New Development Bank

Algeria has officially become a member of the New Development Bank (NDB), supported by the BRICS nations, marking a significant step in expanding the bank’s reach into North Africa.

Overview of the New Development Bank

The New Development Bank, initially called the BRICS Development Bank, is a multilateral financial institution established by the BRICS countries—Brazil, Russia, India, China, and South Africa.

Purpose:

The bank’s mission is to raise funds for infrastructure and sustainable development projects within BRICS nations as well as other emerging and developing countries.
The concept of the NDB was first proposed during the BRICS Summit held in New Delhi, India, in 2012.
The formal agreement to create the bank was signed on July 15, 2014, during the BRICS Summit in Fortaleza, and the bank officially began functioning on July 21, 2015.
Headquartered in Shanghai, China, the NDB also maintains regional offices in Brazil and South Africa.
Membership is open to all United Nations member states.
The bank’s authorized capital stands at USD 100 billion, with an initial subscribed capital of USD 50 billion equally shared among the five founding members.
In contrast to institutions like the World Bank or the Asian Development Bank, the NDB grants equal voting rights to all its members.

Governance:

The institution is overseen by a Board of Governors, composed of the finance ministers from the BRICS countries, and a Board of Directors.
Leadership roles, including the presidency and vice-presidency, rotate among the founding BRICS members: Brazil, Russia, India, China, and South Africa.