BRICS Bank: Which is the new member?

On December 29, 2021, the BRICS New Development Bank (NDB) announced to add Egypt as its new member.

Key Points

• Egypt is the fourth new member admitted into NDB, following Bangladesh, United Arab Emirates (UAE) and Uruguay.
• Inclusion of Egypt has further expanded the global outreach of BRICS Bank.

How this move will benefit Egypt?

The NDB will provide a new platform to Egypt, for fostering cooperation with BRICS countries on infrastructure and sustainable development. NDB will also help Egypt in engaging with other emerging economies and developing countries.

About New Development Bank (NDB)

NDB is a multilateral development bank. It was jointly founded by the BRICS countries in 2014, at the 6th BRICS Summit in Fortaleza, Brazil. But it was formally opened on July 2015. The bank was set to support the infrastructure and sustainable development efforts in BRICS grouping and other underserved & emerging economies for a faster development through cutting-edge technology and innovation. Its headquarter is at Shanghai, China.

Observer Status in UNGA

NDB had received observer status in the United Nations General Assembly, in 2018. Thus, it established a firm basis for active and fruitful cooperation with the UN.

Objectives of UNGA

NDB has understated objectives:

1. To foster development in member countries.
2. To support economic growth.
3. To promote competitiveness and facilitate job creation.
4. To building a knowledge sharing platform in developing countries.

How the bank fulfils its objectives?

In order to fulfil its purpose, NDB supports public or private projects by means of loans, equity participation, guarantees, loans, and financial instruments.

Developmental projects by NDB

Ever since its establishment, NDB has approved around 80 projects for its members, with a portfolio of USD 30 billion. The projects cover sectors like clean energy, water & sanitation, transport, social infrastructure, digital infrastructure, and urban development.

Month: Current Affairs - December, 2021