Algeria's Roadmap to Join BRICS: Digital Acceleration as Key Player

The BRICS Group and What it Means for Algeria

The BRICS group, consisting of Brazil, Russia, India, China, and South Africa, represents a powerful economic alliance with significant global influence. The bloc represents about 40% of the world's population and contributes more than a quarter of global GDP (gross domestic product), surpassing the G7.

Algeria has long been interested in joining the prestigious BRICS group. Such an initiative holds immense potential for the country's economic growth and development. but the path to achieving that goal is not an easy one. In recent years, Algeria has invested significantly in economic reforms and digital infrastructure. In addition to its influence and geostrategic position both in the Mediterranean and Africa, these efforts have the potential to be a key player in Algeria's roadmap to join BRICS, providing a much-needed boost to the country's economy and helping it meet the criteria to join the powerful economic alliance.

?

Joining BRICS between Dream and Reality

Algeria, known to be the largest country in Africa, has applied to join BRICS on July 21, 2023, and submitted a request to become a shareholder member of BRICS Bank with an amount of $1.5 billion. Despite its efforts and contributions, BRICS rejected the country's request during the 15th BRICS Summit held in Johannesburg, South Africa, August 22–24, 2023.

With that said, how can digital acceleration significantly bolster the country's prospects of being part of this new world order? And what specific digital advancements might play a pivotal role in enhancing its candidacy?

Challenges facing Algeria's inclusion in the BRICS Group

The country faces several challenges in its quest to join the prestigious BRICS group. One of the key challenges is the need to diversify its economy beyond oil. For years, Algeria has heavily relied on oil exports as its main source of revenue. However, the recent decline in oil prices has highlighted the vulnerability of this dependence and the urgent need for diversification. Joining BRICS could provide Algeria with the boost it needs to achieve this goal and strengthen its economy with the group’s members.

Membership in the BRICS group would mean access to a larger global market and increased trade opportunities for Algeria. This would not only help reduce its dependency on oil exports but also stimulate various sectors of the economy, such as agriculture, manufacturing, and services. Furthermore, there is a urgent need to design and implement new development model to properly deal with major shifts World order major is facing.

Another challenge is the need to accelerate digital transformation and improve e-government and e-administration to enhance transparency, efficiency, and governance. While Algeria has made progress in economic reforms, there is still much work to be done. Enhancing digital infrastructure, promoting innovation, and investing in digital skills are crucial for Algeria to keep pace with other BRICS countries and unlock the full potential of its digital economy.

Overall, the challenges Algeria faces on its journey to join the BRICS are significant. yet far from unconquerable. By tactically concentrating on broadening its economic horizons beyond oil dependency, and expediting its digital transformation, there lies a remarkable potential to elevate the sophistication of various economic sectors, especially the industry and financial sectors to move forward and quickly on diversification and sustainability of the growth model. This acceleration is pivotal to propel the diversification process and fortify the foundations for sustainable growth. Through these concerted efforts, Algeria can effectively overcome these challenges and position itself as a strong candidate not only for BRICS membership but also for a prosperous future beyond that horizon.

Examples of Successful Digital Transformation in Other BRICS Countries

Brazil, Russia, India, China, and South Africa, the members of the BRICS group, have all made significant progress in digital transformation, which can serve as examples for Algeria on its journey to join the new economic bloc.

Brazil, for instance, has undergone a remarkable digital transformation, particularly in its financial sector. The country has embraced technology to revolutionize its banking system, making financial services more accessible to millions of citizens. The introduction of digital banking platforms and mobile payment solutions has empowered individuals and small businesses, enabling them to carry out transactions efficiently and securely. This digital transformation has not only boosted financial inclusion but has also created new opportunities for innovation and entrepreneurship.

India's digital initiatives have also yielded impressive results. The country's implementation of e-government and e-administration systems has transformed public service delivery, making it more efficient and citizen-centric. Through digital platforms and services, Indian citizens can access government services and information quickly and conveniently. This has streamlined processes, reduced bureaucratic red tape, and enhanced transparency and accountability.

China's digital prowess is well known globally. The country has embraced digital technologies in various sectors, including e-commerce, fintech, and artificial intelligence. Chinese companies like Alibaba and Tencent have revolutionized the way people shop, pay, and communicate. The digital ecosystem in China is vibrant and dynamic, with innovative solutions that have had a significant impact on the economy.

Russia has made significant strides in e-government and e-administration, making public services more accessible and efficient for its citizens. Through digital platforms, Russian citizens can access a wide range of government services, such as healthcare, education, and taxation. This has simplified processes, reduced bureaucracy, and increased transparency.

South Africa has also made progress in digital transformation, particularly in its e-government initiatives. The country has implemented digital platforms and services to improve public service delivery and enhance citizen engagement. Through these initiatives, South African citizens can access government information and services easily, making their interaction with the government more seamless and efficient.

On the other hand, in the MENA region, it is mind-blowing how a small trading country such as the United Arab Emirates has metamorphosed into a digital nation, securing its place as a major international business hub. Egypt and Saudi Arabia, respectively, rank highest in the Arab digital ecosystem according to the Digital Riser Report 2021 (P24). As a reminder, the UAE, Egypt, and Saudi Arabia have all recently joined the BRICS, along with Ethiopia, Iran, and Argentina.

These examples from other BRICS countries demonstrate the potential of digital transformation in driving economic growth and development and provide valuable insights and inspiration for Algeria. By learning from these successes and leveraging digital and exponential technologies such as blockchain, artificial intelligence, IoT, and big data, in addition to implementing a data-driven decision culture, Algeria can accelerate its own digital transformation, enhance e-government and e-administration systems, position itself in the global market, and most importantly, regain a position worthy of the potential of the continent-country.

?

What Algeria needs to do to achieve digital acceleration

To achieve digital acceleration, Algeria must prioritize key initiatives and strategies. Firstly, accelerating e-government, e-administration and e-payment systems is crucial. Algeria needs to develop user-friendly digital platforms and services that streamline processes, reduce bureaucratic red tape, and enhance transparency and accountability. This would create a more efficient government that can better serve its citizens and work closely with the private sector, academia, and industry.

Secondly, Algeria needs to invest more in digital infrastructure, promote access to high-speed internet, and expand broadband coverage across the country. This would lay the foundation for digital transformation and enable businesses, individuals, and government agencies to fully embrace digital technologies.

Additionally, Algeria should focus on promoting digital skills and literacy. This involves investing in educational programs and training initiatives to equip the workforce with the necessary skills to accelerate the digital economy and foster innovation and entrepreneurship.

Moreover, collaboration with other BRICS countries and international partners is essential. Algeria can learn from their experiences and best practices in digital transformation, leverage their expertise, and benefit from their support in implementing digital initiatives.

By implementing these measures, Algeria can accelerate its digital transformation, enhance e-government and e-administration systems, and position itself as a technologically advanced nation. This would not only increase the country's chances of joining the prestigious BRICS group but also pave the way for sustainable economic development and prosperity for years to come.

-----------------------------------

You can read the French version of this article here

The G7 or group of seven includes the seven most advanced countries in the World: Canada, France, Germany, Italy, Japan, The United Kingdom and The United States.

Sources:

• Algeria applies to join BRICS, would contribute $1.5 billion to group bank Reuters. Available at: https://urlz.fr/nlsU
• Why Arab countries are queuing up to join Brics. Available at: https://urlz.fr/nlta
• Arabie saoudite, égypte, Iran... Les Brics vont accueillir six nouveaux pays membres. Available at https://urlz.fr/nlsR