Posted on X on July 6, 2026
https://x.com/AlMariam1/status/2074118620691456430
Ethiopia is building her prosperity brick by brick, or should I say BRICS by BRICS.
Ethiopiaโs Council of Ministers has unanimously endorsed a draft legislation paving the way for Ethiopia’s accession (formal legal document through which a state declares its consent to be bound by an existing international treaty or convention that it did not originally sign) to the BRICS New Development Bank (NDB). The aim of the law is to expand Ethiopiaโs access to fair, equitable and sovereignty-respecting diversified development financing for infrastructure and priority projects.
The draft law allows Ethiopia to purchase 2,945 shares in the NDB at a par value (stated or face value) of USD 100,000 per share, totaling a buy-in of nearly USD 300 million. Ethiopia will pay 20% of the share purchase value (USD 58.9 million) upfront, with the remainder to be paid in 14 installments over 13.5 years.
Following passage by the Ethiopian House of Peoples’ Representatives, Ethiopia will file an Instrument of Accession with Brazil to formalize its membership. Ethiopia will also have a seat on the NDB board.
By joining the NDB, Ethiopia will be able to access infrastructure financing without the oppressive and suffocating conditionalities of Western institutions like the IMF. This will make a huge difference for Ethiopia which faces chronic and severe foreign exchange reserves.
The NDB will be an alternative source of financing for Ethiopia with its $40 billion portfolio across 122 projects. The NDB provides soft loans and technical assistance for key sectors like renewable energy and industrial parks, helping Ethiopia bypass the stringent austerity measures associated with IMF loans for such projects.
Participation in BRICS payment systems facilitates local currency trade (de-dollarization), which surged from 28% to 65% intra-BRICS by 2024. This reduces transaction costs by 25-40% and mitigates Ethiopiaโs vulnerability to US dollar fluctuations and Western payment restrictions.
By being a member of the NDA, Ethiopia could attractย ย Foreign Direct Investment (FDI) and engage in South-South (developing countries) technology transfer in agriculture and manufacturing, leveraging the development experiences of members like China to boost productivity and export capacity.
There was a time when USAID was considered a development lifeline for developing countries. RIP USAIDead.
Ethiopia needs an alternative financing source for short-term and long-term economic development and poverty reduction financing sources.
If finding alternative sources meansย throwing BRICS at the glasshouses of the IMF and The World Bank, so be it!
Posted on X on July 6, 2026
https://x.com/AlMariam1/status/2074118620691456430
Ethiopiaโs Council of Ministers has unanimously endorsed a draft legislation paving the way for Ethiopia’s accession (formal legal document through which a state declares its consent to be bound by an existing international treaty or convention that it did not originally sign) to the BRICS New Development Bank (NDB). The aim of the law is to expand Ethiopiaโs access to fair, equitable and sovereignty-respecting diversified development financing for infrastructure and priority projects.
The draft law allows Ethiopia to purchase 2,945 shares in the NDB at a par value (stated or face value) of USD 100,000 per share, totaling a buy-in of nearly USD 300 million. Ethiopia will pay 20% of the share purchase value (USD 58.9 million) upfront, with the remainder to be paid in 14 installments over 13.5 years.
Following passage by the Ethiopian House of Peoples’ Representatives, Ethiopia will file an Instrument of Accession with Brazil to formalize its membership. Ethiopia will also have a seat on the NDB board.
By joining the NDB, Ethiopia will be able to access infrastructure financing without the oppressive and suffocating conditionalities of Western institutions like the IMF. This will make a huge difference for Ethiopia which faces chronic and severe foreign exchange reserves.
The NDB will be an alternative source of financing for Ethiopia with its $40 billion portfolio across 122 projects. The NDB provides soft loans and technical assistance for key sectors like renewable energy and industrial parks, helping Ethiopia bypass the stringent austerity measures associated with IMF loans for such projects.
Participation in BRICS payment systems facilitates local currency trade (de-dollarization), which surged from 28% to 65% intra-BRICS by 2024. This reduces transaction costs by 25-40% and mitigates Ethiopiaโs vulnerability to US dollar fluctuations and Western payment restrictions.
By being a member of the NDA, Ethiopia could attractย ย Foreign Direct Investment (FDI) and engage in South-South (developing countries) technology transfer in agriculture and manufacturing, leveraging the development experiences of members like China to boost productivity and export capacity.
There was a time when USAID was considered a development lifeline for developing countries. RIP USAIDead.
Ethiopia needs an alternative financing source for short-term and long-term economic development and poverty reduction financing sources.
If finding alternative sources meansย throwing BRICS at the glasshouses of the IMF and The World Bank, so be it!
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