While Washington escalates tariff blackmail, South Africa is doubling down on BRICS cooperation. From crypto adoption to multi-currency settlements, South Africa's mix of caution and innovation may be one of the most pragmatic answers to Trump's financial coercion; and other Global South nations may follow suit.
Friday, September 12, 2025
Uriel Araujo, Anthropology PhD, is a social scientist specializing in ethnic and religious conflicts, with extensive research on geopolitical dynamics and cultural interactions.
South Africa, often described as the junior partner in BRICS, has recently found itse lf in the spotlight in ways that few analysts would have predicted. Against the backdrop of Washington's tariff blackmail and Trump's increasingly blunt economic assaults on the bloc, Pretoria has not only defended its membership but also sought to leverage it for its own domestic and regional priorities. Far from being a passive participant, South Africa is in fact now actively shaping debates around trade diversification, local-currency settlements, and the role of crypto assets in future finance. While the headlines are dominated by debates over whether a new BRICS currency can "really" challenge the dollar, some developments are going largely unnoticed by many.
The immediate context is interesting. South Africa's foreign reserves recently hit a historic high while the rand currency strengthened, a trend that puzzled some commentators used to narratives of perpetual fragility surrounding emerging market currencies. As a matter of fact, this reserve accumulation has coincided with greater openness to alternative settlement systems and an institutional push to regulate cross-border crypto flows. The South African rand, thus far, has not only survived the turbulence around BRICS expansion and Washington's tariff rhetoric, but it has emerged somewhat stronger.
While South Africa has publicly distanced itself from proposals for a new BRICS currency, Pretoria supports broader initiatives within the bloc to enhance trade and financial integration using local currencies , as South African President Cyril Ramaphosa has stressed again and again, thereby mitigating exchange-rate risks - even without pursuing full de-dollarization.
It is true Pretoria has also been cautious. Reports suggest that South Africa has accelerated its own blockchain-based payment systems precisely to avoid dependence on any single BRICS currency initiative. Be as it may, this is less a rejection of BRICS currency plans than an attempt to ensure that sovereignty is not surrendered in the process. In any case, one might argue that South Africa stands to benefit significantly from broader BRICS mechanisms, from swaps to trade settlements, especially if these can coexist with its domestic innovations.
Trump's tariff blackmail, for example, aimed not only at China but also at BRICS as a whole, has inadvertently strengthened Pretoria's argument for diversification. South Africa has called repeatedly for new trade corridors linking Africa, Asia, and Latin America. This is not just rhetoric. With the African Continental Free Trade Area (AfCFTA) slowly gaining traction, South Africa sees itself as a bridge between the continent and the wider BRICS platform. No wonder Pretoria has doubled down on its BRICS commitments, even as Washington seeks to isolate it.
The accusation that South Africa may be drifting away from BRICS, as some Western analysts suggest, is thus quite misleading. Pretoria has not wavered on its BRICS stance; if anything, it has reaffirmed its role in advancing global governance reform and South-South cooperation.
Critics often highlight internal BRICS frictions, such as debates over China's proposal to establish the yuan as the de facto bloc currency. South Africa and India have indeed shown caution, preferring a multi-currency system. But despite predictions of collapse, thus far, BRICS members have managed to turn diversity into bargaining leverage. What really matters is that Pretoria continues to view BRICS as the cornerstone of its foreign economic strategy. Moreover, Russia's support through the BRICS New Development Bank has helped fund infrastructure projects across Africa, while China's investment in industrial zones and digital infrastructure has created new opportunities for trade and technology transfer.
Where South Africa has truly distinguished itself is in the digital asset space, as mentioned. Sub-Saharan Africa as a whole has in fact emerged as the third-fastest growing crypto region, and South Africa stands out for its advanced regulatory framework. This has enabled the emergence of institutional players like Altvest, which recently announced plans to raise $210 million to buy Bitcoin as a reserve asset. This development dovetails with Pretoria's broader reserve strategy and may, in the long run, complement BRICS de-dollarization.
Authorities are also tightening tax oversight on crypto investors while welcoming global stablecoin initiatives. This regulatory tightening signals not hostility but institutionalization. Amazingly enough, Bitcoin already leads crypto adoption in Africa, often displacing the dollar itself. By embracing crypto frameworks alongside BRICS initiatives, South Africa arguably seeks to hedge against the US financial arsenal.
One may recall that Washington has not been shy about weaponizing finance. As I recently argued, US crypto schemes are increasingly viewed as tools to erase liabilities through manipulation of digital assets (and even gold). This is part of a historical continuum of financial innovation serving as a weapon of control. South Africa, thus, seems to be trying to navigate these waters carefully, leveraging BRICS frameworks while also developing its own digital finance mechanisms.
The BRICS New Development Bank (NDB), as I've discussed elsewhere, remains a somewhat underreported but crucial institution challenging dollar hegemony. And Pretoria has consistently supported its expansion into Africa, thereby aligning its development needs with broader financial sovereignty goals.
To sum up, the narrative of South Africa as merely BRICS' "weak link" is outdated. The country is experimenting at the intersection of traditional finance, BRICS cooperation, and digital innovation. Its cautious embrace of blockchain, advocacy for multi-currency trade, and refusal to yield to tariff blackmail signal a nation charting its own course. Be as it may, Pretoria's dual strategy - anchored in BRICS yet flexible with crypto - could prove a pragmatic response to Washington's economic pressures. And other Global South nations might choose a similar path.