BRICS+ meeting, tensions in Horn of Africa - Danske Bank

The expanded BRICS - composition now also including Egypt, Ethiopia, Iran and the UAE - met in October in Kazan, Russia, Danske Bank macro analysts report.

13 countries for possible expansion have been agreed on

"The meeting was hosted by President Vladimir Putin who was able to attract heads of states from nearly 20 countries, including Turkey, to Russia. According to Putin, more than 30 countries have expressed a desire to join the forum, and a list of 13 countries for possible expansion has been agreed on. Saudi Arabia has been invited but is yet to formally join."

"Anti-western attitudes are on the rise in many places across the global south, so it is no surprise many governments sympathise the BRICS whose central aim is to counterbalance the US-led world order. One of the themes in the BRICS+ group is to build an alternative global financial infrastructure to reduce dependence on Western-dominated systems such as SWIFT. We doubt the group can pose a credible challenger any time soon, also, due to internal conflicts."

"For example, Ethiopia and Egypt have a long-standing dispute related to Ethiopia's dam project which Egypt says is jeopardizing their water security. There is even a real risk of a proxy war between the two as tensions grow in Somalia's breakaway region, Somaliland. Egypt signed a defence agreement with Somalia in July, while Ethiopia struck a deal with Somaliland in January to use its Red Sea shores for naval operations."