Egypt’s Membership in the New Development Bank: Conditions, Reasons, and Outcomes

Before Membership: Conditions and Reasons for Acceptance

Egypt, with a population of over 104 million, is geographically located in northeastern Africa and economically classified as a lower-middle-income country. Egypt’s Vision 2030, outlining its economic, social, and environmental priorities—including poverty reduction, climate resilience, and improved governance—along with the Nationally Determined Contributions (NDC) program, form the basis for major infrastructure projects in urban development, public transportation, housing, and water management. These initiatives demonstrate Egypt’s commitment to sustainable development. Notably, the New Development Bank (NDB) took a strong interest in these efforts, with Mr. Trojko, the former NDB president, stating at the 27th UN Climate Change Conference held in Egypt in 2022 that the bank is highly motivated to expand cooperation based on the opportunities presented at the conference.

Reasons for Egypt’s Interest in Membership

• Diversifying economic partners beyond Europe and the MENA region to reduce domestic demand for dollars in exchange for BRICS national currencies
• Leveraging the experience of existing members to support industrialization and increase economic growth rates
• Signing trade swap agreements with 68 countries associated with BRICS members, thereby creating a common market for Egyptian products
• Benefiting from the bank’s support for sustainable development and regional cooperation with an emphasis on infrastructure
• Easier, lower-cost, and long-term financing under foreign financial constraints
• Attracting private investment for large-scale development projects

Membership: Date, Capital, and Voting Rights

On January 23, 2023, the Egyptian House of Representatives approved Presidential Decree No. 628 of 2022 regarding Egypt’s accession to the New Development Bank. According to the bank’s management decision, Egypt’s maximum subscribed capital was set at USD 1.196 billion, of which USD 956.8 million is callable capital and USD 239.2 million is paid-in capital to be contributed over seven annual installments. Egypt currently holds 2.27% of the bank’s voting power, the highest share among non-founding members. At the time of accession (July 2021), Egypt’s credit rating was reported by Moody’s and Fitch as B2 and B+, respectively.

After Membership: Facilities and Services Received

Official bank reports indicate that no projects in Egypt have been financed by the New Development Bank to date.