Africa’s ambitious infrastructure built programme is expected to get a boost from the BRICS New Development Bank.
The new bank was launched in Moscow ahead of the 7th BRICS Summit which starts in the city of Ufa on Wednesday evening. It is estimated that the continent’s infrastructure built has a R100 million a year gap in funding.
President Jacob Zuma, who is also the champion of the project, says the BRICS bank is meant to lift developing countries out of poverty and not to rival or compete with existing Western financial institutions such as the International Monetary Fund (IMF) and the World Bank.
The new BRICS Development Bank has an initial budget of R600 billion and it is expected to help finance infrastructure projects in all BRICS member states and other poor countries of the world.
There also seems to be growing interest in BRICS from – countries including Nigeria, Turkey, Mexico and Indonesia to join.
President Zuma says the bank is just an alternative to established financial institutions.
Pretoria is upbeat that South Africa and the rest of the continent have a lot to benefit from the new financial institution.
It is reported that Greece potentially joining the block will be discussed.
South Africa’s Lesley Maasdorp, is the vice president of the new bank while former Reserve Bank Governor, Tito Mboweni, is part of the board of governors.
Russian President Vladimir Putin who has been in a cold war with the western leaders over Ukraine is expected to set the tone when he addresses leaders’ gala dinner.
On Thursday, leaders are expected to sign several agreements on economic integration between Brics member states.