The Shanghai Cooperation Organization’s recent summit in Beijing was not only a display of military symbolism and political solidarity but also an important moment in the search for alternatives to the Western-dominated financial system. While global headlines focused on the parade and the choreography of power, the more lasting implications may lie in the economic conversations taking place behind closed doors. For Africa, and for South Africa as a member of BRICS, these developments are especially relevant. They suggest that the long-standing monopoly of institutions such as the IMF and the World Bank is beginning to erode, opening space for new forms of financial cooperation that could reshape the global economy.
One idea that attracted attention during the summit was the possibility of an SCO Development Bank, designed to complement existing mechanisms such as the BRICS New Development Bank. The purpose of such an institution would be to provide credit and finance infrastructure for the countries of Eurasia and potentially beyond, reducing dependence on Western-controlled lenders. For decades, nations of the Global South have had little choice but to seek funds from the IMF or World Bank, institutions that often attach stringent conditions reflecting the priorities of Washington and its allies. An SCO Bank would not erase these challenges overnight, but it would introduce competition into a system that has long been unipolar.
The symbolism of such a proposal should not be underestimated. China and Russia, together with Central Asian states and now with outreach to the Middle East and even Africa, are signaling that they are prepared to offer a parallel track of development finance. In practice, this means that African states struggling to fund infrastructure or social development could one day negotiate with more than one set of creditors. The mere presence of options changes the balance of power. When a borrower has alternatives, conditionality becomes weaker and sovereignty stronger. For South Africa, already active within BRICS and the New Development Bank, the SCO’s economic ambitions reinforce the sense that non-Western institutions are maturing and that Pretoria’s voice can carry weight in shaping them.
The economic agenda of the SCO also connects directly to the broader trend of de-dollarization. Members discussed mechanisms for conducting more trade in local currencies, building on the experiences of Russia, China, and India in bypassing the dollar in energy and commodity transactions. For Africa, this trend could open the possibility of trading directly with Asian partners without constant exposure to US financial sanctions or currency fluctuations tied to Federal Reserve policy. It would not mean the end of the dollar, but it would mean more flexibility and resilience for developing economies. The Global South has long been vulnerable to sudden shifts in US monetary tightening, which can drain capital and destabilize currencies. A more diversified global financial system would reduce that vulnerability.
It is also important to recognize what the SCO’s economic ambitions are not. They do not signal the immediate replacement of Western finance with a Chinese-led order. Just as the military parade did not mean China is about to become the next hegemon, the financial proposals do not mean the renminbi will displace the dollar anytime soon. China’s currency is still not fully convertible, and SCO institutions are in their infancy compared to the depth of Western markets. Yet the point is not immediate replacement but gradual evolution. The more pathways there are for trade, finance, and development, the less any single actor can dominate. For Africa, this emerging pluralism in finance is an opportunity to be seized.
South Africa has a special role to play here. As the most industrialized economy on the continent and a member of BRICS, it is in a position to bridge African priorities with Eurasian initiatives. Pretoria can advocate for African access to SCO-led projects, push for investment that addresses the continent’s infrastructure gap, and use its experience in multilateral diplomacy to shape the norms of these institutions. The lesson of the past is clear: if you are not at the table, you are on the menu. By engaging actively with SCO economic initiatives, South Africa can ensure that Africa’s interests are represented as the new architecture of global finance takes shape.
There are, of course, challenges. New institutions are not immune to politics, and the SCO includes countries with divergent agendas. Some African leaders may fear exchanging one dependency for another. The practical mechanisms of an SCO Bank or currency settlement system will take years to mature. But it would be a mistake to dismiss these efforts as mere symbolism. Every institution begins small. The Bretton Woods institutions themselves were once experiments born of crisis. Today, alternative institutions are being born from a different crisis: the overuse of financial sanctions, the instability of Western-dominated globalization, and the demand from the Global South for voice and choice.
For Africa, the message of the SCO summit is not about distant geopolitics but about agency. Multipolarity in finance means the possibility of negotiating better terms, accessing funds without austerity conditions, and insulating economies from the volatility of dollar dominance. It means that development is no longer dictated exclusively by Washington or Brussels but contested, debated, and diversified across multiple centers. South Africa, by virtue of its position in BRICS and its connections to Africa, can help turn this possibility into reality.
The Beijing summit may be remembered in the West for its parade of missiles and jets, but in Africa it should be remembered for something else: the emergence of a world in which financial power is less concentrated, more negotiable, and more open to participation by the Global South. That is not a guarantee of equity, but it is a chance a chance that Africa cannot afford to ignore.
By Peiman Salehi
Political Analyst & Writer
Tehran, Iran
muckrack.com/peimansalehi_
