The Global Economic Governance (GEG) Africa programme is a policy research and stakeholder engagement programme to strengthen the influence of pro-poor African coalitions at global economic governance fora.
Thursday, 04 August 2016 14:01

MEDIA ALERT: BRICS’ New Development Bank to host First Annual Meeting

Written by  SAIIA

Dear Editors and Journalists, 

The New Development Bank, a development finance institution set up by the BRICS (Brazil, Russia, India, China and South Africa) group of countries, will host its first Annual Meeting this week in Shanghai, China. Experts from the Global Economic Governance Africa programme (a partnership between SAIIA, DNA Economics and Tutwa Consulting) have been following developments closely, and will be in Shanghai to attend the meeting.

The Annual Meeting will include closed meetings such as those of the Board of Directors and Governors, as well as meetings open to the public. Open discussions will consider, among other topics, challenges and opportunities for the NDB after its first year of operations, and how the NDB, headquartered in Shanghai, can use this geographic position within a global financial hub to strengthen its operations.

Last week the NDB also announced the issuance of its first ‘green financial bond’ in China, with an issue size of RMB 3 billion (roughly $450 million). Bonds are used to raise capital to extend the capital paid in by its members.

The Bank, which officially opened its doors a year ago (July 2015), has already extended its first loans of more than $800 million in April this year to four of its members (Brazil, India, China and South Africa). In accordance with the NDB’s mandate to finance ‘infrastructure and sustainable development’ projects in emerging and developing economies, these loans will be geared towards financing infrastructure in the renewable energy sector in these countries.

Key questions

  • How does the NDB intend to distinguish itself from existing multilateral development banks, such as the World Bank and the African Development Bank?
  • What is the NDB’s ability to respond to African needs, particularly in meeting Africa’s infrastructure financing deficit, estimated to be $100 billion a year?
  • What role is the NDB’s Africa Regional Centre, based in South Africa, likely to play? And what could South Africa do to ensure Africa’s voice is effectively heard by the NDB?

Expertise and resources available

Two experts are attending the Annual Meeting in Shanghai: Dr Nomfundo Ngwenya and Mr Cyril Prinsloo. They will be available for comment by email while abroad, and will return to South Africa on Friday 22 July. Contact Ms Fortunate Xaba to arrange interviews or comment, on +27 (0)11 339-2021 or media@saiia.org.za.

Journalists can access relevant research and analysis from SAIIA’s website, with a select few highlighted below:

About Global Economic Governance Africa

The Global Economic Governance Africa programme is a partnership between SAIIA, DNA Economics and Tutwa Consulting. Funded by the UK's Department for International Development (DFID), its focus is on strengthening the influence of groupings within and outside South Africa working for pro-poor outcomes through the institutions of global governance. Read more on www.gegafrica.org.

For more information or to arrange for interviews please contact:

Fortunate Xaba
SAIIA Communications Assistant
Cell: +27 (0) 81 086 6303
Office: +27 (0) 11 339 2021 ext 123
Email: media@saiia.org.za

Issued by: The South African Institute of International Affairs ( www.saiia.org.za )
GEGAfrica has been funded by UK aid from the UK government; however the views expressed do not necessarily reflect the UK government’s official policies.

19 July 2016

FOR IMMEDIATE RELEASE