South Africa
Source: www.iol.co.za

BRICS+ Series: How South Africa's Informal Sector is Reshaping the EconomyA spaza shop (informal supermarket) worker, Zachariah Salah, poses for a portrait in Soweto, near Johannesburg, on November 12, 2024. Picture: AFP
Published Mar 7, 2025

The informal business sector of South Africa is greatly underappreciated and has not reached its full potential in any respect, as of May 2024 the South African informal economy was valued at an estimated R750 billion.

At the cornerstone of the informal business sector is small, medium and micro-enterprises (SMMEs) , that contribute significantly to the daily lives of millions of South Africans. Spaza shops, the taxi industry, taverns, and beauty and repair businesses (from cell phone repairs to auto workshops) are highly profitable and play a crucial role in both the SMME sector and the national economy. However, despite their significant revenue generation, this sector remains largely untaxed and unregulated.

Across different BRICS countries and emerging economies, there are substantial SMME markets for a variety of reasons. A common characteristic of these countries is a struggling employment rate and through small enterprises citizens are able to fulfil their needs and contribute to society.

This sector is a vital force in South Africa’s economy, creating opportunities for people of all backgrounds, from the uneducated to business graduates. It plays a key role in reducing unemployment and poverty while uplifting local economies. Townships, often portrayed as impoverished, are undergoing a real estate transformation, with back rooms, repair shops, and spaza shops thriving. Homes once undervalued—like a four-room house in Soweto that was worth R150,000 in 2014, is now valued at R400,000 illustrating the sector’s growing impact and housing transformation.

The informal business sector growth rate surpasses the formal sector for different reasons, some being government regulations, lengthy red tape, quotas and budgetary cuts which lead to wide-scale retrenchments or a popular issue with the formal sector, strict employee eligibility requirements that graduates are unable to meet, particularly relating to work experience. The sector’s growth rate sits at 24% per annum (p.a), compared to the formal sector which has a growth rate of 15% p.a

The reasons for this is that South Africans cumulatively earn between R20 to R40 billion p.a in backroom rentals, the taxi industry earns R50 billion p.a and from 45 000 licensed taverns and shebeens a whopping R110 billion is generated p.a. One can only imagine the impact these funds would have if the sector was only partially taxed.

The informal business sector and SMMEs are vital to the South African economy, providing income and essential services, and serving as a safety net during economic downturns. The government acknowledges this and has implemented initiatives to support these businesses, recognising their role in job creation, poverty alleviation, and economic growth. These initiatives include funding, mentorship, training, and networking opportunities, as well as efforts to reduce regulatory burdens and improve access to markets.

On the 24th February 2025, the African Development Bank Group (AfDB) and Standard Bank Group signed a monumental agreement directed towards SMMEs for trade expansion throughout Africa. The agreement includes a R3.6 billion investment into a social bond and $200 million Risk Participation Agreement for Standard Bank South Africa. The initiative is founded in strengthening the Bank’s lending capacity as a driver for economic growth and job creation in the country. The social bond prioritises SMMEs to promote inclusive economic development- a characteristic aligned to BRICS’ mandate- with a turn over below R300 million and loan sizes under R40 million. According to the AfDB, “this financing will support up to 4 000 businesses, helping them scale operations, create jobs and contribute to economic resilience” . The inclusion of these actions is expected to benefit about 3.2 million SMMEs across the country, accounting for 60% of jobs. Additionally, the Risk Participation Agreement (RPA) will bridge the trade finance gap for and positively contribute to intra-African trade , widening the opportunities for long-term sustainable economic transformation for emerging African countries.

The outcome of the AfDB and Standard Bank agreement is aligned to the wider goals of the NDB and BRICS in navigating financial accessibility and provision for economic growth that is sustainable. Providing support for SMMEs closes the financing gap that has been previously ignored as well as decentralises the financial regulations which are simply unattainable for communities in developing countries.

The South African government continues to roll out different initiatives and programs aimed to empower this sector of the economy, the opportunity to formalise and strengthen it is growing in importance. For this sector to maximise its potential, policies should be simplified. Accessing verified information and having adequate support to manoeuvre through the business space is imperative for SMME entrepreneurs to make a name for themselves and for the country.

Leveraging BRICS and its fundamental principles, conversations on policy reform and initiatives from South Africa may be a great benefit to communities and entrepreneurs from the various BRICS+ nations. Other points that BRICS+ countries must consider for SMMEs is the role of digital systems for trade such as e-commerce, its benefits for transparency of online transactions/payments and cyber security protections. BRICS bodies such as the BRICS Business Council have an opportunity to ensure seamless integration of protocols for SMME investment and promotion across the bloc.

South Africa
Source: www.iol.co.za

BRICS has traditionally presented itself as a trade, development, and economic bloc as opposed to a military alliance.

Member nations now have the freedom to interact with many powers while maintaining their sovereignty and strategic independence thanks to non-alignment. For South Africa, Brazil, and India—three democracies that favor diplomatic resolutions over forceful security engagements—this strategy has been particularly important. India has managed to strike a careful balance between its ties with Russia and the West, especially considering that it is a member of the Quadrilateral Security Dialogue (Quad), which also includes the US, Japan, and Australia.

Additionally, avoiding needless militarisation is the greatest way to achieve the economic goals of BRICS+. Projects like the BRICS Contingent Reserve Arrangement, the New Development Bank (NDB), and de-dollarisation projects have been key to the bloc's development. Potential allies in Asia, Africa, and Latin America who are looking for alternatives to Western financial hegemony but are cautious about getting sucked into great-power rivalry might be turned off by a defence agreement.

The Case for a BRICS Defence Pact

BRICS has benefited much from military non-alignment, but the dynamics of global security are changing quickly. Western military interventions under the pretense of promoting democracy have frequently occurred in the Global South; Libya, Iraq, and Afghanistan are notable examples. Instead of resolving security challenges in Africa, Western military activities have frequently made matters worse. An increasing opposition to neocolonial military legacies is demonstrated by the recent evacuation of French troops from Mali, Burkina Faso, and Niger.

If properly formulated, a BRICS+ security framework may act as a check on the military might of the West in this situation. The three main military powers in BRICS, China, Russia and Iran, have close defence cooperation, but the other members of the group do not have a coordinated security system. A loose defence agreement that emphasises cybersecurity, counterterrorism, intelligence sharing, and peacekeeping would be a better option than a formal military alliance. Russia's increasing military involvement in Africa, both through state-sponsored programs and commercial military firms, offers BRICS+ the chance to develop security strategies that complement the goals of the Global South. China's security initiatives, like its facility in Djibouti, show that Beijing understands the importance of strategic depth that goes beyond business alliances. India is a key partner in forming a BRICS-led security initiative because of its experience with UN peacekeeping and its developing defence industry base.

A Practical Path Forward

Rather than a rigid military alliance, BRICS should develop a flexible security cooperation framework centered on three pillars:

1. Maritime Security and Anti-Piracy Operations: Working together to protect the South China Sea, Indian Ocean, and South Atlantic against piracy, illegal trade, and foreign naval expansion is essential because these areas are vital maritime routes that pass through the BRICS countries. The active naval projects of Brazil, India, and South Africa may serve as the cornerstone of BRICS+ maritime cooperation.
2. Cybersecurity and Digital Sovereignty: The Global South is now vulnerable as a result of the West's dominance in cyberspace. Potential cyberwarfare was hinted at by the 2023 US National Cybersecurity Strategy, which specifically cited China and Russia as dangers. By protecting data, protecting financial transactions outside of SWIFT, and creating indigenous technological ecosystems, a BRICS+ cybersecurity project might shield the group from Western cyber-warfare strategies.
3. Peacekeeping and Conflict Mediation: Africa, which is home to BRICS+ core and partner countries, has long been plagued by conflicts that are choreographed from outside. With the help of China's economic diplomacy, Russia's military know-how, and South Africa's experience in peacebuilding, a BRICS-led mediation force might provide conflict resolution procedures separate from Western-dominated organisations like the UN Security Council and NATO.

Conclusion: Pragmatism Over Militarisation

BRICS cannot afford to take a backseat to threats to international security, even while it should reject the urge to create a military bloc akin to NATO. BRICS+ must lead an alternative security system that defends economic growth, preserves sovereignty, and fends off outside pressure. The Global South requires strategic autonomy. A military alliance runs the danger of upsetting important allies and splitting the bloc. The best course of action is to adopt a strategic security framework that emphasises peacebuilding, cyber resilience, and maritime security. Without imitating the belligerent, imperialist patterns of Western military alliances, this strategy fortifies BRICS+. In order to prevent the Global South from continuing to be at the mercy of outside forces and to establish itself as a force that can influence the global security framework, it is imperative that BRICS+ define security according to its own standards. Military non-alignment is not enough in a multipolar world. The next development of BRICS+ must be security cooperation, which is based on the ideas of sovereignty, economic stability, and regional security. Nothing less is appropriate for the Global South.

India
Source: sundayguardianlive.com

For decades, the U.S. dollar has been the dominant currency in the global financial system, functioning as the primary medium for international trade and the key reserve currency for central banks

This dominance has given the United States considerable economic and geopolitical leverage, allowing it to impose financial sanctions and influence international monetary policies. However, recent geopolitical tensions and global economic shifts have accelerated discussions on reducing dependence on the dollar, a process referred to as “de-dollarization.” At the forefront of these discussions are the BRICS nations—Brazil, Russia, India, China, and South Africa. These countries are exploring ways to enhance their financial autonomy by reducing reliance on the U.S. dollar in trade, investments, and monetary reserves. While a fully integrated BRICS currency remains an ambitious goal, alternative strategies such as local currency settlements, new financial institutions, and independent payment systems are being pursued. This article examines the motivations behind the BRICS nations’ de-dollarization efforts, the challenges associated with creating a common currency, and the broader implications of this shift for the global financial landscape.

Why Are BRICS Countries Seeking to Reduce Dollar Dependence?

The drive for de-dollarization among BRICS nations is rooted in both economic pragmatism and geopolitical strategy. The U.S. dollar’s dominance gives Washington the power to impose financial restrictions on countries that do not align with its foreign policy objectives. Nations like Russia and China, which have faced increasing economic sanctions from the U.S. and its allies, see dollar dependency as a strategic vulnerability. One of the clearest examples of this is Russia’s response to Western sanctions following geopolitical conflicts. The country has significantly reduced its dollar holdings, increasing its reserves in other currencies and gold to insulate itself from external financial pressures. Similarly, China has been working to enhance the global role of the renminbi by entering into currency swap agreements with multiple countries and promoting its use in international trade. These moves are aimed at mitigating risks associated with excessive reliance on the dollar and strengthening economic sovereignty.

Challenges in Establishing a BRICS Common Currency

The idea of a unified BRICS currency has been widely discussed as a long-term solution to reducing dependence on the U.S. dollar. However, its implementation faces several economic, political, and institutional hurdles that make its realization highly complex. The BRICS nations vary significantly in terms of economic size, development levels, and fiscal policies. China, for instance, has the second-largest economy in the world, while South Africa’s GDP is considerably smaller. Aligning these diverse economies under a single currency would require deep monetary and fiscal coordination, which is difficult given their differing economic structures and priorities. Political disagreements and historical conflicts between BRICS nations pose a major barrier to deeper financial integration. One of the most significant challenges is the strained relationship between China and India, two of the largest BRICS economies. Border disputes and regional rivalries have led to mutual distrust, making cooperation on a common currency more complicated.

Alternative Strategies for De-Dollarization

Recognizing the challenges of creating a single currency, BRICS nations are exploring alternative strategies to reduce dollar dependence while maintaining financial sovereignty. One of the most practical solutions is conducting trade in local currencies. The BRICS-established New Development Bank (NDB) plays a crucial role in financing infrastructure and development projects without relying on Western financial institutions. By offering loans in a mix of currencies transactions. Expanding the NDB’s role could further empower BRICS nations to finance large-scale projects independently of Western financial systems, decreasing their reliance on the International Monetary Fund (IMF) and the World Bank. Another key strategy for de-dollarization is the development of financial transaction systems that operate independently of U.S.-controlled networks like SWIFT (Society for Worldwide Interbank Financial Telecommunication). The U.S. has used SWIFT as a tool to impose financial sanctions on countries like Russia, limiting their ability to conduct international transactions. In response, BRICS nations have started developing their own payment systems to reduce reliance on Western-controlled financial infrastructure. China’s Cross-Border Interbank Payment System (CIPS) is a notable example, designed to facilitate global transactions in renminbi. Similarly, Russia has developed the System for Transfer of Financial Messages (SPFS) as an alternative to SWIFT. Expanding these systems and integrating them among BRICS nations could help establish a more independent global financial network.

Global Implications of BRICS’ De-Dollarization Efforts

The BRICS nations’ push toward de-dollarization carries significant consequences for the global financial system. While the U.S. dollar is unlikely to lose its status as the world’s dominant reserve currency in the immediate future, a gradual shift toward a multipolar financial order is becoming more apparent. If BRICS nations successfully reduce their reliance on the dollar, the global financial system could become less centered around the U.S. This could diminish Washington’s ability to use economic sanctions as a geopolitical tool. It could also encourage other emerging economies to explore similar strategies, accelerating the trend toward a more diversified global financial landscape. Currently, the U.S. dollar accounts for nearly 60% of global foreign exchange reserves. While this dominance provides stability, it also gives the U.S. disproportionate control over international financial flows. While the idea of a unified BRICS currency faces major economic, political, and institutional challenges, alternative strategies such as bilateral trade agreements, the expansion of regional financial institutions, and independent payment systems offer practical ways to reduce dollar dependency. Ultimately, the success of BRICS’ de-dollarization efforts will depend on political will, financial innovation, and economic coordination among its member nations. While challenges remain, the ongoing push for financial independence signals a fundamental transformation in the global economic order—one that could redefine international trade, finance, and geopolitics in the years to come.

Dr. Sharanpreet Kaur in an Assistant Professor of International Relations at School of Social Sciences, Guru Nanak Dev University, Amritsar.

China
Source: www.ndb.int

Rome, Italy, 5 March 2025: Global leaders, policymakers and evaluation experts have come together in Rome for the first day of the 2025 IDEAS-NDB Conference, on the topic of “Multi-Dimensional Evaluation for Influence & Transformation”. Jointly organised by International Development Evaluation Association (IDEAS) and the Independent Evaluation Office (IEO) of the New Development Bank (NDB), the conference will examine how evaluation can drive real-world transformational change in today’s complex global landscape. Lasting for two days, the event is being held at the headquarters of the Food and Agriculture Organization of the United Nations (FAO).
With the world facing rising geopolitical tensions, economic uncertainty, climate change and widening social inequities, the role of evaluation in shaping evidence-based decision-making has never been more crucial.

The FAO Director-General Dr. Qu Dongyu highlighted the important role of evaluation as the cornerstone of learning and innovation to ensure effective sustainable development policies, stating: “We cannot solve food security challenges without understanding efficiency, effectiveness and the impacts of investment. Evaluation must move beyond metrics – it must shape the policies and innovations that will help us ensure sufficient and healthy foods for future generations. I believe that this conference can be a stepping-stone towards driving meaningful progress.”

The event welcomed around 400 global delegates, with Professor Michael Kremer, winner of the 2019 Nobel Memorial Prize in Economics, delivering the keynote speech on the conference theme of multi-dimensional evaluation for influence and transformation. He was joined by senior government officials, policy and decision-makers, high-level officials and heads of evaluation offices from major multilateral development institutions, and representatives of academic and research institutions, non-governmental organizations, the private sector and others.

Over the two days, the conference will feature high-level discussions, expert panels, and strategy sessions examining a range of interconnected themes crucial to evaluation’s role in tackling the world’s most pressing challenges. These include how evaluation supports progress in achieving the Sustainable Development Goals (SDGs) and understanding the complex relationships between the goals; addressing the nexus of climate change, crises, and development through robust evaluation; recognising the importance of context and culture in shaping evaluation practices; mainstreaming gender equality, human rights, and equity within evaluation frameworks; building evaluation capacity at all levels; and exploring evaluation for sustainable development in the BRICS nations (Brazil, Russia, India, China and South Africa) and other emerging markets and developing countries (EMDCs), which are priority areas for NDB.

With participation from government agencies, multilateral institutions, the private sector, civil society organisations, and evaluation professionals, the event serves as a global call to action—pushing for more impact-driven, inclusive, and forward-looking evaluation frameworks.

Ashwani K. Muthoo, Director General of IEO at NDB underscored the urgency for evaluators to change and innovate: “Evaluation must evolve to reflect the complexity of today’s world. We must go beyond traditional metrics to capture lived experiences, measure systemic change, and ensure that development efforts truly reach those who need them most.”

Russia
Source: russiancouncil.ru

On February 28 – March 1, 2025 the 3^rd International Conference “China-Russia Sanya Dialogue” was held in Sanya, China. For the first time, the Russian International Affairs Council (RIAC) organized the forum along with the Beijing Club for International Dialogue, the Academy of Contemporary China and World Studies, and the China Public Diplomacy Association. The event became one of the first platforms for discussing the rapidly changing international political situation in 2025.

Ivan Timofeev, RIAC Director General and Wu Hailong, President of the Public Diplomacy Association of China, the Ambassador Extraordinary and Plenipotentiary of the People's Republic of China addressed the conference participants with welcoming remarks. The parties emphasized that even in the face of rapid geopolitical changes, productive cooperation between Russia and China will continue. Wu Hailong assured that partnership between Russia and China is a “long-term solution” for Beijing, and the policy towards Moscow will not change even in case of increased pressure from Washington. Ivan Timofeev urged to remember about practical issues of strengthening cooperation in the fields of economy and finance, energy and industry while maintaining the focus on the international context of the development of Russian–Chinese partnership.

The participants were also addressed by Igor Morgulov, the Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the People’s Republic of China and RIAC member and Zhang Hanhui, the Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the Russian Federation. The Russian Ambassador noted, “Today’s Russian–Chinese ties are not only not inferior, but actually surpass the old alliance in terms of depth and mutual trust”. “Now we realize that the friendship between Russia and China will be eternal,” confirmed his Chinese counterpart Zhang Hanhui.

The first day of the conference was organized into three sessions held behind closed doors. At the first session “Russia and China in the New World Order” the participants discussed the directions of transformation of the world order in the 2020s. In particular, they focused on the relations between Russia, China, the US and India. The participants paid special attention to the developments in transatlantic relations after Donald Trump's return to the White House and the prospects for resolving the conflict in Ukraine. Russian and Chinese experts agreed that Moscow and Beijing should not perceive the emergence of a multipolar world order as the only possible scenario, but systematically work together for its realization.

Alexander Lomanov, Deputy Director for Scientific Work at the Primakov National Research Institute of World Economy and International Relations (IMEMO) of the Russian Academy of Sciences and RIAC Member, Le Yucheng, Deputy Minister of Foreign Affairs of the People's Republic of China in 2018–2022, Andrey Sushentsov, Dean of the Faculty of International Relations at MGIMO University, Chen Xiaogong, Former Deputy Head of the CPC Foreign Affairs Office, Igor Istomin, the Head of the Department of Applied Analysis of International Problems at MGIMO University, and Yu Hongjun, Former Vice Minister of International Department of the CPC Central Committee delivered a speech at the first session. Jiang Feng, Chairman of the Board of the Shanghai Academy of Global Governance and Area Studies of Shanghai Foreign Studies University, Alexey Gromyko, Director of the Institute of Europe of the Russian Academy of Sciences, Corresponding Member of the Russian Academy of Sciences and RIAC Member, Zhao Long, the Deputy Director of the Institute of Global Governance Studies of the Shanghai Institute for International Studies, Zhao Huasheng, the Professor of the Institute of International Studies of Fudan University and Chi Fulin, the Dean of the China Institute of Reform and Development also took part in the discussion.
The second session “Navigating Multilateral Cooperation in the Global South: Practices of China and Russia” was devoted to the possibilities of using institutions or other forms of multilateral cooperation to bring structure to the international system as a whole as well as its regional subsystems. The experts focused on searching for a formula to integrate the global majority countries into the global governance system as well as on the role of BRICS and SCO in this process. The role of traditional international institutions, such as the EU and NATO, also became a topic of discussion.

Feng Shaolei, Director of the Center for Russian Studies at East China Normal University, Alexey Gromyko, Director of the Institute of Europe of the Russian Academy of Sciences, a Corresponding Member of the Russian Academy of Sciences and RIAC Member, Wang Hui, Director of the Institute for Advanced Studies in Humanities and Social Sciences at Tsinghua University, Daria Ivankova, Director of the International Cooperation Division of the TV BRICS International Media Network, and Tang Xiaoyang, Head of the Department of International Relations at Tsinghua University shared their views on this matter. Ding Yifan, Senior Researcher and former Deputy Director of the Research Institute of World Development of the Development Research Center of the State Council of the People's Republic of China, Igor Istomin, Head of the Department of Applied Analysis of International Problems at MGIMO University, and Sun Lijie, Former Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to the Slovak Republic and the Republic of Uzbekistan also participated in the discussion.

The conclusions reached during the discussion, primarily concerning Eurasian region, are planned to be developed in the future in order to build a sustainable security architecture in this area. Summarizing his speech, Alexey Gromyko, Director of the Institute of Europe of the RAS and RIAC Member noted, “The 'tyranny' of geography inevitably pushes [Eurasian countries] to normalize and harmonize relations in the region”.

During the closing session of the first day, “Sino-Russian Dialogue in the Arctic” participants presented Russian and Chinese views on the prospects for cooperation in the region, shared their opinions on the joint Russia–China energy projects in the Arctic and discussed ensuring safe and sustainable shipping in the area.

Wu Shicun, Founding President and Chairman of the Academic Committee of the National Institute of South China Sea Studies, Anatoly Nikolaev, Rector of Northeastern Federal University and RIAC Member, Zhao Long, Deputy Director of the Institute of Global Governance Studies of the Shanghai Institute for International Studies, Ivan Platonov, Deputy Director General for Business Analytics at Rosatom East Asia, Hong Nong, Executive Director of the Institute for China-America Studies, Igbal Guliyev, Deputy Director of the International Institute of Energy Policy and Diplomacy at MGIMO University, Zhao Huasheng, Professor of the Institute of International Studies of Fudan University, and Irina Strelnikova, Associate Professor at the Faculty of World Economy and International Affairs at HSE University participated in the discussion.

The sides set a plan to prepare a joint Russian–Chinese report on Arctic cooperation which would take into account the conclusions of the discussion.

The second day of the Conference was also held behind closed doors. Before the official part began, Russian and Chinese participants freely discussed the results of the U.S.–Ukrainian negotiations and their significance for the future settlement of the conflict in Europe. Both sides are concerned about the uncompromising position of the European Union, which is determined to continue the conflict.
The main session “Banking and Investment in Chinese–Russian Dialogue” once again drew the attention of experts to the need to complement the trade in goods as a way of increasing Russian–Chinese trade volume with investment and industrial cooperation, as well as joint R&D projects. Cao Honghui, Vice President of the National Development Bank Research Institute, Ivan Timofeev, RIAC Director General, Li Bo, General Manager of Guancha.cn, Executive Director of Shanghai Chunqiu Institute for Developmental Strategy, Alexey Maslov, Director of the Institute of Asian and African Studies at Lomonosov Moscow State University and RIAC Member, Xu Poling, the Director of the Center of Russian Economics Studies at the Institute of Russia, Eastern Europe and Central Asia at the Chinese Academy of Social Sciences, Daniyar Akkaziev, Member of the Board of Directors of the TV BRICS Media Network, and Sofia Riazanova, Deputy Director of the Sino–Russian Research Center for Digital Economy at Lomonosov Moscow State University shared their ideas during the session. The presentations provoked a long and lively discussion, in which almost all the experts involved in the Conference took part.

The sessions were moderated by Han Hua, co-founder and Secretary General of the Beijing Club for International Dialogue, Ivan Timofeev, RIAC Director General, Julia Melnikova, Head of Asia and Eurasia Program at RIAC, and Jiang Feng, Chairman of the Board of the Shanghai Academy of Global Governance and Area Studies of Shanghai Foreign Studies University, respectively.
The conclusions and recommendations of the Conference will be presented to the policymakers in both countries.