Ethiopia Takes Center Stage in BRICS Alliance, Pushing for Global Economic Reform
In a significant diplomatic achievement, Ethiopia marked its one-year anniversary as a member of the BRICS alliance, joining forces with Egypt, Iran, and the United Arab Emirates. The country’s steady economic growth has reaffirmed its commitment to collaborating with international partners, with a focus on strengthening relations with rapidly growing economies within the bloc.
The 16th BRICS Summit, held in Kazan, Russia, was the first meeting attended by new BRICS+ members, including Ethiopia. Prime Minister Abiy Ahmed emphasized the importance of BRICS, highlighting that its members represent nearly half of the world’s population and over a third of global GDP. Abiy stressed that BRICS is well-positioned to drive sustainable global development and promote economic growth, but noted that global governance structures must become more inclusive and responsive to the needs of developing and emerging economies.
"To unlock this potential, global governance structures must become more inclusive and responsive to the needs of developing and emerging economies," Abiy stated. He criticized the current international financial system, calling for comprehensive reform to create a more equitable framework. Abiy also urged BRICS to lead by example, fostering mutually beneficial cooperation that supports not only its members but also the development goals of other emerging economies.
Ethiopia’s fast-growing economy presents a valuable opportunity for BRICS nations to invest and collaborate in areas like trade and agriculture. The country’s vast natural resources and strategic access to African markets position it as a key partner in the bloc’s economic strategy. National Bank of Ethiopia Governor Mamo Mihretu echoed Abiy’s message, stressing the need for an effective multilateral system. Mamo criticized the IMF’s voting structure, pointing out that small Western nations have more influence than large developing countries like China and India, distorting financial governance.
"We need better representation in global financial institutions," Mamo stressed, adding that Ethiopia’s IMF quota is inadequate and does not reflect its economic progress. He called for reforms that would enhance access to international financing for developing nations. Chinese President Xi Jinping expressed China’s commitment to working with BRICS countries to advance high-quality cooperation and promote unity among Global South nations. Xi emphasized the goal of building a shared future for mankind through collective progress.
The BRICS alliance is also working on developing an independent payment system, BRICS Pay, to reduce reliance on Western financial networks. This decentralized payment messaging system aims to provide an alternative to SWIFT. With Ethiopia’s growing involvement in BRICS, the country is poised to play a key role in global economic reform while reaping the benefits of new trade and investment opportunities. As the bloc continues to push for a more inclusive and equitable global economic system, Ethiopia’s participation is expected to have a significant impact on the future of international cooperation and development.
