The BRIC alliance, consisting of Brazil, Russia, India, and China, has officially extended its membership to include Saudi Arabia, UAE, Ethiopia, Egypt, and Iran, solidifying its status as an economic powerhouse.

This expansion brings together a diverse coalition that now controls up to 43 percent of the world’s total fuel production, a milestone that marks a major shift in global economic dynamics.

The inclusion of the new members represents a major milestone for the BRIC alliance. These countries, alongside the original members, are poised to influence oil prices through coordinated production, particularly given that Saudi Arabia, UAE, and Iran are members of OPEC.

Together, this formidable coalition commands 29 percent of the world’s GDP and nearly half of the world’s crucial resource—oil, posing a substantial threat to the G7.

As the world grapples with the implications of this expanded alliance, the G7 faces an unparalleled challenge. The new members have expressed a goal of championing de-dollarisation, adding a layer of complexity to global economic dynamics.

The emergence of a powerful BRICS coalition signals a seismic shift in the balance of economic power for the G7.

Traditional economic powerhouses now confront a formidable contender, necessitating a reassessment of strategies and policy recalibration to maintain influence in a world where the economic center of gravity has decisively shifted.

While the BRICS alliance presents unprecedented opportunities for growth and collaboration, it also brings about inherent challenges.

Differing political ideologies, cultural nuances, and divergent economic priorities within the group create a delicate balancing act, requiring careful navigation for sustained cooperation.

Founded in 2009 with four members, BRIC added South Africa the following year and launched its New Development Bank in 2015.

news@businessdayfarica.org