Ethiopia’s recent acceptance into the BRICS New Development Bank (NDB) marks a pivotal moment in its quest for sustainable development and economic growth. As the fourth African member, joining South Africa, Egypt, and Algeria, Ethiopia’s membership is not merely a diplomatic victory; it is a gateway to substantial opportunities for both public and private institutions.
In April, Ethiopia formally submitted its application for NDB membership, subsequently garnering political support from all existing BRICS nations. Leulseged Tadese, Ethiopia’s Ambassador to Brazil, underscored the significance of this endeavor, stating that joining the NDB is a top priority for the nation this year. With the membership process nearing completion, Ethiopia aims to channel NDB resources into vital sectors such as agriculture, energy, and industry, driving forward its sustainable development agenda.
The significance of Ethiopia joining the NDB cannot be overstated. This membership enhances Ethiopia’s stature in the arena of international economic partnerships, positioning it to leverage the bank’s resources for development in critical sectors. The NDB, established by Brazil, Russia, India, China, and South Africa in 2015, focuses on mobilizing financial resources for infrastructure and sustainable development projects in emerging markets and developing countries.
Ethiopia’s accession to the NDB enables it to tap into a robust financial reservoir aimed at bridging the gap between the pressing needs for development and the available financial resources. This alignment offers unprecedented opportunities for Ethiopia to elevate its economic landscape through targeted investments.
The Ethiopian government is poised to exploit this opportunity by directing NDB funding towards key sectors that are essential for sustainable growth. Agriculture, for example, remains the backbone of Ethiopia’s economy, providing livelihoods for millions. Investing in modern agricultural practices and infrastructure can significantly enhance productivity and food security.
Similarly, the energy sector is ripe for development. Ethiopia is already a leader in renewable energy, particularly hydropower, but there is vast potential to expand this capacity further. With NDB financing, the country can invest in energy projects that will not only meet domestic needs but also position Ethiopia as an energy hub for the region.
The industrial sector also stands to benefit immensely from NDB support. By fostering industrialization, Ethiopia can create jobs, enhance skills, and stimulate economic diversification. This multifaceted approach will not only bolster the economy but also improve the quality of life for its citizens.
Given this backdrop, it is imperative for both private and public institutions in Ethiopia to seize the moment. The NDB presents a unique platform for collaboration and investment. Public institutions should actively engage in dialogue with the NDB to align their projects with the bank’s funding criteria, ensuring that proposed initiatives resonate with the bank’s mission of sustainable development.
Conversely, private sector players should explore partnerships with the government and international investors to harness the financial resources made available through the NDB. By doing so, they can not only contribute to national development goals but also reap the benefits of increased investment and economic activity.
Moreover, the NDB’s emphasis on infrastructure development provides a fertile ground for public-private partnerships (PPPs). These collaborations can drive innovation and efficiency in delivering essential services, ultimately enhancing the country’s economic resilience.
The potential impact of NDB financing extends beyond immediate economic gains. By fostering sustainable development, Ethiopia can enhance its attractiveness as an investment destination, drawing international capital and expertise. This influx of investment will create jobs, stimulate local economies, and encourage technology transfer, thereby fostering a culture of innovation and entrepreneurship.
As highlighted by Foreign Minister Nebiyu Tedla during discussions with BRICS members, Ethiopia’s ambition to join the NDB is rooted in its broader development goals. The collaborative spirit of BRICS nations presents an opportunity for Ethiopia to learn from the experiences of its peers, adapting successful strategies to its unique context.
In a geopolitical climate where traditional powers are losing influence in Africa, Ethiopia’s pivot towards the East reflects a broader trend among African nations. The growing partnerships with BRICS member states signify a shift in economic relations, providing African nations with more autonomy and options for development.
The NDB’s international credit ratings—AA+ from Fitch and Standard & Poor’s, and AAA from the Japan Credit Rating Agency—demonstrate its credibility and capacity to mobilize resources effectively. These ratings not only enhance the bank’s appeal but also assure potential investors of the bank’s stability and reliability.
Ethiopia’s membership in the BRICS New Development Bank is a transformative opportunity that can propel the nation towards sustainable development and economic prosperity. By strategically channeling NDB resources into agriculture, energy, and industry, Ethiopia can unlock new avenues for growth.
Public and private institutions must actively engage with this opportunity, fostering partnerships and initiatives that align with the NDB’s mission. As Ethiopia embarks on this new chapter, it stands at the forefront of a changing global landscape, ready to harness the benefits of international cooperation and investment.
In conclusion, Ethiopia’s journey with the NDB is not just about financial resources; it is about building a resilient and dynamic economy that can thrive in the face of global challenges. The time is ripe for Ethiopia to capitalize on this momentum, paving the way for a prosperous future.
Editor’s Note: The views entertained in this article do not necessarily reflect the stance of The Ethiopian Herald
BY MENGISTEAB TESHOME
THE ETHIOPIAN HERALD SUNDAY EDITION 11 MAY 2025
