Africa seeks integration with BRICS financial architecture

Experts are advocating for stronger integration between African financial systems and the BRICS bloc to enhance economic stability. Phapano Phasha, chairperson of the Centre for Alternative Political and Economic Thought, has proposed establishing a technical bridge between the Pan-African Payment and Settlement System (PAPSS) and the BRICS Cross-Border Payments Initiative (BCBPI) at the upcoming BRICS Summit in New Delhi.

This integration aims to reduce cross-border transaction costs, decrease reliance on foreign currencies for intra-African and Africa-BRICS trade, and accelerate financial integration. The proposal leverages the African Continental Free Trade Area (AfCFTA), which represents a market of 1.4 billion people. Current BRICS members include South Africa, Egypt, and Ethiopia, with several other nations seeking partner status.

Parallel to these institutional efforts, discussions regarding digital finance are advancing. The United Nations Economic Commission for Africa (ECA) recently convened a high-level dialogue on tokenised money and stablecoins. With Africa hosting over 54 million digital asset users, experts are examining regulatory pathways and interoperability to address fragmented payment landscapes and high remittance costs across the continent.