A view of the New Development Bank (NDB) logo at its headquarters in Shanghai, China July 10, 2023. REUTERS/Aly Song/file photo Acquire license rights
JOHANNESBURG, Aug 18 (Reuters) – The group of major emerging economies BRICS (Brazil, Russia, India, China and South Africa) will hold its 15th summit of heads of state and government in Johannesburg from Aug 22-24.
South African President Cyril Ramaphosa, Chinese President Xi Jinping, Brazilian President Luiz Inacio Lula da Silva and Indian Prime Minister Narendra Modi are expected to attend.
Russian President Vladimir Putin will not attend in person due to an arrest warrant issued by the International Criminal Court for alleged war crimes in Ukraine. Putin will participate virtually in the summit and will be represented in Johannesburg by Foreign Minister Sergei Lavrov.
Few details have been revealed about what they plan to discuss, but here are some of the key issues expected to be on the agenda.
BRICS EXPANSION
Leaders are divided on expanding the bloc by adding new members, particularly on admission criteria.
More than 40 countries, including Saudi Arabia, Iran, the United Arab Emirates, Argentina, Indonesia, Egypt and Ethiopia, have expressed interest in joining BRICS, according to South Africa South.
China, seeking to expand its influence as it battles with the United States over trade and geopolitical issues, supports BRICS expansion, while Brazil is skeptical.
Russia, hoping to overcome its diplomatic isolation due to the war in Ukraine, is keen to welcome new members, as is South Africa. India is undecided.
BRICS BANK
The group is also expected to discuss how to boost local currency fundraising and lending within the New Development Bank (NDB), or so-called BRICS bank. Use of local currency help reduce impact risks fluctuations in exchange rates, said South African Finance Minister Enoch Godongwana.
The dollar has appreciated against emerging market currencies since Russia invaded Ukraine and the Federal Reserve began raising interest rates to combat inflation in early 2022, making the service debt in dollars more costly for these countries.
Although the NDB, established in 2015, is still studying the potential use of alternative currencies, there will be we are not talking about a common BRICS currency at the summit, South Africa’s top BRICS diplomat said.
The NDB is also expanding and the summit could become a key platform to attract more member countries. Bangladesh, the United Arab Emirates and Egypt have joined the bank since 2021. Uruguay is in the process of joining, while Algeria, Honduras, Zimbabwe and Saudi Arabia have expressed interest .
ECONOMIC COOPERATION
The leaders will also likely discuss how they can improve economic ties between their various economies.
They are expected to engage in a series of discussions on trade and investment opportunities in sectors ranging from energy cooperation and infrastructure development to the digital economy and labor market.
“FRIENDS OF THE BRICS”
The final day of the summit is expected to focus on discussions with leaders of other countries. Invitations to attend the summit were extended to 67 leaders in Africa, Latin America, Asia and the Caribbean, South African Foreign Minister Naledi Pandor said.
France had expressed interest in President Emmanuel Macron’s participation in the summit, but Russia opposed it due to French support for Ukraine against the Russian invasion. Macron was not invited.
Particular attention will also be paid to relations between BRICS and African countries, in line with the summit theme “BRICS and Africa”, Pandor said, adding that BRICS partners were eager to explore opportunities for benefit from the African Continental Free Trade Area.
Reporting by Anait Miridzhanian; Editing by Olivia Kumwenda-Mtambo, Tim Cocks and Nick Macfie
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