A unified payment system for BRICS is certainly achievable. What we need is the right level of trust and an appropriate framework. Once countries establish the necessary safeguards and understand how businesses operate in each other’s markets, including the parameters for trust and security, such a system can become a reality. Without these safeguards, countries will naturally have concerns about whether their data is safe and whether transactions are secure.
When we talk about using local currencies for trade, banking systems can be a challenge, apart from the issue of trust. What needs to be done to strengthen or scale up banking systems in individual BRICS countries to support a unified payment system?
I think it’s about choice. It’s about multilateral agreements. It’s about deciding which is their currency of trade. And obviously, each country would want to be trading in its own local currency. So, if that becomes an issue, again it comes down to trust and what the agreements are. I don’t think there’s a simple answer, to be quite honest, because I think it depends on the level of trade and the relationships. But ultimately, if you have this, then you’re able to get cross-border remittances to work.
A major hurdle to digital transformation in the Global South is the digital divide and the high cost of connectivity. Can BRICS cooperation be translated into tangible digital infrastructure that can be shared or accessed by member countries, helping them bridge this gap before moving to more advanced technologies such as AI?
Look, the starting point is really connectivity, because if you don’t have connectivity and people are not connected to the digital economy, then there is no transaction, right? So, that’s the starting point. And when you look at that, then ultimately it comes down to which countries have what level of connectivity. And as I said earlier, there are different forms of connectivity. 5G is one, which is most reliable, but ultimately, there are other forms, too. When you look at peri-urban and rural areas, there we have to rely on satellite and other forms. Because, to your point, how do you actually serve the underserved? And then the issue becomes affordability and accessibility. And when you look at that, that really is how those people transact; it has to be at the right price point.
The digital landscape is currently dominated by US and Chinese tech giants. From a South African and broader developing-country perspective, how can local innovators and start-ups realistically compete in this environment, and what kind of leverage can BRICS provide?
South Africa has an agnostic view on technology. For us, we are open to trade and open to working with all partners. Our economy is heavily centred on multiple multinationals and OEMs, and therefore it’s all about fit-for-purpose. You have to see what’s the objective you’re trying to solve, and based on the objective, what’s the best solution to service that. And I think when you look at those nuances, then you get the answer.
