Godongwana banks on New Development Bank to bridge gap in emerging markets

CAPE TOWN - Finance Minister Enoch Godongwana says the New Development Bank (NDB) must do everything it can to preserve its integrity and its financial sustainability. 

With the so-called BRICS bank now in its 10th year, Godongwana said member countries need to connect around common development interests. 

He believes the bank can help developing and emerging markets to bridge the large infrastructure financing gap that has been impeding growth and development on the continent.

READ: Indebtedness of developing nations a barrier to sustainable development: New Development Bank

The bank's governors met in Cape Town on Friday as Transnet signed its third loan from the institution to get the ailing logistics sector back on track. 

Godongwana said the NDB should strongly affirm its commitment to global partnership and cooperation to ensure no one is left behind in the journey to development.

READ: Transnet signs R5bn loan with New Development Bank to modernise freight rail, logistics sector

He said as more African countries become members of the bank, it could play an instrumental role in the provision of much-needed infrastructure needed to attain sustainable development. 

"However, if the bank is to continue advancing the interests of the developing world and address challenges such as renewable energy, infrastructure development, digital access and job creation, then the NDB must make a concerted effort to speed up disbursements of approved projects," said Godongwana.

Transnet's R5 billion loan brings to 14 South Africa's loans from the bank since 2016 for transport, clean energy, water and sanitation - and digital infrastructure projects. 

Godongwana said the bank should better align its development cooperation with the national priorities of the countries it serves.