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Is the BRICS Summit just talk - or is it delivering on its promises?

Is the BRICS Summit just talk - or is it delivering on its promises?

eNCA21 hours ago
A banner of the BRICS summit is displayed at the Modern Art Museum (MAM) where the BRICS Summit 2025 will be held in Rio de Janeiro, Brazil on July 4, 2025.
JOHANNESBURG - As global leaders gather once again for the BRICS Summit, questions are mounting over whether the annual event is producing meaningful results — or merely a stage for lofty declarations and diplomatic photo ops.
The group is made up of founding members Brazil, Russia, India, China, and South Africa,
and was formed to provide a counterweight to Western-dominated global structures.
But nearly two decades since its inception, some still ask whether the bloc is achieving what it set out to do?
This year's summit comes at a time when global inequality, trade tensions, and the energy transition are front and centre, especially for developing nations.
For African countries and South Africa in particular, there's a growing interest in whether BRICS can do more than just talk.
Is it able to shift trade patterns, increase investment and help the continent benefit from its vast resources?
Brazil's President Luiz Inacio Lula da Silva speaks during the BRICS Business Forum in Rio de Janeiro, Brazil, on July 5, 2025. BRICS leaders meeting in Rio de Janeiro from Sunday are expected to decry Donald Trump's hardline trade policies, but are struggling to bridge divides over crises roiling the Middle East.
Daniel RAMALHO / AFP
Former Mauritian President Ameenah Gurib-Fakim believes it can.
Speaking ahead of the summit, she noted that 'BRICS is not just about talk — it's about trading.'
Her comments highlight a key success of the bloc.
China, a founding BRICS member, has been Africa's largest trading partner for over 15 years, with trade between the two valued at more than $280 billion.
There's also growing evidence that BRICS nations are bypassing traditional Western systems to trade in local currencies,
promote cooperation in the Global South and fund infrastructure through the New Development Bank.
And these are not small shifts — they point to a steady and measured transformation of global economic relationships.
Attendees stand at the entrance to the BRICS Business Forum in Rio de Janeiro, Brazil, on July 5, 2025. BRICS leaders meeting in Rio de Janeiro from Sunday are expected to decry Donald Trump's hardline trade policies, but are struggling to bridge divides over crises roiling the Middle East.
Daniel RAMALHO / AFP
Despite its expansion, still the scepticism persists. The lack of binding agreements and divergent political systems within the bloc,
and internal disagreements often raise doubts about the bloc's ability to act as a unified force.
But critics may be overlooking a key point.
BRICS was never designed to be a military alliance or a monolithic power bloc.
Its strength lies in its ability to create space — for dialogue, for new partnerships and for reshaping the rules of global engagement on more equal terms.
As the 2025 summit unfolds in Brazil, it's clear that BRICS still has a lot to prove.
But the numbers, the deals, and the growing influence of its member states suggest that this is more than just a talking shop.
For Africa — where the stakes of global inequality are most visible — BRICS remains a platform with the potential to shift outcomes, not just opinions.
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Argentina's early 20th-century trajectory offers a striking parallel: a commodity-rich economy that ascended rapidly only to decline due to internal mismanagement and premature confidence in global status. South Africa's early economic positioning masked unresolved domestic vulnerabilities. While attention turned outward to summits and regional diplomacy, the foundations beneath were quietly eroding. 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 Stage 2: The Undisciplined Pursuit of More South Africa's expansion of redistributive programmes, especially through social grants and state employment schemes, was not matched by corresponding economic productivity. The social grant system, projected to cost R259.3 billion by 2026, has been essential for poverty relief but increasingly burdens fiscal sustainability. Meanwhile, core infrastructure suffered. Transnet's freight efficiency declined sharply and energy supply instability continued to constrain investment. The World Bank reports average GDP growth of just 0.7% between 2014 and 2024. Yet state-led expansion persisted, often detached from output and institutional readiness. This pursuit of scale without returns mirrors firms that chase growth for its own sake. Public employment expansion - while well intentioned - has in some cases reinforced dependency. The logic that more 'boots on the ground' equals delivery has led to overstaffing, rising wage costs and limited institutional agility. Government visibility has been confused with public value. Climate risks have compounded the challenge. Extended droughts have reduced employment in agriculture and mining, weakening resilience in rural provinces. Without adaptation strategies, the employment impacts of environmental shocks will only intensify. Stage 3: Denial of Risk and Erosion of Trust Despite mounting evidence of institutional and economic strain, reforms have lagged. The Zondo Commission exposed over R500 billion in procurement-related losses, yet implementation remains slow. Labour market mismatches have worsened, with 42% of jobless individuals now classified as discouraged workers - those who have ceased to seek employment entirely. Total Factor Productivity has declined for over 15 years according to the International Monetary Fund, yet public discourse often defaults to rebranding or extending existing models. Persistent mismatches between the education system and labour market needs further entrench youth unemployment. Over a million students are enrolled in post-secondary institutions annually, yet far fewer graduate with skills aligned to economic opportunity. Technical and vocational education remains underfunded despite strong global evidence of its employment in government has declined. According to the Edelman Trust Barometer, only 22% of South Africans express trust in government compared to 62% in business. Many young people are now cycling through training schemes with no connection to employment. For them, the crisis is not theoretical - it is lived daily through delayed adulthood and social alienation. Stage 4: Superficial Solutions and Fiscal Pressure Short-term relief measures have become the norm. The Social Relief of Distress Grant and other temporary interventions offer necessary support but are not substitutes for structural employment generation. Public debt now stands at over 74% of GDP, edging towards unsustainable territory. The 2024 Budget Review confirmsdebt service costs are rising faster than allocations to education and infrastructure. Some initiatives under Operation Vulindlela and the Just Energy Transition Investment Plan show intent but require stronger execution and sustained adds further pressure. McKinsey estimates that automation could displace one in four jobs in South Africa by 2030, especially among low-skilled workers. Without a reskilling strategy, digital transformation may reinforce unemployment rather than resolve it. The African Development Bank warns that the continent adds 10 million job seekers to the labour force annually but creates only 3 million jobs. Grants and temporary schemes cannot bridge this gap. They must be paired with pathways into the formal economy - particularly for youth, women and small private sector must also adapt. Hiring practices, investment in entry-level talent and support for smallenterprises are necessary components of a functioning labour market. 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Beyond economic metrics lie the very fabric of social stability, public trust and democratic legitimacy. South Africa's experience offers a warning to all emerging and developing economies: the cost of delay is measured not only in GDP but in fractured communities and lost futures. Ban Ki-moon, former UN Secretary-General, reminds us that 'addressing unemployment is not just an economic imperative, it is a moral and social one that defines the future of peace and progress.' South Africa is not alone. Across emerging economies, unemployment, fiscal strain and youth disillusionment are converging into systemic risk. The lessons embedded in this crisis - about political will, economic realism and institutional reform - are applicable far beyond one nation's borders. The foundations for recovery exist but require clear-eyed leadership and a willingness to prioritise structural reform over symbolic intervention. South Africa's story will be determined not by its past but by how decisivelyit addresses the challenges of today. Nomvula Zeldah Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She holds a Diploma in Business Management (Accounting) from Brunel University, UK, and is an MBA candidate at Henley Business School, South Africa. Image: Supplied

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