Algeria’s membership in the New Development Bank (NDB) was approved on August 31st by the NDB’s Board of Governors, chaired by former Brazilian President Dilma Rousseff, during the 9th annual meeting of this body in Cape Town, South Africa.
By joining “this important development institution, the financial arm of the BRICS group, Algeria is taking a major step in its process of integration into the global financial system,” the Algerian Ministry of Finance emphasized.
Algeria, an “upper-middle-income emerging economy”
Created in 2015 by the BRICS group (Brazil, Russia, India, China, South Africa), the NDB is a multilateral development bank designed as an alternative to the IMF and the World Bank. Its primary mission is to mobilize resources to finance projects in emerging markets and developing countries.
According to the Ministry of Finance, membership in the NDB will offer the country, Africa’s largest exporter of natural gas, “new opportunities to support and strengthen its medium and long-term economic growth.” According to the statement, this was achieved thanks to “the solidity of the country’s macroeconomic indicators,” which have recorded “remarkable performance in recent years” and allowed Algeria to be classified as an “upper-middle-income emerging economy.”
Algeria had applied to join the BRICS, but its application was rejected in the summer of 2023, which caused a shock in Algiers, to the point that President Abdelmadjid Tebboune declared last October that the “file on joining the BRICS was closed and the page turned.” The NDB has already welcomed Bangladesh, the United Arab Emirates, Egypt, and Uruguay as new members and is considered by the group as a form of expansion.
Summary:
- Algeria has officially joined the New Development Bank (NDB), a financial institution established by the BRICS group.
- This membership is seen as a significant step for Algeria to integrate into the global financial system and support its economic growth.
- Algeria’s strong economic performance was a key factor in its successful application.
- The NDB offers financing for infrastructure and sustainable development projects in emerging markets and developing countries.
- Algeria’s admission to the NDB comes after its application to join the BRICS group was previously rejected.
In essence, Algeria’s joining the NDB is a strategic move to bolster its economic standing and access new sources of financing.
