The Ethiopian Council of Ministers has officially approved a proposal for the country to join the BRICS New Development Bank (NDB), forwarding the decision to the House of Peoples’ Representatives for final ratification. As part of the accession process, Ethiopia has finalized preparations to purchase 2,945 shares in the multilateral development bank, valued at $100,000 each, for a total investment of $295 million.
Under the agreed-upon financial terms, Ethiopia will make an immediate upfront payment of 20 percent of the total amount, which equates to $58.9 million. The remaining 80 percent of the balance will be settled over a span of 13 and a half years through 14 consecutive installments, easing the immediate fiscal burden on the East African nation.
Government officials state that membership in the NDB will provide Ethiopia with critical alternative development funding, support large-scale infrastructure expansion, and help stabilize its macroeconomy. Additionally, the partnership is expected to open up new financing avenues for priority projects in key sectors, including agriculture, power generation, and renewable energy.
The move comes as Ethiopia seeks to diversify its external financial partnerships amid ongoing economic reforms. Financial analysts note that the NDB’s policy of encouraging member states to conduct trade and transactions in their local currencies could significantly alleviate Ethiopia’s persistent foreign currency shortages and reduce dependency on traditional Western-backed financial institutions.
While proponents highlight the strategic economic benefits and alternative credit lines, observers emphasize that the long-term success of the membership will depend on how effectively the capital is deployed into productive economic sectors. The parliamentary vote to finalize the treaty ratification is expected to take place in the coming weeks.