Ethiopian Informer
By: Habtamu W. Liben
ADDIS ABABA (EI): On January 1, 2024, Ethiopia, the second-most populous nation in Africa after Nigeria, officially became a member of BRICS, a growing global coalition that also welcomed Saudi Arabia, the UAE, Iran, Argentina, and Egypt. The East African country’s involvement in the BRICS framework was further solidified last week, as Prime Minister Abiy Ahmed attended the BRICS summit in Kazan, Russia.
Back in August last year when BRICS leaders agreed to invite six countries, namely Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE), to join the group, Ethiopia’s Abiy declared that the country’s entry into the BRICS bloc marks a pivotal step in advancing its national interests through South-South cooperation.
“Our membership in BRICS is advantageous as the group champions the South-South framework. This aligns with Ethiopia’s aspirations, not to oppose or harm others, but to foster shared progress,” he said, commending the founding BRICS nations for their support.
Economic Liberation, Market Access, and Institutional Growth
Scholars and analysts underscore the transformative potential of BRICS membership for Ethiopia’s economy. In an interview with an Ethiopian local media outlet, Gedion Jalata, a UNDP advisor, highlighted the bloc’s role in reducing reliance on the U.S. dollar, particularly through the New Development Bank (NDB) and local currency trade mechanisms.
This shift, he argued, could alleviate chronic foreign exchange shortages and ease import-export constraints. Balew Demissie of the Policy Studies Institute echoed this, noting that access to NDB financing could unlock critical infrastructure investments in energy, transport, and healthcare—sectors where BRICS nations, notably China, already play a significant role.
Balew further emphasized Ethiopia’s appeal as a destination for foreign direct investment, citing its youthful workforce, natural resources, and ongoing industrialization. BRICS membership, he said, positions Ethiopia to attract manufacturing and agricultural investments while integrating into global supply chains. The scholar added that institutionalized ties with BRICS would offer stability and predictability, enabling Ethiopia to address developmental challenges through structured partnerships. The country’s vast domestic market of 120 million people, projected to grow, also presents lucrative opportunities for BRICS exporters and investors.
Geopolitical Influence and South-South Synergy
Beyond economics, analysts stress Ethiopia’s enhanced geopolitical clout. As a founding AU member and host to continental bodies in Addis Ababa, Ethiopia’s BRICS role could amplify Africa’s voice in shaping a multipolar world order.
The scholars noted that Ethiopia’s leadership in regional stability and climate action aligns with BRICS’ goals, fostering collective security and sustainability initiatives. He added that Ethiopia’s historic ties and strategic location in the Horn of Africa offer BRICS nations a gateway to deepen regional influence—a contrast to what scholars criticize as exploitative Western engagements during crises.
Analysts pointed to China’s poverty reduction achievements as a blueprint for Ethiopia, urging adoption of tailored strategies to accelerate growth. Similarly, Balew emphasized knowledge exchange in governance, education, and health, facilitated by BRICS’ emphasis on South-South collaboration.
Looking Ahead
As Ethiopia prepares for its future engagement within the BRICS mechanism, the focus remains on leveraging membership to drive inclusive growth. With its dual role as an African leader and emerging economy, Ethiopia stands to reshape its global trajectory—while offering BRICS a bridge to one of the world’s fastest-growing regions.
In the Ethiopian Prime Minister’s words, the invitation is not merely a diplomatic milestone but a “remarkable achievement” signaling Ethiopia’s rising influence in a re-balancing world order.
