In a move aimed at addressing decades of economic turmoil, Zimbabwe recently launched its new gold-backed currency, Zimbabwe Gold, ZiG, with hopes of bringing stability to its volatile financial landscape. However, experts warn that the road ahead for ZiG is fraught with challenges, with doubts lingering over its ability to enact meaningful change without systemic and governmental shifts to match.



Renowned South African economic analyst Daniel Silke cautions against placing too much faith in the currency&#8217;s ability to single-handedly solve Zimbabwe&#8217;s economic woes. Silke suggests that while a new currency may offer a temporary reprieve, lasting stability requires comprehensive economic and political reforms. He emphasizes to FORBES AFRICA, &#8220;A new currency is like putting a plaster over a wound, rather than treating its cause.&#8221; Silke&#8217;s analogy underscores the deeper structural issues facing Zimbabwe&#8217;s economy, highlighting the need for systemic change beyond mere currency reform.



Marisa Lourenço, an independent political and risk analyst, echoes Silke&#8217;s sentiments, expressing skepticism about ZiG&#8217;s potential impact on inflationary pressures. Lourenço points out that Zimbabwe&#8217;s history of currency failures highlights the need for more than just a change in currency. She emphasizes the importance of building reserves, committing to long-term monetary policies, and tackling corruption to address root causes of economic instability. &#8220;Printing money actually drives up inflation, which we have seen happen before in Zimbabwe,” she asserts in an interview with FORBES AFRICA, underscoring the complex interplay between monetary policy and inflation dynamics, suggesting that ZiG may not provide the desired solution to Zimbabwe&#8217;s economic challenges.



The introduction of ZiG comes amidst a backdrop of skepticism surrounding the Zimbabwean government&#8217;s ability to manage monetary policy effectively. Lourenço suggests that a stable monetary policy is crucial for maintaining ZiG&#8217;s credibility in the long term. She advocates for a liberalized currency regime, allowing the market to determine the currency&#8217;s value without undue interference from the central bank. &#8220;A stable monetary policy that enables a liberalized currency regime is essential,&#8221; Lourenço states, emphasizing the importance of market-driven mechanisms.



One of the key challenges facing ZiG is its coexistence alongside other currencies, particularly the United States (U.S.) dollar, which remains widely used in transactions. Silke highlights the dominance of the U.S. dollar and the difficulty of displacing it, especially in a country like Zimbabwe with an entrenched parallel market. Lourenço adds that Zimbabwe&#8217;s currency instability makes it challenging: &#8220;Given Zimbabwe’s track record in being unable to sustain its own currency on at least two occasions, the uptake of the ZiG is going to be difficult to enforce.&#8221;



Concerns have also been raised about the adequacy of gold reserves to back the new currency. Lourenço suggests that Zimbabwe&#8217;s government needs external assistance to address its massive debt arrears. However, she notes that political and economic reforms, including respecting democratic freedoms and implementing stable monetary policies, are essential for restoring confidence in ZiG&#8217;s stability. &#8220;Zimbabwe desperately needs external assistance to help clear its massive debt arrears,&#8221; Lourenço asserts, highlighting the urgency of international support. However, she cautions that without fundamental reforms, Zimbabwe may struggle to overcome its economic challenges and restore confidence in ZiG.



Despite these challenges, Silke remains cautiously optimistic about Zimbabwe&#8217;s future. He suggests that while the road ahead may be difficult, there is potential for positive change if the government commits to meaningful reforms. &#8220;Zimbabwe has the opportunity to turn things around,&#8221; Silke states, &#8220;but it will require bold leadership and decisive action.&#8221; Lourenço echoes this sentiment, emphasizing the need for political will and international cooperation to support Zimbabwe&#8217;s recovery efforts.

Zimbabwe Replaces Battered Dollar With New Unit Called ZiG

Can Zimbabwe’s New Gold-Backed Currency Solve Its Economic Woes? Experts Weigh In

Change Starts Now (CSN), the political initiative led by former FirstRand Group chair Roger Jardine, has decided not to contest the 2024 national and provincial elections. This announcement came just days after the party unveiled an ambitious manifesto in Kliptown, Soweto, proposing sweeping reforms to uplift South African society.



In a significant move, the party has cited the primary reasons for its withdrawal. &#8220;The recent Constitutional Court ruling and the barriers it imposes on newly-established political parties means CSN, like several other parties, faces a prejudicial, logistical timetable to qualify for the ballot,&#8221;



Jardine stated.



The Constitutional Court decided last week not to hear a challenge to the Electoral Amendment Act’s requirement for the number of signatures new parties require for the elections, suggesting that CSN might not have met the minimum requirement.



Despite the withdrawal, Jardine has stated that CSN&#8217;s vision remains undeterred, emphasizing that the party will move forward in an attempt to influence the political climate by supporting other registered parties that reflect their own values, &#8220;in the interests of increasing the chances of political change&#8221;.



The withdrawal comes in the wake of the apex court&#8217;s refusal to expedite the review of signature requirements for political parties not represented in the legislature. The court&#8217;s decision not to lower the threshold for new parties, while independent candidates need only 1,000 signatures to register, has been met with criticism from various political entities. The Electoral Commission of South Africa (IEC) has maintained its stance, urging parties to adhere to the nomination submission deadline of March 8.



Jardine, who launched CSN in December 2023 amid what was described as a national crisis, has reiterated the party&#8217;s commitment to continue advocating for the principles outlined in their Change Charter. &#8220;Our research tells us that only 41% of voters want to vote for the African National Congress (ANC),&#8221; Jardine said, signaling a potent demand for new political alternatives. Despite not participating in the upcoming elections, CSN plans to remain an active voice in shaping South Africa&#8217;s political discourse.



The party&#8217;s leadership, including prominent figures like Mark Heywood and Nicole Fritz, has indicated that CSN will persist in its efforts to unite South Africans behind a shared vision. &#8220;A lot of political work is needed to unite South Africans behind a shared vision for the future of our country,&#8221; Jardine stated, pointing out the necessity for cohesive action beyond electoral competition.



Change Starts Now&#8217;s exit from the election race is a poignant reminder of the dynamic and often arduous nature of South African politics for new entrants. Despite the rise of many new independent parties to challenge the dominance of larger participants such as the ANC, Economic Freedom Fighters (EFF), and Democratic Alliance (DA), as the country approaches the most highly-contested election since 1994, the political landscape continues to evolve. The increasing influence of independent influence and coalitions presents a challenge to the traditional framework.



Ends

Change Starts Now Launches Election Manifesto At Walter Sisulu Square

Change Starts Later – New Party Withdraws From 2024 South African Elections

Amid economic challenges, the country&#8217;s latest budget speech draws critical analysis from economist Dawie Roodt, shedding light on the fiscal strategies&#8217; impact on economic growth and the path ahead for the nation.



In an era marked by economic turbulence, South Africa&#8217;s fiscal policy comes under scrutiny following the recent budget speech, aimed at addressing the nation&#8217;s pressing economic challenges. The speech was presented by Finance Minister Enoch Godongwana last week. Dawie Roodt, a renowned economist and Director of the Efficient Group, offers a candid assessment of the outlined fiscal measures and their potential trajectory for South Africa&#8217;s economy.



According to Minister Godongwana, the 2024 budget implements strategic expenditure cuts, aimed at achieving fiscal stability and economic resilience. Specifically, it targets a reduction in non-interest expenditure by ZAR80.6 billion ($4.19 billion) over the medium term, as part of a comprehensive fiscal consolidation strategy.



This measure is complemented by revenue adjustments, which have been revised upwards by ZAR45.6 billion ($2.3 billion) over the same period, compared to the 2023 Medium Term Budget Policy Statement projections.



Additionally, the budget proposes a reform of the Gold and Foreign Exchange Contingency Reserve Account. These adjustments are integral to the government&#8217;s efforts to manage the budget deficit and national debt, reflecting a focused approach to fiscal management in response to current economic challenges.



Despite these state efforts to manage the deficit, Roodt critiques the sustainability of the fiscal account, warning of a looming financial crisis if the current borrowing trend continues in the face of a weak economy.



“The fiscal actions are part of the reason why the economy is not growing,” he says to FORBES AFRICA.



“The fiscal account has become unsustainable, and we are heading for a financial crisis,” Roodt adds, emphasizing the urgent need for a shift in fiscal strategy.



Highlighting state inefficiencies, Roodt points out that despite significant spending, outcomes, especially in education, are dismal.



“We spend a lot of money on education&#8230;but the outcome of education is horrible. The primary focus must be on the improvement of the efficiency of the state,” he says.



On healthcare, Roodt is skeptical about the implementation of significant spending towards health, including the National Health Insurance (NHI), citing financial constraints and efficiency issues.



“It&#8217;s simply going to cost too much money. We ran out of money already; and the government simply is not efficient enough to implement this.”



To combat the FATF greylisting, the government has allocated ZAR628 million ($32.7 million) towards implementing the FATF and State Capture Commission recommendations, totaling ZAR2.3 billion ($119 million) dedicated to these efforts. This budget allocation is part of a broader strategy to address the greylisting by enhancing legal and regulatory frameworks to meet international standards on anti-money laundering (AML) and combating the financing of terrorism (CFT).



Roodt, however, remains skeptical, describing the difficulties presented by the FATF greylisting, especially in the financial services industry, and the broader negative effects on South Africa&#8217;s international business relations.



Addressing social grants and public employment as mechanisms to mitigate poverty and unemployment, Roodt argues these measures are unsustainable without economic growth.



“This is totally unsustainable. You need economic growth. You&#8217;re not going to create jobs or mitigate poverty by spending more money on people,” he advises, calling for policies that truly stimulate economic growth.



The 2024 budget speech, amidst South Africa&#8217;s economic challenges, reflects a critical juncture in the country&#8217;s fiscal management. The government faces the dual task of stimulating economic growth while managing its debt and deficit.



Roodt&#8217;s analysis underscores the importance of efficiency and targeted spending, particularly in education and healthcare, to navigate the path toward sustainable development.



As South Africa addresses international concerns such as the FATF greylisting, the emphasis on reform and compliance highlights the broader effort to secure economic stability. The road ahead requires a balanced approach, integrating fiscal responsibility with strategic investments to foster a resilient and inclusive economy.

South African Minister Godongwana Delivers 2024 Budget Speech In Cape Town

South Africa’s Budget Speech: A Fiscal Reality Check

South Africa joins other African nations like Cape Verde, Seychelles, Mauritius, and Namibia in attracting &#8216;digital nomads’.



South Africa is positioning itself as a beacon for global professionals through its latest visa regulation amendments, including the introduction of the &#8216;digital nomad&#8217; visa. Announcing these changes via his newsletter on Monday, President Cyril Ramaphosa underscored the urgency of attracting skilled individuals to propel the country&#8217;s competitiveness and economic growth. &#8220;To succeed in an ever-changing global economy, our country needs far more people with the right skills,&#8221; Ramaphosa articulated, emphasizing the initiative&#8217;s role in fostering employment and innovation.



The South African Department of Home Affairs has gazetted proposed amendments, including the digital nomad visa, inviting public feedback until March 29. This step towards modernizing immigration laws underscores the initiative&#8217;s potential but also its pending finalization. Additionally, South Africa joins other African nations like Cape Verde, Seychelles, Mauritius, and Namibia in attracting digital nomads, reflecting a continent-wide embrace of remote work trends. These countries offer unique opportunities for digital nomads, highlighting Africa&#8217;s growing appeal in the global digital economy.



&#8220;The story really is how the world of work has changed, and the world of work means that you can work anywhere at any point in time because of the internet, and disruption that has taken place because of technological innovation,&#8221; explains Judi Nwokedi, a tourism expert and Founding President of the Black Business Women&#8217;s Alliance to FORBES AFRICA. &#8220;So you have a new cohort of workers with possibly high levels of disposable income&#8230; to capture a fast, emerging sector that is in demand… You want to attract people like that, and their spending.”



The Department of Home Affairs aims to simplify the visa regime, recently introducing a points-based system for the critical skills visa and offering the &#8216;digital nomad&#8217; visa to remote workers employed by foreign companies. This approach not only acknowledges the shifting paradigms of work but also promises to make South Africa a lucrative destination for high-skilled professionals. According to the government gazette published on February 8 this year, these amendments are designed to attract talents that can contribute significantly to the South African economy by introducing a more flexible and welcoming visa policy for digital nomads and professionals with critical skills.



Nwokedi further emphasizes the need for ease of access, &#8220;Flight connectivity, and a visa regime that is seamless. Apply online, pay online and move into the digital economy&#8230; We are competing with many attractive destinations, and one of the hurdles is getting a visa.&#8221;



South Africa has already been a destination for remote workers, with the Covid-19 pandemic having accelerated remote work, allowing workers from economically strong countries to migrate and work – especially in Cape Town, voted as the most popular remote work destination according to a survey by Remote.io.



However, challenges in the form of visa processing delays and administrative complexities could potentially deter the talent South Africa seeks to attract. In December 2023, the Department of Home Affairs issued a waiver to visa applicants and visa holders requesting extensions due to the current backlog the Department is experiencing.



Despite these obstacles, the allure of South Africa as a destination for digital nomads remains strong. The country&#8217;s diverse culture, breathtaking landscapes, and vibrant tech scene present a compelling case for remote workers and critical skills professionals looking for a dynamic work-life balance.



Nwokedi also highlighted the economic dynamics affected by the influx of digital nomads, &#8220;I guess when you are in a free market, the free market forces reign&#8230; so you have to have dynamic pricing which protects the locals, but you also have to want locals who want to make money.&#8221;



The economic impact of this initiative could be transformative, with potential boosts to tourism, real estate, and local businesses.



Rental prices in desirable remote work destinations such as Cape Town have increased drastically, with the latest State of Cape Town Central City Report indicating an annual increase of 28% for one-bedroom apartments, driven in part by the influx of foreign remote workers.



In his newsletter, Ramaphosa expressed optimism about the initiative&#8217;s impact on innovation and competitiveness. &#8220;International experience shows that employees with critical skills contribute to improved productivity, enhanced innovation,&#8221; he noted, signaling a strategic move to bolster the country&#8217;s global standing through a skilled workforce.



Nwokedi concludes, &#8220;South Africa can do with as many positive components to redefine the narrative of our country and our brand. If it is an intervention that does not require huge capital, why not take the path less traveled where you can shift the needle on the dial?&#8221;



The introduction of digital nomad visas by South Africa represents a forward-thinking approach to economic growth, recognizing the value of integrating global talent into the local economy.



Ends

Male traveler at the airport using his cell phone while waiting for his flight

South Africa: Embracing Digital Nomads For Economic Growth

South Africa is on the brink of a historic electoral shift as it prepares for the general elections set for May 29. President Cyril Ramaphosa&#8217;s announcement of the election date, coinciding with the country&#8217;s 30th anniversary of democracy, marks a critical juncture for the African National Congress (ANC) and the nation&#8217;s evolving political landscape.



The ANC, having dominated South African politics since the end of apartheid in 1994, faces a significant test as polls suggest a decline in its popularity among voters. Marisa Lourenço, a seasoned political and risk analyst, points out to FORBES AFRICA, &#8220;Even if the ANC drops below 50% of the total vote share, it will almost certainly remain the largest party in parliament.&#8221; This potential shift towards coalition governments at the national level raises questions about service delivery and governance stability.



Lourenço warns of the challenges posed by coalition politics, citing the local level&#8217;s chaos as a possible precursor to what could unfold nationally. &#8220;But I don’t expect things to be quite so bad at the national level,&#8221; she adds, suggesting that the ideological similarities between the ANC and the Democratic Alliance (DA) might offer a silver lining for governance stability.



The recent compulsory release of documents related to the ANC&#8217;s cadre deployment policy has stirred controversy, revealing the party&#8217;s strategy for placing political appointees across government levels. Lourenço argues that the focus should be on the message, not the messenger, as it exposes the depths of kleptocracy within South Africa&#8217;s judiciary. &#8220;Proof of the attempt to capture the judiciary is the single largest event post-1994 that indicates that not all is well in democratic South Africa,&#8221; she asserts, questioning the readiness of South Africans to confront these revelations.



The timing of Ramaphosa&#8217;s election date announcement, deemed unusual by some due to its proximity to the budget speech, is strategic according to Lourenço. She believes it served to distract from the cadre deployment controversy and focus on the importance of voting, amidst the ANC&#8217;s attempts to leverage its liberation movement legacy to maintain support.



Furthermore, the emergence of new political parties, including the MK party endorsed by former President Jacob Zuma, introduces additional dynamics into the election. However, Lourenço views Zuma&#8217;s influence as limited, particularly on a national scale. &#8220;His message resonates in KwaZulu-Natal, but he doesn’t have a wider national pull,&#8221; she explains, downplaying the potential impact of Zuma&#8217;s political maneuvers on the broader election outcome.



As South Africa approaches these pivotal elections, the ANC&#8217;s dominance is challenged not only by internal factionalism and national issues such as power cuts and unemployment but also by the evolving political landscape marked by the emergence of new parties and coalition possibilities. The public&#8217;s response to these developments, informed by statements from political figures like Ramaphosa and analyses from experts like Lourenço, will shape the future of South Africa&#8217;s democracy and governance.



Reflecting on the 30th anniversary of democracy, this election is not just a procedural event but a moment of introspection for the nation. The ANC&#8217;s historical significance and its role in the anti-apartheid movement have afforded it a longstanding majority. However, the current political climate, characterized by public dissatisfaction with service delivery and economic challenges, suggests a potential reconfiguration of power dynamics.



Coalition governance, while a new concept at the national level, offers a glimpse into the possible future of South African politics. The experiences at the local government level, though mixed, highlight the complexities of shared governance. Analyst Lourenço emphasizes that while coalitions can introduce policy inertia, the ideological proximity of the ANC and DA may mitigate some governance risks. &#8220;The two largest parties in parliament – at the moment, and almost certainly after the upcoming elections – are the ANC and the DA, and ideologically they are very similar, which is a plus for overall stability in governance,&#8221; she explains.



Public statements from political leaders like Ramaphosa, urging democratic participation and peaceful campaigning, alongside analyses from experts, highlight the significance of these elections not just for governance but for the very fabric of South African democracy. &#8220;International experience shows that employees with critical skills contribute to improved productivity, enhanced innovation,&#8221; Ramaphosa noted in his newsletter, signaling the strategic importance of this electoral moment.



As South Africa stands at this crossroads, the 2024 elections offer a chance to reflect on the journey since the end of apartheid, evaluate the successes and shortcomings of the ANC&#8217;s governance, and decide on the path forward. The potential for coalition governments, the impact of new political parties, and the electorate&#8217;s response to current challenges will not only determine the immediate future of the country but also set the tone for South Africa&#8217;s democratic and governance landscape for years to come.

South African President Ramaphosa Briefs The Media On Voters Registration Weekend

South Africa’s Pivotal Polls: The Country Will Vote On May 29  

South African President Cyril Ramaphosa on Thursday night delivered his sixth annual State of the Nation Address (SONA) in Cape Town’s City Hall, taking a nostalgic approach to the event as part of commemorating 30 years of democracy, as well as addressing what is likely to be the most highly-contested general election the country has seen since democratic rule.



The occasion attracted intense scrutiny from opposition political parties, analysts, and commentators alike, as the country seeks to steer through severe socioeconomic and political challenges.



Ramaphosa&#8217;s address attempted to highlight the ruling African National Congress’ (ANC) critical role in South Africa&#8217;s progress post-apartheid. However, this endeavor revealed a profound disconnect between the government&#8217;s narrative and the lived realities of ordinary South Africans, according to some analysts, conflating the ruling ANC and the state. While the President highlighted key achievements such as the provision of housing and water to millions of people previously disenfranchized by the apartheid state, he acknowledged the challenges currently faced by the country, including “loadshedding, addressing the challenges in the logistics sector, tackling crime and corruption, and accelerating job creation” in his speech.



“Whenever Ramaphosa spoke about achievements, he conflated the party and the state – the &nbsp;highlighting figures that fought for democracy that were also part of the ANC, like Mandela and Tambo. But when he spoke about failures and challenges, he referred to the state,” says independent policy and risk analyst Marisa Lourenço to FORBES AFRICA. “This is typical of liberation movements-turned-ruling parties, which, at least in postcolonial Africa, draw their legitimacy from the past rather than the present, especially when their rule has overseen the decay of essential services, an energy crisis, and state capture.”



Critics of Ramaphosa’s address include both major opposition parties, with the Democratic Alliance (DA) condemning the address as “populist posturing and policy proposals, including the doubling down on state-centric policy and legislation and the arrogance of a president who is completely out of touch with ordinary South Africans,” according to a statement by the party’s leader John Steenhuisen.



Another leading opposition party, the Economic Freedom Fighters (EFF), saw all of its members boycott SONA after a court application to dismiss its leader Julius Malema’s suspension from Parliament was dismissed earlier that day, following his conviction of contempt of Parliament for storming the stage during Ramaphosa’s 2023 SONA delivery.



Lourenço continued her analysis of Ramaphosa’s conflation of the state and the ANC, stating, “Not only does it place the ANC at the center of all accomplishments, including the transition to democracy, but it also implies that without the ANC, South Africa would be a worse place to live – and actually, that the democratic freedoms enjoyed since 1994 could be stripped away. It transmits the idea that we have only just emerged from the other side – the apartheid era – and that our democracy is still quite tenuous. In this way, then, the only way to preserve democracy is to ensure that the party which fought for it remains in power for another five years.”



The ANC is facing the most realistic challenge to its rule since South Africa became a democracy in 1994, with recent polls indicating that the party may retain less than 40% of the public vote in the elections set to take place sometime this year. Gustavo de Carvalho, a Senior Researcher at the South African Institute of International Affairs, says that one key takeaway from SONA is that it sets the tone of the ANC’s approach to the upcoming elections. “It showcases a comparison between today and 1994,” he tells FORBES AFRICA. “It&#8217;s clear that it is not only about commemorating the 30th anniversary of democracy but also about controlling the narrative that the ANC in this current administration has not improved as much as expected in terms of the economy and many of the social indicators.”



De Carvalho also notes that the fact that a date for the election has not yet been announced might indicate that the ANC is doing its best to make as much of the electioneering time available. “And I think for the ANC at this stage, the stalling of the dates for the elections provides them some time in terms of trying to shift certain narratives to regain some of the voters that have been under a lot of pressure and attention from other political parties.”



The run-up to the 2024 general election has seen the birth of multiple new political parties to add to the established opposition groups, with an ANC breakaway party being formed under former South African President Jacob Zuma in the form of the uMkhonto we Sizwe (MK) party, and Rise Mzansi as notable events, spawned out of severe dissatisfaction with the current political space and the ANC’s inability to resolve challenges such as wealth inequality, crime, and the electricity crisis.



While President Ramaphosa put forward many possible solutions to these challenges during his speech and cited historical achievements by the ANC as reasons to believe in a future under their governance, de Carvalho’s analysis is quite blunt. “On how effective the measures proposed by President Ramaphosa might be… do we believe in what he has to say?”



Lourenço concurs, reinforcing her earlier point about the language of the address ‘drawing legitimacy from the past rather than the present’, stating, “Ramaphosa spoke about better equipping law enforcement and also the importance of economic empowerment for women but didn’t mention the role that education plays in all of this. Improved access to education is not only absolutely vital in starting to close the gap between the rich and the poor in South Africa, going some way towards preventing at least some types of financially motivated crimes, but is also an area in which the government has absolutely failed in the post-apartheid era.”



President Ramaphosa’s SONA address comes at a time when South Africans are dealing with a multifaceted set of challenges, and while the ruling ANC has managed to deliver increased services and equality to many, they have reportedly failed to meet many of the promises made in democratic South Africa, with unemployment, infrastructural challenges, and crime becoming a scourge on society. The rise of new political movements, as well as President Ramaphosa&#8217;s nostalgic callback to the ANC&#8217;s achievements and deflection of criticisms, has led analysts to be critical of the address. However, one thing is certain: the election year ahead is likely to be hotly-contested and fraught with high stakes, signifying a critical juncture for South Africa&#8217;s democracy.

South African President Ramaphosa Delivers 2024 State Of The Nation Address.

Analyzing Ramaphosa’s State Of The Nation Address Amidst South Africa’s Socioeconomic Challenges

In a landmark move, Tanzania marked its first participation at the Mining Indaba, being held from February 5-8 in Cape Town, South Africa. This year&#8217;s event, the 30th edition of the conference, with the theme Embracing the power of positive disruption: A bold new future for African mining, focuses on the need for adaptation in the African mining sector in light of technological advancements and environmental concerns​​.



The Tanzanian delegation, comprising both government and private sector representatives, arrived with a clear message, encapsulated in their chosen theme: Advancing mining investment to accelerate prosperity. This move aligns with the Tanzanian government&#8217;s Vision 2030, aiming to intensify geoscientific surveys to tap into the nation&#8217;s rich mineral resources​.



​​​Anthony Mavunde, Tanzania&#8217;s Minister of Minerals, emphasized the vision at the indaba, presenting the government&#8217;s strategy to not only boost investment and economic growth but also focus on sustainable and responsible mining practices. &#8220;Our vision isn’t simply to dig up minerals, it’s to ignite the engines of prosperity,&#8221; Mavunde declared, underscoring a shift from traditional mining practices to a more sustainable and economically beneficial approach.



Tanzania&#8217;s participation in the conference is seen as a crucial step towards redefining the African narrative of mining, which has often been plagued by issues of environmental degradation and exploitation.



Key issues discussed at the conference included the role of Africa in supplying critical minerals for global electronic and automotive industries and innovative approaches to spur mining sector investment and employment. These discussions are particularly relevant for Tanzania, given its abundant reserves of critical minerals like nickel, rare earths, and graphite​​.



However, the path to mining prosperity is not without its challenges. The conference provided a platform for Tanzania to address hurdles impeding investment, such as taxation concerns and the need for equitable sharing of project returns. The government&#8217;s commitment to facilitating a conducive investment environment was evident, as noted by Kheri Mahimbali, Permanent Secretary at the Ministry of Minerals, who confirmed Tanzania&#8217;s dedication to responsible mining practices​​.



Tanzania&#8217;s debut symbolizes more than just participation; it represents the country&#8217;s commitment to playing a key role in the future of African mining.

Key Speakers at The Investing in African Mining Indaba

Tanzania’s Strategic Debut At Mining Indaba: Forging A New Path In African Mining

The bloc&#8217;s recent expansion to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) could represent a complex and multifaceted shift in global power structures, transcending simplistic views of it as merely a challenge to Western dominance. In a significant development that could reshape global alliances, South Africa&#8217;s Minister of International Relations and Cooperation, Naledi Pandor announced the expansion of the BRICS bloc with the addition of Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. This move follows the nations&#8217; acceptance of invitations, extended at last year&#8217;s Johannesburg summit.



&#8220;With respect to the BRICS confirmations, five out of the six have confirmed,&#8221; Pandor stated in a news conference in Pretoria, located in the country’s Gauteng province. This expansion, however, will not include Argentina, who declined membership.



Gustavo de Carvalho, a Senior Researcher at the South African Institute of International Affairs, emphasizes that while this development is significant, it’s not merely a challenge to Western policy but, more, a nuanced expression of an evolving multipolar world order.



“One of the mistakes that we can make when we are assessing BRICS is looking into it through the lens of a kind of anti-Western alliance,” de Carvalho says to FORBES AFRICA.



“These new countries are joining BRICS as part of the process of diversifying foreign policy, of engaging with partners that are really quite important to them,” he adds, citing the strong economic and commercial ties that many of the new members already have with existing members like Russia and China.



De Carvalho also notes that BRICS has not primarily operated as a geopolitical bloc in certain matters.



The new members may signify a diversification in the bloc&#8217;s approach to global economic and political issues, reflecting a shift from a confrontational stance to a more collaborative and multi-aligned strategy.



One area of potential future significance is the economic implications, de Carvalho points out. The inclusion of these countries could mean more than just strategic alliances; it could herald increased economic integration and access to the US dollar by countries like China and Russia. The expanded BRICS could create a more robust platform for economic cooperation, potentially influencing the dominance of the US dollar in global trade.



A noteworthy point at Wednesday&#8217;s press conference was Argentina&#8217;s decision.



&#8220;Argentina has written to indicate that they will not act on this successful application by the previous administration to become full members of BRICS,&#8221; said Pandor.



The South American nation’s decline of admission was accepted, having previously indicated its stance following the ascension of, now President, Javier Milei in December, who campaigned, heavily, on free-market policies and closer ties with the West.



“One of the things that was interesting when Argentina declined is that their arguments, the official arguments at least, was that they were declining. For now, it [is] a new administration. They still needed to engage in such a discussion,” notes de Carvalho.



The expansion of BRICS should be viewed in the context of a changing global landscape where power is increasingly distributed. The inclusion of Middle Eastern and African nations signifies a move towards a more inclusive and representative global order.



De Carvalho also highlights the role of BRICS in global governance, suggesting the expansion is not just a counter to Western influence but a move to include diverse perspectives from the Global South in global dialogue.



It represents a shift, one that transcends simplistic narratives of power blocks. With the inclusion of these countries, BRICS is poised to potentially redefine its role on the world stage.

Opening Day of The 15th BRICS Summit

Shifting Global Alliances: The Strategic Expansion of BRICS

With the country’s electric vehicle market in the spotlight, an industry expert speaks to FORBES AFRICA about the complex tariff and trade dynamics shaping its import duties.



What drives the tariffs of imported vehicles into South Africa? Currently, the country levies a 25% import tax on EVs, compared to 18% for internal combustion engine vehicles (ICEVs).



In a recent exchange on X (formerly Twitter), South Africa-born, Elon Musk, CEO of Tesla, addressed the barriers hindering Tesla&#8217;s entry into the South African market. Responding to a question about Tesla&#8217;s absence, Musk cited &#8220;super high&#8221; import duties on electric vehicles (EVs) as a primary obstacle, bringing to light the complexities of South Africa&#8217;s approach to EVs and its impact on global manufacturers.



Dr Norman Lamprecht of the Automotive Industry Export Council (AIEC) and the Automotive Business Council (NAAMSA) explains how South Africa’s trade agreements and import taxes function.



“It’s not about any differentiation between internal combustion vehicles and electric vehicles, but about our free trade agreements,” Lamprecht says to FORBES AFRICA.



How South Africa’s vehicle trade works



South Africa has a compelling automotive production industry. The country manufactures cars for multiple car makers, for both local use and export markets, Lamprecht explains.



“Import duties on a normal passenger vehicle, bakkies or light commercial vehicles are standardized at 25%,” says Lamprecht. “Because of a Free Trade Agreement we have with the European Union, we offer a 7% reduction on importing vehicles from that region, and in return, we export around 400,000 vehicles a year – the vast majority of which go to the EU.”



Lamprecht notes that the import tax for normal commercial vehicles into the US, excluding SUVs, is also 25%, a clear parity.



Protecting the South African automotive sector



He also agrees that the South African automotive sector requires protection, echoing Minister of Trade, Industry, and Competition, Ebrahim Patel’s recent comments, which was not the suggestion of a cautious approach to EV adoption, but rather a need to develop local capacity to secure the future of South Africa’s automotive export market. This, by building local capacity for EV and component production as much of Europe prepares to phase out ICEVs.



&#8220;With the transition to electric vehicles, we don’t want to lose the 75% of our exports to Europe around 2030-2035,” says Lamprecht. “Therefore, we need to start building these vehicles in South Africa.”



However, the creation of this new capacity needs to be balanced with the need for ICEVs, locally, and before the phase-out and move to EVs becomes permanent in South Africa’s export markets.



The automotive tax burden on the South African consumer



One aspect which Lamprecht takes great pains to note is the automotive taxes on the South African consumer. Not only are import taxes levied, but a plethora of other costs are involved in vehicle purchases.



“The tax burden on consumers purchasing vehicles is huge,” says Lamprecht, noting that South Africans pay taxes on carbon dioxide, VAT, and an ad valorem tax – essentially a levy on luxuries, which can be up to 30% on vehicles over $50,000.



However, policy is shifting fast, with both national government as well as policy-guiding bodies, such as the AIEC and NAAMSA, working together to guide a manufacturing future that is sustainable and beneficial for all parties involved, over the next 20 years.

Midsection of woman plugging cable in electric car

Interpreting South Africa’s EV Import Duties

The South African comedian’s Emmy for Outstanding Talk Series garnered praise from President Cyril Ramaphosa. 



Renowned South African comedian Trevor Noah has etched his name in history with a prestigious Emmy Award for Outstanding Talk Series for The Daily Show with Trevor Noah this week. This significant win at the 75th Annual Emmy Awards highlights Noah&#8217;s influential presence in the global entertainment sphere and underscores the impact of South African talent on the international stage.



In a category brimming with talent, Noah&#8217;s victory over eminent late-night hosts like Jimmy Kimmel, Seth Meyers, and Stephen Colbert underlines his distinct voice in the variety talk series landscape. This Emmy is his first in the Outstanding Talk Series category, adding to his 2017 win for Outstanding Short Form Variety Series and illustrating his consistent prowess in the industry.



President Cyril Ramaphosa extended warm congratulations to Noah in a statement on X, formerly Twitter, recognizing his role as a global ambassador of South African talent. &#8220;Winning outstanding talk series in a very competitive scene is no laughing matter,&#8221; Ramaphosa stated, celebrating Noah&#8217;s contribution to showcasing South African excellence on the global front.



In his acceptance speech, Noah remarked, &#8220;I told you! I told you we would beat John Oliver if he wasn&#8217;t in our category. We did it!&#8221; He also expressed deep gratitude toward his team and offered special thanks to Jon Stewart, acknowledging Stewart&#8217;s role in his journey. &#8220;Thank you for calling me up and asking me to come join you on this crazy journey,&#8221; Noah said.



Reflecting on his most memorable episode, Noah mentioned “Trump and the African Dictator,&#8221; highlighting its significance in bringing African perspectives to American television. This episode, according to Noah, exemplified the groundbreaking nature of his work on the show.



Noah&#8217;s accolades extend beyond the Emmys. He was also nominated for a Golden Globe for Best Stand-Up Comedian in Television and is nominated for a Grammy for Best Comedy Album. Additionally, he is set to host the Grammy Awards for the fourth consecutive year, showcasing his versatility and appeal as a host and entertainer.



Despite his departure from The Daily Show in September 2022, Noah&#8217;s impact continues. The search for his permanent replacement on the show is ongoing.

75th Primetime Emmy Awards – Press Room

Emmy Wins And More Global Nominations For Trevor Noah A Celebration Of South African Talent

Topline: On Friday, January 12, Israel presented its legal defense at the International Court of Justice (ICJ) at The Hague, Netherlands, responding to a legal claim of genocide leveled at the country by South Africa as a result of its ongoing conflict in Gaza. South Africa brought the charge of genocide to the United Nations’ highest court in late December of 2023, as a result of Israel’s military response to the October 7 Hamas attacks last year. The ongoing conflict in Gaza has so far reportedly left over 23,000 Palestinians dead.



Israel’s Strategy Explained



Israel&#8217;s legal team adopted a methodical approach at the ICJ, focusing on legal technicalities and procedural aspects. Rather than engaging deeply with the substantive aspects of South Africa’s allegations, Israel’s representatives highlighted the potential inadequacies of South Africa’s case; highlighting Israel’s right to self-defense in light of the October 7 attacks, emphasizing that the Israeli military has taken extraordinary measures to avoid civilian casualties, and that Israel has attempted to ensure humanitarian aid to civilians in Gaza.



Also key to the arguments Israel’s representatives made is to challenge the jurisdiction of the ICJ, noting that South Africa’s communications before lodging the case with the ICJ did not constitute a formal diplomatic dispute, before escalating the matter to the UN’s highest court.



Key Facts of Israel’s Defense



<ul>
<li>Israel’s Jurisdiction Challenge: Israel questioned whether the ICJ has the right to hear the case, arguing that there’s no actual legal dispute with South Africa, referencing their communications over the Christmas period.</li>



<li>Self-Defense Claim: Israel defended its actions as necessary self-defense against Hamas&#8217;s attacks on October 7, 2023, denying any acts of genocide against them.</li>



<li>Humanitarian Aid: Israel countered claims of restricting essential supplies, stating it ensured humanitarian aid reached Gaza.</li>



<li>Questioning ICJ’s Orders: Christopher Staker, from Israel&#8217;s legal team, questioned whether the ICJ can ask a country to stop defending itself.</li>



<li>Civilian Casualties: Israel blamed the civilian casualties in Gaza on Hamas’ use of civilian areas for military operations.</li>



<li>Critique of South Africa&#8217;s Approach: Malcolm Shaw criticized South Africa for not genuinely seeking to resolve the dispute before approaching the ICJ.</li>



<li>Debating Genocide Term: Israel’s legal team argued that the term &#8216;genocide&#8217; does not apply to the situation in Gaza.</li>
</ul>



Israel’s Representatives&#8217; Quotes



<ul>
<li>Shaw, a distinguished British legal scholar specializing in international law, told a packed Peace Palace at The Hague, &#8220;South Africa did not give Israel a reasonable opportunity to engage&#8230;before filing its no-doubt long-prepared application,&#8221; criticizing South Africa&#8217;s process.</li>



<li>Staker, a legal expert with extensive experience in international and public law, posed, &#8220;Can provisional measures require a state to refrain from exercising a plausible right to defend itself?&#8221; This reflects the complexity of international law in conflict scenarios.</li>
</ul>



Expanding the Context



Israel&#8217;s defense strategy in the ICJ case not only focuses on its right to self-defense but also brings into perspective its longstanding stance in the protracted Israeli-Palestinian conflict. The backdrop of this legal battle is a century-old saga marked by deep historical tensions and a series of conflicts that have shaped the Middle East.



Future of the Case



The ICJ&#8217;s decision on South Africa&#8217;s provisional measures request could significantly affect the Israeli-Palestinian conflict. Given the complex and detailed nature of ICJ proceedings, which involve extensive written submissions and oral arguments, a final ruling on the genocide allegations might take several years, potentially three to four years. The final decision will occur amidst evolving political and humanitarian contexts in Gaza and Israel, and could have a substantial impact on global diplomatic policies, particularly regarding human rights and international law.



Further Reading



<a href="https://www.forbesafrica.com/current-affairs/2024/01/11/south-africa-presents-its-case-at-the-icj-over-genocide-in-gaza/">South Africa presents its case at the ICJ over genocide in Gaza</a> (Forbes Africa)

Israel begins presenting defense at world court against genocide case

Israel Rejects South Africa’s Claims Of “Genocide” At The ICJ

Topline&nbsp;



Thursday, January 11, marked the start of an unprecedented legal confrontation at the International Court of Justice (ICJ) in The Hague in the Netherlands, as South Africa argued that Israel’s actions in Gaza amount to “genocide”. The country has also condemned all violations of international law by all parties, including the actions of Hamas. The case, which has drawn worldwide attention, emphasizes the complexities of the ongoing conflict and the diverse global reactions it has ignited.



Key Facts



<ul>
<li>South Africa presents its case first at the ICJ. The claim by its legal team, led by Tembeka Ngcukaitobi, is supported by an 84-page application citing Israeli military and political statements.</li>



<li>The South African application states, “No armed attack on a State’s territory, no matter how serious&#8230;can provide any possible justification for or defense to breaches of the 1948 Convention on the Prevention and Punishment of the Crime of Genocide.”</li>



<li>Israel&#8217;s President Isaac Herzog firmly rejects these accusations, asserting the country’s stance of self-defense and adherence to humanitarian law.</li>



<li>Ngcukaitobi stated, “The intent to destroy Gaza has been nurtured at the highest level of state,” emphasizing the severity of the situation. His colleague, Adila Hassim, reinforced this sentiment by highlighting the daily suffering of Palestinians: “Every day, there is mounting, irreparable loss of life, property, dignity, and humanity for the Palestinian people.”</li>



<li>The case has sparked significant public interest and polarized views, with demonstrations outside the ICJ and an international outcry from countries like Bolivia, Brazil, Colombia, Turkey and Iran supporting South Africa&#8217;s allegations.&nbsp;</li>



<li>Its outcome could have potential ramifications for South Africa&#8217;s diplomatic relations with the United States (US), an ally of Israel.</li>
</ul>



Contra



Israel has firmly rejected the accusations. Israeli President Isaac Herzog denounced the claims as &#8220;atrocious and preposterous&#8221;, asserting Israel&#8217;s stance of self-defense. &#8220;We will present proudly our case of using self-defense… under humanitarian law,&#8221; Herzog declared during a meeting with visiting US Secretary of State Anthony Blinken, emphasizing Israel&#8217;s commitment to avoiding civilian casualties.



Amidst the legal battle, the South African Jewish Board of Deputies (SAJBD) has criticized the South African government&#8217;s approach. In a statement issued by Prof Karen Milner, National Chair of the SAJBD, the organization accused South Africa of an &#8220;inversion of justice&#8221;. Milner pointed to South Africa&#8217;s alignment with Hamas and the inclusion of controversial figures in its delegation as evidence of a flawed and biased perspective. &#8220;This says volumes about South Africa’s intention,&#8221; Milner remarked, questioning the motives behind the legal action.



Key Background&nbsp;



This legal confrontation at the ICJ comes against a backdrop of escalating violence and political strife in Gaza. The 84-page application was lodged with the ICJ on December 29 2023. The ICJ&#8217;s role in this matter is limited to issuing opinions on allegations, which, while not enforceable, carry significant moral and political weight. The conflict has claimed over 23,000 lives according to Gaza’s health ministry.



The US, historically an ally of Israel, may find its diplomatic stance with South Africa challenged, depending on the outcome and reactions to the ICJ&#8217;s ruling. Zane Dangor, Director-General of South Africa&#8217;s Department of International Relations and Cooperation, commented on the potential impact of the case during a media conference last week. “We will be able to see how we regain this after the hearings are done but clearly, under the current circumstances, the relationship is not going to be normal and we will have to look at how do we engage after this, particularly working towards a permanent solution for the relationship,” adding, “We feel that our position is the principled one and that is something that they understand.”



Further Reading



<a href="https://www.forbesafrica.com/current-affairs/2024/01/01/south-africa-accuses-israel-of-genocide-in-un-filing/">South Africa Accuses Israel Of Genocide In UN Filing (F</a><a href="https://www.forbesafrica.com/current-affairs/2024/01/01/south-africa-accuses-israel-of-genocide-in-un-filing/" target="_blank" rel="noreferrer noopener">ORBES AFRICA)</a>

South Africa’s genocide case against Israel begins at International Court of Justice

South Africa Presents Its Case At The ICJ Over “Genocide” In Gaza

The United States&#8217; recent modifications to the African Growth and Opportunity Act (AGOA) signal a significant shift in its trade relations with Africa, intertwined with broader geopolitical implications and the emerging contest for influence on the continent. Experts weigh in.



The United States has acted on its commitment to adjust the African Growth and Opportunity Act (AGOA) due to governance and human rights concerns, resulting in the suspension of several countries and the reinstatement of Mauritania as a beneficiary after a 16-year absence. Uganda, the Central African Republic, Gabon, and Niger have all been expelled from AGOA, effective January 1, 2024, losing access to the preferential trade benefits offered by the Act.



“I am taking this step because I have determined that the Central African Republic, Gabon, Niger, and Uganda do not meet the eligibility requirements of section 104 of the AGOA,” stated US President Joe Biden in a letter to the Speaker of the House, marking a significant policy shift last year. Since its establishment in 2000, AGOA has been a critical element of US-Africa trade relations, enhancing market access for qualifying African countries and fostering substantial economic ties between the United States and sub-Saharan Africa. This trade program has not only facilitated African exports to the US but has also represented a deeper engagement between the two regions in both economic and political spheres.



Independent risk and political analyst Marisa Lourenço recognizes the multifaceted nature of these expulsions, reflecting the United States&#8217; application of soft power in Africa. “Politically, it is a way for the US to remain close to African governments, to sway key policy decisions, particularly around foreign policy objectives and investment opportunities for US firms,” says Lourenço to FORBES AFRICA. “This is done under the guise of promoting tenets of liberal Western democracy but really is about the balance of power on the continent between the US and other major powers, notably China.”



AGOA Changes: The Economic Implications 



The adjustments to AGOA’s membership carry significant economic implications for the affected countries, according to Dawie Roodt, economist and Executive Chairman of Efficient Impacts. Speaking with FORBES AFRICA, Roodt explains, &#8220;For countries like Uganda, the suspension from AGOA could mean a substantial blow to their economies, particularly in sectors that heavily relied on export to the US.&#8221; This move is seen as a notable rebuke by the United States.



However, Roodt contrasts this with the symbolic implications for other countries removed from the alliance, such as the Central African Republic and Gabon. “These countries do not have a significant export footprint in the US market, so the direct economic impact might be more symbolic than substantial.”



Mauritania’s return to AGOA could be economically significant, considering both its longstanding absence and its near monopolistic trade reliance on China, with almost half of the country’s exports being purchased by China. “Mauritania&#8217;s return to AGOA is likely to boost its exports to the US, particularly in sectors where it has competitive advantages,” says Roodt.



The economic implications are inextricably linked with political consequences and broader geopolitical shifts, as Africa becomes a renewed frontier. Economist Daniel Silke, Director of the Political Futures Consultancy, tells FORBES AFRICA, “We are witnessing a growing polarization in the global economic and political landscape, with countries increasingly having to navigate complex trade and diplomatic terrains.” Silke raises the question, supported by Roodt’s insights: “Can BRICS membership evolve to offer similar benefits to what AGOA offers, or will these countries find themselves caught between competing global powers?”



New Strategic Partnerships 



Lourenço, Silke, and Roodt agree that the AGOA realignment marks a new stage in a broader, longstanding competition between the United States and China over strategic infrastructure and resources—a new ‘Scramble for Africa.’ “We are witnessing a new era in Africa&#8217;s international relations, where US and Chinese spheres of influence are clearly demarcated,” Roodt observes, noting that the competition is about more than economic dominance; it also encompasses political ideology and strategic positioning.



Roodt adds, “The current geopolitical changes in Africa reflect a complex interplay of economic interests and political alliances. The reorientation of these African nations towards powers like China and Russia is a direct consequence of the changing US policy,” highlighting Africa&#8217;s strategic importance in the global arena and the dynamic nature of 21st-century international relations.



The future relationship between the United States, Africa, and China will largely depend on the response of African member states; engaging in preferential trade with the United States along a strict liberal ideological lens or with a less restrictive China.



The Future of AGOA and US-Africa Relations 



&#8220;The recent suspensions and reinstatements within AGOA may set a precedent for how the US approaches trade relations with African nations, potentially leading to more stringent criteria based on governance and human rights,&#8221; Silke asserts. He suggests that this could lead to further reevaluation of AGOA’s structure and objectives in the future. &#8220;This could result in a recalibration of diplomatic ties, with African nations weighing the benefits of AGOA against the need to maintain sovereignty over their domestic policies.&#8221;



Roodt cautions that the effects might not be immediately visible. “The realignment of trade and diplomatic relations is a complex and gradual process. While the impact of AGOA changes is significant, it will unfold over time.”



This shift reflects a world where power is increasingly distributed among various global players. The response of the affected African countries, pivoting towards nations like China and Russia, underlines the evolving landscape of international relations. These countries are diversifying their alliances, indicating a complex, interconnected global scenario. The growing influence of the BRICS nations in Africa, especially following these AGOA adjustments, signifies a shift towards a multipolar global structure.



Emerging global powers are playing a more pronounced role, and African nations are strategically positioning themselves in the international arena. The changes within AGOA represent a microcosm of larger shifts in global trade and diplomacy, with African countries increasingly asserting their agency. This new era is characterized by a dynamic interplay of economic, political, and strategic factors, where African nations are key players in shaping the future of international relations.



Reflecting on these developments, Silke offers a perspective that encapsulates this global shift: “The evolving dynamics within AGOA and the broader international landscape are reflective of a world where influence is no longer the preserve of traditional powers. African nations are now at the forefront, navigating a path through competing global interests, and in doing so, they are redefining the rules of international engagement.”

The African Growth and Opportunity Act Forum

AGOA Trade Program Adjustments: What They Could Mean For US-Africa Relations Amid Global Power Shifts

BRICS&#8217; expansion with five new members, set against Argentina&#8217;s decision to decline, presents a nuanced challenge to US influence, markin a complex evolution in international dynamics. BRICS, the international governmental organization focused on bilateral relations, investment, and economic cooperation, has officially admitted five new member countries, effective from January 1, 2024. The inclusion of Saudi Arabia, the United Arab Emirates (UAE), Egypt, Iran, and Ethiopia effectively doubles the bloc&#8217;s membership to 10 nations, adding significant economic weight and potential. Notably, Argentina, one of the six countries invited to join BRICS, declined the offer under newly-elected President Javier Milei.



The formal admission of the new BRICS member countries follows last year’s summit in Johannesburg, South Africa, where the invitations were extended. South African President Cyril Ramaphosa, a proponent of the expansion, highlighted its importance for the Global South&#8217;s representation and the economic and trade development of member states.



“&#8230; South Africa stands to benefit from its relationship with these countries,” said Ramaphosa in a press release concluding the conference. “Together, these countries account for nearly a third of the global economy and are home to 46 percent of the world’s population.”



While the BRICS group (comprising of Brazil, Russia, India, China and South Africa) has long been viewed as an alternative to Western, particularly American, economic and geopolitical influence, independent risk and political analyst Marisa Lourenço in South Africa suggests that this expansion is unlikely to immediately disrupt the current economic order.



“The expansion of BRICS occurs in an era of multipolar politics, where countries can seek alternatives&#8230; and challenge US hegemony with different trading partners,” says Lourenço to FORBES AFRICA. “A BRICS currency seems highly unrealistic, and though trade between countries might increasingly use currencies other than the USD, it will take more to challenge the dominance of the USD in global trade.”



The entry of Saudi Arabia and the UAE is anticipated to significantly enhance the global influence of BRICS. Both countries bring substantial financial resources and geopolitical clout, especially as prominent members of the Organization of Petroleum Exporting Countries (OPEC).



The economic implications of BRICS&#8217; expansion are vast and varied. With the inclusion of major oil producers and emerging economies, the bloc is poised to redefine trade dynamics and create new investment opportunities. This could lead to a reshaping of global trade routes and partnerships, offering a diversification of economic alliances beyond the traditional power centers. As the bloc grows, so does its capacity to influence global economic policies, potentially leading to more equitable trade terms for emerging markets.



The addition of Ethiopia and Egypt marks a notable step in increasing African representation within the bloc, resonating with Ramaphosa’s remarks at the 2023 summit. However, Lourenço believes Africa will not likely dominate the BRICS agenda soon, with the strategies of larger member states expected to dictate overall direction.



Regionally, the impact of BRICS&#8217; expansion on African countries, both within and outside the bloc, deserves a closer examination. For countries like South Africa and Ethiopia, this could mean enhanced access to markets and capital, fostering development and economic growth. However, the challenge lies in ensuring that these benefits are equitably distributed and that the voices of smaller economies are heard within the bloc. As BRICS evolves, its ability to address these regional disparities will be crucial in determining its effectiveness and relevance.



“Africa has improved representation&#8230; but overall remains the weakest link, with the economic sizes of both countries overshadowed by their peers,” states Lourenço. “It will be interesting to observe how Saudi Arabia deepens ties with the continent&#8230; especially as the kingdom has recently increased its investments in numerous African countries, alongside other Middle Eastern powers like Turkey, the UAE, and Jordan.”



Lourenço argues that China is the primary beneficiary of the BRICS expansion, being the bloc&#8217;s most influential member and a direct competitor of the US in strategic areas such as East African infrastructure and access to raw minerals. “Politically, BRICS&#8217; expansion is particularly advantageous for China&#8230; The alignment of global powers like China, Iran, and Saudi Arabia within BRICS is likely to unsettle the US, which may perceive this as a direct challenge to its hegemony.”



The expansion of the bloc occurs at a critical juncture amid global economic and political tensions. BRICS faces the challenge of integrating member states engaged in conflicts with Western allies while maintaining relations with countries closely allied with the US. While BRICS has the potential to significantly expand its political and economic influence, Lourenço warns that this is not a foregone conclusion.



“If it can establish a formal institutional framework, it could become a powerful entity, but member disagreements make this unlikely in the next two to three years,” Lourenço notes. “Its role is likely to remain primarily political, considering the economic challenges of creating a common currency and the prevailing dominance of the US dollar in global trade.”



Furthermore, the global response to BRICS&#8217; expansion, especially from nations outside the traditional Western power bloc, will be an essential factor. Countries in Europe, Asia, and other regions will likely recalibrate their strategies in response to this new power alignment. The expansion of BRICS, thus, not only changes the dynamics within the bloc but also has far-reaching implications for global diplomacy and international relations.

Brics Summit in Johannesburg, South Africa August 22-24, 2023

New Members, Old Powers: BRICS’ New Year Expansion As 10-Country Bloc

Amidst growing speculation of his presidential ambitions, businessman and former activist Roger Jardine has unveiled his political platform, Change Starts Now, in Johannesburg, signaling a new chapter in his career and a potential shift in the country&#8217;s political dynamics.



The South African political landscape is undergoing a significant shift with the introduction of Change Starts Now, a new political platform launched by businessman Roger Jardine, also the former Chairman of financial services provider FirstRand. This initiative emerges at a time when the country grapples with critical issues such as loadshedding, rampant youth unemployment, and the need for substantial societal and anti-corruption reforms.



At the heart of Jardine&#8217;s message during the party’s launch in Riverlea yesterday, his hometown south of Johannesburg, is a critique of the African National Congress (ANC). His departure from the ANC, a movement deeply rooted in his family&#8217;s history, signifies a broader sentiment of dissatisfaction and the need for change in governance. Jardine&#8217;s call to action, particularly aimed at the youth, emphasizes the urgency of addressing these national challenges. &#8220;We can disagree on many things, but we can agree that we cannot continue like this,&#8221; he stated at the launch, capturing the mood of a nation yearning for transformation.



&#8220;The emergence of so many new parties is a clear testimony to the shifting political consciousness in South Africa and the waning grip of the ANC,” says political scientist and analyst Susan Booysen, director of research at the Mapungubwe Institute for Strategic Reflection (MISTRA), emeritus professor at the University of the Witwatersrand, to FORBES AFRICA. “Yet, despite this proliferation, these parties often struggle to gain serious traction, highlighting the complex dynamics of our political landscape.&#8221;



The launch of new political parties in opposition to the ANC has traditionally not been successful, with the party fiercely working to dissuade new rivals – with only the Economic Freedom Fighters (EFF) having seen a significant rise since the ANC’s ascendance.



Jardine&#8217;s Change Starts Now joins a growing list of new political entities, such as RISE Mzansi, and Build One South Africa (BOSA), spearheaded by former Democratic Alliance leader Mmusi Maimane. These emerging movements are a response to a public increasingly disillusioned with the ANC&#8217;s handling of crucial issues like the energy crisis, economic stagnation, and perceived systemic corruption. However, the fragmentation among these new opposition parties raises questions about their collective impact on the political landscape and their ability to present a cohesive alternative.



 According to Booysen, many who might have perhaps voted differently in the last election still voted for the ANC as they had high hopes for President Cyril Ramaphosa, and his inability to resolve the challenges South Africa faces is in large part what has allowed smaller parties to bloom. “Ramaphosa brought a fresh sense of legitimacy to the ANC; the expected turnaround has been disappointingly slow and fraught with compromise,” observes Booysen. “This sluggish progress suggests that South Africa might be on the cusp of a new, transformative political phase.&#8221;



In addition to addressing national issues, Jardine&#8217;s movement focuses on rebuilding trust in political leadership. His experience as a former chairperson of one of South Africa&#8217;s leading financial institutions, FirstRand, adds a unique dimension to his political journey. This background in business and finance could offer a different approach to tackling economic challenges and fostering growth, particularly in areas like youth employment and entrepreneurship.



&#8220;Roger Jardine’s approach is intriguing – he&#8217;s not just creating another political party; he&#8217;s cultivating a movement grounded in listening to the people and shaping policy through participation,” says Booysen. “This strategy represents a significant departure from traditional political paradigms and could be pivotal in reshaping our political discourse.&#8221;



Change Starts Now seeks to galvanize support by promising a more inclusive and representative form of governance. Jardine&#8217;s emphasis on forming &#8220;the most diverse coalition in history&#8221; is his commitment to bringing together various segments of society, including those traditionally marginalized in political discourse.



As South Africa approaches the 2024 general elections, the role of new political parties will be pivotal in shaping the nation&#8217;s future. Their ability to address pressing issues faced by the country and to resonate with a populace seeking change will be critical.



The coming months will be a test of their influence, vision, and capacity to challenge the established political order, particularly as the country fast approaches the first general elections since 1994 where the ruling ANC risks losing its majority for the first time since the country became a democracy.



Jardine&#8217;s entry into the political arena represents a significant moment in South African politics, however, he will be pressed to demonstrate his legitimacy and charisma to not just business and the political class of the country, but the people as a whole should he wish to play a significant role.



&#8220;The key to breaking the ANC&#8217;s longstanding hold on society lies not merely in appealing to the business sector but in connecting genuinely with the people themselves. It&#8217;s about bringing that magical element of leadership that resonates at the grassroots level,” says Booysen. “Without this, we risk returning to a status quo with the ANC at the helm of a weakened state.&#8221;

Author: Yeshiel Panchia

FORBES AFRICA SOCIAL MEDIA