BH Holdings Chair, Bassim Haidar unpacks key outcomes from the BRICS summit

The 15th annual BRICS summit concluded with a significant announcement of expansion, with six countries being invited to join the emerging market club. These countries include Saudi Arabia, Iran, UAE, Egypt, Ethiopia, and Argentina, which collectively account for 47 percent of the world's population and 37 percent of its gross domestic product on a purchasing power parity basis. To delve deeper into the outcomes and implications of this expansion, CNBC Africa's Fifi Peters engaged in a conversation with Bassim Haidar, Chairman of BH Holdings. Haidar shared his insights on the key takeaways from the summit, emphasizing the strategic significance of the countries invited for expansion. He highlighted common factors such as population size, mass, and strategic locations as reasons behind the selection of these specific nations. Haidar also pointed out the pressing issues faced by emerging markets, including inflation, unemployment, poverty, and social injustice, and stressed the importance of smart investments in building new industries to address these challenges. One of the focal points of the discussion was the potential strategic impact of Saudi Arabia's inclusion in the BRICS alliance. Haidar expressed optimism about Saudi Arabia's financial strength and its potential to attract investments to Africa and other future BRICS countries. He underscored the importance of establishing a single currency within the BRICS framework to facilitate capital repatriation and mitigate currency-related risks, drawing parallels with the success of the euro in Europe. Furthermore, the conversation delved into the implications of transacting more in local currencies within the BRICS cluster. While Haidar acknowledged the initial step towards local currency payments, he highlighted the persistent challenges posed by trade deficits and currency settlement issues in the absence of a unified currency. He emphasized the need for significant progress towards a common BRICS currency to address barriers to growth such as high interest rates. When discussing potential inclusions in the expanded BRICS alliance, Haidar expressed surprise at the absence of countries like Nigeria, Ghana, Ivory Coast, and Indonesia, citing their population size, resources, and strategic significance. He emphasized the importance of strategic interests and compromise in the selection process, hinting at possible additions in the future. The conversation also touched upon the political clout of the BRICS plus coalition and its potential to drive global reform and influence international institutions like the UN, World Bank, and IMF. Haidar underscored the need for a more unified and organized approach within BRICS to enhance its political influence and effectiveness on the global stage. In conclusion, Haidar's insights shed light on the significance of the BRICS expansion, the importance of strategic investments in new industries, the necessity of a single currency, and the potential for BRICS to wield greater political influence internationally. As the world transitions towards a more interconnected global economy, the outcomes of the 15th annual BRICS summit set the stage for future collaborations and economic partnerships among emerging market nations.