Egypt’s benefits from its membership in the BRICS group… Find out the details

Egypt’s membership is considered to be a collection of “Brix“An opportunity for Egypt to strengthen economic relations with the BRICS countries, to increase the volume of trade with these large markets, as well as to attract more foreign direct investments to Egypt in many important sectors, as well as to increase the number of exports Egypt, especially for emerging markets in the group such as Brazil and India. ” and South Africa, as well as increasing cooperation in the fields of energy, food security, technology transfer and logistics.

Egypt has strong economic relations with the “BRICS” countries, “China, India, Russia, South Africa and Brazil,” so Egypt’s membership in this group is reflected in its ‘ to strengthen Egypt’s economic ties with the countries of the group, as Egypt aims to join the “BRICS” group, to strengthen partnerships regionally and internationally. national, strengthening cooperation and coordination among BRICS countries, supporting coordination mechanisms for reforming the global economic system, and pushing efforts to increase the representation of developing countries in finance and international finance. monetary frameworks in a way that reflects the growing economic pressure, as well as providing the greatest benefits from cooperation and trade agreements between member states of the group, especially attracting investments and opening new markets for Egyptian exports from Egypt’s membership in the BRICS group is the following, as revealed by a study by the Egyptian Think Tank :

– Consolidating trade relations between Egypt and the countries of the group, and increasing Egyptian exports to the markets of “BRICS” countries In fact, the percentage of Egyptian exports to “BRICS” countries has seen an increase since Egypt officially joined the group in January 2024, as Egyptian exports increased by 13% in the period from January to August 2024, for BRICS countries, especially India, Russia and Brazil.

Egypt’s membership in the “BRICS” group is an opportunity for Egyptian producers and manufacturers to export their Egyptian products to “BRICS” countries, especially the main emerging markets such as “The -India, Brazil and South Africa Various business sectors in Egypt have increased their exports to “BRICS” countries.

Therefore, within the framework of the Egyptian state plan to increase and develop the volume of Egyptian exports, the large markets of “BRICS” countries are considered to have special and promising opportunities for Egyptian exports, and can be work to increase Egyptian exports. for them, which is in line with the state’s objective of improving the volume of exports, and since the group “BRICS” is not an agreement including customs exemptions for the member states of the group the countries BRICS while taking advantage of trade agreements such as the Southern Common Market (MERCOSUR), which allows Egypt to be a center connecting Africa, Asia and South America.

– The increase of foreign direct investments in the BRICS countries in Egypt is a large and promising market with many investment opportunities, especially due to the efforts and measures of the state to improve the investment situation in Egypt and provide many incentives to investors. What makes Egypt different is the skilled work, renowned infrastructure, and the ability to access foreign markets, especially African markets, which made Egypt the first investment destination on the African continent. . as: The number of foreign direct investment flows to Egypt accounted for about 75.8% of the total flows to North African countries in 2022: 2023.

According to the General Authority for Investment and Free Zones, the cumulative investment contribution of the BRICS countries in Egypt amounted to about $ 17.4 billion as of September 2023. Therefore, Egypt’s membership in the BRICS group provides more opportunities to to attract foreign direct investment from Egypt, especially in several areas of development.

In addition, and within the framework of Egypt’s effort to strengthen the movement of trade on the African continent and strengthen Egyptian-African cooperation, and since Egypt’s geographical location is the ideal gateway for trade and investment in the African continent, Egypt is also seeking, through its membership in the “BRICS” group, to strengthen the links between “BRICS” and the African continent, which will mutual benefit between BRICS countries as well as African continent countries.

– Exchanging experiences and positioning the Egyptian industry locally, since Egypt’s membership in the “BRICS” group enables a direct exchange of experiences and capabilities with the countries of the group, especially in the business area, technology, and various training areas, which contribute to it. to Egypt’s goal of locating the business, by benefiting from the experience of the countries of the group “BRICS” aims to increase the levels of production and entrepreneurship, and to locate modern businesses in Egypt , while at the same time creating a common market for the exchange of Egyptian goods. and goods.

Providing concessional financing to Egypt, as the BRICS group provides concessional financing to its members, through the New Development Bank, which was launched in 2015, with a capital of around on $ 50 billion, with the aim of providing funding faster than the World Bank, and without strict conditions around $ 33 billion has been invested in 96 projects within the countries of the group so far. Therefore, Egypt’s membership in the BRICS Development Bank will open up soft financing opportunities for many different productive projects in Egypt, especially since the Development Bank aims to establish new infrastructure and quality of life in terms of within member states to promote.

– Ensuring Egypt’s needs for strategic goods, especially wheat and rice, with the possibility of obtaining them in local currencies, since the BRICS group accounts for a large share of grain trade in the world economy, especially Russia and India.

– An increase in the level of trade exchange in local currencies, especially since Egypt’s trade volume with the BRICS countries is estimated at about a third of Egypt’s total trade volume, amounting to about 31 billion dollars of trade with the various BRICS countries in local currencies, which will reduce putting pressure on the dollar, giving more stability to the official exchange rate, working to strengthen trade and investment relations between Egypt and the bloc countries , and facilitating trade exchanges between the Egyptian private sector and the various bloc countries, especially since the BRICS countries support the multilateral trading system and tend to developing and changing the payment system between the countries of the group, which facilitates the process of exchange of trade between members of the group in national. currencies, which falls within the framework of Egypt’s vision of trading in local currencies.