment of excess wealth, China and the United Arab Emirates have the largest and most sophisticated networks of Sovereign/National wealth funds. Their combined Asset’s exceed 5 Trillion US$, roughly split at 2.750 Trillion US$ in China and 2.304 Trillion US $ in the Emirates. Numerous of these assets have been invested in Africa. For example, the financing by Mubadala (UAE) of the 15-megawatt solar power project in Nouakchott, the capital city of Mauritania will deliver 10 per cent of electricity capacity in Mauritania.
Working in tandem with the African Development Bank and the African Union Development Agency (AUDA-NEPAD), the AU could unite national wealth funds under a regional authority akin to the UAE model and expand its domestic funding capabilities for regional initiatives ranging from land desertification programs to AU Peace-Keeping Operations, breaking the infamous “resource curse”.
2. BRICS + Financial Mechanisms
Parallel to MDBs and National Wealth Funds, at the technical level, BRICS has a lot to offer.
First, we can mention the BRICS Interbank Cooperation Mechanism (ICM) which focuses on facilitating and expanding innovative financial practices and approaches for financing and co-financing of projects, joint programs, public-private partnerships at sovereign and sub-sovereign level, currency swaps, lines of credit, issuance of bonds, etc.). Within the marker of South-South cooperation and emergence, it is interesting to point out that the precursor to the ICM, is the Shanghai Cooperation Organization Interbank Consortium. Established in 2005, it has been credited with more than 63 completed cooperation projects extending loans totaling $14.6 billion.
Second, the BRICS Contingent Reserve Arrangement (CRA). Designed to support transfer mechanisms within the NDB, it guarantees countries liquidity support from other participating countries to alleviate the difficulty when encountering balance of payments pressure. The establishment of the Arrangement does not imply any outright transfer of international reserves, as the committed resources are only to be drawn through a currency swap if a country requests for assistance and meets certain conditions.”.
Third, the BRICS Clear/Pay initiative connecting member countries’ financial markets infrastructure through the establishment of an independent cross-border settlement and depositary infrastructure. It is a complimentary process to the CRA. Experimented during the Russian Chairmanship of BRICS in 2024, the initiative has four focus areas: BRICS Pay QR for retail payment, BRICS Pay B2B for business payment system, BRICS UNIT, a virtual token serving as unit of account for transactions (issue under discussion), and BRICS Loyalty, a traveler rewards system (issue under discussion).
Along with this initiative, BRICS has forecasted the need to develop an independent reinsurance capacity to support such activities, including BRICS (Re)Insurance Company, with participation based on a voluntary basis.
For Africa this can effectively replace the post-colonial financial system where 14 sovereign nations still use a currency pegged to the French franc. While the AU Financial Institutions are being crafted, individual African countries can implement this system, both processes are complimentary.
3. The BRICS’ Contributions and Investments in Industrialization and Trade Development of Africa.
The Technical White Paper of AUDA-NEPAD estimates infrastructure needs in Africa between “$130-$170 billion a year. In recent years, only about $80 billion has been committed to infrastructure annually, about half of the need. African governments are the main investor in African infrastructure committing over 40% of the total infrastructure finance.” . The Strategy for BRICS Economic Partnership and the BRICS Partnership on the New Industrial Revolution (PartNIR), present a viable pathway to shape the Organization’s Industrialization and Trade Development footprint in Africa while helping Africa bridge the financing gap. Using the African Continental Free Trade Association as a gateway for both organizations to exchange, BRICS as a block could negotiate preferential terms for trade in Africa, promising in return, significant and sustained investments. From a geo-political perspective, this could upset the North-South relation of exploitation and create a new economic framework for Africa and BRICS adding layers to shield their economic interactions from “unilateral, punitive and discriminatory protectionist measures”.
Conclusion
This work recommends that the African Union and BRICS + establish a Strategic Partnership to roadmap and institutionalize key development priorities beneficial and equitable to both parties. The previously mentioned institutions and mechanisms serving as the backbone for this potential partnership promising to usher the Global South into a new era of international cooperation.
Bibliography List
Primary Sources (Official Documents of Countries and
International Organizations)
1. Vladimir Putin. (2007, February 10). Speech and the following discussion at the Munich conference on security policy.
http://en.kremlin.ru/events/president/transcripts/24034
2. New Development Bank. (2023).Who we are.
https://www.ndb.int/
3. Wayback Machine. (2016, September 26). Agreement on the New Development Bank.
https://web.archive.org/web/20160926230441/http://ndb.int/download/Agreement%20on%20the%20New%20Deve...
4. DIRCO. (2024, October). XVI BRICS Summit. Kazan Declaration.
https://dirco.gov.za/wp-content/uploads/2024/10/XVI-BRICS-Summit-Kazan-Declaration-23-October-2024.p...
5. DIRCO. (2024, October). XVI BRICS Summit. Kazan Declaration.
https://dirco.gov.za/wp-content/uploads/2024/10/XVI-BRICS-Summit-Kazan-Declaration-23-October-2024.p...
6. The World Bank. (2025). Voting Powers.
https://thedocs.worldbank.org/en/doc/1da86cb968275b94ab30b3d454882208-0330032021/original/IBRDEDsVot...
7. The World Bank. (2025). Voting Powers.
https://thedocs.worldbank.org/en/doc/1da86cb968275b94ab30b3d454882208-0330032021/original/IBRDEDsVot...
8. The People’s Bank of China. (2014, July 16). BRICS Countries Signed Contingent Reserve Arrangement (CRA).
http://www.pbc.gov.cn/english/130721/2875046/index.html
9. DIRCO. (2024, October). XVI BRICS Summit. Kazan Declaration.
https://dirco.gov.za/wp-content/uploads/2024/10/XVI-BRICS-Summit-Kazan-Declaration-23-October-2024.p...
INVESTMENTS IN CONNECTIVITY: The global economy is becoming increasingly INTERCONNECTED thanks to the development of international trade, transport, and the digital infrastructure, as well as the growth of information flows. What strategic investments in connectivity can help economic growth, improve the effectiveness of international cooperation, and unlock new possibilities?
Selected Topic of Discussion
Reform of global financial institutions.
Title
Reform of global financial institutions : BRICS + as a gateway for Africa’s integration and connectivity into the global economy.
Preamble
The objective of this work lies it’s in its desire to contribute to one of the most pressing geo-political debates, notably, the reform of the global financial system and more specifically it’s institutions. Our case will be centered on the region of Africa in relation to the emerging Multi-polar world, and its premier organization, BRICS. This will lead to a multi-faceted analysis of the potential pathways of development between the African Union and BRICS +, offering Africa and the Global South a new Platform for integration into the global economy.
Introduction
The global economy and its markets are mutating, geographically and culturally, the Western centric paradigm is in the midst of being subdued (or at least severely challenged) by the emergence of new and alternative poles of power, i.e. China, Russia, India, Asia as a whole and other Great Powers. The main institution encapsulating this massive and global change is the BRICS +, representing more than 35 % of the World's GDP and outweighing the West in demographic and geographic terms. The new nexus that lays in front of Africa and its representative institutions is transformational and revolutionary and could totally alter the above-mentioned un-just balance forecasting a greater role and long-awaited emergence of the African Continent as a major player on the world stage.
The following part of the essay will thus seek to explore the possibilities BRICS + have developed and could contribute to promoting Africa’s interconnectedness and integration into the global economy. The analysis will be structured in three parts: 1. Financial institutions, 2. Financial mechanisms, 3. Contributions and Investments in Industrialization and Trade Development of Africa.
1. BRICS + Financial Institutions
- New Development Bank (NDB)
The main vehicle for advancing economic transformation in BRICS is the New Development Bank (NDB). Established in 2014 during the 6th BRICS Summit held in Fortaleza, Brazil, it’s main purpose is to “mobilize resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs)”. “The initial authorized capital of the bank was US$100 billion divided into one million shares having a par value of US$100,000 each. The initial subscribed capital of the bank was US$50 billion divided into US$10 billion in paid-in shares and US$40 billion in callable shares. It was equally distributed among the five founding members–Brazil, Russia, India, China, and South Africa. The agreement on the NDB specifies that each founding member will have one vote and that no member would have any veto powers”.
One of Africa’s main problems since formal de-cocolonization in the 1960s has been its limited integration into the global financial system and by extension the capacity to influence decision making in multilateral financial institutions.
Parallel to the push for a reform of the political organs of the international system (UN Security Council Reform), the African Continent within the Global South consensus, is calling for the upheaval of the Post Bretton Woods financial architecture. The BRICS have designed “the New Development Bank as a “new type of MDB in the 21st century.”. The first area of cooperation between the NDB and Africa is thus obvious. As many countries as possible in the African Union should submit applications to join the Bank. In article 62 of the 2024 Kazan Declaration clear support is expressed for “the further expansion of NDB membership and expedited consideration of applications of BRICS countries in line with the NDB General Strategy and related policies.”
In only 11 years of existence, the NDB has already showcased stark contrasts in terms of regional representation with organizations such as the World Bank or the IMF. In the World Bank, Voting Power for African countries is divided in 5 Constituencies, amounting to 8.64% of total shares. It is important to remark that Iran and Pakistan both major regional powers are also included in one of the African constituencies. Yet, the French and British who have individual voting powers, each represent 3.86 %, which combined is almost the total share of Africa, Iran and Pakistan. On the other side, the NDB with South Africa alone affords the African Continent 18.98 % of total shares and Egypt 2.27 %.
- National/ Sovereign wealth funds.
The majority of countries around the world have Sovereign/National wealth funds and presenting the case for Africa to use BRICS as a model may sound absurd, even contradictory at first. Nevertheless, when we take a deeper look at the matter, the link between BRICS and Africa presents itself as obvious.
From a historical background, the BRICS economies have been faced with the similar economic dilemma as African economies, which involved the transformation of natural resources into means of production and later on the perennation of these means, to ensure sustained development. The Sovereign /National wealth funds are the ultimate stage of transformation possible in the financial architecture of today. The irony of the matter is that, as a result of excellent policy making, prioritizing the re-divestment of excess wealth, China and the United Arab Emirates have the largest and most sophisticated networks of Sovereign/National wealth funds. Their combined Asset’s exceed 5 Trillion US$, roughly split at 2.750 Trillion US$ in China and 2.304 Trillion US $ in the Emirates. Numerous of these assets have been invested in Africa. For example, the financing by Mubadala (UAE) of the 15-megawatt solar power project in Nouakchott, the capital city of Mauritania will deliver 10 per cent of electricity capacity in Mauritania.
Working in tandem with the African Development Bank and the African Union Development Agency (AUDA-NEPAD), the AU could unite national wealth funds under a regional authority akin to the UAE model and expand its domestic funding capabilities for regional initiatives ranging from land desertification programs to AU Peace-Keeping Operations, breaking the infamous “resource curse”.
2. BRICS + Financial Mechanisms
Parallel to MDBs and National Wealth Funds, at the technical level, BRICS has a lot to offer.
First, we can mention the BRICS Interbank Cooperation Mechanism (ICM) which focuses on facilitating and expanding innovative financial practices and approaches for financing and co-financing of projects, joint programs, public-private partnerships at sovereign and sub-sovereign level, currency swaps, lines of credit, issuance of bonds, etc.). Within the marker of South-South cooperation and emergence, it is interesting to point out that the precursor to the ICM, is the Shanghai Cooperation Organization Interbank Consortium. Established in 2005, it has been credited with more than 63 completed cooperation projects extending loans totaling $14.6 billion.
Second, the BRICS Contingent Reserve Arrangement (CRA). Designed to support transfer mechanisms within the NDB, it guarantees countries liquidity support from other participating countries to alleviate the difficulty when encountering balance of payments pressure. The establishment of the Arrangement does not imply any outright transfer of international reserves, as the committed resources are only to be drawn through a currency swap if a country requests for assistance and meets certain conditions.”.
Third, the BRICS Clear/Pay initiative connecting member countries’ financial markets infrastructure through the establishment of an independent cross-border settlement and depositary infrastructure. It is a complimentary process to the CRA. Experimented during the Russian Chairmanship of BRICS in 2024, the initiative has four focus areas: BRICS Pay QR for retail payment, BRICS Pay B2B for business payment system, BRICS UNIT, a virtual token serving as unit of account for transactions (issue under discussion), and BRICS Loyalty, a traveler rewards system (issue under discussion).
Along with this initiative, BRICS has forecasted the need to develop an independent reinsurance capacity to support such activities, including BRICS (Re)Insurance Company, with participation based on a voluntary basis.
For Africa this can effectively replace the post-colonial financial system where 14 sovereign nations still use a currency pegged to the French franc. While the AU Financial Institutions are being crafted, individual African countries can implement this system, both processes are complimentary.
3. The BRICS’ Contributions and Investments in Industrialization and Trade Development of Africa.
The Technical White Paper of AUDA-NEPAD estimates infrastructure needs in Africa between “$130-$170 billion a year. In recent years, only about $80 billion has been committed to infrastructure annually, about half of the need. African governments are the main investor in African infrastructure committing over 40% of the total infrastructure finance.” . The Strategy for BRICS Economic Partnership and the BRICS Partnership on the New Industrial Revolution (PartNIR), present a viable pathway to shape the Organization’s Industrialization and Trade Development footprint in Africa while helping Africa bridge the financing gap. Using the African Continental Free Trade Association as a gateway for both organizations to exchange, BRICS as a block could negotiate preferential terms for trade in Africa, promising in return, significant and sustained investments. From a geo-political perspective, this could upset the North-South relation of exploitation and create a new economic framework for Africa and BRICS adding layers to shield their economic interactions from “unilateral, punitive and discriminatory protectionist measures”.
Conclusion
This work recommends that the African Union and BRICS + establish a Strategic Partnership to roadmap and institutionalize key development priorities beneficial and equitable to both parties. The previously mentioned institutions and mechanisms serving as the backbone for this potential partnership promising to usher the Global South into a new era of international cooperation.
Bibliography List
Primary Sources (Official Documents of Countries and
International Organizations)
1. Vladimir Putin. (2007, February 10). Speech and the following discussion at the Munich conference on security policy.
http://en.kremlin.ru/events/president/transcripts/24034
2. New Development Bank. (2023).Who we are.
https://www.ndb.int/
3. Wayback Machine. (2016, September 26). Agreement on the New Development Bank.
https://web.archive.org/web/20160926230441/http://ndb.int/download/Agreement%20on%20the%20New%20Deve...
4. DIRCO. (2024, October). XVI BRICS Summit. Kazan Declaration.
https://dirco.gov.za/wp-content/uploads/2024/10/XVI-BRICS-Summit-Kazan-Declaration-23-October-2024.p...
5. DIRCO. (2024, October). XVI BRICS Summit. Kazan Declaration.
https://dirco.gov.za/wp-content/uploads/2024/10/XVI-BRICS-Summit-Kazan-Declaration-23-October-2024.p...
6. The World Bank. (2025). Voting Powers.
https://thedocs.worldbank.org/en/doc/1da86cb968275b94ab30b3d454882208-0330032021/original/IBRDEDsVot...
7. The World Bank. (2025). Voting Powers.
https://thedocs.worldbank.org/en/doc/1da86cb968275b94ab30b3d454882208-0330032021/original/IBRDEDsVot...
8. The People’s Bank of China. (2014, July 16). BRICS Countries Signed Contingent Reserve Arrangement (CRA).
http://www.pbc.gov.cn/english/130721/2875046/index.html
9. DIRCO. (2024, October). XVI BRICS Summit. Kazan Declaration.
https://dirco.gov.za/wp-content/uploads/2024/10/XVI-BRICS-Summit-Kazan-Declaration-23-October-2024.p...
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