According to a top Russian official, African countries will not achieve their development goals under the current global financial system as this would take them out of neo-colonial control.
The official who is Deputy Chairman of the Russian State Duma, Alexander Babakov Western, said banks and funds will not finance the development of the African continent, which would take it out of neo-colonial control – such development requires various institutions, in particular, an investment bank and a clearing bank rolled into one.
“The financial agenda of BRICS has a main initiative for building a new economic reality that solves both major tasks. Creating our own financial messaging system for the BRICS countries, similar to SWIFT, based on state-owned banks capable of clearing settlements of counterparties from the BRICS countries and the related role of the same bank,” said Babakov.
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Babakov indicated that the development and implementation of their own financial messaging system will allow BRICS, the group of nations that includes Egypt, Ethiopia, and South Africa, to reduce their dependence on Western financial institutions and increase national financial autonomy. This will enable countries to carry out financial transactions without the intervention of external parties.
“It is necessary to create a new system of financial institutions. The new system must be technically compatible with the existing financial infrastructures of the participating countries, which includes integration with national payment systems, banks, and other financial institutions.
At the same time, the system must ensure a high level of security and data protection to prevent cyber-attacks and un-authorized access to financial information,” he added.
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Babakov believes this will require the introduction of advanced encryption and cybersecurity technologies.
Creating such a system will lead to an increase in economic efficiency due to the reduction of transaction costs, as well as the acceleration of transactions themselves, which will in turn speed up the turnover of capital and improve liquidity, the deputy noted.
“This is especially important for companies engaged in international trade,” Babakov emphasized.
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