Josef Kefas Sheehama
Namibia should strengthen its relationships with BRICS nations and academia to expedite its inclusion in the BRICS bloc of nations. The introduction of BRICS marked a significant stride toward African integration, encompassing economic and political dimensions. The formation of economic, social, and political blocs accelerates national development, and as of 2023, BRICS+ countries constitute 46% of the global population. Projections by the International Monetary Fund indicate that BRICS+ will represent 38% of global GDP by 2026, surpassing the G7’s share. This prompts us to ponder the implications of BRICS+ for Africa and the African Continental Free Trade Area (AfCFTA).
One potential outcome is that BRICS+ could serve as a platform to advocate for AfCFTA. With three African members in the mix, the continent gains a more influential voice to advance Africa’s interests within the bloc. Given strained relations with Western powers, African nations are keenly eyeing trade and investment opportunities with BRICS members, both old and new. For example, Ethiopia’s suspension from the African Growth and Opportunity Act (AGOA) has spurred a quest for alternative partnerships.
In today’s ever-evolving global economy, strategic partnerships and alliances are pivotal for driving growth and prosperity. BRICS, comprising emerging economies, offers immense potential for economic cooperation and mutual benefits. For Namibia and its businesses, engaging with BRICS can open new avenues for growth, expansion, and access to international markets. It is crucial to explore what BRICS means for Namibia’s economy, potential benefits, and strategies for integration. This opportunity aligns well with Namibia’s efforts to implement the Sixth National Development Plan (NDP 6), aiming to enhance competitiveness, reduce business costs, attract investments, and stimulate economic growth.
Namibia can expand its market access, stimulate industrialization, and enhance its role within BRICS+ through synchronized trade policies and market integration. Namibia’s proximity to the BRICS network offers more than symbolic significance; it presents an opportunity for the nation to assert itself globally and contribute to reshaping the economic dynamics of emerging economies. By investing in stability, infrastructure, human capital, exports, and aligning regional and multilateral efforts, Namibia can carve a niche within BRICS that is impactful and mutually beneficial. All stakeholders must recognize the potential of collaborative action to position Namibia as a driving force within the BRICS consortium.
Namibia’s journey should extend beyond trading raw materials and involve linking production and trade to the global economy. This requires comprehensive and dynamic efforts to expand export market access, diversify products, and explore new regions while strengthening regional trade. BRICS represents a growth source that Namibia cannot afford to ignore, necessitating policymakers to expand their horizons beyond traditional approaches and markets to actively participate in international trade.
Impact on US-African Relations:
The expansion of BRICS may lead to reduced preferential access to American markets for African countries under the African Growth and Opportunity Act (AGOA). This would negatively affect Africa’s economy, including Namibia, which benefits from tariff-free exports to the United States under AGOA. Reduced trade opportunities, foreign direct investment, and economic aid could lead to setbacks. To mitigate these effects, Africa must articulate its interests and pursue them consistently.
The Decline of USD Dominance:
BRICS, including Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates, now commands 42% of the global oil supply. Their combined GDP is substantial, and projections suggest that BRICS could surpass the United States’ GDP by 2050. The USD’s status as the global reserve currency is weakening, with several oil-producing countries exploring alternatives for oil trade. If BRICS nations adopt a different currency for trade, the U.S. economy could face inflationary pressures, impacting various sectors. Nations worldwide should monitor and adapt to this evolving landscape.
The BRICS New Development Bank and the potential introduction of a single currency signal a significant shift in the global financial order. While the dethroning of the US dollar as the world’s reserve currency may not happen soon, it is wise to prepare for the possibility. Alternatives in currency and new technologies, combined with global efforts to establish non-dollar-based infrastructures, highlight the need for proactive readiness.
In conclusion, Namibia’s alignment with the BRICS bloc is essential for its economic growth and global influence. BRICS plays a pivotal role in stabilizing global affairs and promoting international stability and economic growth. Namibia should seize this opportunity to position itself as a prominent player in the evolving global economic landscape.
