The primary objective behind the BRICS Bank initiative was to break away from the dominance of imperial institutions such as the World Bank and the International Monetary Fund. Picture: Supplied
By Kganki Mphahlele and Melisizwe Mandela
THE 5th BRICS Summit, held between March 26 and 27, 2013, at Durban’s Chief Albert Luthuli International Convention Centre (ICC), marked a historic moment in global economic history.
It was during this summit that a pivotal decision was made to establish the the New Development Bank (NDB), a multilateral development bank largely referred to as the BRICS Bank, following the visionary suggestion of then President Jacob Zuma.
The primary objective behind this initiative was to break away from the dominance of imperial institutions such as the World Bank (WB) and the International Monetary Fund (IMF), which for decades have imposed financial control over developing nations, especially in Africa.
BRICS (Brazil, Russia, India, China, and South Africa) was founded as a coalition of emerging economies to offer an alternative to the Western-dominated global financial and political systems.
South Africa’s inclusion in BRICS in 2010 was significant for Africa’s role on the world stage, symbolising the continent’s rise in global economic affairs. With this in mind, Zuma proposed the creation of a development bank that would serve the poor and working-class nations that have long been marginalised by institutions such as the IMF and WB.
In May 2013, just two months after the BRICS Summit, Zuma took the global stage at the World Economic Forum (WEF) in Cape Town. There, he boldly declared that the BRICS Bank would liberate Africa from the tyranny of the IMF and WB, which had repeatedly failed to address the continent’s challenges.
Many believe this declaration marked the beginning of efforts to undermine Zuma’s presidency, as his proposal threatened the interests of Western financial powers. He even suggested that the BRICS Bank should be headquartered in Africa, as it was the continent most in need of a development-focused financial institution.
Zuma’s motivation to break away from the IMF and WB stemmed from the concerns of African leaders that these institutions had done little to solve the pressing issues facing African countries.
Decades of loans and financial interventions by the IMF and WB had not alleviated poverty or promoted sustainable development. Instead, these loans often came with stringent conditions, forcing countries into debt traps and economic dependency.
The BRICS Bank was envisioned as a lifeline for countries seeking true financial independence without being bound by the exploitative terms of the West.
Today, the world is witnessing the long-term impact of this vision. Reports indicate that at least 159 countries are ready to adopt the BRICS payment system, signalling a growing shift away from the US-dominated SWIFT payments network, which has often been used as a political weapon to sanction and control nations with opposing views.
Zuma’s foresight in creating an independent financial system, free from Western influence, has come to fruition with the development of “BRICS Pay”—a blockchain-based system that aims to end the dominance of the US dollar in global trade.
Many countries are in the process of ditching the dollar as their traditional reserve currency, marking the dawn of a multipolar economic order. Multilateralism is no longer an idea of the future; it is happening now.
More than $9 billion (R154bn) in Bitcoin shorts are on the verge of liquidation at $68 000, reflecting the growing influence of decentralised financial systems. The world of cryptocurrency is about to explode, and BRICS is at the centre of this transformation.
Multilateralism is here, folks. The shift towards an independent global financial system, which President Zuma once championed, is finally becoming a reality.
Many of us were young, naive, or misled during Zuma’s time in office. However, the truth is becoming clearer with each passing day: we owe the old man an apology.
Zuma had genuine intentions for South Africa and indeed for the entire African continent. His vision was to dismantle Western hegemony, liberate Africa from economic slavery, and give us the tools to determine our own future. He wanted to deliver us from the clutches of exploitative global systems, offering us a path towards true self-determination.
The establishment of the BRICS Bank was not just an economic move; it was a statement of defiance against centuries of colonialism and economic suppression. Zuma’s efforts to position Africa at the forefront of this new global order were revolutionary. For this, we must recognise his contribution and extend our gratitude.
Thank you, Nxamalala, Msholozi!
As we witness countries transitioning to the BRICS payment system, dumping the dollar, and adopting multilateralism, we can finally appreciate the legacy of President Zuma’s bold leadership.
His vision of a financially independent Africa, free from the shackles of Western domination, is coming to life. It is time we acknowledge the courage and foresight of this African leader who fought for our right to self-determination.
* Kganki Mphahlele and Melisizwe Mandela are citizens of South Africa. The views expressed here are their own.