Namibia’s trade with the BRICS countries in 2022 amounted to a whopping 97 billion Namibian dollars (496 billion rubles), Salomo Hei, head of the research department of High Economic Intelligence, reported on September 1. writes the newspaper New Era LIVE. .
Salomo Hei stated that Namibia’s trade with the BRICS countries is greater than with any other economic bloc.
At a breakfast hosted by Debmarine Namibia (a joint venture between De Beers and the country’s government), he noted that Namibia’s total trade with various economic blocs in 2022, including the South African Customs Union (SACU), amounted to 85.3 billion Namibian dollars (436 billion rubles), of which 43.1 billion Namibian dollars (220 billion rubles) were trade with the United States, Great Britain, and the euro area.
Namibia’s trade turnover with the new BRICS members, who are expected to join this union in January 2024, amounted to 12.5 billion Namibian dollars (64 billion rubles) in 2022.
The BRICS currently include Brazil, Russia, India, China, and South Africa. Formally created in 2009, the BRICS group currently contributes 23% of world GDP and represents 42% of the world population.
At the recent BRICS meeting in South Africa, countries including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates were invited to become full members of the BRICS.
Namibia first attended this BRICS summit to watch what was happening without actually participating. However, doubts about Namibia’s intention to join the global bloc were raised after the BRICS announced their expansion plans.
South African President Cyril Ramaphosa said there is a global drive to use local currencies, alternative financial mechanisms and alternative payment systems to compete with America’s historic dominance.
However, South African Finance Minister Enoch Godongwana told the media last week that the BRICS currency issue was not raised for consideration even in informal meetings.
“The creation of a common currency implies the creation of a central bank, and this, in turn, implies the loss of independence in monetary policy. I don’t think any country is ready for this.”— Godongwana commented on this issue on the sidelines of the BRICS summit.
Despite this sentiment, Ramaphosa said that the BRICS are ready to explore opportunities to improve the stability, reliability and fairness of the global financial architecture.
The BRICS summit participants agreed to instruct their finance ministers and central bank governors to consider issuing local currencies, payment instruments and platforms. In this regard, the BRICS leaders expect a report on this issue at the next annual summit.
Commenting on the internal implications of the introduction of the new BRICS common currency, Hay said: “In a broader sense, we are already part of this thanks to South Africa, to the peg of its currency. Therefore, any decision that South Africa decides will immediately mean that we are on the same bandwagon. The figures show that we are closely related to the BRICS, since a large part of our activities have to do with the BRICS bloc..
President Hage Geingob participated in the recent BRICS-Africa meeting, as well as the BRICS Plus Dialogues, with the aim of strengthening economic ties with bloc members and summit participants.
Local economics and business researcher Joseph Shihama told New Era that the BRICS summit is beneficial for the Namibian economy, especially as the Namibian dollar is pegged to the South African rand. He noted that this should bring more benefits, such as financing for development and increased trade and investment.
“BRICS countries have good relations with Namibia. I see these meetings as a summit with the shared objective of creating the conditions for a sustainable, just and inclusive future. Namibia can take advantage of emerging opportunities to develop and implement new technologies and put in place the right regulations that will attract the necessary investments.”Shihama said.
Source: Rossa Primavera
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