South Africa is set to receive US $600m loan from BRICS, the New Development Bank (NDB) in bid to boost its renewable energy sector.
According to NDB President K.V. Kamath, the aim of the bank is to grow sustainable infrastructure in the continent’s most industrialized economy and to develop the country’s renewable energy. In bid to do so, Kamath added that NDB will ramp up the efforts with two further loans with the second loan set for critical infrastructure.
Sustainable development initiative
NDB, backed by Brazil, Russia, India, China and South Africa, started operations in 2015 to support infrastructure projects and sustainable development initiatives in emerging economies. In May, the NDB announced a US $200m loan to Transnet SOC Ltd., the state-owned South African ports and freight operator, to rehabilitate container terminals in Durban on the country’s east coast.
“We are trying to catch up with our lending to South Africa. It took us a little time to understand how to go about getting projects in South Africa, but I think we are slowly going up that learning curve. Our aim is to be equitable among our five members, we should be lending around $800 million in each nation and I hope this year, we will hit that number,” said Kamath.
Renewable energy projects
Moreover, the NDB also activated a US $180m loan to Eskom Holdings SOC Ltd. that had been dormant since 2016 and which will be used to build transmission lines and a substation for the Soweto area to integrate renewable-energy projects from independent power producers.
Leaders of the informal BRICS club of nations will be gathering in Johannesburg next week for its 10th summit.