Egypt has signed an agreement to join the New Development Bank (NBD), part of the economic group constituting Brazil, Russia, India, China, and South Africa, BRICS block, according to state-run Al Ahram.
The agreement with Egypt, which was passed in January at the House of Representatives, is an indicator of NBD’s trust in the Egyptian economy, according to a statement made by the Head of the House’s Defense and National Security Committee, Ahmed El-Awadi.
“We will benefit from the Bank’s financial and technical assistance in areas of sustainable development, health, infrastructure, transport, water, and telecommunications,” added the Deputy Chairman of the House’s Economic Committee, Mohamed Abdel-Hamid, during the meeting.
Moreover, this will lessen Egypt’s dependency on the US dollar, he added.
The NBD, set up by the BRICS block, was established in pursuit of boosting sustainable development projects in emerging markets and developing countries (EMDCs) through funding, as well as organizing sources to progress infrastructure.
Focusing on socially responsible investing, the bank has sustainability as part of its agenda. It was created in 2015 and has since taken part in an array of projects, and partnered with stakeholders spanning the global development industry.
In 2021, NBD admitted Bangladesh, the UAE, and Uruguay into the institution thus making it a global entity, and furthering its expansion.
Over the past decade, Egypt has been heading a number of infrastructure as well as sustainability projects, with the country’s construction sector being a vital source of income for the population.
Over the last 10 years, the industry has notably flourished with a predicted average of 9% growth between FY2020/24, as per a report released in 2022 by the American International Trade Administration.
As of 2022, 25 projects are in the pipeline for the railway sector, and $106.25 billion worth of infrastructure projects have already been implemented in under two years.
At the core of the upcoming projects is sustainability with an aim to reduce greenhouse gas emissions. One of these projects includes the construction new Forbes Tower – considered the company’s first sustainable commercial tower internationally – which will be built in Egypt’s New Administrative Capital.
Egypt’s transportation sector was estimated to be one of the biggest attractions for private investors and a driver of economic competitiveness, in a report released by the World Bank in 2018. Moreover, in FY 2019/20, the sector received the highest percentage of investments from the government.
Currently, several projects are underway spanning railways, roads, maritime infrastructure, and river transport systems. A segment of these projects includes building green roads, while also diverting congestion within the city (and thus decreasing carbon emission) through expansion. The construction of a number of bridges, aimed at reducing traffic, has already been implemented with a few more projects underway.