In a significant address, President Dilma Rousseff, the head of the New Development Bank established by BRICS nations, highlighted the institution’s potential in assisting African countries to confront their pressing challenges.
During her speech in Johannesburg, the former Brazilian President emphasized the mutually beneficial partnership between BRICS countries and Africa. The New Development Bank, formed collaboratively in 2015, is positioned to provide financial support for critical African initiatives, with a particular focus on physical and digital infrastructure projects as well as educational programs across the continent.
President Rousseff underlined the vital role that the New Development Bank could play in spearheading projects aimed at tackling Africa’s urgent challenges. Despite Africa’s foreign direct investment (FDI) share increasing from 4.9% in 2010 to 8.8% of global FDI in 2021, she noted that substantial room for growth still exists. Rousseff emphasized the importance of continuing progress.
She further stressed the necessity of reinforcing payment mechanisms, introducing local currencies, and innovative financial tools. These measures could contribute to establishing a more inclusive and multilateral financial ecosystem, fostering greater participation from African nations.
President Rousseff also highlighted the significance of collaborative infrastructure ventures among multiple countries. She pointed to Africa’s abundant untapped hydroelectric potential as an opportunity for joint projects, indicating the potential for mutual benefits in this sector.
In her conclusion, President Rousseff positioned the New Development Bank as a potential leader in addressing Africa’s immediate challenges. The commitment and vision shared by BRICS countries underscore its potential impact.
Photo Source: Google
By: Montel Kamau
Serrari Financial Analyst
24th August, 2023
