New supporters for BRICS development bank

Brazilian President Dilma Rousseff, Russian President Vladimir Putin, Indian Prime Minister Manmohan Singh, Chinese President Hu Jintao and South African President Jacob Zuma. Photo by: Roberto Stuckert Filh / Blogo do Planalto / CC BY-SA

African countries are the latest to back the idea of establishing a development bank led by Brazil, Russia, India, China and South Africa. 

African countries voiced their support for the bank’s creation in the ministerial declaration adopted at end of the Fifth Forum on China-Africa Cooperation in Beijing. The bank, they noted, could supplement existing multilateral and regional institutions that finance global growth and development.

A working group jointly established by the BRICS is currently working on feasibility studies for the bank. It is expected to report its findings at the next BRICS summit in South Africa in 2013.

Africa is a likely major destination of aid from the BRICS bank. China, in particular, is keen to maintain a strong presence in the continent. Chinese President Hu Jintao, for one, has pledged to double the amount of loans his country will provide to Africa. The loans will go toward Africa’s infrastructure and agriculture development — as also confirmed by an action plan adopted by African and Chinese leaders at the Beijing meeting.

Other priorities for cooperation outlined in the action plan include enterprise development, trade, tourism, human resources development, health and climate change, and environmental protection.

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About the author

  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.