Introduction

The BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—has emerged as a key player in shaping the global economic landscape. Established in 2009, the group was created to promote economic, political, and cultural cooperation among major emerging economies. In 2024 and 2025, the bloc expanded significantly to include new members from the Middle East and North Africa (MENA) region, such as Saudi Arabia, Egypt, UAE, and Iran, as well as Indonesia, highlighting its growing influence.
‍

According to Brazilian Ambassador Eduardo Saboia, who chairs the BRICS summit in 2025, the bloc’s purpose is not to oppose the West but to provide alternative systems for collaboration, trade, and development. Saboia described BRICS as a "builder," aiming to foster global partnerships rather than disrupt existing ones. This article explores the economic benefits of BRICS membership, its implications for Africa and the MENA region, its potential to solve USD shortages, and its future role in global economics.
‍

1. What Is BRICS?

BRICS was founded in 2009 by Brazil, Russia, India, and China, with South Africa joining in 2010. The group’s core objective is to promote cooperation among emerging economies and to offer an alternative to Western-dominated global institutions like the IMF and World Bank. The recent addition of Iran, Egypt, Ethiopia, UAE, and Indonesia further amplifies BRICS’s influence on global trade and geopolitics.
‍

The bloc is anchored on principles of collaboration across various sectors, including finance, technology, health, and sustainable development. Key institutions like the New Development Bank (NDB) provide financial support for infrastructure projects, enabling members to address critical developmental challenges. Saboia emphasizes that BRICS is not anti-West; instead, it seeks to "build" through enhanced trade, reduced transaction costs, and increased use of local currencies in transactions.
‍

‍

2. Economic Benefits to Member Countries

Membership in BRICS offers several tangible economic advantages:

Trade Expansion

Intra-BRICS trade has grown significantly, reaching over $500 billion in recent years. For instance, Brazil’s agricultural exports to China have soared, while India has strengthened energy ties with Russia. MENA countries like the UAE and Egypt now have greater access to diversified trade opportunities within the bloc, reducing reliance on traditional Western markets.

Investment Opportunities

The New Development Bank (NDB) plays a critical role in financing infrastructure projects across member nations. By providing alternatives to Western financial institutions, the NDB enables countries to invest in key sectors such as transportation, energy, and healthcare. For example, South Africa has leveraged NDB funding to modernize its energy infrastructure.

Economic Diversification

BRICS membership allows countries to reduce dependency on single markets. Brazil has expanded its trade in agricultural products beyond the Americas, while South Africa has seen increased demand for its mining exports. The MENA countries—rich in energy resources—can now attract investments from non-Western partners, fostering a more balanced economic landscape.

3. Implications for the African Economy and MENA Region

The inclusion of African and MENA nations into BRICS has significant regional implications:

Africa

• Access to Infrastructure Funding: The NDB’s financial resources can help African nations bridge critical infrastructure gaps, from transportation networks to renewable energy projects. Ethiopia, for instance, can utilize such funding to enhance its industrial base.
• Diversified Trade: African economies can shift from exporting raw materials to trading value-added goods, creating more robust supply chains and reducing economic vulnerabilities.
• Geopolitical Influence: South Africa, as a BRICS member, acts as a bridge for the continent, amplifying Africa’s voice in global economic and political discussions.

MENA Region

• Economic Diversification: Countries like Saudi Arabia and the UAE can reduce reliance on oil revenues by fostering trade partnerships within BRICS.
• Strategic Alignment: MENA nations gain geopolitical leverage by collaborating with both Western and non-Western powers, positioning themselves as critical players in global energy and trade.
• Regional Investments: The bloc’s emphasis on reducing transaction costs and promoting local currency settlements benefits MENA economies by enhancing cross-border trade efficiency.
  ‍

4. Can BRICS Solve USD Shortages in Africa?

One of the most pressing economic challenges in Africa is the shortage of USD, which hampers cross-border trade and stifles economic growth. BRICS initiatives may provide solutions:

The USD Problem

African nations heavily depend on USD for international trade, particularly for importing essential goods. This reliance drains foreign reserves and creates prolonged payment delays, disrupting supply chains.

BRICS Initiatives

• Local Currency Settlements: Ambassador Saboia emphasized the need to diversify transaction options by increasing the use of local currencies. This approach can alleviate Africa’s dependency on USD.
• Digital or BRICS Currency: Discussions around a potential BRICS currency or digital payment system aim to create a more stable and inclusive trade environment for members.

Challenges and Limitations

While promising, these initiatives face hurdles, including limited infrastructure for local currency trade and reluctance among African governments to shift away from USD-centric systems.
‍

5. Stablecoins vs. BRICS Payment Systems: Pros and Cons

As BRICS explores alternative payment mechanisms, stablecoins also emerge as a viable solution for cross-border trade. Here’s a comparison:

Stablecoins for Payments

• Pros:
  • Instant transactions and global accessibility.
  • Transparent, blockchain-based systems reduce intermediary costs.
  • Pegged to fiat currencies, minimizing volatility.
• Cons:
  • Regulatory uncertainty in many regions.
  • Requires digital infrastructure that is lacking in some African nations.
  • Vulnerable to cybersecurity risks.

BRICS Payment Systems

• Pros:
  • Promotes local currency trade, reducing dependency on USD.
  • Supported by institutional frameworks like the NDB.
  • Enhances economic ties within the bloc.
• Cons:
  • Limited applicability outside BRICS members.
  • Implementation challenges and delays.
  • Smaller economies may struggle to influence policies within the bloc.
    ‍

6. Future of BRICS and Its Global Role

BRICS is poised to play a transformative role in global economics:

Potential Expansion

Countries like Turkey and Indonesia have expressed interest in joining BRICS, signaling its growing appeal as a counterbalance to Western institutions. A larger bloc could amplify its influence on global trade and finance.

A Multipolar World Order

BRICS aims to reduce the dominance of Western-centric institutions by fostering a multipolar economic system. This shift could empower emerging economies to play a more central role in global decision-making.

Focus Areas for Growth

• Expanding intra-BRICS trade and investment.
• Strengthening the NDB’s capacity to finance large-scale projects.
• Advancing sustainable development and technology-sharing initiatives.

Conclusion

BRICS represents a beacon of opportunity for emerging economies, offering an alternative to Western-dominated systems while promoting collaboration and innovation. For Africa and the MENA region, the bloc’s initiatives could unlock new trade opportunities, address USD shortages, and drive economic diversification.

While challenges remain, the potential for stablecoins and BRICS payment systems to coexist and complement each other adds an exciting layer to the global financial landscape. As the bloc continues to expand and evolve, its role in shaping a more inclusive and multipolar world order will only grow. The journey toward a redefined global economy has just begun.

‍