Investing in a sustainable future for emerging markets around the world will be the key focus when political leaders and business professionals gather in Cape Town from Thursday, August 29, for the Ninth Annual Meeting of the New Development Bank (NDB).
The bank says its annual meeting will facilitate discussions on how it can finance infrastructure and sustainable projects in emerging markets with enhanced effectiveness.
The programme is set to include thought-provoking panel discussions as well as presentations on cutting-edge financial systems for sustainable development.
What is the NDB all about?
Formed in 2015 to fund development projects in the BRICS countries (Brazil, Russia, India, China and South Africa) the NDB has already forged a proud legacy through numerous investments in these regions.
In the past nine years the NDB has approved over 100 projects in its member countries around the globe, amounting to investments of more than US $36.5 billion (R649 billion).
The bank’s first loan for South Africa was approved in 2016 to facilitate renewable energy development and since then it has supported 13 projects that amount to R151 billion.
The projects invested in thus far focus on addressing critical infrastructure needs, such as water, energy, transport and logistics networks.
Chief among these initiatives is the second phase of the Lesotho Highlands Water Project.
With a financing value of R3.2 billion, funded by the NDB and managed by the state owned Trans-Caledon Tunnel Authority (TCTA), this is the largest bi-national infrastructure project ever undertaken between South Africa and its land-locked neighbour, the Kingdom of Lesotho.
In the long run the project is set to increase the water yield of the Vaal River Basin by almost 15%, not only creating improved water security for our densely populated economic powerhouse Gauteng, but also benefiting the North West, Free State and Mpumalanga provinces. Lesotho, in turn, will benefit from hydro-electric power generation.
“This project exemplifies NDB’s dedication to supporting projects that promote access to clean water, while prioritising sustainable management of water resources,” said NDB Vice President and COO Vladimir Kazbekov at the signing ceremony for the loan agreement in August 2023.
TCTA Executive Manager Nhlanhla Nkabinde said the second phase of the project was a testament to what can be achieved when nations unite with a vision for a brighter and more sustainable future.
“The very essence of this project is to breathe life into our economy, and most importantly, ensure that every citizen who is impacted by the Vaal River System, which the project augments, has access to life’s most vital resource.”
Sustainable infrastructure projects throughout SA
Later in 2023, the NDB and Development Bank of Southern Africa, also signed a $100 million (R1.78 billion) agreement to finance a number of sustainable infrastructure developments in South Africa.
These include clean and renewable energy projects as well as social infrastructure, such as affordable housing and student accommodation, as well as digital infrastructure.
Through initiatives such as these, the NDB is facilitating the participation of the private sector in addressing infrastructure backlogs and upping investment in new initiatives.
“Multi-stakeholder cooperation is indispensable to close the immense infrastructure financing gap in BRICS and other EMDCs,” said the NDB’s COO Vladimir Kazbekov.
“Given this, NDB strengthens cooperation with peer multilateral development banks, national financial intermediaries, and development finance institutions, such as DBSA.”
The DBSA said it was committed to working with both local and international partners in order to accelerate economic growth in South Africa and other countries.
Further afield, the NDB is also exploring financing options for energy, airports, water and social infrastructure in other parts of Africa.
In February the bank sent a delegation on a four-day visit to Egypt to discuss financing opportunities for infrastructure development in that region. This follows Egypt joining the NDB in 2023.
The delegation also met with prominent business leaders to explore collaboration in the private sector.
“NDB is planning to announce both sovereign and non-sovereign operations in Egypt this year within the framework of Egypt Vision 2030 and our General Strategy 2022-2026,” Kazbekov said.
A crucial platform for discussion
The NDB’s Ninth Annual Meeting will be held at the Cape Town International Convention Centre from August 29 to 31.
“The Annual Meeting will serve as a critical platform for discussions on how NDB can finance infrastructure and sustainable projects in emerging markets and developing countries with enhanced effectiveness and excellence,” the NDB said in a statement.
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