By: Josef Kefas Sheehama
It is not surprising that the BRICS plus will usher in a new economic order if the group of seven (G7) does not pull up its shocks, as the group’s expansion presents new economic opportunities for developing countries.
The establishment of the BRICS represented a major step forward in the long-term process of member countries’ integration, both politically and economically.
According to 2023 projections, the BRICS+ countries account for 46% of the global population, while IMF estimates indicate that by 2026, the G7 will account for 29% of global GDP, while BRICS+ will make up 38%.
Therefore, a revolutionary change in the world order has been subtly taking place, even as all eyes are on the wars raging in the Middle East and Eastern Europe, as well as the growing number of armed conflicts between the world’s superpowers.
Large emerging nations are beginning to build institutions that challenge Western-led organisations and are beginning to exert more influence over international economic matters.
In addition to the five permanent members Brazil, Russia, India, China, and South Africa the grouping also comprises five new members (Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates) who were invited or joined in January 2024. When taken as a whole, these ten countries produce and export about 40% of all crude oil.
The bloc would now account for one-third of the world’s GDP if the twelve additional countries that have applied for membership among them, several dynamic emerging markets like Bangladesh, Vietnam, and Thailand are admitted. Thus, the Group 7 will have to put in a lot of work or else the BRICS will take their place in ten to fifteen years.
WHAT’S IN IT FOR NAMIBIA?
Interacting with the BRICS can create new opportunities for growth, expansion, and access to global markets for small nations like Namibia and Namibian businesses.
The potential integration comes at an opportune time when Namibia is in the process of implementing the Sixth National Development Plan (NDP 6) and structural reforms to make our economy globally competitive, reduce the cost of doing business, attract investment, and stimulate economic growth.
Namibia can expand its market access, stimulate industrialization, and amplify its contribution to BRICS+ through harmonised trade policies and market integration.
Namibia’s role within proximity to the BRICS network is not merely symbolic; it presents an opportunity for the nation to assert its presence on the global stage and contribute to reshaping the economic dynamics of emerging economies.
By fostering economic stability, investing in infrastructure, empowering human capital, promoting exports, and aligning regional and multilateral efforts, Namibia can carve a niche within BRICS that is both impactful and mutually beneficial.
As Namibia embarks on this transformative journey, all stakeholders with an interest in the country must recognize the immense potential of collaborative action and work collectively to position the nation as a driving force within the BRICS consortium.
This requires comprehensive and dynamic efforts that bolster Namibia’s export market access and diversify its markets to new regions and new products while also strengthening regional trade. The BRICS will serve as a source of growth that Namibia cannot afford to ignore.
Should Namibia become a member, it would also attract investments from other nations, including China and India, which are still major players in the world economy.
Simply by being a member of BRICs plus, China has also been commended for the Belt and Road Initiative, which has the potential to accelerate economic growth and development.
POSSIBLE IMPACTS BRICS MIGHT HAVE ON RELATIONS BETWEEN THE US AND NAMIBIA
Under the African Growth and Opportunity Act (AGOA), Namibia may lose its preferred access to American markets. Namibia’s economy would suffer from the loss or reduction of access to US trade benefits under the African Growth and Opportunity Act (Agoa).
Under the AGOA program, Namibia can export more than 6,400 goods to the US tariff-free. Economic setbacks for the country could result from decreased trade opportunities, foreign direct investment, and economic aid. The challenge for Namibia is to clearly define and persistently pursue its own interests.
Moreover, it is beyond any doubt that the introduction of the New Development Bank BRICS implied a very important step forward in the long process of ending the dominance of the World Bank and the International Monetary.
The introduction of BRICS single currency will halt the use of other currencies. Even though it is unlikely that the US dollar won’t be dethroned as the world’s reserve currency any time soon, I caution the world to be ready when the time comes.
The availability of alternatives in currency and new technologies combined with the concerted actions among adversaries and allies alike to establish non–dollar–based alternative infrastructures and international financial arrangements.
To this end, Namibia can’t afford to back out of the BRICS alliance. Global investment, trade, and economic growth are significantly influenced by these nations.
Thus, the BRICS nations have the potential to be major actors in international affairs, stabilising the world economy and promoting international stability.
NB: Josef Kefas Sheehama is an economic researcher and economist. The views expressed herein are his own.
