THE recent pledge of support for Zimbabwe’s bid to join BRICS’ New Development Bank is indicative of the progressive world’s confidence in the country as a key global economic player. 

Zimbabwe has been on an aggressive economic revival and development trajectory that has seen massive investments into its economy, mainly by BRICS countries. 

BRICS countries have since set the trajectory for a new world order no longer dominated by Western capital and linear politics.

NDB has a capital value of well over US$100 billion, which is set to increase rapidly as new members join the bloc.

Previously comprising Brazil, Russia, India and China at its inception in 2009, it became BRICS when South Africa joined in 2011. 

BRICS continues to grow; with Iran, Saudi Arabia, the United Arab Emirates (UAE), Ethiopia and Egypt having since formally joined the fledgling economic giant that looks set to reshape the fast waning Western-led international monetary system.

Zimbabwe is also set to join the pro-democracy bloc in the coming few months as exclusively revealed by this publication last year.

But it is the endorsement by South Africa, Russia and Brazil that has excited markets as Zimbabwe brings to the BRICS’ table tangible benefits to all countries in that grouping.

More than two decades after Western countries’ vain attempts to isolate Zimbabwe through their illegal sanctions anchored on an aggressive policy towards the country, the progressive world has duly embraced Harare due to its vast, untapped mineral resources and peaceful environment.

Despite being severely hamstrung by those sanctions whose devastating effects have taken a toll on the economy and the masses, Zimbabwe has adopted and maintained strong ties with its traditional allies, such as China, Russia and South Africa, who have supported it both financially and politically.

The results of those solid ties are there for all to see.

In 2008, China and Russia used their veto power to rescue Zimbabwe from the UN Security Council which had been waylaid by Western countries to put it under sanctions and pave way for a military invasion orchestrated by former British Prime Minister Tony Blair.

The Chinese have made significant investments in the country, with the South Africans and Russians in tow.

They continue to help Zimbabwe immensely in its bid to ward off Western countries’ continued aggression against the country.

Zimbabwe, together with Argentina and Saudi Arabia, will be announced as new NDB members at a BRICS Summit to be hosted by South Africa this August.

So what does this development mean for the country?

It means fresh capital for the country’s financial sector, industry as well as new markets for the agriculture and other sectors.

Fresh capital for Zimbabwe’s financial system

In order to have a grasp of the effects of the West’s illegal sanctions, one has to look at how the country’s financial system has been affected.

For instance, and despite the West and the opposition lies that the country was put under sanctions over its alleged ‘failure’ to service debts, the truth is that this was a political move.

The reality is that the sanctions were imposed to frustrate Zimbabwe’s historic land reform programme.

As a result, the country cannot attract fresh capital due to those sanctions and the debt which the black Government inherited from Ian Douglas Smith’s colonial regime, something that pro-opposition characters and the West have tried to mask.

In the few instances that the country has attracted capital, it has come at a huge cost; with interest rates of 5-15 percent against the usual 3-5 percent per annum.

This means the cost of doing business is high compared to other countries.

“Its (NDB) endorsement comes at a time when we are excluded from international financial systems, especially from the West. We should seek alternative institutions since the global economic financial power is shifting from the West to East,” economist Persistence Gwanyanya told The Herald last week.

“So, the new normal reality is that the flow of capital is now southwards and even in influence, from the West to the East, every effort is well informed and in good order.

As a country, we need to seek ways to benefit in the change of the global order and as we seek to join the BRICS Development Bank we must see the value we can get from that.”

Sanctions and the economy

Perhaps the biggest takeaway from the NDB is that it helps the country in culling Western-imposed sanctions and open new markets for Harare.

With agriculture and mining on the rise, new markets will help in increased production as well new investments.

This means that the country can leverage on its vast mineral resource base and land to inject the much needed revenue into the economy.

As such, the expansion of BRICS brings those markets and synergies that can help the country move forward.

“To us, BRICS is family, and it is our hope that with joining of more developing countries, BRICS will represent the global south with a louder (voice) on the world stage. Developing countries should stand together and refuse to be intimidated by imperialist behaviour,” said President Emmerson Mnangagwa in his keynote address at 15th BRICS summit delivered on his behalf by Vice-President Constantino Chiwenga in August 2023 in South Africa.

“Zimbabwe, like many other countries in Africa, is committed to pursuing a path to sustained economic growth and transformation through continental integration. We are pleased to be working with the BRICS partners to successfully implement our market integration objectives.

African countries and BRICS nations share similar views and interests in improving and reforming the current international order and global governance system. The world needs a just order which provides the future we want, which leaves no-one and no place behind.” 

As Zimbabwe joins the NDB, it is imperative for the country to market priority projects to prospective investors.

Let those with ears listen.