BRICS bank loans South Africa $300m for energy sector

During the 10th annual BRICS Summit in Johannesburg, the New Development Bank set up by Brazil, Russia, India China and South Africa (the BRICS nations) has approved a $300-million loan for energy projects in South Africa.

In a statement released last week, the New Development Bank said that the money would be channeled through the Development Bank of Southern Africa and “loan proceeds will be on-lent to sustainable development projects within the energy sector in South Africa that contribute to the reduction in carbon dioxide emissions, improvement of energy mix and robustness”

During the three-day BRICS Summit, South African President Cyril Ramaphosa and Mr. K.V. Kamath, President of the New Development Bank, discussed the further development of the bank and the possible expansion of its project pipeline in South Africa.

At the summit it was announced that China would also receive a $300-million loan for a metro line project. The bank’s lending portfolio is now 23 projects at a cost of $5.7 billion. “By the end of this year, we expect the total approvals to reach about $7.5 billion. In 2019, we are targeting incremental approvals of about $7-8 billion said Mr. K.V. Kamath in the statement.