By Vusi Mazimbuko and Gershwin Wanneburg
The New Development Bank (NDB) is an international financial institution established by the BRICS nations (Brazil, Russia, India, China, and South Africa). Founded in 2014, the NDB aims to support infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.
The NDB’s Mission
To mobilise resources for infrastructure and sustainable development projects.
To complement existing efforts of multilateral and regional financial institutions for global growth and development.
Key Features of the NDB
Membership: Initially comprising BRICS nations, with plans to expand to other countries.
Capital: The bank has an initial authorised capital of $100 billion.
Voting Power: Unlike many other international institutions, the NDB operates on an equal voting basis, with each of the five founding members having equal voting rights.
Funding Projects
The NDB funds projects that are sustainable and aim to have a developmental impact, especially in infrastructure and sustainable development areas.
It offers loans, guarantees, equity participation, and other financial instruments.
Infrastructure Projects: The NDB often focuses on large-scale infrastructure projects that can include transportation systems, renewable energy plants, water and sanitation facilities, and urban development. These projects aim to boost economic growth and improve the quality of life in member countries.
Sustainable Development Initiatives: The bank also invests in projects that promote sustainable development. This can involve funding for green energy projects like solar and wind farms, initiatives for clean water and air, and programs that address climate change and environmental conservation.
Governance Structure
The NDB is governed by a Board of Governors and a Board of Directors.
The President of the NDB, elected from one of the founding members, is responsible for the daily operations.
Significant Initiatives
A prominent initiative includes the establishment of the COVID-19 Emergency Program, which allocated billions of dollars to assist member countries in their response to the pandemic.
Future Outlook
The NDB is continuously evolving, expanding its membership beyond the BRICS nations.
It aims to position itself as a key player in global development finance, particularly focusing on sustainable and green projects.
Key takeaways from the NDB’s Eighth Annual Meeting held in Shanghai on May 30-31, 2023, include:
The meeting’s theme was “Shaping a New Era for Global Development,” focusing on current and future global development issues, particularly in BRICS and other emerging economies and developing countries.
A central statement emphasised that the NDB is a bank “built by and for developing countries,” highlighting the equal representation of all member countries.
The event featured high-level seminars on key topics, including “Innovation Driving Global Development” and “Resource Mobilization for Connectivity in the Digital Era,” reflecting a focus on modern challenges and solutions in development.
Another significant seminar topic was “Deepening the Global Partnership for Development,” underscoring the NDB’s commitment to fostering international collaboration for sustainable growth.
How to Stay Informed
To keep updated with the NDB’s activities and projects, visit their official website and follow their news releases and annual reports.
