Egypt Joins BRICS, Partners with Asian Infrastructure Investment Bank and China's Central Bank

Egypt joins BRICS, strengthening the bloc as more nations seek to diversify global alliances beyond the Western-centric model, with major implications for international cooperation and global governance.

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Egypt Joins BRICS, Partners with Asian Infrastructure Investment Bank and China's Central Bank

Egypt Joins BRICS, Partners with Asian Infrastructure Investment Bank and China's Central Bank

Egypt has officially joined the BRICS group of major emerging economies, becoming one of six new members invited to join the bloc in August 2023. The expansion has significantly strengthened BRICS, which now boasts a total of ten member countries. Russian Deputy Foreign Minister Sergey Ryabkov noted that BRICS cooperation is gaining momentum, with the upcoming summit in Kazan in October 2024 expected to yield new achievements in cooperation among member nations.

In addition to joining BRICS, Egypt has also forged partnerships with the Asian Infrastructure Investment Bank and the Central Bank of China. Finance Minister Mohamed Maait discussed the potential benefits of these collaborations, which come at a time when Egypt is confronting severe economic challenges, including high inflation, rising poverty, and a rapidly depreciating currency. The Central Bank of Egypt was compelled to raise interest rates by 600 basis points, leading to a sharp decline in the value of the Egyptian pound.

The BRICS bloc, consisting of Brazil, Russia, India, China, and South Africa, is poised for its most significant expansion to date, with reports indicating that 40 nations are preparing to apply for membership in 2024. This development reflects a broader shift towards diversified global alliances and economic strategies beyond the Western-centric model. BRICS has substantially reduced its financial dependence on Western economies, primarily in response to sanctions imposed on Russia in 2020.

Why this matters: Egypt's decision to join BRICS and partner with Asian financial institutions highlights the changing global economic landscape and the growing influence of emerging economies. As more countries seek to diversify their alliances and reduce dependence on Western-centric models, the expansion of BRICS could have significant implications for international cooperation and global governance.

The increasing interest in BRICS membership is a clear indication of the evolving global economic landscape, where diversification and strategic alliances are becoming the foundation of national growth strategies. The 2023 BRICS summit invited six countries, including Saudi Arabia, the UAE, Iran, Egypt, Ethiopia, and Argentina, to join the alliance, with Egypt accepting the invitation. The 2024 summit is anticipated to continue this expansion trend, setting the stage for the future of international economic cooperation and the role of emerging economies in global governance.

Key Takeaways

  • Egypt officially joined the BRICS group of major emerging economies.
  • BRICS now has 10 member countries, with 40 more preparing to apply in 2024.
  • Egypt also forged partnerships with the AIIB and China's central bank.
  • BRICS is reducing financial dependence on Western economies due to sanctions.
  • BRICS expansion reflects a shift towards diversified global alliances and strategies.