Egypt's joining of BRICS is a strategic move that has significant implications for its geopolitical positioning and economic standing. As a core player in the Middle East and North Africa, the country's position at the crossroads of three continents can serve as a bridge to enhance economic cooperation and dialogue between BRICS nations and the West.

Egypt's sizable and growing economy, robust infrastructure development, and economic reforms met the criteria for BRICS inclusion, providing access to an elite club with significant global economic and political sway.

Its membership has the potential to provide the country with a buffer against global financial volatilities and improve its access to financing, debt relief and trade facilitation. Additionally, it could influence Egypt's soft power and geopolitical standing, enhancing its image and position in the international community.

By diversifying its partners and economic ties, Egypt can maintain a healthy interdependence with the West and develop stronger economic bonds with the growing economies of other BRICS nations.

Solutions to mutual trade challenges 

The financial settlement and transactions between Egypt and other BRICS nations pose a significant challenge to the consolidation of robust trade relations. To address this, innovative solutions are needed. One such solution is the implementation of a digital financial platform integrating the blockchain technology, which reduces transnational transaction costs and banking fees. This system can facilitate faster and more transparent transactions, boosting business dynamics and trust.

Another innovative approach is the creation of special economic zones, with banking and financial laws tailored to international standards. These zones could protect international trade payments, promote economic integration, and increase the scale of financial transactions between Egypt and other BRICS nations.

The implementation of a "collective currency" or "BRICS reserve currency" would mitigate the impact of volatile national currencies, bypassing the need for a dominant currency like the U.S. dollar. This financial mechanism can increase mutual trade and investment by providing a more stable settlement currency.

Lastly, forming a financial alliance or dedicated financial institution that provides stabilization funds, promotes investment and ensures financial support in times of economic crisis could be a significant confidence-building measure. A BRICS-Egypt trade development bank could work to innovate financial mechanisms for trade facilitation, stimulate the economy, and build resilience against potential financial shocks.

Greater cooperation within the group 

Joint startups and small businesses can significantly stimulate economic and business cooperation within BRICS countries. These ventures can serve as catalysts for cross-border investment, trade and technology exchange, enhancing the region's competitiveness on the global stage. By partnering on innovative projects and developing scalable solutions, these startups can tap into diverse markets, resources, and competencies, stimulating local economies and enhancing the group's overall competitiveness. 

Joint ventures can also foster a culture of entrepreneurship and innovation that transcends political and geographical boundaries, contributing to a vibrant, interconnected, and sustainable business environment. This could attract regional and global investments, reinforcing the economic gravity of these countries.

Joint businesses can also address common challenges faced by these nations, such as climate change, sustainability and market access. By encouraging cooperation, member states are able to develop shared solutions that benefit from diverse scientific and technical perspectives, potentially leading to significant advancements in areas such as renewable energy, pollution control and disaster management. 

China leads the pack with thousands of startups, while India, Brazil, Russia, and South Africa show promising trends in fintech and e-commerce sectors. The synergy created by fostering a collaborative startup environment among BRICS Plus countries can greatly benefit each member's economy and promote deeper integration within the group.

A new facilitator 

A joint economic news platform or mobile application for BRICS countries would streamline economic actions and collaboration. The platform would be a comprehensive source for economic data, analysis, and news about each member's economic climate, monetary policy, trade rules, investment incentives and project opportunities. It would serve as a resource for stakeholders, organizations, authorities and interested individuals seeking to understand the economic landscape and potential opportunities within these dynamic territories. 

The platform could also feature the latest insights, summaries, and recalibrations of economic indicators, such as interest rates, inflation percentages, stock market indices and foreign direct investments. This would enhance the transparency and visibility of economic dynamics within the group, crucial for meaningful cooperation and

investment.

If successful, the platform would function as the digital backbone for economic cooperation among BRICS countries, incorporating interactive features like real-time forums, chat interfaces, virtual seminars and webinars. Utilizing artificial intelligence, big data and advanced analytics, the platform could provide insightful forecasting and projections, benefiting policymakers, business leaders, investors, analysts and researchers in interpreting and pre-empting macroeconomic trends.

The establishment of such a platform aligns with the trend of digital diplomacy and cooperation in the modern era, showcasing the power of technology to break down barriers and bridge distances. It would act as a cornerstone and catalyst for economic cooperation among BRICS countries, paving the way for strengthened unity and collective progress through digitalization.

Egypt's joining of BRICS aims to build fruitful multilateral partnerships, boosting its economy, modernizing its infrastructure, improving trade relations, and enhancing its geopolitical influence.

The author is an Egyptian economist and director of the Asia Center for Studies and Translation 

Copyedited by G.P. Wilson 

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