The New Development Bank established in 2015 by the BRICS countries (Brazil, Russia, India, China, and South Africa) has recently added Egypt as its new member. It is a multilateral financial institution that was established with the purpose to fund infrastructure and sustainable development projects in BRICS and other emerging economies. The main focus of the News Development Bank is to establish an extensive network of global partnerships with development institutions and banks across the world.
To date, the NDB has approved 80 projects in BRICS countries in sectors including transport, water and sanitation, clean energy, digital infrastructure, social infrastructure, and urban development. The development model of the New Development Bank aims at supporting and incorporating environment-friendly practices and ensures environmental protection and climate resilience, reduction in the use of unsustainable fuel sources, and shifting towards renewable decentralized energy systems. Additionally, the New Development Bank has also initiated the COVID-19 response program to support and contribute to economic recovery.
BRICS Membership Expansion
Recently, the New Development Bank has included 4 new members in its family recently including Bangladesh, UAE, Uruguay, and Egypt. The membership expansion of the NDB is a part of its strategy to become the premier development institution for emerging economies and developing countries.
Why is Egypt a valuable addition to the New Development Bank
In our opinion, the addition of Egypt as a new member of the New Development Bank can prove to be beneficial for the following reasons:
- Egypt is one of the fastest-growing countries of the world. The major economic sectors of Egypt include the agricultural sector, industrial sector, energy sector, construction and contracting sector, and the services sector. The structural reforms and policies including fiscal and monetary policies, taxation, privatization, and new business legislation have led to an inclination towards a market-oriented economy and prompted an increase in the foreign investment.
- Another reason is that Egypt is a major economy in the African continent and the Middle East region. It benefits from political stability, its proximity to Europe, and increased exports. Along with having a strong currency, the economy of Egypt is greatly supported by external stakeholders.
- Egypt is considered as one of the key players in the development of financial institutions. The shift of the Egyptian economy in the 1900s from socialism to capitalism has greatly impacted the structure and policies of the financial sector over the years. Due to this, Egypt has become one of the key players in the development of financial institutions.
The addition of Egypt to the BRICS countries of the New Development Bank is a major step forward to achieve its goal of establishing a network of global partnerships and help develop emerging economies throughout.