President Abdel Fattah El-Sisi’s ratification of an agreement establishing the New Development Bank (NDB), of the BRICS bloc, was published in Egypt’s Official Gazette on Thursday, 30 March. This comes after Egypt’s Cabinet approved plans for Egypt to join the NDB — a multilateral lender set up by Brazil, Russia, India, China and South Africa — last December, to boost Egypt’s access to finance. What is the purpose of NDB? The NDB aims to bridge the gap between the growing finance needs of emerging and developing economies and the availability of finance in the global financial system. Accordingly, this will facilitate the process for emerging economies to have greater access to finance and more leverage in global development finance. By providing an alternative to the World Bank (WB) and the International Monetary Fund (IMF), the NDB also promotes further economic cooperation between emerging and developing economies to accelerate the pace of development. How does it operate? With a capital of 100 billion USD (3,090,444,400.00 EGP), member states of the NDB finance projects in their economies as well as other economies. The development bank is structured by distributing equal shares among…
Egypt Joins New Development Bank to Find Alternative Forms of Finance
March 30, 2023
