While Zimbabwe’s bid to join BRICS is facing significant hurdles due to economic instability and perceived fraudulent behavior, the country has made history by appearing on the newly unveiled BRICS currency mock-up showcased by Russian President Vladimir Putin at the Kazan summit this week.
This development seemingly suggests Zimbabwe’s potential entry into the BRICS alliance.
The currency note, valued at 100, displays the flags of Brazil, Russia, India, China and South Africa interconnected in a circle. Additional flags on the reverse side hint at expansion plans, including Mexico, Egypt, Nigeria and Bahrain.
According to the BRICS News Channel, Chinese President Xi Jinping emphasised reforming international financial architecture, stressing BRICS’ pivotal role in promoting a multipolar world.
“There is an urgent need to reform the international financial architecture,” Jinping said.
“BRICS must play a leading role in promoting a new system that better reflects the profound changes in the international economic balance of power,” he added.
The blockchain-based BRICS pay system aims to bypass Western financial infrastructure, facilitating de-dollarisation.
Zimbabwe is hoping to revolutionarise its economy by being included in the bloc. The country could sell minerals to BRICS nations and reduce dependence on the US dollar. Zimbabwe would also settle debts to China in BRICS currency.
The southern African country introduced its own currency, the Zimbabwe Gold (ZiG) in April this year. The ZiG is backed by gold and foreign currency reserves. One of the prerequisites of joining BRICS is for the country to have its own currency.
The BRICS currency is anticipated to be gold-backed, leveraging the precious metal’s surging value.
Reports indicate the currency’s composition will comprise 40% gold reserves and 60% regional currencies, including the Chinese yuan, Russian ruble, Indian rupee and other member nations’ legal tenders.
The BRICS bloc comprises Brazil, Russia, India, China and South Africa, with 45 additional countries expressing interest or officially applying for membership.
Saudi Arabia was officially invited to join the club.
A total of 18 countries, including Zimbabwe, have officially applied for membership. These are: Algeria, Azerbaijan. Bahrain, Bangladesh, Belarus, Bolivia, Cuba, Kazakhstan, Kuwait, Malaysia, Pakistan, Palestine, Senegal, Thailand, Turkey, Venezuela and Yemen.
The following states expressed interest in joining BRICS:
Angola, Cameroon, Central African Republic, Democratic Republic of Congo , Congo, Ghana, Nigeria, South Sudan, Sudan, Tunisia, Uganda, Colombia, El Salvador, Nicaragua, Peru, Afghanistan, Indonesia, Iraq, Laos, Myanmar, Sri Lanka, Syria and Vietnam.
Despite President Emmerson Mnangagwa’s enthusiasm, South African officials have reportedly privately indicated that BRICS is hesitant to accept Zimbabwe as a member or partner.
This reluctance, according to economic commentator Prisca Mutema, stems from concerns over Zimbabwe’s economic instability and perceived fraudulent behaviour, which could tarnish the group’s reputation.
Mutema asserts that Cyril Ramaphosa’s government has reportedly expressed reservations, with at least three BRICS countries deeming Zimbabwe’s involvement in the future payment platform too risky.
Zimbabwe’s reputation is now on par with Nigeria’s regarding fraudulent activities, rendering its inclusion a systemic risk.
“Reason you don’t hear anyone in Mnangagwa’s government saying anything about BRICS is that South African officials have twice privately made it clear that BRICS don’t want Zimbabwe as a member or a partner,” she said.
“Cyril Ramaphosa’s government says at least three BRICS countries even say it’s risky to allow Zim to use any future BRICS payment platform.
“There’s an impression within BRICS that Zimbabwean (not just their government) are now on par with Nigeria for fraudulent behaviour and allowing them into any BRICS system would irreparably tarnish the Group.”
Kudzai Mutisi, a Zimbabwean government apologist, argued that BRICS represents the future, boasting immense market potential. Mutisi further noted that smart governments are seizing opportunities while Zimbabwe struggles to join.
“BRICS is the future. It has everything needed for a successful alliance. It’s a huge market with massive potential to grow even bigger. Smart governments are making moves while Zimbabwe is grovelling to join a colonial tea club (Commonwealth) led by a fallen empire
“President Mnangagwa needs thinkers in his team,” Mutisi said.
