Africa at a crossroads in the rise of BRICS & de-dollarisation

As BRICS, the emerging economic block encompassing Brazil, Russia, India, China, and South Africa, gains momentum, the African continent finds itself at a pivotal crossroads, navigating between opportunities and challenges. CNBC Africa recently engaged in a dialogue with David Gitonga, the Founder of BitKe, to discuss how Africa can strategically position itself in this evolving global landscape filled with new economic dynamics, de-dollarization trends, and shifting power structures. Africa's alignment with either the traditional Western world or the emerging BRICS block presents a critical decision that will shape the continent's future trajectory. In the past, Africa played a significant role as a source of raw materials for global economies, but now, it has to deliberate its stance in the multipolar world. Gitonga stresses the necessity for Africa to align itself correctly and outlines the significance of discerning its position amidst the contemporary global dichotomy. Contrary to the previous unipolar era post-World War II, Africa has transitioned into a significant player in the global arena, urging the continent to make informed choices regarding its allegiance. The conversation then delves into the concept of de-dollarization, a rising trend propelled by the need for economic protection and resilience in the face of potential risks associated with heavy dependence on the US dollar. Gitonga highlights the implications of sanctions and the direct impact on countries excessively reliant on the dollar, emphasizing the urgency for diversification. Africa stands at a juncture ripe with strategic opportunities and challenges concerning de-dollarization. As discussions on Africa formulating its currency gain traction, the interview further explores the strategic steps that the continent should undertake. Gitonga advocates for a futuristic perspective, urging Africa to envision its position in the world in the long term. With the ongoing global power shifts militarily, politically, and economically, Africa must capitalize on opportunities within both the Western and BRICS spheres. Notable examples such as South Africa and Egypt aligning with the BRICS block demonstrate potential pathways for other African nations to follow suit. The establishment of alternative financial systems like the BRICS New Development Bank presents African countries with avenues to procure loans in their national currencies, diverging from the conventional methods employed by institutions like the IMF. This shift not only offers financial flexibility but also safeguards nations from potential vulnerabilities associated with foreign currency loans. As Africa grapples with the intricate dance between tradition and innovation, strategic decisions made today will undoubtedly shape the continent's economic landscape in the decades to come.