Addis Ababa, Ethiopia – The African Continental Free Trade Area (AfCFTA) is increasingly recognized as a key player in global trade, and its growing ties with BRICS nations offer new opportunities for economic collaboration. With Ethiopia, Egypt, and South Africa now part of BRICS, questions arise about how AfCFTA will benefit from this alliance.

BRICS represents a significant portion of global GDP and investment, while Africa boasts vast untapped potential in trade, infrastructure, and critical minerals. In an interview with Sputnik Africa, AfCFTA Secretary-General Wamkele Mene explained the mutual benefits: “The value proposition that we make as a continent of Africa to the BRICS is to look at the AfCFTA as an investment market, as an opportunity for investment-led trade.”

Mene highlighted the potential for collaboration in processing critical minerals, allowing African nations to work with BRICS members like China to add value to resources within the continent. He also noted that trade facilitation and seamless payments platforms can enhance economic cooperation between BRICS and AfCFTA members.

Addressing currency challenges, Mene emphasized AfCFTA’s efforts to reduce reliance on foreign currencies: “If the cost of trade is caused to increase by buying a third currency, then the AfCFTA has to intervene, which we have done through the Pan-African Payment and Settlement System.” This system, launched with Afreximbank, enables transactions in local currencies, reducing costs and increasing trade efficiency.

Source: Adapted from [Sputnik Africa]