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BRICS Summit: Focus on building mutual financial system

Start of the BRICS group of emerging economies three-day summit in Johannesburg, South Africa on Tuesday, Aug. 22, 2023.   -  
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Jerome Delay/Copyright 2023 The AP. All rights reserved.

South Africa

The Brazil India China South Africa Summit has raised more curiosity and conversations around lifting off regulations that hamper the blocs goal to create a new currency for the bloc.

This new BRICS currency is expected to increase intra-trade between the nations. This particularly for small enterprises.

"Global economic recovery relies on predictable global payment system and the smooth operation of banking, supply chains, tourism and financial flows. We will continue discussions on practical measures to facilitate trade and investment flows." said President of South Africa, Cyril Ramaphosa

One of BRICS members, China said in order for financial development to occur, the bloc has to cooperate financially with each other.

"We the BRICS nations should strengthen ourselves through unity and act on the strong sense of responsibility in enhancing cooperation across the board and promote high quality development as to bring to the world more certainty, stability and positive energy. We should deepen business and financial cooperation to boost economic growth. Development is an inalienable right for countries not a privilege," stated President of China Xi Jinping.

Meanwhile, South Africans on the street say they hope deliberations at the summit will positively impact them.

"Working with other entrepreneurs from other countries would be nice because it will expose us to technologies more especially China who are more advanced in that. For what I do I need technology. Even now, we do collaborate with small businesses around the country so if it exposes to the other countries so it will be perfect," said Xolani Machele, South African citizen.

"Having the BRICS Summit here in South Africa is what is needed to bring about a solution for the youth and the high unemployment. From what I have seen in my community, most of the unemployment is in the rural community. We need the likes of China to intervene," said Joseph Manwele, South African citizen.

One of the high level discussions at the summit focused on cutting tariffs that limit small farmers from BRICS countries from trading locally in South Africa. Brand SA CEO, Sithembile Ntombela highlights that

the enlargement of the BRICS bloc to accommodate other interested countries is seen as one of the tools that will help escalate agricultural trade.

"You know the way I see the BRICS Bloc is that currently the growth has been phenomenon over the years if you consider when we started in 2010. The figures were below 10% in terms of us making money amongst us, it has now grown to over 30%. That tells you that there is still more opportunities amongst the 5 BRICS countries. So imagine now if we had to amplify that and add more to this bloc," said Ntombela.

As leaders of BRICS countries gathered here in Johannesburg, South Africa to delve in on opportunities for the bloc, conversations on the conference floor have also been around trade barriers such as global economic growth slowdown and geopolitical tensions between the nations.

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