Ethiopia is preparing to invest USD 295 million to become a member of the New Development Bank, marking another significant step in the country’s efforts to strengthen international financial partnerships and expand access to development financing.
The proposed investment was approved by Ethiopia’s Council of Ministers and is expected to support the country’s bid to join the multilateral development bank, which was established by the BRICS nations to finance infrastructure and sustainable development projects across emerging economies.
The New Development Bank was founded in 2015 by Brazil, Russia, India, China, and South Africa. Since then, it has expanded its membership to include several developing countries seeking alternative sources of development funding outside traditional global financial institutions.
For Ethiopia, membership could unlock new financing opportunities for critical sectors such as transportation, energy, agriculture, and climate resilient infrastructure. The country has been pursuing economic reforms and looking for additional investment to support long term growth and economic stability.
The proposed USD 295 million contribution represents Ethiopia’s capital subscription to the bank. Once the membership process is completed, the country will be eligible to access financing for approved development projects that align with the bank’s objectives.
The move also reflects Ethiopia’s growing engagement with the BRICS bloc. Earlier this year, the country officially became a member of BRICS, joining other emerging economies that are seeking greater cooperation in trade, investment, and development finance.