Gigaba: SA will benefit from Brics Bank

The founding members of the bank - Brazil, Russia, India, China and South Africa - have brought in a total of $1 billion of initial contributions.

President of the NDB, Mr. Kundapur Vaman Kamath and Maite Nkoana-Mashabane signing agreements during the official launch of the African Regional Centre of the Brics New Development Bank in Sandton. Picture: GCIS.

JOHANNESBURG - Finance Minister Malusi Gigaba says that the opening of the first regional centre of the Brics Bank is important for South Africa as it will assist with additional funding for large infrastructure projects.

Gigaba was speaking on the sidelines of the launch in Sandton.

The founding members of the bank - Brazil, Russia, India, China and South Africa - have brought in a total of $1 billion of initial contributions.

In 2015, President Jacob Zuma signed into law the New Development Bank Special Appropriation Bill, which allowed South Africa to contribute R2 billion from Treasury for the country’s first investment in the bank.

Gigaba says that the country will benefit from the existence of the bank’s regional centre in the country.

“It means that after the opening, we’re ready to start operating. And in the near future, the New Development Bank as it accepts new members, it will, therefore, be in a position to provide loans for infrastructure funding to other African countries that will join as members.”

(Edited by Zamangwane Shange)