BRICS Summit: Sisi advocates establishing innovative financing mechanisms for developing states

CAIRO – 23 October 2024: President Abdel Fattah El-Sisi highlighted the importance of establishing innovative and effective mechanisms for development financing for developing countries as he addressed the 16th summit of the BRICS bloc of major developing economies on Wednesday.

During the second plenary expanded session of the summit, which is held in the Russian city of Kazan from October 22-24, Sisi called for establishing comprehensive mechanisms to guarantee sustainable debt management for developing countries.

He added that Egypt places a top priority to taking tangible steps to ensure that the international community performs its role in providing concessional financing necessary to achieve development in developing countries.

The president highlighted the developing countries are facing escalating debt issues and a lack of necessary financing to achieve sustainable development goals, in addition to the rising cost of financing and borrowing.

Sisi stressed that the successive crises that have swept the world in recent years have “unequivocally demonstrated the int'l system's inability to fairly address conflicts worldwide.”

He stated that international developments have shown that the shortcomings of the current international system are not limited to political and security issues but extend to economic and developmental matters.

LEVARAGING LOCAL CURRENCY

During his speech, Sisi underscored the importance of advancing cooperation frameworks regarding the use of local currencies for financial transactions.

The president called for leveraging the comparative advantages of the BRICS countries to launch joint economic, investment, and developmental projects, especially in agriculture, industry, digital transformation, and new and renewable energy.

 

He affirmed support to the significant role of the BRICS Business Council and the BRICS Women's Business Alliance in enhancing collaboration between the private sector and business owners in member countries, as key partners in efforts to achieve sustainable development.

Sisi also reaffirmed Egypt's commitment to the principles and axes of the BRICS bloc’s action, and its eagerness to enhance cooperation among its member states, contributing to maximizing its role in establishing security and stability, boosting global economic growth, and achieving sustainable development goals.

For his part, Russia’s President Vladimir Putin suggested the establishment of a BRICS grain exchange during the summit. He mentioned that the exchange could eventually expand to include the trading of other significant commodities.

Additionally, Putin suggested the possibility of establishing a separate platform for trading precious metals and diamonds.

He also alluded to the creation of a BRICS investment platform in his address, outlining its purpose to facilitate reciprocal investments among BRICS countries and potentially extend to investments in other nations within the Global South.

 

JOINING BRICS

Egypt officially became a member of BRICS in January.

The intergovernmental organization comprises Brazil, Russia, India, and China as founding countries alongside other members: Egypt, South Africa, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.

Through its BRICS membership, Egypt aims to boost its investment and foreign flows as well as to foster economic cooperation with other member states.

Egypt’s participation in the current BRICS summit in Kazan constitutes the country’s first as a member of the group.

In his speech today, the president underscored that the expansion of the BRICS membership earlier this year reflects the bloc's intention to enhance multilateral cooperation and amplify the voices and interests of developing countries in various international and regional forums.

Sisi reaffirmed Egypt’s support for bolstering consultation and coordination among BRICS countries, intensifying cooperation to address common global challenges, especially climate change, escalating poverty and hunger rates and widening digital and knowledge divides.

He also underlined Egypt’s commitment to enhance collaboration among BRICS members in ensuring access to concessional financing and food security.