New BRICS Development Bank grants Algeria membership

Algeria has received approval to join the New Development Bank (NBD) of the BRICS, according to the bank’s president, Dilma Rousseff, Reuters reported.

Established in 2015 by the BRICS countries (Brazil, Russia, India, China and South Africa), the New Development Bank (NDB) is positioned as a key multilateral institution focused on financing infrastructure and sustainable development projects in emerging economies. Since its founding, the bank has worked to strengthen economic cooperation among the BRICS countries, providing financing alternatives that promote inclusive growth and economic stability in underdeveloped and developing regions.

In 2021, as part of its expansion strategy, the NDB welcomed Bangladesh, Egypt, the United Arab Emirates and Uruguay as new members, consolidating its global presence. During the bank’s ninth annual meeting in Cape Town, NDB President Dilma Rousseff announced the authorization of Algeria as a new member, highlighting the bank’s commitment to the inclusion of more countries interested in contributing to and benefiting from its development programs.

The BRICS as the main driver of the world economy

In recent years, the BRICS countries have stepped up their engagement in Africa, a continent that offers great opportunities for development and growth. Through the New Development Bank (NDB), they seek to finance infrastructure and sustainable development projects, not only within the BRICS themselves, but also in other emerging economies, including several African nations. This involvement reflects the BRICS’ interest in fostering deeper economic relations with the African continent, boosting its development and, at the same time, diversifying their own economies.

The NDB presents itself as an alternative to large financial institutions such as the International Monetary Fund (IMF) and the World Bank, which have traditionally dominated development financing. By offering more accessible credit and financing options, the NDB seeks to balance the global economic landscape, promoting a more inclusive and cooperative approach among developing countries, with a particular focus on sustainable projects that boost long-term growth.

Since its founding, the bank has worked to strengthen economic cooperation among the BRICS countries, providing financing alternatives that promote inclusive growth.

Last week, South Africa’s state-owned logistics company Transnet secured a R5 billion ($283.53 million) loan from the New Development Bank (NDB). This financing is intended to strengthen South Africa’s logistics infrastructure by supporting key projects that will improve the country’s ability to manage its transport network, vital to trade and the regional economy. The investment underlines the NDB’s commitment to developing critical infrastructure in emerging economies.

In addition, the NDB has recently approved an additional loan of up to US$1 billion to support water and sanitation projects in South Africa, aimed at improving living conditions in low-income households. This financing is aligned with the bank’s mission of promoting sustainable development and addressing the basic needs of the most vulnerable populations, ensuring access to essential services that are key to improving the quality of life and social well-being in the country.