Pretoria – President Jacob Zuma has hailed the establishment of the first BRICS Development Bank as "an everlasting legacy that will change the face of global economics and the face of all the developing world for the better”.
The establishment of the bank was one of the outcomes of the Sixth BRICS Summit which has wrapped up in Brazil.
President Jacob Zuma, who attended the summit along with the Minister of International Relations and Cooperation Maite Nkoana-Mashabane, the Minister of Finance Nhlanhla Nene, Minister of Trade and Industry Rob Davies, Minister of State Security David Mahlobo and the Minister of Energy Tina Joemat-Pettersson, returned to South Africa this morning.
At the summit, BRICS leaders signed an agreement establishing the New Development Bank (NDB).
The bank is aimed at mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies, as well as other emerging market economies and developing countries (EMDCs) continue to face significant financing constraints to address infrastructure gaps and sustainable development needs.
According to the Presidency, the bank is expected to have an initial authorised capital of US$ 100 billion. The initial subscribed capital will be of US$50 billion, equally shared among founding members.
The first chair of the Board of Governors will be from Russia, while the first chair of the Board of Directors will be from Brazil. The first President of the Bank will be from India.
Leaders of the BRICS nations also agreed that the headquarters of the bank will be located in Shanghai and the New Development Bank Africa Regional Centre in South Africa concurrently with the headquarters.
The BRICS’s Finance Ministers have been directed to work out the modalities for its operationalisation.
"Although we wanted to have the headquarters in our country, I think South Africa, on behalf of the continent of Africa, got a good deal out of the decision about the bank," said President Zuma.
He added that the decision was reached through consensus, looking at all the advantages and resource positions of all BRICS member states.
President Zuma said BRICS countries have added a refreshing and enlightening dimension to the management and direction of the affairs of the world for the benefit of developing countries.
While in Brasil, the President held bilateral meetings with Indian Prime Minister Narendra Modi, Russian President Vladimir Putin, China President Xi Jinping and the host President Dilma Rousseff of the Federative Republic of Brazil. – SAnews.gov.za
