Latest news with #BRICS+
Daily Maverick
3 days ago
- Business
- Daily Maverick
SA must take drastic action to avert US tariffs deadline and unblock investment
South Africa's strategy on striking a trade deal with the US must be based on what South Africa needs to raise economic growth; to develop domestic sectors critical to the world economy and what the US needs for economic growth that the US currently does not have; and unblocking obstacles to foreign investment in South Africa that undermines not only US investments, but other foreign investments as well. South Africa will have to offer US President Donald Trump's administration concessions that will work for the US broadly, or for Trump specifically, to secure a tariff deal. South Africa must proactively offer the US opportunities. Countries like Vietnam, India and Indonesia proactively did so. The questions South Africa must ask in its tariff negotiations with the US are what does the US have that South Africa lacks and is critical to South Africa's economic growth; and what does South Africa have that is essential to US economic growth? South Africa is seeking to fend off a looming 30% US tariff on its products, and the deadline is 1 August. In May, a 25% import tax on car parts came into force in the US. This was on top of a 25% import tax on cars, which came into effect in April. These two automotive tariffs hit South Africa's car manufacturing industry. In June, the US doubled tariffs on foreign steel and aluminium imports to 50%. Before the BRICS+ Summit two weeks ago, US President Donald Trump said the US would impose an additional 10% tariff on any countries aligning themselves with the 'Anti-American policies' of BRICS+. 'There will be no exceptions to this policy,' Trump said. South Africa is a member of the 10-nation BRICS+ group. Early this year, Trump threatened a '100% tariff' on 'hostile' BRICS+ countries that support a common currency to rival the US dollar. South Africa is in real danger of being caught in Trump's anti-BRICS+ war. On Tuesday, US lawmakers advanced a bill that would sanction leaders of the ANC over 'corruption or human rights abuses'. The US House Committee on Foreign Affairs voted 34-16 to send the 'US-South Africa Bilateral Relations Review Act' to the full House of Representatives, where it could be subject to a vote. The measure would need to pass both the House and the Senate before it could be signed into law. 'America abandoned' The bill was introduced in April by Ronny Jackson, a Republican congressman who said that 'South Africa made its choice when they abandoned America and our allies and sided with communists and terrorists'. With a 1 August deadline looming for South Africa to strike a trade deal with the US, and the US now targeting ANC leaders with sanctions for their 'anti-American' stances, securing a tariff deal by 1 August appears nigh on impossible. One option is for South Africa to ask for an extension of the deadline. South Africa urgently needs to establish a task team, like Japan, to conduct a fast-paced negotiation. South Africa's strategy must be to have South African business leaders who trade with the US leading a negotiation task team, supported by government officials. ANC officials must not be part of these negotiations as the US is gunning for many ANC figures. Trump has made energy a key part of the US negotiations. South Africa has an energy crisis — which is undermining foreign investment, business creation, economic growth and therefore job creation, poverty reduction and inequality reduction. The US is the world's largest liquefied natural gas (LNG) exporter. South Africa has rightly offered to buy liquefied natural gas from the US over a 10-year period as part of proposals to secure a trade deal. In President Cyril Ramaphosa's meeting with Trump, the Presidency said that importing 75 to 100 million cubic metres of LNG from the US would 'unlock approximately $900-million to $1.2-billion in trade per annum and $9-billion to $12-billion for 10 years based on applicable price'. South Africa would import between 75-100 petajoules, roughly 75 to 100 million cubic metres, of LNG per year from the US. The US production of aluminium has been declining for decades, leaving the country's auto industry reliant on imports. Canada is the largest supplier of primary aluminium to the US, accounting for 75% of the material consumed there, according to the US Aluminum Association. Aluminium is a lightweight and effective conductor of electricity, making it useful in many transportation and energy systems applications. Aluminium is one of 50 'critical minerals' identified by the US Geological Survey. In 2021, South Africa produced about 720,000 tons of refined aluminium, becoming the largest aluminium -producing country in Africa, according to Aluminium Federation of South Africa CEO Muzi Manzi, who added that 'a large proportion of the primary metal produced is used in the local market as remelt ingots to produce castings and powders, with the rest of the metal destined for exports'. Metal of choice Aluminium is the metal of choice in both internal combustion engines and electric vehicles because of its lightweight properties, which allows vehicles to be fuel efficient, and is a key metal in the green value chain. Aluminium is also used in packaging because it is a more environment -friendly option than many other materials. Aluminium is also used to make buildings green, and is used in the manufacturing of 'green' window and door frames, because of the material's ability to balance internal climate conditions. It is a key part of renewable energy projects, such as solar or wind power infrastructure and inputs. Aluminium can be recycled and South Africa needs to develop a local aluminium recycling and processing industry. South Africa can offer the US aluminium — which would serve the interests of the US. In 2022, South Africa was the 27th largest crude steel producer globally, according to the World Steel Association, but South Africa's steel production has declined in the past few years. State Capture, lack of pragmatic industrial policies, and increased competition from cheap Chinese state-subsidised steel has undermined the industry. South Africa's steel industry has to a large extent failed to adapt to technological advances — steel producers around the world have moved towards more low-carbon, energy-efficient production, while South Africa's production is still using apartheid-era manufacturing processes, such as old blast furnace technology. State, infrastructure and policy failure because of corruption, incompetence and ideological policies have undermined South Africa's economic sectors, including aluminium and steel production and exports. According to a document from the Presidency, South Africa has proposed a duty-free quota of 385 million kilogrammes for steel per year and 132 million kilogrammes of aluminium per year to the US. The US desperately needs critical minerals and rare earth elements, which are dominated by China. South African can offer the US access to both critical minerals and rare earths. South Africa's Expropriation Law, which makes provision for expropriation without compensation, must be withdrawn. Contrary to popular arguments that the expropriation without compensation law will not lead to mass expropriation, property rights involve not only land, but also intellectual property, pensions and the shares and bonds of locals and foreigners, including US citizens. South Africa must also cancel the current Black Economic Empowerment (BEE) model that gives slices of local and foreign companies to politically connected 'political capitalists', and replace BEE with alternative empowerment models, such as the employment of youth, building of public infrastructure, transferring technology and skills, supporting STEM subjects (Science, Technology, Engineering and Maths) at black schools, and giving opportunities to manufacturing SMEs. DM This is an extract from Professor William Gumede's talk at the recent Inclusive Society Institute webinar on 'Building US-Africa relations under the Trump administration and its nexus with China'.
Time of India
6 days ago
- Business
- Time of India
Cross-border platforms and development finance to power BRICS+ growth: EY Report
As BRICS+ economies deepen collaboration to reshape the global financial system, three key institutional initiatives: the cross-border payments platform , the New Development Bank (NDB), and the BRICS Contingent Reserve Arrangement (CRA) are gaining strategic momentum, according to the EY Economy Watch July 2025 edition. These efforts come at a time when global trade is navigating uncertainty from geopolitical developments, evolving supply chains, and shifting trade dynamics - encouraging emerging economies to strengthen resilience and diversify their financial and trade frameworks. Explore courses from Top Institutes in Please select course: Select a Course Category Artificial Intelligence Digital Marketing Data Analytics Others PGDM Public Policy MBA Design Thinking Project Management Cybersecurity others CXO Finance Technology Healthcare Data Science healthcare Product Management Management Leadership Degree Data Science Operations Management MCA Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details As of 2024, BRICS+ countries accounted for 42.5 per cent of global GDP (in purchasing power parity terms), 54.0 per cent of the global population, and 27.3 per cent of global merchandise exports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo These milestones reflect not only the BRICS+ growing economic power but also a deepening commitment to reforming international financial and trade systems. Given current trends, the EY report stated that it expects that the BRICS+ group would account for more than 50 per cent of global GDP in PPP terms by 2030, both due to growth prospects the current members and partners and induction of additional countries into the group. Live Events DK Srivastava, Chief Policy Advisor, EY India, said, "The BRICS+ institutional initiatives are gaining traction at a time when the global economic order is undergoing realignment. These mechanisms especially the payments platform and the CRA are designed to improve financial autonomy and macroeconomic stability among BRICS+ participating nations. The New Development Bank, with its potential to deliver scale and speed in development financing, is equally critical for infrastructure-led growth." The BRICS+ payments platform, built on blockchain technology, is designed to enable cross-border transactions in local currencies. This system is expected to enhance flexibility in currency use for trade among member nations. The EY report notes that this development could foster greater financial stability, facilitate smoother trade flows, and strengthen economic resilience across participating countries. The NDB is also evolving as a major financing institution for emerging markets, particularly within the BRICS+ bloc. With a focus on competitive interest rates and development-oriented lending, the bank is well-positioned to support infrastructure growth and long-term investment flows across member nations. Another pillar of this new financial framework is the BRICS Contingent Reserve Arrangement, which offers a safety net to participating countries through currency swaps during balance of payments challenges. The CRA enhances collective financial security and provides an added layer of support to help manage external economic pressures. Once these initiatives gain momentum, they may go a long way in fostering a multilateral system of global trade, global investment and global financial flows that are comparatively lower in cost and offer complementary options to existing global arrangements. The report highlights the BRICS+ group's focus on facilitating trade in local currencies and expanding access to development financing, supporting efforts toward a more inclusive and balanced global financial architecture. While the group is not seeking to replace the US dollar's role in the global economy, these initiatives aim to broaden financial options and promote a more balanced international monetary system. As the BRICS+ grouping expands its reach, these financial innovations are expected to strengthen intra-group economic ties and support more inclusive global development. With sustained efforts to operationalise and expand these platforms, BRICS+ could emerge as a key driver of more inclusive, resilient, and sovereign-oriented global economic growth.
Al Etihad
21-07-2025
- Business
- Al Etihad
TRENDS explores avenues of cooperation, affirms global research presence at BRICS Forum
21 July 2025 11:02 ABU DHABI (ALETIHAD)As part of its prominent participation in the 7th BRICS Forum for Media and Think Tanks, TRENDS Research & Advisory continued to reinforce its global presence as an influential think tank, through intensive research engagement during the forum's activities held in Rio de Janeiro, Brazil, under the theme: BRICS United: Forging a New Chapter for the Global forum featured discussions and interactive sessions that showcased TRENDS' vital role—particularly through its Latin America Virtual Office—in promoting dialogue and building knowledge bridges among think tanks across the Global expand its partnership network and deepen cooperation, the TRENDS delegation held several meetings with prestigious research institutions, most notably the BRICS Policy Centre at the Federal University of Rio de team met with the Centre's Director, Marta Fernández, to explore prospects of joint research cooperation in policy analysis and future foresight, contributing to a deeper understanding of global researchers also met with Ariane Costa, Deputy Director Specialist in Geopolitics and International Trade at the Brazilian Centre for International Relations at the Brazilian Centre for International Relations (CEBRI), where they discussed potential partnerships and the exchange of expertise, aiming to build knowledge-based cooperation to interpret complex international delegation also met with Ms. Purnima Anand, President of the BRICS International Forum in India, to discuss opportunities for future research parties emphasised the importance of convergence among think tanks to develop shared visions on Global South TRENDS research delegation—represented by Abdulaziz Al Shehhi, Deputy Head of Research Sector, and Hamad Al-Hosani, Head of the Political Islam Studies Department—engaged with representatives of international research centres and the BRICS News Agency. They discussed topics addressed at the forum and mechanisms for joint work, reflecting TRENDS' approach to knowledge exchange and enhancing international recognition of its influential role, China's Xinhua News Agency honoured TRENDS as a key partner in the forum, acknowledging its active contributions in supporting its messages and global Al Shehhi and Hamad Al-Hosani also attended the forum's opening Shehhi delivered a keynote speech titled 'The Role of BRICS+ in enhancing cooperation among Global South countries through dialogue, exchange, and shared knowledge.'The keynote underscored the importance of cooperation frameworks among Global South countries through platforms like BRICS, and the pivotal role of think tanks in bridging understanding and enhancing knowledge and developmental his address, Al Shehhi stated, 'At TRENDS, we strive to transform dialogue into sustainable research partnerships that contribute to producing credible, impactful knowledge aligned with the aspirations of the Global South's peoples.' TRENDS' participation in the forum reflects its unwavering commitment to its role as a leading intellectual platform addressing international challenges and transformations by promoting dialogue, anticipating the future, and building strategic, globally oriented partnerships.
IOL News
18-07-2025
- Business
- IOL News
BRICS media should leads the charge for an inclusive global narrative
General view during a plenary session of the BRICS summit in Rio de Janeiro, Brazil. With nearly half the world's population represented by BRICS nations, the influence our media outlets hold in shaping narratives, challenging bias, and offering alternative perspectives is vast. Image: Pablo Porciuncula / AFP AS leaders and media representatives from across the BRICS nations gathered in Rio de Janeiro for this year's BRICS Media Forum, we found ourselves at a critical juncture in global media and geopolitics. With the recent expansion of BRICS to include Indonesia and 10 new partner countries under the BRICS+ framework, the forum signalled a deepening of collaboration, not just among governments and economies, but also across our most vital communications platforms. The forum's guiding vision aligns with Brazil's broader BRICS+ priorities for 2025: strengthening inclusion, enhancing South-South cooperation, and reforming global governance. In this context, the media plays an indispensable role in promoting dialogue, building trust, and safeguarding truth. With nearly half the world's population represented by BRICS nations, the influence our media outlets hold in shaping narratives, challenging bias, and offering alternative perspectives is vast. The Rio forum offered us the opportunity to reaffirm our shared values and recalibrate our responsibilities, especially in a world increasingly threatened by disinformation, propaganda, and polarisation. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Advertisement Next Stay Close ✕ Three central themes guide the forum: Championing Justice – Media's role in shaping a new world order Strengthening Exchanges – Media's recipe for invigorating Africa's growth Fostering Innovation – Media's duty in driving green development Each of these topics presents a roadmap not only for BRICS cooperation but for how the global media landscape could evolve toward greater fairness, accuracy, and ethical responsibility. A key pillar of any functioning democracy, and indeed of sustainable development, is press freedom. Across the world, the media have come under pressure, whether through government censorship, corporate interference, or subtle forms of financial manipulation. As BRICS media leaders, we must be vigilant and vocal in defending the freedom of the press, both within our borders and abroad. Equally important is the fight against fake news and disinformation. One proposal worth serious consideration is the formation of a BRICS joint media task force dedicated to countering misinformation. Through shared technological tools, fact-checking systems, and journalist exchanges, we can collectively elevate the credibility and integrity of news disseminated within and beyond BRICS nations. Diversity and inclusion also deserve a central place in the BRICS media agenda. Our alliance encompasses a wide array of cultures, languages, and lived experiences. This diversity must not only be reflected in our coverage; it must be celebrated as a strategic advantage. Through collaborative reporting, editorial partnerships, and cultural exchanges, we can resist the homogenisation of media that so often accompanies Western dominance in global news flow. Technological innovation is another vital area. The digital age has brought unprecedented challenges and opportunities. As BRICS nations, we must invest in innovation and digital inclusion, especially in underserved regions, so that the full benefits of new media platforms are available to all. From combating digital surveillance to embracing AI responsibly, media innovation must be shaped by ethical and human-centred values. Beyond media collaboration itself, the BRICS bloc also has a historic opportunity to challenge structural inequalities in global governance. One bold proposal is the establishment of a BRICS Ratings Agency, a counterbalance to Western-dominated financial rating institutions that often fail to account for the developmental realities of the Global South. A BRICS-led agency could offer more nuanced, fair, and contextually appropriate assessments, especially for public enterprises and state-led development projects. Similarly, the idea of a common BRICS currency continues to gain traction. While implementation would be complex and gradual, such a currency could help member states reduce dependency on the US dollar, stabilise trade relations, and enhance economic sovereignty. As we look to the future, institutional reforms must remain at the heart of the BRICS project. A permanent secretariat or coordinating body for BRICS media, for example, would help ensure continuity, shared standards, and deeper collaboration. It would also safeguard our momentum beyond rotating presidencies and changing political landscapes. * Adri Senekal de Wet is the editor-in-chief of Independent Media. Get the real story on the go: Follow the Sunday Independent on WhatsApp.
IOL News
18-07-2025
- Business
- IOL News
BRICS: Economic Power, Soft Power or Both?
India's Prime Minister Narendra Modi (L) and Brazil's President Luiz Inacio Lula da Silva attend a plenary session of the BRICS summit in Rio de Janeiro, Brazil, on July 7, 2025. BRICS leaders at a summit on Sunday took aim at US President Donald Trump's "indiscriminate" import tariffs and recent Israeli-US strikes on Iran. Image: AFP BRICS, more recently, BRICS+ is playing an increasingly prominent role on the global stage through both its economic strength and growing diplomatic influence. Representing nearly half the world's population and a substantial portion of global GDP and trade, the group has demonstrated clear economic power. At the same time, its efforts to promote multilateralism, cultural exchange, and peaceful conflict resolution reflect a deliberate use of soft power. Its core focus areas—political cooperation, financial development, and people-to-people engagement—showcase a blend of hard and soft influence. From launching the New Development Bank to encouraging trade in local currencies and hosting youth and academic forums, BRICS is a formidable force in a shifting global order. BRICS upholds three main pillars: (1) political and security; (2) economic and financial; and (3) cultural and people to people cooperation. Regarding pillar (1) the grouping addresses global security issues and aims to improve global governance through the promotion of multilateralism. For example: BRICS foreign ministers convene routinely on the sidelines of the United Nations General Assembly. Their cooperation also extends to areas such as counter-terrorism, cybersecurity, and broader security issues. (2) It enhances trade, investment, financial stability, and promotes sustainable development. For example, Finance ministers from BRICS countries hold frequent meetings, often in parallel with gatherings of the G20 and the IMF/World Bank. Their joint efforts focus on boosting trade among member states, improving the resilience of supply chains, and enhancing financial collaboration in areas like digital innovation and sustainable finance. (3) The grouping intentionally cultivates cultural exchange, academic collaboration, and the overall strengthening of people-to-people connections. For example, BRICS hosts a range of activities and programmes, such as scholarly forums, cultural celebrations, and youth exchange initiatives. If this makes the reader think that the grouping is just a talkshop, recent developments have proven the opposite. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading BRICS is seen as an economic power due to its aforementioned global standings in terms of GDP and resources. It is supported by the world's second-largest economy, China, and others like India; Brazil; and Russia. The grouping holds 24% of total global exchanges in international trade. This allows it to have a formidable global economic influence. It owns approximately 72% of the globe's reserves of rare earth metals; 43.6% of global oil production; 36% of the world's natural gas production; and 78.2% of the global production of mineral coal. It has, through its economic and financial pillar emphasised intra-BRICS trade and equitable global economic development, where BRICS+ countries are provided increased sovereignty regarding its conduct, particularly in trade. The grouping has established its own bank, known today as the New Development Bank (NDB), discussed in 2014 and established officially in 2015, showed the core BRICS member countries pool finances to form the bank. This allowed for countries to be given loans with fairer loan terms that does not impede on a countries economic sovereignty. This issue was brought to the BRICS Summit in Rio De Janeiro, Brazil, where this 'fairer' financial model was discussed as a major step in global transformation regarding multilateral financial institutions like the World Bank and International Monetary Fund (IMF). The NDB, however, has to think carefully if it wants to be increasingly efficient in this 'fairer' model as it is still institutionally tied to the US dollar and concomitant US sanctions against other BRICS members. In the spheres of finance and currency at the BRICS summit, there was a realistic atmosphere seeing the replacement of the United States (US) dollar with a coordinated system, not dominated but shared by many currencies as an unrealistic endeavour in the near future. Here it is important to note that the grouping does not wish to destroy the US dollar but rather create a fairer global financial system. The grouping is thus of the opinion that BRICS countries should increase trade in their own currencies as a mitigating force regarding US dollar dominance. In alignment with BRICS' mission to address global issues and insecurity through the promotion of multilateralism, BRICS has signed the Non-Aligned Movement (NAM) agreement, where it pledged no formal alliance with any major power bloc. The grouping believes in a non-violent approach to conflict through dialogue. This, however, does not mean that the grouping will be mum to wrongs committed by one country/countries toward another. The BRICS summit received global attention, particularly when calling out the US for its attack and Iran–during its confrontation with Israel–arguably exacerbating conflict within the region–Iran attacked the US base in Qatar soon after. In the Russia and Ukraine conflict, the grouping has continued to facilitate a peaceful settlement of conflict between the two countries. BRICS is neither solely an economic powerhouse nor purely a soft power bloc; it is a strategic blend of both. Its significant share of global GDP, abundant natural resources, and strong presence in international trade demonstrate clear economic strength. At the same time, its emphasis on multilateralism, cultural exchange, and peaceful conflict resolution reflects a conscious use of soft power. Through its three interconnected pillars: political and security cooperation; economic and financial collaboration; and people-to-people engagement, BRICS promotes a global model based on fairness, sovereignty, and inclusive development. Whether through the NDB's efforts to increase trade in local currencies, or cultural and academic initiatives, BRICS is using economic leverage to build credibility while advancing soft power to influence global norms and foster cooperation. By: Cole Jackson Lead Associate Chinese & South American Specialist * MORE ARTICLES ON OUR WEBSITE ** Follow @brics_daily on X/Twitter & @brics_daily on Instagram for daily BRICS+ updates
