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Africa to Ditch US Dollar as World Bank Fails To Provide Funds?

The BRICS alliance invited six new countries to join the bloc after the 15th summit in Johannesburg last year. Out of the six countries, the UAE, Egypt, Iran, and Ethiopia accepted the invitation and are now part of BRICS. However, Argentina was the first country to decline BRICS membership and Saudi Arabia is yet to confirm its position. Experts suggest that BRICS played a power play move by inducting Ethiopia, which is a growing economy in Africa.

Also Read: BRICS: China Stockpiling 1.39 Million Barrels of Oil Every Day

The World Bank has turned a blind eye to Africa which could make them cut ties with the US dollar. BRICS inducting Ethiopia, could be more of a power game to capture the anti-US dollar sentiments in Africa.

BRICS: Africa Sits On The Sidelines of Ditching the US Dollar For Global Trade

brics 15 summit leaders
Source: AFP

Geopolitical experts told Jeune Afrique Magazine that the World Bank failed to provide adequate financial assistance and attention to Africa. The World Bank’s insufficient contribution towards Africa could be a cause for them to accept the BRICS idea of de-dollarization. Inducting Ethiopia could be the first step for BRICS to extend its presence in Africa, urging them to ditch the US dollar.

Also Read: BRICS: HSBC Predicts the Future of the U.S. Dollar

The first call in Africa against the US dollar and in support of BRICS came from Kenyan President William Ruto. He called for Africa to trade in local currencies and ditch the US dollar, copying the BRICS style of functionality. The President stressed that Africa needs to stand on its own and not depend on other currencies. Ruto’s speech about Africa ending reliance on the US dollar was met with a standing ovation from the country’s lawmakers.

Also Read: BRICS: U.S. Dollar Ranks Last in the Top 10 Currency List

Therefore, the development indicates that Africa is on the sidelines, and could accept BRICS currency cutting ties with the US dollar when it is launched. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.

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