Expert: Africa needs to establish foothold in BRICS financial architecture

African institutions should formally propose the creation of a technical bridge between the Pan-African Payments and Settlement System (PAPSS) and the BRICS Cross-Border Payments Initiative (BCBPI) at the group’s summit in New Delhi. This view was shared by Phapano Phasha, chairperson of the Centre for Alternative Political and Economic Thought. This was reported by IOL.

According to her, such a link would reduce transaction costs, lessen dependence on foreign currencies in intra-African trade and in trade between Africa and the BRICS countries, and accelerate financial integration.

The expert noted that Africa is coming to the summit with its own assets. The African Continental Free Trade Area (AfCFTA) provides a market of 1.4 billion people with an economic area worth US$3.4 trillion. The Pan-African Payments and Settlement System (PAPSS) is already an operational platform for cross-border transactions in national currencies.

Phasha also pointed out that African countries – South Africa, Egypt, and Ethiopia – are already members of BRICS, whilst several others are in the running for partner state status within the group. This, she said, gives the continent diplomatic clout to negotiate on an equal footing.

A few weeks ahead of the summit, which will take place on 12–13 September, foreign investment in India’s banking sector, non-bank financing, insurance and financial technology reached US$13.1 billion. The expert described this success story as a signal for the Global South and a replicable model for Africa.

India, which has held the BRICS chairmanship since 1 January 2026, prioritised financial stability, cross-border payments, cooperation in the field of financial technology and the mobilisation of private capital at a meeting of finance ministers and central bank governors in Jaipur in mid-August. Trade ministers later focused on trade finance, digital services and sustainable supply chains.

In early 2026, the New Development Bank (NDB) approved a loan of US$1 billion for municipal infrastructure in South Africa. Fasha proposed that the African members of BRICS should seek to establish a specialised infrastructure fund for Africa within the NDB, which would draw on India’s experience of co-financing with private capital from participating countries.

In her view, African regulators should study India’s limits on foreign investment, licensing requirements and approaches to regulating financial technology in order to adapt them to local conditions.

Among the expected outcomes of the summit, the expert cited a joint working group on the interoperability of BRICS and African fintech solutions, with the integration of PAPSS into the group’s payment mechanisms, as well as a framework for attracting private capital from banks and investors in BRICS countries to African financial institutions. She cited deals between India and the UAE as a benchmark.