DIGITAL

The digital industries sector—spanning e-commerce, cloud computing, fintech, AI, and digital platforms—has expanded rapidly across BRICS countries, driven by young populations, high mobile penetration, and growing tech ecosystems. However, for international corporations, the environment is increasingly defined by state-driven digital sovereignty, complex regulatory frameworks, and rising nationalism. Governments in BRICS nations often seek to assert control over data, platforms, and digital infrastructure through localization mandates, cybersecurity laws, and foreign ownership restrictions. This makes market entry and scalability highly sensitive to political dynamics and regulatory compliance.

Over the past five years, notable successes have included Amazon’s e-commerce expansion in India (though met with strict FDI rules and ongoing regulatory pressure), and Tencent and Alibaba’s dominance in China—though heavily curtailed by Beijing’s tech crackdown since 2021. Western firms like Meta and Google have faced legal and operational challenges in Russia, with services blocked or restricted in response to geopolitical tensions. In Brazil, fintech firms like Nubank have succeeded due to supportive regulation and unmet demand, while South Africa’s digital sector continues to grow but is constrained by high data costs and infrastructure gaps. The COVID-19 pandemic accelerated digital adoption across all BRICS nations, but also exposed vulnerabilities in cybersecurity, digital exclusion, and data protection.

As BRICS governments increasingly frame digital industries as strategic assets, foreign tech firms are viewed with skepticism—subject to data localization demands, content controls, and antitrust scrutiny. Moreover, digital platforms are often caught in geopolitical crossfire, accused of information manipulation or non-compliance with local norms. For international corporations, thriving in these markets requires navigating fast-evolving legal environments, building local alliances, and preparing for sudden operational restrictions or reputational crises