Just a month before the BRICS Summit 2023, the BRICS nations finally decided on developing a gold-backed digital currency to enhance trade among member nations. What does this move mean for Africa and member nations?

Developing this digital currency will enhance financial inclusion and cross-border transactions. Also, the stability of the currency will boost investors’ confidence, create geopolitical impact, and expand the global currency landscape. All these contribute to the advancement of web3 in Africa.

BRICS: A Brief History

BRICS is an acronym representing Brazil, Russia, India, China, and South Africa that emerged as a significant coalition of major emerging economies. Initially coined as “BRIC” by Goldman Sachs economist Jim O’Neill in 2001, it began with discussions centered around the economic potential of these four nations.

In 2009, the inaugural BRIC summit took place in Russia, laying the foundation for more formalized cooperation. The pivotal moment came in 2011 when South Africa joined, officially expanding the group to BRICS. Since then, BRICS has convened annual summits, focusing on economic cooperation, global governance, and international challenges.

Over time, it has broadened its scope, embracing political and diplomatic discussions. Notably, BRICS established the New Development Bank (NDB) to finance infrastructure and sustainable development projects.

Today, BRICS stands as a prominent platform for emerging economies to collectively address global issues, exercise influence in international affairs, and foster economic growth and stability.

The BRICS Summit 2023

The 15th BRICS summit was held from the 22nd to the 24th of August at the Sandton Convention Centre in South Africa. The theme of the summit focused on the BRICS-Africa partnership for mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism. The theme highlighted BRICS’ commitment to partner with African Nations to achieve sustainable growth.

Why is the BRICS-Africa partnership important?

The BRICS-Africa partnership holds significance for several reasons:

Economic Collaboration:

BRICS (Brazil, Russia, India, China, and South Africa) represent a significant portion of the global economy. Collaborating with African countries opens up opportunities for trade, investment, and economic growth. African nations benefit from access to BRICS markets, while BRICS nations gain access to Africa’s vast natural resources and emerging consumer markets.

Infrastructure Development:

BRICS nations often invest in infrastructure projects in African countries. This investment helps improve transportation, energy, and communication networks, which are crucial for economic development. Enhanced infrastructure can facilitate trade and boost local industries.

Technology Transfer:

BRICS countries are often leaders in technology and innovation. Collaborating with Africa allows for the transfer of technology and knowledge, which can accelerate technological advancements in African nations, spurring economic diversification and growth.

Political Influence:

BRICS countries collectively hold substantial political influence in global forums. When collaborating with African nations, they can advocate for Africa’s interests on the global stage, potentially leading to fairer international policies and trade agreements.

Diverse Partnerships:

The BRICS-Africa partnership is not one-size-fits-all. It allows for diverse collaborations tailored to the specific needs and priorities of individual African nations, fostering a sense of sovereignty and mutual respect.

Human Capital Development:

BRICS nations often support educational and capacity-building initiatives in Africa. This helps develop human capital, fostering a skilled workforce and empowering local communities.

Balancing Influence:

In a global context, BRICS-Africa collaboration can help balance the influence of traditional Western powers. This diversification of partnerships reduces dependency on a single bloc and offers African nations more negotiating power.

Peace and Security:

Collaborative efforts can also address regional conflicts and security challenges in Africa. BRICS countries have the potential to contribute to peacekeeping missions and conflict resolution.

In summary, the BRICS-Africa partnership is important because it promotes economic growth, technological advancement, infrastructure development, and political influence for African nations. It offers a platform for mutually beneficial collaboration that can help address some of the continent’s pressing challenges and promote its sustainable development.

Web3 Technologies

Web3 technologies refer to a set of emerging technologies and concepts that aim to reshape the way the internet functions, making it more decentralized, user-centric, and focused on privacy and security. Here are some fundamental features and technologies tied to Web3:

Blockchain Technology:

Central to Web3 is blockchain technology, which enables secure, transparent, and tamper-proof record-keeping. Blockchains are used for cryptocurrencies (like Bitcoin and Ethereum) and various decentralized applications (dApps) that operate on a distributed ledger.

Cryptocurrencies:

Cryptocurrencies are digital currencies that employ cryptography to provide security. They play a fundamental role in Web3 by enabling peer-to-peer transactions without intermediaries.

Smart Contracts:

Smart contracts are contracts where the agreement’s terms are written into code, enabling automated implementation of processes and transactions, thereby removing the necessity for intermediaries.

Decentralized Applications (dApps):

dApps run on decentralized networks (often blockchains) and don’t rely on a single central authority. They cover a wide range of functions, from finance and gaming to social media and supply chain management.

Decentralized Identity:

Web3 seeks to provide individuals with control over their digital identities. Decentralized identity solutions aim to give users ownership of their data and allow them to share it selectively and securely.

Interoperability:

Web3 technologies are designed to be interoperable, enabling different blockchains and dApps to communicate and share data seamlessly.

Web3 Browsers:

Specialized browsers like MetaMask and Brave are designed to interact with Web3 applications and manage cryptocurrencies and identities.

Web3 Storage:

Decentralized storage solutions, like IPFS (InterPlanetary File System), offer a more resilient and distributed way to store data, reducing reliance on centralized servers.

Tokenization:

Tokenization involves converting real-world assets (e.g., real estate, art, or stocks) into digital tokens on a blockchain, making them more accessible for trading and ownership.

Web3 Governance:

Decentralized autonomous organizations (DAOs) are entities governed by code and community voting, enabling decentralized decision-making.

Privacy Solutions:

Various privacy-focused technologies, such as zero-knowledge proofs and privacy coins, are integrated into Web3 to enhance user privacy and data protection.

Decentralized Finance (DeFi):

DeFi applications leverage blockchain and smart contracts to create financial services without traditional intermediaries, enabling lending, borrowing, and trading directly between users.

Web3 technologies represent a shift towards a more open, secure, and user-controlled internet, with the potential to disrupt various industries and empower individuals in the digital age.

How BRICS can leverage Web3 technologies in their partnership with Africa.

The BRICS group and its member nations may have the potential to influence or interact with the development and adoption of Web3 technologies in various ways:

Trade and Investment: BRICS nations could play a role in adopting Web3 technologies for trade and investment purposes. They might explore blockchain-based solutions for cross-border transactions and supply chain management, which could indirectly impact the adoption of Web3 in trade.

Regulation and Policy: BRICS nations could collaborate on regulatory frameworks for cryptocurrencies and blockchain technologies. Harmonized or coordinated regulatory approaches might facilitate the growth of Web3 ecosystems within these countries.

Innovation and Technology Transfer: BRICS member nations are home to significant technology hubs. Collaboration within BRICS could facilitate technology transfer and knowledge exchange related to Web3 technologies, fostering innovation in the field.

Investment in Web3 Startups: BRICS nations might invest in Web3 startups, incubators, and research projects, supporting the development and adoption of Web3 technologies within their regions.

Geopolitical Influence: BRICS nations, as major global players, could have an indirect influence on the adoption of Web3 technologies through their diplomatic and geopolitical strategies. For example, their stance on international blockchain standards could shape the global Web3 landscape.

Conclusion

To conclude, the BRICS Group stands as a catalyst for the advancement of Web3 technologies in Africa, bringing together emerging economic powerhouses and innovative technology leaders. Through strategic collaborations, investments in infrastructure, technology transfer, and knowledge exchange, the BRICS nations are facilitating the adoption of blockchain, decentralized applications, and other Web3 elements across the African continent.

This partnership not only strengthens economic ties but also promotes technological progress, empowering African nations to harness the potential of Web3 for economic growth, financial inclusion, and broader societal benefits. As the BRICS-Africa partnership continues to evolve, it has the potential to shape the digital future of the continent, fostering innovation and fostering a more equitable and connected global digital landscape.