The New Development Bank (NDB) the key financial institution for the BRICS countries in funding infrastructure and business projects with 23 projects approved for all BRICS countries, the NDB is also deepening its impact with regards to South Africa.
South Africa one of the beneficiary of the bank, according to the asaurenergy.com NDB recently cleared $300 million for the financing of South Africa’s green energy sector. The NDB in July activated a dormant loan to Eskom of $180 million and earlier this month extended a line of credit to the Development Bank of Southern Africa (DBSA) worth $300 million.
In May of this year the NDB loaned $200 million to a state-owned ports and freight operator, Transnet for the rehabilitation of its container terminals in Durban. New South African finances minister Tito Mboweni, in his 2018 medium-term budget speech highlighted the New Development bank, as one of the key banking institutions with regards to promoting agriculture and infrastructure develpoment.
The New Development Bank is also planning to increase lending for private sector to as much as 30% of its portfolio which sits at $5.1 billion at the moment, as reported by africanbusinessmagazine.com. South Africa is definitely well positioned to gain even further in the future especially with the economic constraints its facing at the moment.
By Mokgethi Mtezuka