Egypt officially becomes BRICS NDB member
Egypt has officially become a member of BRICS’ New Development Bank (NDB) which includes India, Brazil, Russia, China, and South Africa as member countries.
The NDB k is a multilateral development bank aimed at mobilising resources for infrastructure and sustainable development projects in BRICS and other EMDCs.
The North African country has completed all the necessary procedures to become an eligible member on February 20, 2023, according to an update posted on the bank’s official website later on March 22.
The move comes weeks after Egyptian President Abdel Fattah al-Sisi paid a state visit to India as the chief guest for the Republic Day celebrations.
The BRICS countries established NDB following the signing of an intergovernmental agreement in July 2014 at the sixth BRICS summit in Fortaleza, Brazil.
The NDB’s activities are designed to finance infrastructure projects and sustainable development in BRICS and developing countries. Since its inception, the bank has approved over 90 projects totalling $32 billion to support areas such as transportation, water supply, clean energy, and civil construction, as well as social and digital infrastructure.
The NDB’s board of governors had authorised the management to hold formal talks with potential new member states by the end of 2020. Later in December 2021, the bank agreed to accept Egypt’s membership.
UAE, Uruguay, and Bangladesh also discussed for membership in September of the same year. All of these countries except Uruguay obtained official membership in the bank after completing the necessary procedures, according to Russian new agency TASS.
Egypt’s accession to the BRICS grouping is a new outlet for the economy, reduces pressure on the dollar, and eases the burden on the central bank, said Mohamed Attia Al-Fayoumi, treasurer of the General Federation of Chambers of Commerce.
Al-Fayoumi pointed out that the new economic alliances would help reduce the need for dollars, which will reflect positively on the Egyptian economy.
Such agreements are considered a lifeline provided by the government to the people, he added.
South Africa will host the upcoming BRICS Summit in August. The summit is set to promote intra-BRICS trade using national currencies, allowing member nations to safeguard their foreign exchange reserves.
