What does it mean for Egypt to join the BRICS New Development Bank?
What does it meanEgypt joining the BRICS New Development Bank?
Today, corresponding to March 30, 2023, the “Official Gazette” published in its issue No. (13) Resolution of the President of the Arab Republic of Egypt No. (628) of 2022 regarding the approval of the agreement to establish the “New Development Bank” of the… “BRICS“, and the document of the Arab Republic of Egypt’s accession to the Bank.
The Republican decision came in a single article that stipulated: “The agreement to establish the New Development Bank affiliated with the BRICS group and the document of the Arab Republic of Egypt’s accession to the bank was approved, with reservations, subject to ratification.”
It is worth noting that, last February, the Egyptian Parliament – headed by Counselor Dr. Hanafi Gebali – approved the decision of the President of the Republic referred to above, and the document of Egypt’s accession to membership in the Bank.
And “BRICS” is an abbreviation of the first letters in the English language of the countries that make up the organization, which are: Brazil, Russia, India, China, South Africa. The cluster represents about 30% of the size of the global economy, 26% of the world’s area, 43% of the world’s population, and produces more than a third of the world’s grain production. Earlier last February, “New Development Bank” officially accepted Egypt’s membership, but the bank did not announce the decision until March 22.
The “New Development Bank” located in the Chinese city of Shanghai aims to finance infrastructure projects and support the achievement of sustainable development in the “BRICS” countries and other developing countries. The bank was established in July 2014 after an international governmental agreement within the “Sixth BRICS Summit” in the city Brazilian Fortaleza.
The bank holds an international credit rating of “AA+” from Fitch and Standard & Poor’s Global, and the bank’s long-term financing in the capital markets locally and internationally is increasing. Throughout the duration of its work so far, it has agreed to finance more than 90 projects with a total of $32 billion, and this is in multiple areas, such as: water supply, transportation, Digital and social infrastructure, clean energy, and civil construction.
So far, 4 new countries have joined the bank: Bangladesh, the United Arab Emirates, Uruguay, and finally Egypt. It is expected that the bank will have a tangible role in supporting the state’s efforts to achieve Sustainable Development Goals (SDGs), by financing various development projects, in light of the national agenda “Egypt Vision 2030”, and in pursuit of a decent life for all.
