Ethiopia, one of Africa's rapidly developing economies, has expressed its interest in joining the BRICS bloc, which includes Brazil, Russia, India, China, and South Africa. This move comes as Ethiopia aims to solidify its position on the global economic stage and safeguard its national interests.
The Ethiopian Ministry of Foreign Affairs revealed that joining BRICS would provide significant benefits for the country. As a founding member of esteemed international institutions like the African Union (AU) and the United Nations (UN), Ethiopia sees its inclusion in BRICS as an opportunity to further advance its national interests and strengthen its economic ties.
Similar to Egypt and Algeria, Ethiopia is facing challenges related to foreign exchange shortages and a widening gap between its official and parallel market exchange rates against the U.S. dollar. To address these issues, the National Bank of Ethiopia (NBE) has implemented restrictions on the amount of U.S. dollars that residents can take out of the country.
However, by joining BRICS, which has plans to introduce an alternative reserve currency, Ethiopia aims to decrease its reliance on the U.S. dollar. This move aligns with the growing trend among various African nations seeking to reduce the influence of the dollar in intra-continental trade.
Ethiopia's request to join the BRICS bloc signifies its commitment to expanding economic cooperation and diversifying its financial partnerships. With its vibrant economy and second-largest population in Africa, Ethiopia looks to leverage the benefits of association with BRICS, despite its economy being smaller in comparison to the other members.
The Ministry of Foreign Affairs remains optimistic about Ethiopia's request and anticipates a positive response from the BRICS nations. Ethiopia will continue to collaborate with international institutions that can safeguard its interests while pursuing avenues for further economic growth.
BRICS, encompassing more than 40% of the global population and constituting around 26% of the world economy, has established itself as a formidable force in the emerging-market sphere. As Ethiopia endeavors to strengthen its position in the global economy, joining BRICS presents an opportunity for enhanced economic cooperation and increased geopolitical influence.
