Divided yesterday, expanding today: BRICS in South Africa will invite Saudi Arabia, UAE, Egypt and Iran
ALBAWABA – BRICS in South Africa will invite Saudi Arabia, the United Arab Emirates (UAE), Egypt, Iran, Argentina and Indonesia to join the economic bloc, news agencies reported Thursday, after extended discussions the day before showed divisions emerging between member states of the five-nation summit.
Saudi Arabia, the world’s largest crude oil exporter, has officially been invited to become a full member of the BRICS economic bloc along with Iran, UAE, Argentina, Egypt and Ethiopia, South African President Cyril Ramaphosa said Thursday.
Leaders from Brazil, Russia, India, China and South Africa (BRICS) agreed yesterday to expand their alliance for the first expansion since 2010, according to Reuters.
Discord emerged yesterday between India, Brazil and China, undermining the chances of a consensus, between the members of the bloc over the question of expansion. But it did not last long.
Indian Prime Minister Narendra Modi attends the BRICS in South Africa summit in Johannesburg on August 23, 2023. (Photo by ALET PRETORIUS / POOL / AFP)
In yesterday’s meets, India raised concerns about the expansion potentially turning the BRICS into a “mouthpiece for China” and Brazil was worried about alienating the West, according to Bloomberg.
After extensive debate, the BRICS in South Africa summit agreed to expand their bloc by inviting new members, including Saudi Arabia, UAE, Iran, Egypt, Argentina and Indonesia, CNN reported.
More than 20 nations have reportedly applied for membership. But neither Bloomberg’s report nor Reuters’ revealed them.
Bloomberg reported first that BRICS in South Africa will invite Saudi Arabia, Egypt and Indonesia. But CNN was the first to unveil the whole list.
So far, Saudi Arabia and Egypt have not publicly stated their position on potentially joining BRICS. But Riyadh had sent a delegation to the meeting, Bloomberg confirmed.
Russian Foreign Minister Sergei Lavrov (R) and Saudi Arabia's Foreign Minister Prince Faisal bin Farhan al-Saud hold a joint press conference following their talks in Moscow on March 9, 2023. They both attended the BRICS in South Africa summit. (Photo by Alexander Zemlianichenko / POOL / AFP)
An expanded BRICS including Saudi Arabia and Indonesia would account for 44 percent of the global economy by 2040, Foreign Policy reported. One that also includes the UAE, Egypt, Iran and others would account for an even larger economic share of the world's GDP.
A bloc of such economic heft is expected to overtake the Group of Seven’s gross domestic product by then, which is forecast at 21 percent, as reported by Bloomberg Economics.
BRICS in South Africa: What’s it all about?
There are around 23 nations eager to join, including Algeria, Egypt, Ethiopia and Senegal, among others. Of those, BRICS in South Africa will invite Saudi Arabia, Egypt and Indonesia, while other invitees have not been disclosed.
A general view of flags of (From L to R) South Africa, Brazil, Russia, India and China during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg on August 24, 2023. (Photo by Marco Longari / AFP)
Earlier, Algeria applied to become a shareholder member of the BRICS New Development Bank with a contribution of $1.5 billion, according to Algerian network Ennahar.
Algeria, a vital gas supplier to Europe since Russia’s invasion of Ukraine, has faced pressure from United States (US) officials to stop buying arms from Moscow.
The north African country is seeking membership with the BRICS to secure its sovereign trade interests with Beijing and Moscow, according to Foreign Policy
Notably, the BRICS bank, a World Bank-style institution, aims to reach 30 percent of lending in local currencies by 2026.
So far, the bank has funded infrastructure projects in South Africa to the value of approximately $5.3 billion, in South African rand, according to Ramaphosa.
South African President Cyril Ramaphosa (L) and Prime Minister of India Narendra Modi (R) shake hands during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg on August 24, 2023. (Photo by GIANLUIGI GUERCIA / AFP)
Meanwhile, Egypt joined the bank in February to help ease its shortage of the greenback. Egyptian Supply Minister Ali Moselhy said in June that Cairo planned to pay for imports from India, China, and Russia in their local currencies instead of the US dollar.
Some of the hottest topics on the BRICS in South Africa agenda include reducing dependency on the United States (US) dollars by increasing trade and payments in local currencies. As well as creating a BRICS currency.
But another major issue the BRICS in South Africa summit is focusing on is Western dominance over international institutions, such as the International Monetary Fund, the World Bank and the United Nations.
"Right now, changes in the world, in our times, and in history are unfolding in ways like never before, bringing human society to a critical juncture," China's President Xi Jinping said in remarks delivered at a BRICS business forum.
President of China Xi Jinping attends the plenary session during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg on August 23, 2023. (Photo by GIANLUIGI GUERCIA / POOL / AFP)
"The course of history will be shaped by the choices we make," he said in remarks that were delivered by Chinese Commerce Minister Wang Wentao.
It was not immediately clear why Xi, who had a meeting with Ramaphosa earlier in the day, did not attend, according to Bloomberg. But even though Xi skipped the event, Ramaphosa of South Africa, Brazilian President Luiz Inacio Lula da Silva and India's Prime Minister Narendra Modi were present at the forum.
