BRICS Plus Bank Mulls Funding for Non-member States Projects

TUESDAY MAY 28 2024

The New Development Bank, which is owned by the Brazil-Russia-India-China-South Africa (Brics) intergovernmental organisation, may soon be sending money to finance projects across the region, even as it lobbies for more African countries, including Kenya, to join the bloc. 

By VINCENT OWINO

A multilateral infrastructural projects financier owned by the Brics countries is mulling over funding projects in countries outside the bloc’s 11 members, unlocking additional finance for infrastructure upgrades in African nations like Kenya.

The New Development Bank (NDB), which is owned by the Brazil-Russia-India-China-South Africa (Brics) intergovernmental organisation, may soon be sending money to finance projects across the region, even as it lobbies for more African countries, including Kenya, to join the bloc.

South Africa is seeking to have the financier fund projects across Africa to ease trade and as an investment opportunity for Brics companies.

If successful, this bid could unlock access for African private and public institutions to the over $50 billion capital of the NDB, which was previously accessible only to companies domesticated within the Brics countries.

“We would like the NDB, where there is sponsorship by a member country and there’s intra-regional connectivity opportunity, to consider that as a fundable opportunity,” said Busi Mabuza, the Brics Business Council South African chapter chairperson.

Ms Mabuza said South Africa has launched the campaign to rally the Brics member states behind the plan in a bid to boost investment opportunities for member countries.

Besides the 11-founding Brics members, others admitted into the bloc last year include Iran, Egypt, Ethiopia, Argentina, Saudi Arabia and the United Arab Emirates

Ms Mabuza spoke to The EastAfrican on the sidelines of the African Development Bank Group’s annual meetings in Nairobi on Monday, after a session organised by the Brics Business Council on the opportunities for trade and investments between Africa and the Brics member countries.

According to Monale Ratsoma, the director-general of NDB’s Africa Regional Centre, there is already a framework for the financier to fund projects in non-member countries, if there is support for it from a member country.

vogweno@ke.nationmedia.com