New Delhi: In a significant development for global financial cooperation, Algeria has officially become a member of the New Development Bank (NDB), a multilateral financial institution established by the BRICS nations—Brazil, Russia, India, China, and South Africa. The announcement, made on May 22, 2025, by NDB President Dilma Rousseff, marks a pivotal moment in the bank’s ongoing expansion and underscores Algeria’s growing influence in the global economic landscape.
Algeria’s Formal Accession to the NDB
On May 19, 2025, Algeria deposited its instrument of accession, fulfilling the requirements outlined in the Articles of Agreement of the NDB, as confirmed by the bank’s headquarters in Shanghai. This formal step solidified Algeria’s status as a full member of the prestigious international financial institution, following an authorization process that began in August 2024 during the NDB’s Ninth Annual Meeting in Cape Town, South Africa.
The NDB, established in 2015 through an intergovernmental agreement signed at the sixth BRICS summit in Fortaleza, Brazil, is designed to mobilize resources for infrastructure and sustainable development projects in BRICS member countries and other developing nations. Algeria’s inclusion expands the bank’s global membership base, joining other non-BRICS members such as Bangladesh, Egypt, the United Arab Emirates, and Uruguay, who were admitted in 2021.
Statements from Key Leaders
NDB President Dilma Rousseff, a former Brazilian president and renowned economist, warmly welcomed Algeria’s membership, emphasizing the country’s strategic importance. “Algeria plays an important role not only in the economy of Northern Africa, but also at a global scale, and will definitely contribute to enhancing NDB’s position in the global financial arena,” Rousseff stated in a press release issued by the bank. She highlighted Algeria’s rich natural resources, dynamic economy, and strategic geographic position, noting that these attributes position the country for significant growth and development.
Rousseff further underscored the NDB’s commitment to becoming a reliable partner for Algeria, stating, “NDB is fully committed to becoming a trustworthy partner for Algeria, supporting its sustainable development agenda.” She emphasized the bank’s role as a platform for collaboration and knowledge sharing, expressing enthusiasm for working with Algeria to finance impactful projects that drive progress, improve lives, and contribute to sustainable development.
Algerian Finance Minister Abdelkrim Bouzerd echoed Rousseff’s sentiments, expressing pride in his country’s new role within the NDB. “We are delighted to announce the formalization of Algeria’s membership of the New Development Bank and thus becoming a full member of this prestigious international financial institution,” Bouzerd said. He described the membership as a testament to Algeria’s belief in the NDB’s vital role in financing global development and its capacity to provide innovative solutions to promote economic growth and resilience in member countries. Bouzerd also highlighted the “promising opportunities for collaboration and mutual support” that Algeria’s accession would create.
The Role and Impact of the New Development Bank
The NDB was founded to address the infrastructure and sustainable development needs of BRICS countries and other developing nations, offering an alternative to traditional Western-dominated financial institutions like the World Bank and the International Monetary Fund. Since its inception in 2015, the NDB has approved over 120 investment projects, totaling $40 billion, across critical sectors such as clean energy, energy efficiency, transport infrastructure, environmental protection, water supply and sanitation, and social and digital infrastructure.
The bank’s presidency and vice-presidency rotate among its founding members—Brazil, Russia, India, China, and South Africa—ensuring balanced leadership and representation. The NDB’s mission is to foster collaboration among member countries, providing financial and technical support for projects that align with sustainable development goals. Its expansion to include non-BRICS members like Algeria reflects its growing influence as a key player in the global financial arena.
Algeria’s Strategic Importance
Algeria’s inclusion in the NDB is particularly significant given its economic and geopolitical profile. As a major player in Northern Africa, Algeria boasts abundant natural resources, including oil and natural gas, which form the backbone of its economy. Its strategic geographic position as a gateway between Africa and Europe further enhances its role in regional and global trade. The country’s dynamic economy, coupled with its commitment to sustainable development, makes it a valuable addition to the NDB’s membership.
Rousseff highlighted Algeria’s potential to contribute to the NDB’s objectives, noting that the country’s economic strengths and strategic location would bolster the bank’s efforts to finance impactful projects. Algeria’s membership is expected to facilitate investments in infrastructure and sustainable development initiatives within the country, while also strengthening the NDB’s presence in the African continent.
BRICS’ Expanding Global Influence
The BRICS bloc, comprising Brazil, Russia, India, China, South Africa, and newer members Saudi Arabia, Egypt, the UAE, Ethiopia, Indonesia, and Iran, represents a powerful economic cooperation platform. The inclusion of Algeria in the NDB aligns with BRICS’ broader strategy to deepen ties with developing nations and promote a multipolar global economic order.
On May 21, 2025, just a day before the announcement of Algeria’s membership, BRICS countries agreed on a new road map for energy cooperation for 2025–2030. This initiative aims to address key energy-related challenges and foster deeper collaboration among member states. The NDB’s role in financing energy and infrastructure projects will be critical to achieving these objectives, and Algeria’s membership is expected to contribute to these efforts.
Challenges and Opportunities
Algeria’s accession to the NDB comes at a time of heightened global economic tensions, particularly in the context of trade and currency dynamics. In recent months, discussions around the BRICS bloc’s potential to challenge the dominance of the U.S. dollar in global trade have gained traction. Former U.S. President Donald Trump, in a statement referenced in the context of BRICS developments, threatened 100% tariffs against BRICS countries if they attempted to replace the U.S. dollar. While the NDB’s focus remains on development financing rather than currency policy, such geopolitical dynamics underscore the strategic importance of the bank’s expansion and its role in fostering economic resilience among member countries.
For Algeria, membership in the NDB opens doors to new opportunities for collaboration and investment. The country can leverage the bank’s resources to fund infrastructure projects, enhance energy efficiency, and address environmental challenges. The NDB’s emphasis on sustainable development aligns with Algeria’s national priorities, including its efforts to diversify its economy beyond hydrocarbons and invest in renewable energy and modern infrastructure.
The Path Forward
As Algeria embarks on its journey as a full member of the NDB, both the bank and the country stand to benefit from this partnership. The NDB gains a strategically important member with significant economic potential, while Algeria gains access to a robust platform for financing its development goals. The collaboration is expected to yield tangible results in the form of impactful projects that drive economic growth, improve living standards, and promote sustainability.
The NDB’s press release emphasized its commitment to working with Algeria to finance projects that “drive progress, improve lives, and contribute to development.” This partnership is poised to strengthen the NDB’s position as a leading multilateral development bank and reinforce BRICS’ role as a catalyst for global economic cooperation.
Conclusion
Algeria’s official entry into the New Development Bank on May 19, 2025, marks a significant milestone in the institution’s expansion and its mission to support sustainable development worldwide. With its rich natural resources, dynamic economy, and strategic geographic position, Algeria is well-positioned to contribute to the NDB’s objectives and enhance its global influence. Under the leadership of President Dilma Rousseff and with the support of its member countries, the NDB continues to play a vital role in financing infrastructure and sustainable development projects, fostering collaboration, and promoting economic resilience. As Algeria begins this new chapter, the partnership promises to deliver transformative projects that will benefit both the country and the broader BRICS community.
FAQs
What is the New Development Bank (NDB), and why did Algeria join it?
The New Development Bank (NDB) is a multilateral financial institution established in 2015 by the BRICS nations (Brazil, Russia, India, China, and South Africa) to finance infrastructure and sustainable development projects in BRICS and other developing countries. Algeria joined the NDB on May 19, 2025, to access funding and collaboration opportunities for its sustainable development goals, leveraging its strategic economic and geographic position to contribute to and benefit from the bank’s initiatives.
When and how did Algeria become a member of the NDB?
Algeria was authorized to join the NDB during the bank’s Ninth Annual Meeting in Cape Town, South Africa, on August 30, 2024. The country formalized its membership by depositing its instrument of accession on May 19, 2025, as required by the NDB’s Articles of Agreement, officially becoming a full member, as announced on May 22, 2025.
What benefits does Algeria gain from joining the NDB?
Algeria’s membership provides access to NDB funding for infrastructure and sustainable development projects in areas like clean energy, transport, and environmental protection. It also fosters collaboration with other member countries, enhances economic resilience, and supports Algeria’s national priorities, such as economic diversification and renewable energy development.
How does Algeria’s membership impact the NDB and BRICS?
Algeria’s inclusion strengthens the NDB’s global influence by adding a key North African economy with rich natural resources and a strategic geographic position. It enhances the bank’s ability to finance impactful projects in the region and supports BRICS’ goal of promoting a multipolar economic order through expanded cooperation with developing nations.
What types of projects will the NDB support in Algeria?
The NDB, which has approved over 120 projects worth $40 billion since 2015, will work with Algeria to finance initiatives in clean energy, energy efficiency, transport infrastructure, environmental protection, water supply, sanitation, and social and digital infrastructure, aligning with Algeria’s sustainable development agenda.
