ADDIS ABABA – Ethiopia’s recent accession to the BRICS group could significantly enhance its economic development, leveraging new opportunities for trade and financial cooperation, according to Gedion Jalata, a development advisor at the United Nations Development Programme (UNDP).

According to Ethiopian News Agency, Ethiopia’s membership in the BRICS group, which includes Brazil, Russia, India, China, and South Africa, represents a historic milestone that could substantially benefit the country. One of the primary advantages he noted is the potential shift towards using local currencies in trade among the BRICS nations, particularly through mechanisms like the New Development Bank. This could enable Ethiopia to diversify the currencies used in its import and export activities, reducing its longstanding reliance on certain foreign currencies.

Gedion emphasized that this move could alleviate many of the financial constraints Ethiopia has faced, allowing for smoother and more flexible trade transactions. The New Development Bank is also expected to introduce a new currency that could further facilitate these trade processes, providing Ethiopia with more options for economic transactions.

The advisor also pointed out that Ethiopia’s inclusion in BRICS underscores its growing global influence and enhances its negotiating power on the international stage. This status allows Ethiopia to forge closer ties with other emerging economies, potentially leading to increased investment and development assistance.

Furthermore, Gedion highlighted the potential for learning from the development strategies of other BRICS countries, particularly China, which has lifted over 700 million people out of poverty in recent decades. He sees significant potential for Ethiopia to benefit from China’s expertise in both hard infrastructure, such as roads and bridges, and soft infrastructure, including education and health.

As Ethiopia embarks on this new chapter as a BRICS member, the nation looks forward to reaping the economic benefits and strengthening its position on the global stage, contributing to sustainable development and prosperity for its people.