The Algerian Ministry of Finance has officially announced that Algeria's accession to the BRICS Bank has been approved during the ninth annual meeting of the New Development Bank (NDB) held on August 31 in Cape Town, South Africa. This integration marks a significant milestone for Algeria, now becoming the ninth member of this influential financial institution, which serves as the financial arm of the BRICS group. The Ministry views this accession as a crucial step for Algeria's integration into the global financial system.
In discussions prior to the approval, Algerian Finance Minister Laaziz Fayed met with Dilma Vana Rousseff, President of the NDB, to explore the pathways for Algeria's membership and potential future cooperation in funding strategic development projects. President Abdelmadjid Tebboune had previously indicated Algeria's intent to join the BRICS Bank during his visit to China, committing an initial contribution of $1.5 billion.
Economic experts highlight the geopolitical significance of Algeria's membership, suggesting it will enhance the country's position in shaping the future of the international financial system. Abdel Rahman Hadef, an economic consultant, noted that this move will accelerate Algeria's development by leveraging the experiences of other member states and integrating into global value chains.
Furthermore, Algeria's participation in the BRICS Bank is expected to facilitate partnerships with countries that share similar visions, allowing access to financing for major infrastructure projects. Experts believe that the BRICS Bank's offerings, including interest-free or low-interest loans, will significantly benefit Algeria's economy. However, challenges remain, particularly in increasing Algeria's share in the bank's capital to maintain influence over its financial decisions.
- The BRICS Bank, also known as the New Development Bank, was established by the BRICS nations (Brazil, Russia, India, China, and South Africa) to provide funding for infrastructure and sustainable development projects in emerging economies. Algeria's membership is seen as a strategic move to diversify its funding sources and reduce dependency on traditional Western financial institutions.
- Algeria's economy has been focusing on modernization and diversification, particularly in sectors such as infrastructure, energy, and technology. The partnership with BRICS Bank is expected to strengthen these efforts, providing a platform for Algeria to engage more deeply with other emerging economies and enhance regional cooperation, especially within Africa and the Arab world.
