The New Development Bank (NDB), formerly known as the BRICS Development Bank, approved a $ 300 million loan to South Africa.
The amount is intended to finance projects aimed at reducing carbon dioxide emissions and improving energy efficiency.
Financing that comes on time because Nelson Mandela’s country is trying to diversify its energy mix in order to reduce its dependence on coal-fired power plants.
The loan will be provided through the Southern African Development Bank, according to an announcement from the institution.
Since 2011, the BRICS, which account for almost half of the world’s population and more than 20% of the world’s gross domestic product (GDP), are meeting for an annual summit. This week, the meeting is held in Johannesburg, with the presence of the president of the Republic of Korea, Xi-Jiping, and the first Indian, Marenda Modi, among others.
The group, which then had four countries, was joined in 2011 by South Africa and now includes Brazil, Russia, India, China and South Africa.
As a reminder, last May, the bank granted a $ 200 million loan to Transnet SOC Ltd., a South African port and cargo operator, to rehabilitate the Durban container terminals on the country’s east coast.
Note that the Shanghai-based bank will also start raising funds and lending in South African rand to help protect its clients from currency risk.
