Ethiopia seeks to join the BRICS-led New Development Bank in 2025, eyeing alternative finance for energy, agriculture, and industry amid debt restructuring.
Ethiopia Moves to Join BRICS’ New Development Bank
Addis Ababa, Ethiopia – April 15, 2025
In a strategic shift away from traditional Western lenders, Ethiopia has reaffirmed its intent to join the New Development Bank (NDB)—the financial arm of the BRICS bloc. The confirmation came from Ethiopian Ambassador to Brazil, Leulseged Tadese Abebe, underscoring the country’s push for alternative financing to support its economic recovery.
“We are fully committed to integrating all the group’s mechanisms and arrangements,” said Ambassador Leulseged.
“The NDB is a key pillar, and Ethiopia is ready to become a member.”
The move follows Ethiopia’s BRICS accession on January 1, 2024, after its invitation at the 15th BRICS Summit in Johannesburg. Other new entrants included Egypt, Iran, Saudi Arabia, the UAE, and Argentina—a significant expansion of the bloc’s influence beyond the G7-centric world.
Ethiopia applied for NDB membership in 2023, shortly after securing a seat in BRICS. Officials now hope to finalize membership in 2025, unlocking access to development finance with fewer conditions than those imposed by institutions like the IMF and World Bank.
Founded in 2015, the NDB is headquartered in Shanghai and capitalized at $100 billion. While initially exclusive to BRICS members, it began accepting non-BRICS emerging economies in 2021. If successful, Ethiopia would join South Africa (founding member), Egypt (2023), and Nigeria (under review) as the fourth African country at the table.
“Once admitted, Ethiopia will prioritize funding in agriculture, energy, and industry,”
said Ambassador Leulseged.
With a population of over 126 million, Ethiopia is rebuilding after a devastating civil war ended in late 2022. Yet fiscal space is tight:
- External debt hit $28.2 billion in 2023
- The country defaulted on a $1 billion Eurobond in December 2023
- It is currently undergoing G20 Common Framework debt restructuring
In this environment, NDB loans—often denominated in local currencies and tied to infrastructure, not austerity—are attractive.
Key Sectors Ethiopia Hopes to Finance via the NDB:
- Agriculture: Employs over 70% of the population; lacks modern irrigation and storage
- Hydropower: Especially the Grand Ethiopian Renaissance Dam (GERD), central to regional exports
- Manufacturing: Core to the 10-year plan to become a light-industrial hub for textiles and agro-processing
“The NDB isn’t just a source of capital—it represents a worldview rooted in emerging-market solidarity,”
said Kwame Owino, CEO of Kenya’s Institute of Economic Affairs.
Ethiopia’s move has broader implications. As host of the African Union headquarters, Addis Ababa’s deepening ties with BRICS and the NDB bolster Global South representation in financial decision-making.
This shift could influence other low-income African nations exploring alternatives to Bretton Woods institutions. It may also energize discussions around pan-African infrastructure projects such as the LAPSSET Corridor, which connects Kenya, Ethiopia, and South Sudan.
“Access to NDB funding could accelerate post-conflict recovery and green energy transitions,”
said Dr. Annet Nankunda, energy economist at Makerere University.
The NDB board is expected to assess Ethiopia’s membership bid through Q3–Q4 2025, pending technical reviews and internal procedures. Upon admission, Ethiopia would gain:
- Access to project loans and emergency liquidity tools
- Participation in governance structures shaping fund allocation
- A stronger voice in setting development priorities for emerging markets
“We are not abandoning Western partners,” Leulseged clarified.
“We’re expanding partnerships to those who understand our development path.”
Conclusion: Beyond Finance, Toward Multipolar Influence
Ethiopia’s push to join the NDB is more than a financial strategy. It’s a declaration of agency in a rapidly shifting global order—signaling that the next chapter of African development may be written by emerging institutions, not legacy ones.
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