Algeria Becomes A Member Of The BRICS New Development Bank

Algeria has officially become a member of the New Development Bank (NDB), a financial institution created by the BRICS group of countries. The bank’s press office announced this on Thursday, May 22.

“Algeria plays an important role not only in the North African economy, but also at the global level and will certainly contribute to strengthening the position of the New Development Bank in the international financial arena,” said the bank’s president, Dilma Rousseff, according to the statement.

Algeria deposited its instrument of accession in accordance with the provisions of the Articles of Agreement of the NDB on May 19.

Algerian Finance Minister Abdelkrim Bouzred also welcomed the decision, saying: “This membership is a testament to our belief in this institution’s vital role in financing global development, and its status as a key player capable of providing alternative and innovative solutions to promote the growth and resilience of its member countries’ economies.”

In 2023, Algeria became one of four countries in the world to move from lower-middle income to upper-middle income in the World Bank’s annual income classification report. According to President Abdelmajid Tebboune, Algeria has virtually eliminated its external debt, does not need loans from external organizations and is actively diversifying its non-hydrocarbon production to achieve self-sufficiency in various sectors. “In 2022, Algeria reached a record $7 billion in non-hydrocarbon exports for the first time in 40 years, while previously the figures rarely exceeded $1.5 billion,” Tebboun said.

The International Monetary Fund and the World Bank rank Algeria as the third largest economy in Africa after South Africa and Egypt.

The BRICS New Development Bank (NDB) is a development-oriented financial institution for the BRICS countries. Its goal is to finance projects that contribute to the economic growth and welfare of these countries. It is the first global bank established by emerging economies. The main task of this financial organization (BRICS NDB) is to reallocate resources to projects submitted by the countries participating in the agreement. Bangladesh and the United Arab Emirates (UAE) were admitted to the NDB in 2021, and Egypt joined in 2023. Algeria is a partner state of BRICS, as well as a dialogue partner in the Shanghai Cooperation Organization.

With a population of 46.81 million, Algeria has a GDP (PPP) of US$826.14 billion and a GDP (PPP) per capita of approximately US$17,770. Economic growth is projected at 3.9% for 2025.

Trade with Russia has been stable, with 2024 trade turnover recorded at about US$3.5 billion, with the two countries signing a number of bilateral agreements during 2024. The overall bilateral trade relationship with Russia is positive, reflecting Algeria’s focus on strengthening economic partnerships and Russia’s increasing involvement in North Africa.