What's Happening?
Colombia has initiated the process to join the New Development Bank (NDB), a multilateral development bank established by BRICS nations. On May 16, 2025, Colombia's President Gustavo Petro met with Dilma
Rousseff, the President of the NDB, to declare Colombia's intention to join. This move is part of Colombia's broader strategy to enhance its economic ties with BRICS countries, following its earlier decision to join China's Belt and Road Initiative. Colombia's accession to the NDB is expected to bolster the bank's operations in South America, a region where BRICS expansion has been less pronounced compared to Africa and Asia. Colombia will contribute $512.5 million to the NDB's capital, with $102.5 million paid upfront. The country aims to leverage NDB financing for high-cost infrastructure projects, potentially co-financing with regional financial institutions like the Inter American Development Bank.
Why It's Important?
Colombia's membership in the NDB represents a significant step in BRICS' expansion strategy, particularly in South America. This development could enhance Colombia's access to concessionary financing for infrastructure projects, thereby improving connectivity within the region. The NDB's involvement in South America may also strengthen economic ties between BRICS nations and Latin American countries, potentially leading to increased trade and investment. For Colombia, joining the NDB offers an alternative source of financing, complementing existing credit lines and reducing dependency on traditional financial institutions. This move could also position Colombia as a key player in regional economic integration, given its strategic location with access to both the Atlantic and Pacific Oceans.
What's Next?
Colombia's accession to the NDB is expected to be formalized in the coming months, with the country contributing to the bank's capital base. The upcoming BRICS+ summit in July 2025 may further solidify Colombia's role within the BRICS framework, potentially leading to more collaborative projects. As Colombia integrates into the NDB, it may explore co-financing opportunities with other regional banks to advance infrastructure projects. The expansion of the NDB's operations in South America could also prompt other countries in the region to consider joining the bank, further enhancing BRICS' influence in the Global South.
Beyond the Headlines
Colombia's decision to join the NDB reflects a broader trend of countries in the Global South seeking alternatives to traditional Western-led financial institutions. This shift may indicate a growing desire for more equitable representation in global economic governance. The NDB's focus on sustainable development and infrastructure projects aligns with Colombia's goals of improving regional connectivity and reducing economic disparities. As the NDB expands its membership, it may face challenges in balancing the interests of diverse member countries while maintaining its commitment to sustainable development.
