Algeria has recently been granted official approval to participate in the BRICS New Development Bank, contributing $1.5 billion to facilitate the process.
Algeria is now officially a member of the organization. The BRICS New Development Bank (NDB) welcomed the North African nation earlier today.
During the NDB’s annual meeting in Cape Town, South Africa, Dilma Rousseff, the bank’s president, made the announcement directly.
Recently, the NDB has been undergoing a membership expansion. In 2021, the United Arab Emirates, Egypt, Uruguay, and Bangladesh all became members. Algeria has the opportunity to capitalize on new economic prospects and strengthen its global connections.
Algeria submitted an application to become a member of the BRICS New Development Bank in July, proposing a $1.5 billion contribution. President Abdelmadjid Tebboune stated:
“We are seeking to fortify our relationships with countries such as China and expand our economic opportunities.”
The country could potentially access new funding for initiatives that would modernize its infrastructure and reduce its dependence on hydrocarbons by joining the NDB.
In principle, this could result in more consistent economic growth over the long term. However, there is an opposing viewpoint to this issue. The BRICS nations are not precisely operating at a high level.
Many of them are experiencing their own economic difficulties. Algeria may inherit a variety of challenges, including political instability, sanctions, and a substantial public debt.
Becoming a member of the BRICS New Development Bank would provide Algeria with significant opportunities. To begin with, there is the potential for increased trade with other BRICS members.
Algerian products may enter new markets in countries such as China, India, and Brazil, which are major participants. There is potential for agriculture and other sectors to experience a stimulus, in addition to oil and gas.
However, every opportunity carries a risk. The NDB is not merely a source of free money. Algeria’s economy may become excessively dependent on these BRICS nations. Algeria may endure the torment if they falter.
Additionally, it is probable that this situation will exacerbate its relationships with Western nations. Algeria’s most significant trading partners at present are the European Union and the United States. There may be diplomatic and economic repercussions if the transition to BRICS is perceived as overly aggressive.
Political considerations are also present. Algeria’s political landscape is not particularly stable, and the introduction of an additional layer of complexity could potentially shift the balance.
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