The New Development Bank, which was formed in July 2014, marks its eighth birthday this year. It was formed by the leaders of Brazil, Russia, India, China and South Africa (BRICS) when they met in Fortaleza, Brazil for the bloc’s summit. The bank was seen as a potential alternative to the World Bank and able to take a new approach to development finance.
The New Development Bank has since approved 11 projects in South Africa and Lesotho. These involve sustainable energy, transportation, water resource management, and a COVID-19 emergency loan programme. Some of these projects, for instance the Environmental Protection Project for Medupi Thermal Power Plant, are of strategic importance to South Africa. Of the project’s estimated total cost of US$2.75 billion, the bank is providing a US$480 million loan.
