Algerian President Abdelmadjid Tebboune announced that Algeria has formally submitted an application to join the BRICS group of nations. The move aims to create new economic prospects for the oil and gas-rich nation in North Africa, as it seeks to diversify its economy and strengthen ties with countries like China.
Application for BRICS Membership and Contribution to BRICS Bank
- In its bid to join the BRICS group, Algeria has not only submitted an application but also sought to become a shareholder member of the BRICS Bank.
- The nation has pledged a substantial contribution of $1.5 billion to the bank, a move aimed at reinforcing its position and influence within the bloc.
- The BRICS group, with a collective GDP of around 26% of the world’s total and representing more than 40% of the global population, holds significant economic clout on the international stage.
Growing Interest from Over 40 Countries
- South Africa‘s top diplomat overseeing relations with the BRICS bloc reported that more than 40 countries have expressed interest in joining the group.
- Among these nations are Argentina, Iran, Saudi Arabia, the United Arab Emirates, Cuba, the Democratic Republic of the Congo, Comoros, Gabon, and Kazakhstan.
- The growing interest reflects the increasing appeal of the BRICS alliance as a platform for economic cooperation and collaboration.
China’s Investment in Algeria
- During President Tebboune’s visit to China, it was revealed that China plans to invest a substantial $36 billion in Algeria.
- The investment will span diverse industries, including manufacturing, new technology, the knowledge economy, transport, and agriculture.
- China’s substantial financial commitment further strengthens the economic ties between the two nations and bolsters Algeria’s efforts to diversify and modernize its economy.
More about BRICS
- BRICS stands for Brazil, Russia, India, China, and South Africa.
- It is an association of five major emerging national economies from different regions of the world.
- Originally known as “BRIC” when formed in 2001, South Africa joined in 2010, leading to the acronym “BRICS.”
- The main objectives are to promote economic cooperation, facilitate political dialogue, and enhance strategic partnerships among member countries.
- BRICS collectively represents around 42% of the global population and approximately 23% of the global GDP.
- The New Development Bank (NDB) was established in 2014 by BRICS countries to fund infrastructure and sustainable development projects.
- The Contingent Reserve Arrangement (CRA) provides member countries with access to financial resources in times of economic crisis.
- BRICS engages in regular political and diplomatic dialogues to discuss global issues and strengthen cooperation on international platforms.
- The group promotes academic and cultural exchanges to foster mutual understanding and goodwill.
- BRICS summits are held annually, providing leaders with a platform to coordinate on mutual interests.
- It is seen as a counterbalance to Western-led global institutions and holds influence in shaping the international economic and geopolitical landscape.
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