SABC News - New Development Bank set to start disbursing loans:Wednesday 2 March 2016

New Development Bank set to start disbursing loans

Wednesday 2 March 2016 20:29

Nompumelelo Siziba

Commonly called the BRICS bank, is set to invest in infrastructure development projects, initially in the BRICS countries.

The BRICS bank is set to invest in infrastructure development projects, initially in the BRICS countries. (REUTERS)

The much heralded New Development Bank is set to start disbursing loans in April. Commonly called the BRICS bank, it is to invest in infrastructure development projects, initially in the BRICS countries.

Traditional development finance institutions have been criticised for taking project decisions, without consulting wider society.
Civil society organisations are hoping the BRICS bank will be different.

The South African Institute of International Affairs has written a paper on how the BRICS Bank could do things differently to traditional development finance lenders. This, with particular emphasis on sustainable development .

It suggests that the Bank needs to be mindful of ensuring that it invests in projects that will touch particularly the rural and urban poor.

It argues that development finance needs to have at its centre inclusive economic growth.

However, civil society groups say they are hoping to engage with the Bank, so that future projects produce overall sustainable outcomes, which ensure that communities are not marginalised.

Practicing development financiers argue that developing nations need to be pragmatic as they pursue growth and development.

The BRICS bank has targeted the second quarter of 2016 to start disbursing loans.

South Africa has earmarked a few projects it's seeking funding for, these include money for Eskom's capital expenditure and the Lesotho Highlands water project, among others.

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