As Egypt officially steps into the bloc, its new BRICS membership unlocks a wide range of opportunities for the country as it gains further access to a diverse economic network with similar global goals
As 2024 rolls in, Egypt officially joins the BRICS bloc today, bringing in a new chapter marked by economic promise alongside Saudi Arabia, the UAE, and others, and is expected to open up new horizons of global influence and investment opportunities.
In a Thursday statement, President Abdel Fattah El-Sisi stated that “We look forward to cooperating and coordinating with them (the member states), and with the other countries invited to join the bloc, to achieve its goals of strengthening economic cooperation among us, and raise the voice of the Global South with regard to the various issues and development challenges we encounter to promote the developing countries’ rights and interests.”
As Egypt officially steps into the bloc, its new BRICS membership unlocks a wide range of opportunities for the country as it gains further access to a diverse economic network with similar global goals.
Trade and investment are at the forefront as facilitated trading with members, particularly China and India, opens new markets for Egyptian exports, from agricultural products to textiles.
Diversifying trade is a pivotal part of the BRICS membership, reducing Egypt's reliance on traditional Western partners with access to new markets, mitigating the country’s vulnerability to external fluctuations, and ensuring a more resilient economy.
The Russian-chaired bloc is an influential party in encouraging global economies to move away from the US dollar for international trade and currency pegging. As part of that goal, BRICS is looking to create an alternative currency, potentially backed by gold, to lessen reliance on the US dollar for pricing essential commodities.
Until then, the bloc’s membership has already opened doors for Egypt to discuss trading in local currencies, rather than the North American greenback, including with founding bloc member India.
Egypt will also be able to benefit from leveraging the collective experience of BRICS nations in managing debt and navigating economic challenges, among other knowledge-sharing and technical assistance opportunities.
Easier access to BRICS members can additionally facilitate foreign direct investment (FDI), especially from countries like China, holding the potential to catalyze growth in key sectors such as infrastructure, tourism, and manufacturing, and also supporting Egypt during its current foreign currency shortage.
Currency swaps between Egypt and BRICS members will continue to be a boon to the North African nation, as it offers a new avenue to fuel the country’s developmental goals, including facilitating essential projects such as power plants, transportation networks, and irrigation systems.
News outlets have already cited sources that Egypt and China have reached an advanced stage in negotiations regarding a debt swap program worth between $100-210 million, which would convert the latter’s debts into investments in green projects in early 2024.
With a combined economy worth over $28.5 trillion - about 28% of the global economy - the bloc is rapidly becoming a formidable force in global governance, and Egypt’s joining only strengthens its own influence on the global stage, enabling it to amplify its local concerns and advocate for developing nations on critical issues such as climate change and global trade.
In August 2023, Egypt approved the establishment of a BRICS unit within the cabinet to handle cooperation issues with the bloc. In a separate statement, Egypt revealed that it was looking forward to strengthening its relations with BRICS members through opening cultural centers in member countries to promote further cooperation.
