The New Development Bank (NDB), based in Shanghai, China has been one of BRICS’ key achievements. The bank was launched in 2014 with the aim of financing infrastructure projects for member states.
BRICS members have articulated that this institution does not seek to compete with traditional international finance institutions, but rather, to complement them.
The bank utilises the model of multilateral development banks. What this means for Africa is that there will be a variety of funding avenues on offer if funding is opened up for non-member countries or if the BRICS Plus outreach is formalised.
Representatives of the African diplomatic community are positive about the bank, saying Africa stands to benefit from a new finance institution as it adds a competitive advantage.
banks and, along with the African Regional Centre, stands to gain and learn from the AfDB. Research undertaken by the South African Institute of International Affairs (SAIIA) shows a large amount of interest in the NDB – and, by extension, its regional office – on the part of African leaders.
Identifying and preparing proposals for projects in Africa has met with major bottlenecks. Hence, say SAIIA researchers, “early engagements between Africa and the NDB should include agreements that project preparation goes beyond bankability to the point of integrating those factors that indicate how NDB-funded projects will address and measure poverty alleviation and the empowerment of women”.
find full article in BRICS Journal Print Issue 6