The New Development Bank (NDB) has intentions to loan approximately R8.1 billion more to South Africa, in a bid to attain symmetry among BRICS members.
The NDB, backed by BRICS, began operations in 2015 to aid infrastructure and sustainable development initiatives in emerging economies. The leaders of the fastest growing economies will be gathering in Johannesburg for the 10th BRICS Summit next week.
“Our aim is to be equitable among our five members,” NDB President KV Kamath said. “If you look at the $4 billion (R54 billion) we will be doing this year, we should be lending around $800 million” in each nation, he said. “I hope this year, we will hit that number.”
The formerly known BRIC Bank issued a statement in May saying that it loaned $200 million (R2.7 billion) to a state-owned South African ports and freight operator, Transnet to rehabilitate container terminals in Durban on the country’s east coast.
It will accelerate efforts to grow sustainable infrastructure in the continents most industrialised economy with two further loans, Kamath added. He said during an interview on Wednesday that one of the two loans will go to a bank, which will lend the funds for use in renewable energy developments. The other loan will be made available for critical infrastructure.
Separately, the NDB on Thursday activated a $180 million (R2.4 billion) loan to Eskom that had been dormant since 2016. The loan will be used to build transmission lines and a substation for the Soweto area to integrate renewable-energy projects from independent power producers, Anil Sooklal, South Africa’s Brics Ambassador told reporters in Johannesburg.
The Shanghai-based bank will also begin raising money and lending in South African rand to help insulate its clients from currency risk, Kamath said. It already does this in China.
Source: Money Web