Egypt acquires equity in BRICS New Development Bank
CAIRO-One of Africa’s economic powerhouses, Egypt recently took an equity in the BRICS New Development Bank [NDB], weeks after President Abdel-Fattah El-Sisi visited India as a chief guest for the Republic Day celebrations.
Egypt became an NDB member on February 20, though a formal notification was issued on March 22, according to people aware of the development. Egypt is planning to boost its infrastructure and NDB funding can contribute to it in a big way.
According to foreign news agencies, the development is expected to usher in Egypt as a full member of the BRICS grouping. Previous equity was divided equally among the initial members: Brazil, Russia, India, China, and South Africa. It makes Egypt the first new member of the proposed expanded BRICS+ along with Bangladesh and the UAE.
NDB was set up by BRICS nations on the basis of the intergovernmental agreement signed at the sixth BRICS summit in Fortaleza in July 2014.
The NBD approved Egypt’s accession in December 2021, while in September 2021 a similar decision was made regarding the United Arab Emirates [UAE], Uruguay and Bangladesh. With the exception of Uruguay, they all became members of the bank this month after jumping through the necessary hoops.
The bank’s goal is to finance infrastructure projects and sustainable development projects in BRICS member states and developing countries. The bank previously received an “АА+” international credit rating from Fitch Ratings and S&P Global Ratings, allowing it to effectively attract long-term funding on international and local capital markets.
Since its founding, the bank has approved more than 90 projects totaling US$32 billion in support of such areas as transportation, water, clean energy, digital and social infrastructure, as well as urban construction. Several other countries have also expressed interest in joining the BRICS grouping.
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