The role of Brics as driver for intra-African trade

The recent interview on CNBC Africa with Dr. Iqbal Surve, Chairperson of the Brics Business Council, shed light on the pivotal role that the BRICS (Brazil, Russia, India, China, and South Africa) and FOCAC (Forum on China-Africa Cooperation) summits play in fostering intra-African trade and integration. Dr. Surve emphasized the need to leverage these multilateral initiatives to deepen Africa's economic ties and propel the continent towards sustainable growth and prosperity. He emphasized that the outcomes of the BRICS deliberations are not only relevant for member countries but also hold significant implications for regions like Africa, Southern Europe, and South East Asia. The BRICS summit serves as a foundational platform for enhancing cooperation among member states and other regions. Dr. Surve highlighted the importance of building on the momentum generated by the BRICS summit at the subsequent FOCAC meeting, which focuses specifically on Africa. This strategic approach aims to align the efforts of various countries towards common goals such as trade liberalization, investment promotion, and digital economy advancement. One of the key highlights of the upcoming FOCAC meeting is the discussion around the implementation of the continental free trade agreement, a significant initiative aimed at boosting intra-African trade, which currently stands at less than 20 percent. Dr. Surve underlined the urgency of increasing inter-African trade to at least 30 percent and emphasized the need for greater investment in the African continent. With the escalating global trade barriers, it becomes imperative for Africa to integrate fully into the global economy and leverage opportunities in the green economy sector. BRICS and FOCAC present crucial pathways for Africa to avoid being left behind in the face of protectionist measures imposed by certain countries like the United States. The interview also touched upon the implications of trade tariffs on businesses, particularly in the context of the ongoing trade tensions between major economies. Dr. Surve reiterated the strong stance of the BRICS countries against tariffs in general, advocating for a tariff-free environment to facilitate increased trade and collaboration. In light of the challenges posed by trade wars and tariffs on products like steel and aluminum, Dr. Surve emphasized the need for closer cooperation among BRICS nations and the implementation of business-friendly measures such as long-term visas, local currency facilitation, and enhanced banking support for entrepreneurs. In conclusion, Dr. Iqbal Surve's insights underscore the critical role of BRICS and FOCAC in shaping the future of intra-African trade and integration. By fostering stronger partnerships, promoting investment, and championing trade liberalization, these multilateral forums are instrumental in driving economic growth, fostering innovation, and creating a more interconnected global economy.