Summary:

On 1 September 2024, the Algerian Finance Ministry announced that the country has been approved for membership in the BRICS New Development Bank (NDB). 

The NDB is multilateral development bank functionally led by Russia and China. The NDB’s mission is to mobilize resources to finance sustainable development projects in emerging markets.  

The Ministry stated that Algeria is taking a major step in its process of integration into the global financial system by joining the NDB thanks to the strength of the country’s macroeconomic indicators which demonstrate the resilience of its economy. 

The Ministry also highlighted that Algeria is now the ninth country to join the NDB after the admission in 2021 of Bangladesh, Egypt, and the United Arab Emirates as new members. Those countries joined the founding BRICS members, which include: Brazil, Russia, India, China, and South Africa. 

Outlook: 

The announcement of Algeria’s joining of the BRICS NDB prior to the presidential election worked in favor of Abdelmajid Tebboune who was re-elected on 7 September after promising economic reforms in his electoral campaign. 

Algeria will now have more leverage to balance western influence as it has alternative borrowing options aside from the traditional funds of the World Bank and the International Monetary Fund (IMF). The joining of BRICS is a significant step for Algeria in its movement closer to Russia and China as it continues advancing diplomatic efforts that support and benefit from global multipolarity.  

Joining the NDB as the only North African state represented in the BRICS furthers Algeria’s quest to present itself as a regional power with strong enough influence to contain and counter Moroccan influence in the region. The development is timely following Morocco’s announcement of the Morocco Atlantic Initiative to promote economic integration of the Sahel. 

However, Algeria has much to do to reform its rentier economic model and evolve into an economic, military and political power with regional, and even global influence

Explore our services or speak with our team of North Africa-based risk experts.