Ethiopia’s Council of Ministers on Friday approved a draft proclamation that paved the way for the country’s accession to the New Development Bank (NDB).
In a statement the Council of Ministers said that membership in the NDB would help expand access to development finance, support infrastructure investment and strengthen cooperation with South-South financial institutions.
Accession to the bank would enhance the country’s macroeconomic stability by broadening external financing options and reducing dependence on limited funding channels, it added.
The council further highlighted the NDB’s role in strengthening the country’s engagement with emerging South-South financial cooperation frameworks.
The New Development Bank was established by Brazil, Russia, India, China and South Africa to finance infrastructure and sustainable development projects in emerging markets and developing countries.
Ethiopia’s move to join the institution follows its admission into BRICS, as the country seeks to broaden its sources of external financing.
The Council of Ministers also approved draft proclamations to ratify three financing agreements with the International Development Association, the concessional lending arm of the World Bank Group.
The three IDA loan agreements are worth a combined 637.5 million Special Drawing Rights.
MG/as/APA