NEW DEVELOPMENT BANK
Gigaba vows Brics bank will ignite growth in SA
Gigaba hails the New Development Bank’s presence in the region as a 'milestone' that will ignite growth and lead to job creation
As Brics countries (Brazil, Russia, India, China and SA) celebrated the launch of the African regional centre of the New Development Bank (NDB), South African taxpayers can expect to contribute $2bn over a seven-year period. The bank, which lends funds to its member countries exclusively for now, aims to contribute to the acceleration of infrastructure investment in energy, transport, water and other productive sectors. SA has already requested and received a R2.4bn loan from the bank for Eskom’s renewable energy projects. However, the loan has since been temporarily halted over fears it would use the loan for activities not agreed to with the bank in its borrowing terms. The loan made to Eskom in April 2016 was based on the assumption that the power utility would use the funding for transmission lines to connect 500MW of renewable energy from independent power producers to the national grid. Eskom subsequently refused to sign new offtake agreements with renewable-energy projects in...
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