South Africa is set to receive a grant of US $1bn to aid in developing water and sanitation infrastructure. The New Development Bank (NDB) founded by the Brics group of developing countries approved the loan which will support the country’s Municipal Infrastructure Grant program, which aims to address infrastructure deficits and improve basic services for impoverished communities.
Established in 2015 by the BRICS nations—Brazil, Russia, India, China, and South Africa—the NDB has expanded its membership to include the United Arab Emirates, Egypt, Bangladesh, and Uruguay.
Recently, Algeria’s admission to the bank was authorized, reflecting its commitment to expanding its membership among countries of the Global South. Dilma Rousseff, the NDB President, indicated that while many countries have expressed interest in joining, a thorough assessment is required before their applications can be approved.
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Goal
New BRICS members, including the UAE, Egypt, Iran, and Ethiopia, joined the bloc on January 1. However, the latter two have not yet joined the NDB, and Saudi Arabia is still considering the invitation to join the group.
The NDB’s strategic goal is to finance long-term development projects, but it also aims to cater to private sector needs for shorter-term financing. Currently, the bank strives to issue 30% of its loans in the currencies of its member countries, although it has not yet achieved this target.
