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The BRICS flourishing partnership

Coined by then-chairman of Goldman Sachs Assets, Jim O’Neill in 2001 – BRIC. At its initial formal meeting in 2009 [BRIC] emphasised the improvement of global economic situations and reforming financial institutions. South Africa in 2010 was then formally invited to join the group of the world’s fast growing in emerging economies – the group was renamed BRICS.

The grouping is celebrating a decade of formal meetings and the partnership continues to flourish. Brazil, Russia, India, China, South Africa relations have moved from just economic collaborations. The collation has over the years accumulated achievements that  are not only for the benefit of member countries.

BRICS in 2014 Created a development bank [New Development Bank], raising $50 billion to start it from the ground. The bank has funded development in member countries and is now funding non-member countries and private. The NDB will in the future fund Arts and Culture – South Africa’s Minister of Arts and Culture Mr Nathi Mthethwa hosted BRICS Ministers of culture and it was agreed that the NDB should fund culture and the arts.

According to thesouthafrica.com the grouping achieved also, a decentralised the economic clout of traditional Western powers, ensured trade benefits for South Africa and gave Africa a greater access to the global stage.

 

By: Kgothatso Nkanyane

NDB AND FAO AGREE TO STRENGTHEN COLLABORATION THROUGH JOINT INITIATIVES

The President of the New Development Bank (NDB), Mr. K. V. Kamath, and the Director-General of the Food and Agriculture Organization of the United Nations (FAO), Professor Graziano da Silva, met at the NDB’s Headquarters in Shanghai to discuss opportunities for joint initiatives in areas of common interest, including rural development, water management and irrigation.

On the occasion, Mr. K. V. Kamath and Professor Graziano da Silva exchanged drafts of a Memorandum of Understanding to establish a framework for cooperation between the NDB and FAO. The Memorandum will be signed and enter into force following the conclusion of internal procedures.

Mr. K.V. Kamath and Professor Graziano agreed to co-organize a knowledge-sharing workshop on the topic of development impact in early 2019 to promote technical exchanges between staff and experts in water management, irrigation, sanitation and related fields. Several other forms of collaboration were also explored, including research and technical cooperation to support the design, monitoring and evaluation of sustainable development and infrastructure projects.

The collaboration between the NDB and FAO will aim to drive progress on their shared objectives of growth and development, in particular in light of the 2030 Agenda for Sustainable Development and the role of international organizations in helping countries achieve their Sustainable Development Goals (SDGs).

“Strengthening the collaboration between the NDB and FAO is an important step towards further aligning the activities of our institutions in support of our member countries’ development efforts. This partnership will leverage the development expertise of FAO as a custodian of 21 SDG indicators, within the NDB’s capacity and mandate to mobilize resources for infrastructure and sustainable development projects in emerging and developing economies,” stated Mr. K. V. Kamath.

“In order to achieve SDGs on time – there are less than 12 years left – we need consistent, committed financing. Food and agriculture, water and sanitation, energy and transportation infrastructure can – and must – contribute enormously. This is why FAO is pleased today to join forces with the New Development Bank, so that together we can draw on our combined strengths and deliver tangible results for the countries we support,” stated Professor Graziano da Silva.

Background Information

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.

FAO is a specialized agency of the UN established in 1945 to lead international efforts to defeat hunger. The goals of FAO are to eradicate hunger, improve nutrition and agricultural productivity, raise the standard of living of rural populations and contribute to the growth of the world economy.

 

Issued by: The New development Bank

image source: NDB Twitter

New Development Bank and its implications for South Africa

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

 

BRICS bank loans favour technological innovation projects: VP

Displayed with permission from China Daily

The BRICS New Development Bank (NDB) is interested in lending to technological innovation projects, the bank’s vice president Zhu Xian said Saturday at a financing forum held in east Chinese city of Xiamen.

Established to meet emerging economies’ funding needs, the multilateral lender approved loans worth $1.5 billion last year, mainly to finance clean energy and infrastructure developments in BRICS countries – Brazil, Russia, India, China, and South Africa.

The BRICS share of the world economy shot up from 8.2 percent in 2002 to 22.2 percent in 2015. The BRICS now represents two thirds of the developing world’s economy.

Zhu said the bank aims to foster technological innovation in developing nations through its financing, capability building, and knowledge sharing.

He said such lending priority will set the bank on a new path different from the one taken by traditional multilateral financial institutions.

The developing nations account for more than 35 percent of the world economy, but lacks an equal share of deciding power in traditional multilateral lenders, Zhu said. Trillions of fund is needed every year as the developing world strives to upgrade industries and develop new energy sector.

“That will be the priority of BRICS NDB and Asian Infrastructure Investment Bank (AIIB),” Zhu said.

He said China has accumulated rich experience in technological innovation on infrastructure projects and is open to share such experience with other developing nations.

“We will frame the BRICS NDB as a knowledge bank, through its project financing and knowledge sharing,” Zhu said.

The BRICS NDB was established in 2014 with an initial fund of $100 billion pooled from five BRICS countries. The bank was launched in Shanghai in July 2015 and issued its first loan in April 2016.

-Repubhub