In August 2023, the world economic scenario saw a new moment, marked by some changes in its panorama, all because the BRICS (Brazil, Russia, India, China and South Africa) decided to expand by admitting new countries. At the meeting held in the South African city of Johannesburg, the full members of the summit agreed to admit Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia and Iran totheir group.
With this openness, combined with Mozambique’s proximity to some member states, ‘voices’ emerged claiming that the country was preparing to join the economic bloc ‘in defiance’ of the West (the European Union and the United States of America). However, so far no formal invitation has been sent to Mozambique (it should be remembered that the group met recently, between 22 and 24 October, in the Russian city of Kazan).
Diário Económico contacted some analysts to discuss the possibilities of a possible invitation to Mozambique to join the BRICS summit. In the following lines, find out about the risks and benefits that this economic bloc could offer the country, which is booming and has the largest natural gas reserves in the world.
Easy access to credit for investment
Mozambique is facing serious problems with access to finance, which has hampered some investments. In this regard, Egas Daniel, a senior economist at the International Growth Centre (IGC) of the London School of Economics (LSE), said that by joining the BRICS, the country would benefit from some facilities, attracting more investors to various areas.
Egas Daniel believes that joining the BRICS can attract a certain degree of closer trade co-operation, pointing out that economies that are on a significant rise are also members, especially China.
‘We mustn’t forget that China is Africa’s biggest economic partner and Brazil is also one of Mozambique’s biggest partners. The other BRICS countries are part of our matrix of creditors in our external debt. There are many benefits from the point of view of investments, namely less bureaucracy to access credits, which is much less compared to the European Union and the World Bank,’ he explained.
The economist also said that one of the benefits for Mozambique of joining the BRICS is the ease of exporting natural gas and coal, because all the countries in the bloc are major consumers of these energy sources.
Clear and objective investment portfolio to avoid corruption
Egas Daniel warned that a country joining the BRICS should have a clear investment portfolio, specifying the type of resource it needs and the type of relations it intends to forge. ‘For example, in the case of a flow of credits to Mozambique, the investment areas for the application of these credits must be known,’ he emphasised.
‘There is less rigour in accessing capital flows for investment in the BRICS, and if there is indiscipline in the use of these resources it is likely that Mozambique will not make many gains because the political elite could misappropriate them,’ he said.
The interviewee argued that it is necessary to ‘fine-tune the machine’ and ensure that Mozambique’s particular interests are safeguarded, saying that ‘a clear definition of development properties in infrastructure, and beyond, is preponderant for the country to maximise gains.’
Economic dangers and the non-aligned policy
To delve even deeper into the subject, Diário Económico also contacted an international relations analyst, who brought a mixed approach to the subject, cross-referencing politics and economics.
Wilker Dias explained that, in his opinion, it is not prudent for Mozambique to be part of the BRICS, as this would jeopardise the stability of the country itself, given that it is living at a time of great instability related to the general elections and the conflict in Cabo Delgado, adding that it should not be forgotten that Mozambique is committed to the policies of the ‘non-aligned’ countries.
‘Mozambique can’t join the BRICS because of the policies of the non-aligned countries. The country does not see eye to eye with either the West or the East. The BRICS are driven by ideological issues and not just economic ones,’ he explained.
Dias emphasised that ‘by joining the summit, the country would be breaking the basis of its foreign policy and this could have serious consequences.’ ‘The idea is that Mozambique should maintain friendship with all countries in the world, especially at this time of wars in Ukraine and Israel. These are wars fuelled by international economic blocs,’ he said.
Neutrality and guaranteeing greater international partnerships
In his explanation, the analyst also described how the world is divided into blocs and that each one has its own ideologies. ‘Russia has its ideologies and so does the West. It would be dangerous for Mozambique to join the BRICS because if it needs to preserve both sides and be neutral, the best mechanism is to guarantee a greater number of international partners.’
The interviewee argued that the West is one of Mozambique’s main funders in the social development package, unlike China and other BRICS countries.
According to Dias, the bloc’s growth and expansion is due to the fact that it presents a futuristic perspective, which greatly influences its allies’ economic development.
‘The benefits for Mozambique of joining the BRICS are related to the field of industrialisation with the different countries. For example, the bilateral relationship between Russia and Brazil has been beneficial for both. The same applies to cooperation between Russia and India, which has influenced the establishment of an armour factory in that Asian country,’ he concluded.
Last year, Mozambican President Filipe Nyusi said in Johannesburg that the country was available to cooperate with the BRICS member countries and access the funds made available by the bank set up by that multilateral organisation.
“Mozambique cannot join the BRICS because of the non-aligned policy.The country doesn’t see eye to eye with either the West or the East.The BRICS are driven by ideological issues, not just economic ones”
‘We welcome the fact that they prioritise the financing component of economic and social infrastructure, and the concrete need to build roads, bridges, schools, hospitals, dams and other water retention and management systems should be highlighted,’ said the statesman, during his guest speech at the 15th summit, which took place in South Africa.
With regard to the BRICS New Development Bank, the head of state emphasised at the time that it will serve to reduce the infrastructure deficit on the African continent, which ‘is important for boosting economic progress and creating well-being for Mozambicans.’
Text: Cleusia Chirindza
