BRICS, AFRICA AND GLOBAL ECONOMIC GOVERNANCE

The document analyzes the BRICS' dual strategy of pursuing 'inside reforms' of the IMF and World Bank while establishing 'outside' alternatives like the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA). It finds that while emerging markets gained some voting power, many developing countries, including several in Africa, saw their shares decrease. The paper highlights a disconnect between the BRICS' collective 'African agenda' and the individual bilateral strategies of its members, recommending a dedicated BRICS-Africa strategy and formal coordination with the African Union.

• The BRICS achieved limited success in reforming the Bretton Woods institutions (BWIs), with benefits skewed toward emerging markets rather than developing countries. While the 2010 IMF quota reform shifted 6.2% of voting rights to emerging markets and developing countries, the BRICS' share increased by 3.1%, but several African economies, including South Africa, Nigeria, Algeria, and Morocco, saw their voting shares drop.
• The New Development Bank (NDB) was established to fund infrastructure and sustainable development in BRICS and other emerging markets, utilizing an innovative architecture of equal capital contributions and voting rights to avoid the power hierarchies of the World Bank. As of May 2018, the NDB's portfolio exceeded $5 billion, with India receiving the largest share of financing (nearly 36%), followed by China (24%), Russia (23.8%), Brazil (8.6%), and South Africa (7.7%).
• The Contingent Reserve Arrangement (CRA) provides short-term liquidity for BRICS members with a total commitment of $100 billion, with contributions based on GDP: China (41%), India, Brazil, and Russia (18% each), and South Africa (5%). However, the CRA is criticized for its linkage to the IMF, which may make it difficult for members to avoid IMF conditionalities.
• There is a significant lack of coherence between the collective BRICS 'African agenda' and the individual bilateral strategies of its member states. While trade between Africa and BRICS grew—with BRICS exports to Africa (excluding South Africa) rising from $45 billion in 2006 to nearly $140 billion in 2017—the relationship is characterized by a significant trade deficit for Africa and a reliance on primary commodities.
• Bilateral lending from BRICS members, particularly China, India, and South Africa, has contributed to rising external debt in Africa. Between 2012 and 2016, the average debt-to-GDP ratio in Africa increased from 40.2% to 57.3%, raising concerns about debt sustainability and transparency in loan reporting.
• South Africa has struggled to advance a unified African voice reform agenda within the IMF, facing opposition from other African developing countries and G24 members regarding its push for a third sub-Saharan African chair. However, the 2018 appointment of South African Reserve Bank Governor Lesetja Kganyago as the first sub-Saharan African chair of the International Monetary and Financial Committee (IMFC) is seen as an opportunity to build consensus.

APA

Sidiropoulos, E., Prinsloo, C., Mpungose, L., & Grobbelaar, N. (2018). BRICS, AFRICA AND GLOBAL ECONOMIC GOVERNANCE. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2018/07/BRICS-Africa-and-global-economic-governance-achievements-and-the-future.pdf

Chicago

Sidiropoulos, Elizabeth, Cyril Prinsloo, Luanda Mpungose, and Neuma Grobbelaar. BRICS, AFRICA AND GLOBAL ECONOMIC GOVERNANCE. South African Institute of International Affairs, 2018. https://saiia.org.za/wp-content/uploads/2018/07/BRICS-Africa-and-global-economic-governance-achievements-and-the-future.pdf.

Wikipedia

{{cite report |last1=Sidiropoulos |first1=Elizabeth |last2=Prinsloo |first2=Cyril |last3=Mpungose |first3=Luanda |last4=Grobbelaar |first4=Neuma |title=BRICS, AFRICA AND GLOBAL ECONOMIC GOVERNANCE |publisher=South African Institute of International Affairs |date=July 2018 |url=https://saiia.org.za/wp-content/uploads/2018/07/BRICS-Africa-and-global-economic-governance-achievements-and-the-future.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sidiropoulos2018brics, author = {Sidiropoulos, Elizabeth and Prinsloo, Cyril and Mpungose, Luanda and Grobbelaar, Neuma}, title = {{BRICS, AFRICA AND GLOBAL ECONOMIC GOVERNANCE}}, institution = {South African Institute of International Affairs}, year = {2018}, month = jul, url = {https://saiia.org.za/wp-content/uploads/2018/07/BRICS-Africa-and-global-economic-governance-achievements-and-the-future.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }