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This week, we take a sneak peek at what to expect at next week’s BRICS summit. Also, the UN makes a tax play, anticorruption money sits on the sidelines, and things go from bad to worse in Niger. |
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Top newsBRICS and friends: Algeria will soon have an important indicator of whether its efforts to re-engage with the world and cosy up to China are paying off. The country is one of over 40 that have expressed interest in joining the BRICS economic group of Brazil, Russia, India, China, and South Africa. The five countries are expected to finalise the criteria for admitting new members at next week’s summit in South Africa. Attaining BRICS membership is part of Algeria’s broader foreign policy reset as it looks to find its place in an increasingly multipolar world and prepares to take a temporary seat on the UN Security Council. Emerging market economies have been increasingly interested in BRICS membership as they look to advance their interests in a Western-dominated global economic system that does not sufficiently represent or respond to their needs. Going local: Aside from membership expansion, the BRICS summit will also focus on efforts to promote the use of local currencies in trade between member countries. Media coverage has often framed the move as an attempt to replace the dollar with a joint BRICS currency. That framing has been decried as “ridiculous” by the economist who coined the term BRICS and dismissed by BRICS spokespeople. The call for greater local currency usage is, at least partly, in response to the rising debt service costs and food import bills member countries are experiencing in the wake of higher interest rates and a stronger dollar. The championing of local currency to ease debt burdens is also reflected in the ambitions of the BRICS-established New Development Bank, which intends to make one-third of its lending in domestic currencies by 2026. Other MDBs should follow its lead (and also implement other critically needed reforms). The rising costs of African debt servicing:  If it’s broke, fix it: The UN is pushing to play a larger role in setting the international tax agenda, which many low- and middle-income countries and tax transparency activists have long called for. A draft UN report finds that “existing tax treaty rules do not reserve sufficient taxing rights to countries,” a veiled critique of a 2021 OECD agreement whose benefits (you may be shocked! to learn) heavily favour OECD countries. The report was spurred by African member states, who have been pushing for a more inclusive international tax system. While not shying away from the limitations of its own international tax cooperation functions, the UN report concludes that enhancing its role in this arena could help countries move the global tax reform agenda forward on more equal footing. Anticorruption charade: US$55 million was put into the African Development Bank’s Africa Integrity Fund seven years ago to help combat corruption. Turns out, it has never been used. The funds were collected from corruption settlements with companies. Yet some AfDB officials were reportedly uncomfortable with using fines to fight corruption. ¯\_(ツ)_/¯ Meanwhile, South African President Cyril Ramaphosa unexpectedly pardoned his predecessor, former president Jacob Zuma. Zuma, who seems to have a knack for being at the centre of corruption scandals, served only part of a 15-month prison sentence. He was convicted in 2021 of contempt of court for failing to appear before an inquiry looking into the looting of state resources during his presidency. In better news, the Kenyan government is threatening sanctions against companies that fail to disclose their true owners, as required by law. Double-edged sword: The World Bank’s decision to pause funding to Uganda over an anti-LGBTQ+ law is drawing debate from several corners. On one hand, protecting the human rights and dignity of the country’s LGBTQ+ community is needed, and many in the country’s civil society called for this move. However, the effort may prove counterproductive: The country’s vulnerable populations, including the LGBTQ+ community, are likely to suffer the most from the funding freeze. Additionally, the move could focus blame for the funding decision on the LGBTQ+ community, fuelling backlash and accusations that they are agents of Western imperialism. Then there is the glaring double standard of the World Bank’s action: it continues to lend to other countries with similarly harsh anti-LGBTQ+ laws. ⚖️ Bad to worse: Niger’s military junta plans to try ousted President Mohammed Bazoum on charges of treason and undermining national security. Unfazed by the threat of military force from the Economic Commission of West African States, the junta has been consolidating its power, including appointing several new cabinet members. The treason allegations could further escalate tensions between Niger and ECOWAS, given that the likely sentence, if Bazoum is found guilty, would be the death penalty. Meanwhile, the country defaulted on a US$19 million domestic debt principal repayment. From the ONE Team
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Quote of the week
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Hero and zero of the week:HERO: AkiraChix, a Kenyan organisation that provides young women with technology skills to bridge the gender gap in tech. ZERO: BP, Chevron, ExxonMobil, Shell, and Total, which collectively will use up one-eighth of the world’s remaining global carbon budget for staying below 1.5°C. |
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What you should read, watch, and listen to:
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A look ahead20-24 August: World Water Week on “Seeds of Change: Innovative Solutions for a Water-wise World” in Stockholm, Sweden. 22-24 August: The 15th BRICS Summit on “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism” in Johannesburg, South Africa 22-26 August: The 7th Global Environment Facility Assembly in Vancouver, Canada |
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The ONE Campaign’s data.one.org provides cutting edge data and analysis on the economic, political, and social changes impacting Africa. Check it out HERE. |
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