Ethiopia stands among East Africa's leading economies with rapid growth, and following its recent entry into the BRICS bloc to strengthen ties with the Global South, the nation has initiated steps to join the New Development Bank (NDB).
During its 57th regular session on June 19, 2026, the Council of Ministers referred the draft proclamation ratifying the bank's founding agreement to the House of Peoples' Representatives for formal approval.
Economist Ibrahim Abdulaziz told Gebeya Media that this milestone liberates developing economies from the rigid dogmas imposed by traditional institutions like the World Bank, the International Monetary Fund (IMF), and the International Finance Corporation (IFC). These legacy lenders historically operate on the premise that sustainable growth requires strict adherence to prescribed Western economic ideologies.
"Unlike other international lenders, the New Development Bank does not impose structural demands requiring countries to implement externally dictated economic policies," Abdulaziz explained. While the NDB prioritizes development and infrastructure projects backed by verification mechanisms to ensure proper execution its borrower-friendly framework avoids forcing member states to comply with uniform macroeconomic mandates.
According to Abdulaziz, traditional institutions frequently enforce stringent conditions, ranging from capping state participation in the economy to pressuring governments to lift essential food and fuel subsidies. Furthermore, they mandate aggressive austerity measures coupled with rapid tax hikes. While noting that the NDB preserves financial sovereignty far better than its Bretton Woods counterparts, the economist cautioned that its lending criteria are not entirely without conditions.
Market systems analyst and consultant Mereed Tulu added that the bank accelerates trade and transactions among member states through development-oriented policies, unified payment frameworks, and streamlined agricultural and commercial channels. Crucially, Mereed emphasized that the NDB has dismantled the exclusive global reliance on the U.S. dollar, introducing a transactional ecosystem denominated in diverse member-state currencies.
Prime Minister Abiy Ahmed underscored Ethiopia's strategic readiness during the 18th BRICS Leaders' Summit, stating, "Ethiopia is fully prepared to host the regional office of the New Development Bank in Addis Ababa to expand its reach across the entire continent."
Elaborating on this vision, Tulu stated that establishing the NDB regional office in Addis Ababa will position the country as a premier financial system excellence hub and catalyze novel technological innovations. Hosting the bank's summits will also draw international visitors, expand national capacity, and generate substantial economic dividends.
Established in 2015 by Brazil, Russia, India, China, and South Africa, the New Development Bank is a multilateral institution headquartered in Shanghai, China, with offices across each founding nation. Its footprint has expanded steadily following the admission of Algeria, Bangladesh, Egypt, the United Arab Emirates, and Uzbekistan beginning in 2021.
