October 14, 17:18IOL

BRICS is developing a new investment platform for cross-border financial operations

The BRICS group is studying the creation of a new investment platform capable of changing how businesses attract capital and move funds between countries. The proposed system will utilize financial technologies such as central bank digital currencies, tokenized instruments, and stablecoins to simplify international payments and investments across various banking and legal systems.

This initiative aims to connect enterprises, investors, and financial institutions, potentially easing companies' access to financing and project implementation outside their domestic markets. Although the platform is in development, its goals encompass infrastructure, logistics, artificial intelligence, and renewable energy, with a particular focus on expanding investment opportunities in Global South countries.

Analysis of the Proposed System's Operation

The initiative was first discussed in October 2024 at the summit in Kazan. Russian President Vladimir Putin proposed launching this platform based on the New Development Bank (NDB). The goal was to support the national economies of BRICS countries and ensure financing using electronic resources. In the summer of 2025, this idea was developed into a proposal for a full-fledged digital platform for settlements and investments.

The NDB has a long history of financing infrastructure projects in BRICS countries and other emerging economies. However, it is a traditional intergovernmental financial institution that provides large loans, whereas the proposed investment platform must become a flexible, multifunctional digital mechanism for attracting private and long-term capital.

Unlike the NDB, which operates through traditional interbank funding channels, the platform is expected to use modern financial technologies and digital assets. The scale and geographical scope of projects may also differ. The investment platform is intended to go beyond the core BRICS countries, focusing on Global South nations, emerging markets, and high-growth partner countries.

Experts view the proposed platform as a potential link between business and financial institutions. It could function as a market or an ecosystem where project portfolios are presented, allowing participants to assess risks and find suitable sources of capital.

Abed Amiri, a representative of the BRICS Hub in Iran and Russia and an expert on economic and technological cooperation within BRICS, digital transformation, and the use of AI in business, noted: "Such a model can be particularly useful for small and medium-sized enterprises. Not every company has its own international team, but many possess competitive products, technologies, and ideas. They need access not only to money but also to information, expertise, and reliable contacts."

If this proposal is implemented, the NDB could serve as the financial and institutional foundation for the new ecosystem. Amiri believes that the platform should not be seen as a replacement for a bank; instead, it can help prepare projects while the NDB assesses their investment potential and attracts partners.

The process may unfold over the coming years, although the entire system will not be implemented at once. A unified digital platform and an interactive map of BRICS special economic zones, Invest Navigator, have already been launched, while the broader ecosystem, according to Lavish Taneyji, Deputy Chairman and Head of the Indian Department of the Russian-Asian Union of Industrialists and Entrepreneurs (RAUIE), is expected to be developed in phases.

The declaration in New Delhi also obligates BRICS members to continue technical work on this platform. The declaration states: "We reaffirm our support for continuing technical efforts on the New Investment Platform (NIP) and developing guidelines finalized under the chairmanship of Brazil. We also welcome the progress made under the chairmanship of India in advancing discussions on NIP."

From Transport and Logistics to AI and Green Energy

Financial flows through the proposed BRICS investment platform are expected to support the group's priority areas. These include logistics corridors, urban infrastructure, technology and artificial intelligence, as well as renewable energy.

Experts also highlight projects related to 'superintelligence' (SI) and healthcare. Potential areas include digital health platforms, medical technologies, wearable sensors, robotics, AI diagnostics, and innovations aimed at improving human health and physical fitness.

Professor Habib Nurbhai, Deputy Dean for Research and Innovation at the University of the North West in South Africa, stated: "For businesses, the value of such a platform goes beyond simple access to capital. It can foster cross-border partnerships, technology transfer, access to new markets, and scaling of innovations within BRICS countries."

The platform could be especially beneficial for startups and small and medium-sized businesses with promising technologies but insufficient capital or business connections for international expansion. It could also provide companies and investors with access to large-scale public and international projects.

During his visit to India, Russian President Vladimir Putin informed BRICS business leaders before the summit that Russia is ready to cooperate with partners on infrastructure and logistics projects, including the Trans-Arctic Transport Corridor and the International North-South Transport Corridor. He also mentioned opportunities for cooperation in technology, artificial intelligence, autonomous transport, finance, tourism, and industry.

Supporting Domestic Technologies and Accelerating Idea Implementation

According to experts, the main task of the proposed investment platform is not just to provide funding, but to shorten the path from idea to realization. Amiri emphasized that identifying a promising project is only the first step. Then, partners must be vetted, terms agreed upon, legal issues resolved, financing secured, and settlements organized.

There is an urgent need for this type of cooperation among BRICS countries. In response, local technology and business platforms have emerged, including BRICS HUB Moscow, which positions itself as a platform connecting startups and venture funds from BRICS countries.

Experts argue that effective collaboration now requires greater scale, speed, and simpler communication. This is what the proposed BRICS investment platform aims to provide. Amiri stated: "A multilingual environment is necessary where language and geography do not become obstacles to business interaction. An entrepreneur must be able to present their project, find a partner, and discuss cooperation terms regardless of the language they operate in."

Experts also believe that the platform should direct resources towards developing science and intellectual property in BRICS countries, rather than strengthening dependence on technologies developed elsewhere. This includes the technologies needed to run the platform itself.

According to Taneyji, launch and successful operation will require the integration of digital and electronic assets, the use of tokenized instruments, stablecoins, and national digital currencies, as well as alternatives to traditional settlement mechanisms. Taneyji added: "Furthermore, work will be required to create sustainable mechanisms for cross-border settlements, which implies developing payment systems (such as BRICS Pay or alternative clearing mechanisms) for direct currency conversion into the recipient country's currency."

BRICS countries are already working to increase the compatibility of their payment systems. Amiri noted: "I believe that increasing the compatibility of national payment systems is a necessary area of work. The practical priority is to make cross-border settlements more understandable, predictable, and convenient for businesses, including settlements in national currencies."

Before the summit in India, BRICS countries considered integrating fast payment systems and central bank digital currencies. According to Sanjay Malhotra, Managing Director of the Reserve Bank of India, whose comments were published by partner Brasil 247, this could reduce the cost of cross-border transactions.

Group members discussed several options for financial integration, focusing on improving the efficiency of transfers between countries. However, the specific model and implementation timelines have not yet been determined, nor have the technical parameters of any potential common infrastructure been disclosed.

Nevertheless, the New Delhi Declaration calls for the continuation of work on joint settlement centers, the investment platform, and a national currency settlement platform. BRICS finance ministers and central banks are also discussing the creation of a special working group under the NDB. Its task will be to develop the technical, regulatory, and operational parameters of the proposed investment platform.

Prospects of the Platform and Its Significance for the Global South

The investment platform could become a tool to support the national economies of BRICS countries while providing alternative funding sources for Global South and Eastern countries. Nurbhai stated: "Many Global South countries have talented researchers, entrepreneurs, and young innovators, but access to financing, infrastructure, computing power, and international markets remains uneven. The BRICS platform can help bridge this gap by financing solutions tailored to local conditions and uniting innovative ecosystems across different countries."

The platform could also create opportunities for developing solutions that reflect local populations, data, natural conditions, and national priorities. For example, in the field of artificial intelligence, this could strengthen technological sovereignty and stimulate the development of models trained on local data that better reflect population diversity, experts believe.

Ultimately, the platform could help countries transition from being consumers of advanced technologies to developers, owners, and exporters of them. This is particularly important for Global South countries, the article asserts.

Once BRICS countries agree on the conceptual model of the proposed platform, the group is expected to move to technological design, as well as regulatory and legal integration. Possible next steps include establishing a digital foundation, ensuring the interoperability of participating countries' central bank digital currencies, harmonizing national legislation, and integrating exchanges and banks. These measures will be necessary not only to facilitate intergovernmental lending but also to create mechanisms linking projects, state institutions, and private capital.

Amiri noted: "Technology is important here, but it does not replace institutions. It is impossible to create a single interface and thereby eliminate differences in banking and currency regulation across BRICS countries. What can be done is to hide this complexity from the user and turn international operations into a clear process."

According to Taneyji, developers may face practical barriers, including cultural and legal differences, as well as market variations. Therefore, coordination will need to be selective and phased. The success of the platform will ultimately depend on how effectively it overcomes these obstacles.

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iol.co.zaSeptember 30, 17:25

The Creative Economy in BRICS+ Countries: New Growth Centers Are Forming at the Intersection of Competitive Advantages

The creative economy is becoming a significant driver of growth in BRICS+ countries, as culture, technology, and innovation open up new opportunities for investment and job creation. According to a TV BRICS study, 'The Creative Economy: How Culture, Creativity, and Innovation Affect Finance and Consciousness,' creative industries (CI) contribute to innovation, enhance city competitiveness, support sustainable development, and stimulate exports.

Nevertheless, investors do not yet view this sector as frequently as an independent area of investment compared to traditional industries such as construction and trade. The global economy is gradually shifting towards a model where knowledge, intellectual property, technology, and creative capital play a decisive role. The United Nations recognizes the creative economy as one of the factors for sustainable development.

The global market for creative industries was valued at $2.9 trillion in 2024 and is projected to exceed $4.3 trillion by 2033, with a compound annual growth rate of 4.3 percent. Creative industries account for about 3.1 percent of global GDP, 3 percent of world trade, and over 6 percent of employment. Some segments of the sector are growing annually by up to 8 percent, which in some cases is twice as fast as traditional industries.

Creative industries cover activities such as design, architecture, education, advertising, new media, painting, cinema, jewelry, music, museums, fine arts, and other fields based on the creation and commercialization of intellectual and cultural products. Creative activity is based on knowledge and intellectual labor, as well as the experience economy, where the value of a product is determined not only by its functional characteristics but also by emotions, cultural context, brand, and unique user experience. Essentially, creativity has become a systemic economic factor that generates jobs, attracts export revenues, and brings substantial income; by 2030, its contribution to global GDP could reach 10 percent.

Analysis of national strategies and indicators allows for the identification of three sustainable models of creative sector development within the group. The first is the innovation and technology model, represented by China and the UAE, where economies possess large-scale technological infrastructure and capital. The second is the hybrid model, characteristic of Russia, Brazil, and Indonesia, which have significant human resources and consumer potential. The third is the traditional cultural model, inherent to South Africa, India, Egypt, Iran, and Ethiopia, where most of the potential is linked to cultural heritage and national identity.

The key investment potential of BRICS+ countries lies not in individual national markets, but at the intersection of their competitive advantages. An expert in economics and business, Doctor of Economic Sciences Georgy Grits, notes that the global market underestimates the competitive advantages of BRICS+ in the field of the creative economy. He stated that 'BRICS+ creative industries represent a market with significant potential, combining Eastern capital, African demographics, modern technologies of China and Eurasia, as well as dominance in raw material and energy markets, including rare earth elements.'

Georgy Grits added that the formation of the foundations of a multipolar world order is taking place in structures like BRICS and SCO, while the generation of consumer demand and shaping of preferences remains predominantly under Western control. He emphasized that for many BRICS+ countries, the priority is expanding the export of goods and services through the development of their own creative industries. The expert also noted that stimulating domestic creative markets can become an important element of cooperation.

According to a TV BRICS study, 'Development of Creative Industries: BRICS Countries,' the share of the creative economy in Indonesia's GDP is 7.3 percent. In China, this figure reached 4.6 percent in 2024. Russia shows comparable results, where the share of creative industries in 2024 was 4.1 percent. Brazil and the UAE are at a similar level—3.6 and 3.5 percent, respectively. Initial estimates in Egypt showed less than 1 percent, but data from the UN Conference on Trade and Development for 2024 allow this figure to be estimated at approximately 3 percent. In 2023, the creative economy of South Africa accounted for about 3 percent of GDP. Nevertheless, caution should be exercised when comparing between countries due to differences in approaches to classifying and accounting for creative industries.

In terms of volume, China leads the creative economy with a total of $879 billion. This is followed by Indonesia with $105 billion, Russia with $87 billion, and Brazil with $78 billion. Regarding employment, Indonesia stands out, employing 18.7 percent of the workforce, followed by Egypt with 15 percent and India with 8.3 percent. Absolutely, India employs about 50 million people, China employs 30 million, and about 27.4 million people work in Indonesia's creative sectors.

Export trade also remains highly concentrated: China and the UAE account for over 60 percent of BRICS+ countries' creative goods exports, while Russia, Brazil, and Indonesia together account for less than 15 percent. According to the TV BRICS study, major challenges include uneven state support, lack of funding, imbalance between production and export, digital divide, and absence of comparable statistics.

Differences between countries are also reflected in support mechanisms. China and the UAE have centralized development programs linked to national strategies and targeted support measures. In Russia, India, and Brazil, a significant part of the support is formed at regional and private levels, whereas in Egypt and Ethiopia, the legislative and institutional framework for the creative economy is still under development.

Differences in methods of defining and accounting for creative industries remain a separate issue. The lack of comparable methodologies for assessing GDP, employment, exports, and added value complicates both international comparisons and the development of joint policies. Access to financing is also a limitation. Creative companies often face difficulties in obtaining specialized banking products, venture capital, and subsidized loans, as the traditional financial system is primarily oriented towards physical assets. State and private support mechanisms actively developing in China and the UAE are becoming a way to bridge this gap.

Digital divide also limits the ability of creative enterprises to scale. Internet penetration varies significantly among BRICS+ countries: from 99 percent in the UAE to 38 percent in Ethiopia. Another obstacle is the general caution of venture investors. In recent years, the global number of venture deals has decreased, and capital is increasingly concentrating in traditional technology sectors, especially in information and communication technologies. This narrows access to financing for a wider range of creative sectors and emerging markets, and increases the requirements for projects seeking private capital.

The Global Innovation Index (GII) is published annually since 2007 by the World Intellectual Property Organization and its partners. GII 2025 covered 139 countries and included 79 indicators to assess the effectiveness of national innovation systems. China is a prime example of integrating the economy with technological development. In the GII 2025 ranking, the country ranked 10th and has 24 out of 100 global innovation clusters. China also leads the world in patent activity and maintains strong scientific and technical positions. Furthermore, it ranked second in late-stage venture funding, reflecting the growing role of private capital in the development of innovative companies.

Among the largest innovation centers, the country features Shenzhen, Guangzhou, Beijing, and Shanghai. China's high-tech exports and its position in global value chains continue to strengthen, especially in strategic areas such as semiconductors and green technologies. Technological and financial infrastructure serves as the basis for scaling innovative and creative businesses. China continuously develops cultural trade, national export bases, tax incentives, grants, project financing, and talent training centers. An important element of this policy is support for high-quality development of external cultural trade. Various government bodies support digital cultural trade, export of publications and copyrights, radio, television, and film programs, fine and decorative arts products, as well as cultural and design services. Simultaneously, the export of Chinese cuisine and traditional Chinese medicine is encouraged.

As a result, state policy is gradually shifting from the concept of 'Made in China' to the model of 'Intelligent Manufacturing in China,' where domestic production of intellectual products is gaining increasing importance. The UAE is developing its model by concentrating financial, urban, and cultural infrastructure. The country plans to increase the share of the creative sector in GDP to 5 percent by 2031, and its ranking in the GII 2025 rose to a historic 30th place. Dubai functions as an international financial and creative hub, attracting international cultural events, business, and investment.

The hybrid model is successfully implemented by Russia, Brazil, and Indonesia. These states combine market mechanisms with cultural tools, relying on domestic demand and regional development. Russia is developing its institutional approach to the creative economy. Legislation defines four key areas: historical and cultural heritage, literature and art, information and communication technologies, and applied creativity. The Government of Russia approved the Strategy for the Development of the Creative Economy until 2036. This document defines the creative economy as a system where added value is created through intellectual activity and creative labor, and the ecosystem includes institutional conditions, participant interaction, production and promotion of products, education, logistics, trade, and technology.

Russia is consistently strengthening its role as a platform for cooperation between the creative markets of partner countries while simultaneously developing its own infrastructure for the production and commercialization of intellectual products. In Russia, the gross added value in the creative economy increased by 65 percent over five years, adjusted for inflation, while GDP grew by 15.9 percent. Thus, the creative economy expanded approximately four times faster than GDP. The sector provides employment for 4.5 million people, which accounts for 6.2 percent of the total employed population. However, development remains highly differentiated: the five largest industries—software, advertising and PR, gastronomy, performing arts, and architecture—account for 75 percent of the gross added value in creative industries, while the five smallest sectors—design, fashion, music, folk art, and crafts, as well as video games—generate only 1.4 percent, indicating significant potential for further growth.