BRICS bank a solution for Africa’s challenges – Rousseff
The New Development Bank will provide African nations with valuable financial help to tackle their most urgent needs, the chair of the multinational lender, Dilma Rousseff, said on Thursday, adding that the members of the BRICS group are “good partners” for Africa.
Speaking at the BRICS summit in Johannesburg, Rousseff, who was formerly the president of Brazil, promised that the Shanghai-based lender would finance projects related to physical and digital infrastructure, as well as education, on the continent
“The New Development Bank has the potential to be the leader of projects that address the most urgent challenges of African countries,” she stated.
The head of the BRICS bank noted that although Africa’s share of foreign direct investment (FDI) rose to 8.8% of the global total in 2021, up from just 4.9% in 2010, it “can and must rise much more.”
The BRICS group, which comprises Brazil, Russia, India, China, and South Africa, launched the NDB back in 2014 with the aim of providing funding for infrastructure and sustainable development projects in emerging economies.
The bank formally opened for business in 2015 and was later joined by Bangladesh, the United Arab Emirates, Egypt, and Uruguay. It was founded as an alternative to US-dominated financial institutions such as the IMF and World Bank.
According to Rousseff, one of major challenges to be overcome “is the expansion of payment mechanisms, notably local currencies and other financial instruments that may eventually be created in order to build a new, more multilateral and inclusive financial system.”
She also pointed to the need for joint infrastructure projects, noting that Africa has the world’s greatest untapped hydroelectric potential.
The 15th BRICS summit is currently taking place in Johannesburg, South Africa. More than 20 countries have formally applied to join the group of developing economies, and several others have expressed an interest. Six new members will join BRICS after their candidacies were approved on Thursday. Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates will become full-fledged members starting in January 2024.
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