BRICS and South African economic growth: Implications for Ethiopia, the new BRICS member

Abstract

This paper examines the BRICS’ impact on South Africa’s economic growth and its implications for Ethiopia, the new BRICS member. By analyzing the economic growth before and after BRICS from 2010 to 2021 using the Wilcoxon signed rank and the normality test, the research hypotheses are answered. The results showed that BRICS has a considerable impact on the current growth domestic product (CGDP) and that the CGDP increased after South Africa joined BRICS. The research also revealed that real growth domestic product (RGDP), which is higher after South Africa joins the BRICS, greatly increases after membership. Additionally, South Africa’s current growth rate of agriculture (CGRA) and annual growth rate of agriculture (AGRA) are significantly impacted by being a member of BRICS, and more (CGRA) and AGRA are reported after South Africa joins BRICS, respectively. Finally, the study discovered that membership in BRICS has a significant impact on current industry growth rates (CGRI) and annual industry growth rates (AGRI), with higher current industry growth rates (CGRI) and annual industry growth rates (AGRI) reported after South Africa joins BRICS, respectively. The analysis came to the conclusion that South Africa’s economic growth improved and greatly increased as a result of joining the BRICS. Consequently, the South African government should engage in greater BRICS membership activities and Ethiopia could take an experience from South Africa and use the BRICS membership as an excellent opportunity to enhance total net export, business investment, mass production, and value addition in agriculture and industry, including manufacturing, construction, and mining sectors.