By The ascendency of Egypt to BRICS proves a boon to the African country, which is geographically strategically placed in the globe juxtaposed between Africa and Western Europe.
As member of the BRICS bloc, Egypt’s economy is poised to expand with the trade relations amongst member states; not only will it increase its exports, but the Egyptian Pound will be in demand as BRICS is on a path to de-dollarise its trade and use local currencies of the specific countries it is trading with.
Egypt’s blue economy is one of the most formidable in the world, it boasts the Mediterranean Sea and the Red Sea and the control of the Suez Canal which has an economic value of more than $US 1,692 billion, major multi-national ships in transit carrying cargo worth billions pass through Egyptian waters.
Egypt has enormous economic potential; recently the Vice Minister of Tourism Ghada Shalaby announced that Egypt’s tourism sector is growing as the numbers of visitors to the country grew by 27 percent from January to April 2024. This is despite the ongoing conflict between Israel and Hamas.
With a population of over 107 million, the country is a potential market for many products including technology and nuclear energy.
BRICS is changing the order of the world as we know it, challenging the global West. The bloc represents 36 percent of the global GDP, which is bigger than that of G7 at 30 percent. Being part of the bloc, Egypt will be able to trade in its own currency in international commercial transactions. This will help lower the inflation rate of the country which is at 35.7 percent.
Under the Chairmanship of Russia, BRICS is tasked to come up with a payment system between trading countries, a system that moves away from the US Dollar. This protects member states for in case of global shocks and uncertainties.
Foreign direct investment into Egypt’s economy by BRICS member countries will boost the country. Already in 2022, BRICS states spent $891 billion in Egypt, which is just a tip of the ice compared to its potential. The country is also part of other economic blocs in Africa including the African Continental Free Trade Area (AFCFTA).
